A Real Estate Project Without Sellers

Since a couple of years ago, we have been emphasizing the concept of emotional urgency. According to this vision, a consumer voluntarily purchases a product because he associates it with a better foundation of life. It is not necessary to be pushing a product towards the consumer, he is self-motivated to make the purchase.

This fundamental transformation has given the basis to propose a structural change in the business model of real estate projects. I have insisted that we would have (had) to improve our marketing execution, to the point of giving more weight to it than we do to sales. Without a question this comment may be controversial, but it is a line international trend in neuro marketing.

A couple of clients have surprised me using my recommendations by proposing new work schemes. Specifically, one of them proposed to replace the commission structure by a fixed salary for the sellers. They set this salary high to attract the right talent. The result was a total cost of 0.6% of the value by sales and off-take above the average (the product, clearly, played its part).

However, this was not the most extreme case. In another instance where we have the honor to collaborate with Ignacio Cadena, they decided to eliminate the sellers of the process. This project claims to be completely disruptive in the way it is approaching to the market. But how does a project without sellers work? The project includes a world class showroom that features a hostess and a paperwork assistant. The hostess is a high-profile person that is familiar with the technical aspects of the product and can help the client clear any doubts he or she may have during the process. The assistant would be there to help the client when he has made the decision to buy the unit. From that moment, he becomes an element of support for the buyer.

And who sells?

The intention of the strategy is that the customers themselves are the ones selling. The only commission in the project would be the reference fee. Instead of paying ridiculously high sums of money (which regularly happens) to sellers, every client can receive a commission from the processes attended by themselves (of course with the hostess and concierge support). Since they are buyers, they know the project thoroughly. They will invite friends and acquaintances they think will like the project as well, and in that way, create a community.

We all know that this formula could not apply to all segments, geographies or moments. However, every day we come closer to the moment when the roles of sales and marketing will completely change.

* The original idea of the project without sellers is credited to Master Ignacio Cadena who has been an important mentor in our understanding of conceptual marketing.

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