How to Increase Your Transaction Value


Key profit driver #4 is to increase your transaction value. Does anyone use a menu of services? Or different commission rates? I’ve seen people charge more for more services, but this does not always work. Sometimes people will ask why you’re trying to sell them a service that you don’t believe in when you try to sell them your lowest-tier package.

We have found that most people, when given a menu of packages, will always go for the medium package. It’s not too fancy or expensive, and it’s not too simple and ineffective. This is something that you should keep in mind if you’re integrating multiple different tiers for pricing.

My average commission is below 6%, and we always ask for 7% but rarely ever get it. When we asked for 6%, we almost always got it. People always want to ask for less than what you want, so charging more for a commission is actually a way to increase your transaction value. 

Ryan Anderson also noted that you can charge a higher percent and then offer a dollar-amount discount. On a $300k home you could charge 7% but offer a $1,500 rebate and you’d still be getting more than 6.5% on that listing. 

Upfront fees and transaction fees are also something to consider. Asking for money before you’ve done any work is a big mental move. There were times when I ‘waived’ these fees and people just couldn’t believe that I had done that for them. You have to be careful with upfront fees, though, because different places have different laws for these. 

By changing your commission you can radically alter the amount of money that comes into your business, and the smallest change can make the biggest difference.

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