To each their own.  I keep my head down and eyes on my own paper.

To each their own.  If buyers can't see the value in working with me (a top 1% of all agents by sales volume in Tucson, AZ) at no costs???  Then I am not doing something right, I am not going to pay buyers to work with me.   Every now and then I have reduced my commission to get a deal to "work" and rarely the client appreicates it.

Give an inch and they will take the entire commission if you let them.

Being swamped with clients is not the same as being swamped with buyers. Being swamped with buyers is not the same as being able to say that you are running a long-term business that makes you happy, and allows you a comfortable living.

If all you do is deminish your businesses self-worth by discounting, in the end all you have is a business where you are always discounting to find the next client. That model could be very expensive, both in loss of current revenue, and the cost to keep your "name" out there over the long-term.

it's all negotiable but I have seen too many agents negotiate their way out of the business.

Richie Alan Naggar well, we have Starbucks and Dunkin Donuts!

It's up to the consumers to decide what they want to experience!

You want to be busy at all times or busy only a few times of a year.

We have many agents do one sell a year.   Zip, RF, Next Genration etc are all discounted brokerages.

I personally don't have a problem with it. Commissions have always been negotiable. It is really the francises and big name companies that have tried to regulate commissions. In every business, there are always those who are hungrier than others.

its a numbers game. its simply a math equation. until.... those folks refer others, and he is busy... and cant afford to do so many at so little..? or he gets a team. its not so much how much he charges, but how much time and effort he has to put toward it.. it being the deals

I just finished Brian Tracy's "Selling Higher-Priced Products Against Lower-Priced Competition." He's goes over this exact topic quite well in this audio program, why it's not a good idea, and what happened to him when he discounted his services as a speaker. 

Buying business, is never a good policy for any profession.

Once you cheepen yourself yoiu may have a lot of people coming to you, but there are some who will wonder if you can do the job.  I have run into this question before about other agents

Richie Alan Naggar "commission reductions" imply a reduction from some specific amount.  IMHO no such thing - and the public has wised up to those agents who want commission x and who attempt to convince sellers that print marketing is expensive (which it is) and benefits the seller (which it doesn't).  Eliminating expenses allows more flexibility in establishing one's pricing model.  Some might say what some described as "reduced" are actually "reasonable", and the number reduced from as "exorbitant".

Richie Alan Naggar Who provides the better service, the agent who works five deals or the one who works ten deals for the same amount of income? The agent working ten deals is swamped because he/she has to make it up in volume. Buying business never works.

Good morning Richie. There is nothing wrong with it, if that is what is best for him. That is why we have a free enterprise system and all of us can play the way we want in the sandbox.

Everyone needs to find what works for them and their preference may not suit another agent's needs. I have reduced my commission to help a deal close but have never made it a general practice.

Each case, each client and each sale is different. I judge by difficulty, type of property, price point and what i will have to put in for time, resources and money. I never say never but think each one out and sometimes yes and sometimes no. 

We're in a business today in which we just need to keep the cash register ringing.  The market has changed and making a living is tougher day by day.  Keep your business to yourself and do what it takes to survive.  The economy is tenuous at best and tomorrow is not guaranteed.

I guess it would depend on how much I am reducing my commission.  I work hard to keep contracts together and taking care of every detail to make sure it gets to closing.  I think I am worth every bit of that commission.

I say good for him. Way to work the system.

Being swamped may make his quality go down as well as the his rates.  Might come back to bite in the long run.  Mark

Good Morning Richie,

I've read alot of comments from people saying "absolutely, no way" and that it tarnishes the image, reputation, and value.  However every deal is different.  Making a commission reduction to keep a deal together - if everything else is exhausted - might be the only option.  We would all like to get a full commission all the time but I dont believe for an instant that there isn't one agent that has never ever had to make an allowance at some point.  Sometimes the market drives commission amounts.  If the entire agent community is charging 2.5% on the listing side, and you want 3% - you need to be rock solid on the value proposition for the seller otherwise it's simply mathmatics.  Sure you can argue that you can sell it at a higher price so the additional commission amount to be paid is worth it but what if the other agent sells it at a higher price?

I just wouldn't make a habit of it.  Also there are agents that work for brokerages that market themselves as only taking 1% on their client's side so it's a marketing or a business model.

I've seen agents that do this (a lot) once they make their company nut for the year.  Effective strategy?  Don't know. I guess it's all individual choice.  I prefer not to reduce my commission. I work too hard for it.

I often work with repeat buyers and I will make concessions if I feel that there is a good reason to do so (especially on the sell side).  My referrals are worth the dollars that they save on the transaction every time.  

"..to make deals work.."

Those are the operative words. If those words are accurate, this is not a value position to generate new business. 

So how does CLOSED business lead to a flood of new business? I would spend my time researching how past clients are driving business his way.

You actually can use the same principle...and retain your value.

There are numerous business models for agents to use.  I don't worry about other agents.

That's one of the beauties of working for our agency.  The agent can negotiate his/her commission to get the job done.  

 Good Friday morning Richie. If this model works for him why not? There is an agent in town that advertises, "I will sell your house for free." Of course, there is a catch. However, his team of seven agents stays extremely busy.

Personally, I have no issues.  I've chipped in my commission on my last sale (I was representing both sides) to make the escrow close.  I have no problem showing lower commission listings.  I'd rather have a high percent of something than all of nothing.