Just in case you've been hiking to Mount Everest basecamp with real estate mindset coach Jet Xavier and suffering the humiliation of no signal for the last few weeks, I'll greet you with the news that UK based real estate discounter Purplebricks has shut up shop in Australia siting a tough market and poor consumer support.
In a poorly researched and executed advertising frenzy since launching in Australia a few years ago, PB blew $20 million trying to buy market share by selling a message nobody wanted to hear.
Now I don't know about you, but if I had $20 million to blow on marketing, I can think of a hundred better ways to invest it.
But I believe top agents have something far more valuable and that's a formula for helping their sellers sell above market value and the agents I interview right here on the show are not only experts at helping their clients sell for more, they're also more than happy to tell you how it's done. All you need to do is go searching thru my episodes and you'll discover how agents like Marcus Chiminello will earn $4.3 million this year.
Here's a guy who actually grows his GCI year on year regardless of market conditions. If you're new to the show, you'll find a bunch of top agent interviews and great ideas you can start using today.
Purplebricks arent the first fee discounting real estate company who think they know what real estate consumers are looking for and they won't be the last.
And I want to be clear that it's the discount fee real estate services model I'm attacking in this episode not so much the brand.
Obviously, there is fallout following the Australian exit. Jobs are lost, dreams are shattered and careers disrupted and if you're a former Purple Bricks agent, I mean you no disservice and this is by no means a personal criticism. I can understand you're upset and perhaps even angry at what's happening. But if you're committed to staying in real estate, can I suggest you hear my out and see if my argument resonates with your business and marketing compass... and who knows? Perhaps these are event will trigger a positive change in the direction of your career.
Long story short, it's the PB model that troubles me for the simple reason that sellers are under-represented and their homes run an increased risk of being undersold.
I'm going to get into the 5 main reasons why PB failed, why the discount services model is in intensive care and the big marketing opportunities agents have and how you can get your point of difference message out to sellers in your area.