Everyone knows that commissions are negotiable, up as well as down. So, why is it that every time the discussion comes up with a seller, they want to know how much we will cut ours? Despite that, there are folks out there today that are getting above average commissions. Others are maintaining their “preferred” commission. While still others are getting beat up on a daily basis. What’s the difference among the three scenarios? It’s a combination of skill, a willingness to try and a little “chutzpah.” Before we tackle the how, I believe that we must look at the reasons behind the prevalence of commission cutting. Here’s some food for thought.

With the growth of the Internet and the dawn of on-line, do-it-yourself realty, sellers feel they must bring up commission. It’s a matter of principle. If they can get it for less, and they can, shouldn’t they ask? Too often, we are thought of as being just like other competing companies. They’ve looked at one, and they think they’ve looked at them all. Only commissions can distinguish one from another.

Nothing can be farther from the truth. That’s what must be proven to create the credibility necessary to warrant the commission we deserve. Often, the battle is lost even before it gets under way. The seller asks for a cut, and the agent agrees...simple as that. When I’ve asked agents why they don’t give their all to overcome the objection, they’ve said that if they don’t take it at a cut, someone else will. Or, they needed the listing, or their broker said to take it no matter what, and on and on.

Other reasons why sellers ask are; they need every penny they can get (protecting their net;) the other Realtor® said they would take it for less or they feel that the commission is the most important thing to them. They are bargain basement shopping.

In the last example, there is little that can be done. If you and your company provide exemplary, hands-on service, and that carries no weight in the seller’s decision to list, then you are fighting an uphill battle. Pack up and leave. You can’t list them all, and you don’t need them all. Remember, if it is not salable, it’s a liability, not a listing.

However, before you leave, try this. Mention to the sellers that if commission is their only concern, and the other company said they would do it for 4%, don’t let that company off the hook that easily. If they will do it for 4%, perhaps they will do it for 3%, and so on. The best way to put a halt to ridiculous commission cutting is to help put the culprits out of business. It doesn’t take a rocket scientist to know that without net profits, a company will die.

If the seller’s concerned about net, and they are also looking for an agent/company with high service standards, you have a good shot at handling that scenario with commission cutting objection handlers.

There are a few things that you must keep in mind before you tackle any “commission-ectomies.”

1. Know your limits. Don’t go on the appointment planning on playing the seller’s version of, "The Price Is Right." That shifts the control away from you.
2. Be prepared to handle it should the question comes up. If you blink, you’re in trouble. As a matter of fact, work on getting confident enough to say, “Oh, I’m so glad you asked me that. It gives me the chance to prove to you that you’re already talking to the best agent for the job.” Then wow them!
3. Know your company’s policy on commission cutting. If you are not sure, find out. It could cost you dearly if the company will not share in the reduction.
4. If you don’t believe that you are worth it, the seller never will. If you lack confidence, role play with a buddy, one who will give you kind but real feedback, and keep at it until you sound and feel self-assured. A few questions to ponder: Why are my company and I worth a full commission? Why is it in the best interest of the seller to pay a full commission?

Let’s consider how you present the message, as well as the message itself. You’re on “stage” when on a listing appointment. Use the skills a great presenter uses all the time. Be sure to smile for all you’ve got. Call them by name and sound sincere and empathetic. Tell them what’s in it for them (it’s not about you,) communicate a willingness to go the extra mile to help them achieve their dream and look like a million dollars, even if the power company is about to turn off your electricity.

Published: April 9, 2001

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Marylyn B. Schwartz, CSP, is a noted expert in real estate and corporate sales training, team development, customer care and diversity issues. She is president of TEAMWEAVERS and was a trainer for the Floyd Wickman Courses©, Sweathogs® program for over five years. Marylyn is also an author and Business/Life Coach. Contact her at , or visit her website at MarylynBSchwartz.com.