Discount Agents and Discount Coaches

Mike Ferry shaking hands with another Real Estate Agent at an event

You are a full service … high quality professional Real Estate salesperson. You secure a potential Seller lead and you do your job the way it should be done. You pre-qualify the Seller … send out the Pre-Listing Package … call and confirm. They have read it and you show up 5 minutes early of the appointed time.  You are dressed professionally … you have done your market research and you make a professional sales presentation. You present your value proposition to the potential Seller and what you say makes perfectly good sense and it is what needs to be done to get the home sold. You feel you are 90% there …to get a contract signed at a fair price and at your commission rate.

Then the fun begins. Your CMA and market stats show a price of $475,000 and they, of course, want $535,000. At this point, you are not sure why they want $55,000 more than what the value is or why they now say to you that instead of 6% they are offering a gross commission of 4%.

You are a professional and a good portion of the time your skill set is going to get the listing at close to your price and at the commission you offer. Why? Answer … What you are offering to do makes perfectly good sense to the Seller and they can see the value in how you work and what you say you are going to do and because of your professional presentation you assume you are going to get the listing.

HOWEVER, the agent who is going to discount the commission and list the property way over-priced also makes a compelling offer to the Seller. You are going to win some and you are going to lose some.  Agents who overprice properties and discount commissions cannot offer the quality of service that you can offer. Yet, they still win while the Seller loses.

There is a very basic business concept that we have to look at here. The higher the quality of the benefits to the customer … the more benefits the customer receives … the more we get paid for the service that we offer.


Everybody is looking for a deal and this is certainly understandable. Sellers look for a deal and agents look for a deal when looking at coaching. Whereas Sellers look at the commission cost instead of the value proposition that they receive, agents often look at the cost of the coaching versus the benefits that they receive from the coaching company.

When you look at it logically versus emotionally, the stronger the benefits … the more you receive and the more you receive the less the actual cost of the coaching service you receive.

For example, the MFO coaching is either $650 per month or $1000 per month. There is a long list of defined benefits with each of these two services. The cost is high and the value to the agent is high. The return on the investment to the agent is in direct proportion to the use of the services that the coaching company offers.

Question … can a discounted coaching company possibly offer the same list of benefits as a full-service coaching company … the answer is No. If they do, they are not going to be in business for a long period of time and that is not the type of coaching company the smart agent gets involved in.

My belief is if you offer the high-quality service to the Seller and they understand the value of your service, they will pay you the commission that you deserve. On the other hand, a company or agent who discounts commissions dramatically is going to be limited in the quality and quantity of service that they offer.

It is the same with a coaching company. If they are offering you substantial discounts and low prices for the services that they offer, it is going to be hard to believe that they are going to the quality of service that a company like MFO can extend.

Think about this as you develop your presentation skills and think about this when you choose a coaching company.