There are 2 or 3 people on here that seem to only have one thought on there mind: Discounters are better than traditional.
At first it was mildly entertaining to read these debates but now it is down right irritating.
For one I don't care. I work for a traditional full service broker who is making a name for itself and we're good at what we do.
If you work for a discounter and are good at what you do then congradulations.
Different strokes for different folks.

Oh boy.....
While I agree with everything you said and believe there is enough for everyone, did you have to stir up the hornet's nest?

Here we go again...

Discounters are people who lack creativity, talent, imagination, and intelligence. In the absence of those qualities, what is there left to compete on?

Price.

As far as I'm concerned, the customers who are drawn to them are low-rent Dollar Store types anyway.

In short, they deserve each other and can have each other.

Discounting, in any industry, is based upon a single concept: lower the price and increase volume. It is simple supply and demand right out of freshman Economics.

There exists discounters in every industry. No discounter has ever put 100% of their full service counterparts out of business and vice versa.

Even though I am a "full service" agent, I employ a discount brokerage when trading securities (Scottrade).

Navarac- Does the founder of Scottrade lack creativity, talent, imagination, and intelligence?

Also- I designed a discount model that, if implemented, would blow the socks off most discounters in today's market (ok, this is my humble opinion). I guess I lack creativity (even though this model is very creative), talent, imagination, and intelligence(am I stoopid?) just for having the audacity to come up with such a model.

"Discounters are people who lack creativity, talent, imagination, and intelligence. In the absence of those qualities, what is there left to compete on? Price.
As far as I'm concerned, the customers who are drawn to them are low-rent Dollar Store types anyway. In short, they deserve each other and can have each other."

navarac, are you having a bad hair day? After reading some of your posts, I don't think that you have any creativity, talent, imagination, or intelligence either.

whether it's discount or full service models,it comes down to 2 things 1.Percieved value 2.Who does the best presentation to convice them to use you.

I have seen agents do it all.

Some of my friends go cheap,work 80 hours a week,make great money but there health and family life is in the crapper.

Other agents i know go cheap to acquire inventory hoping to double end the deal and just use there commission to fuel there investing where they make alot more money.

There will always be people that are cheaper and that's great,there are some people who want you to handle the details and some that want to save and handle it themselves.

I personally charge 7 percent and i explain there is no such thing as an average commission rate,I explain everything i do for the price charged and the consumer can either agree or hold out for something cheaper.

If a consumer is trying to come down on the commission they are approaching it from the mindset of"all agents are the same therefore we want the cheapest price,the agent that can negotiate and show value to the consumer will get a higher commission.

When anyone asks about commission i say it's 7 percent quick and confident,then i am silent and await there response.Usually they just say okay when they see i will not negotiate.

Apples and oranges. Stocks are a commodity. Real estate is not.

As far as your "model", I can only yawn, because
everybody has some cockamamie model to "blow the doors off the world". Salesmen are often dreamers. Usually pipe dreamers. If you have "the next big thing", implement it, make billions, and get back to me...

I don't like cheap people, in life or in business. Being "cheap" is one of the worst character flaws you can have. Really ugly and unattractive. If the discount brokers are servicing that market, more power to them.

yawn

for ONCE i agree with Jflynn, yawn

Navarac, people that use you must want to get ripped off because you haven't shown a single reason why you are any better. You talk service but we don't know if it's got any real value. In general I know you get what you pay for but I'm not convinced that many of the agents here can deliver on real value.

I'd even as far to say that most so called full service agents are giving LESS SERVICE than many of the discounters.

I don't have a problem with those cos that advertise 1% and expect people to pay 1% plus 2-3% more but i do have a problem with those that advertise peolpe can sell their house for 1% and only one percent knowing full well that that won't get people max exposure.

gawdzzzla,
It appears that you have drank deeply from the "discount" Kool-Aid. If the work more get paid less approach works for you I think that is great unless you also expect me to work for less as well. That is why I always use an EBA which spells out my compensation. That way I am not bound by the other agents definition of of fair compensation.

As is the case with most defenders of the Discounter Kool-Aid you seem to think that the best offense is to force full service agents to justify what they charge. That is like being forced to prove yourself innocent but as we know it is all smoke and mirrors.

When an agent cannot compete on their skills and knowledge alone the only avenue left for them is to charge less than the other guy.

Ever asked yourself why you do not see lots of "Discounters" in the Commercial end of our business. I guess if you do commercial you either learn to compete or move to on. Just some food for thought.

Amazing! The market is changing and its ocurring right before your very eyes! Is it any wonder why this business is fragmented?
There is a place for both traditional and discount brokersAlbeit, many of you refuse to believe that, which is your opinion.To each his own, but to take a stance as Mr. Falter, does tells me, that Realtors like that are what we term "Old School". During the last ten years our business has changed so much. So has each and everyone here who has a business model for success! Each transaction is different than the other as well as each listing.I strongly suggest that some of you awaken from your deep coma`s..
Best of Luck to everyone.

"""""Originally posted by Paul Oaks:
It appears that you have drank deeply from the "discount" Kool-Aid. If the work more get paid less approach works for you I think that is great unless you also expect me to work for less as well. That is why I always use an EBA which spells out my compensation. That way I am not bound by the other agents definition of of fair compensation. """""


So somehow you seem to think it's okay to call anything new to the industry defenders and that anything new is work more get paid less approaches? OH MY.

I'm asking you and everyone that calls other people work more get less people and discount cos will work for food realtors to defend your value. Why do you feel it's appropriate to attack discounters by claiming all of them give less service or work more for less pay but not appropriate for others to ask you to prove your worth? Is it because you charge more for less service?

Can you show us some real value? I'm not talking about a list of services that people might not need I'm talking specific services that you offer that a 1-3% doesn't or can't offer.

I use EBA too so I don't understand the pt of your arguement but I do know most agents don't which is why when a listing agent thinks they can get full exposure for 1% it's reaching with cold fingers.

I'm not sure what pt you are defending but if I drank too much discount kool aid then you must have drunk too much full service poison.

I love it how everybody claims they welcome every business model, or that it's great if someone can make more for less, or that less can give more but it's ridiculous and a pundit to the industry to have the same people fight like babies over new business models. I can say one that is these new models and more to come will keep coming up with ways to improve what they do.

So for you pay more get less service providers be prepared to show your real value.

Why don't realtors spend more time helping each other create real value for people and less time on accusing others of drinking Kool aid poisons?

The pay more get less service realtors will have to show their worth in the days ahead just as the pay less get less service. I know if I have to pay more to get less I'd choose paying less. But if I have to pay more to get more then it makes perfect sense to pay more. Seems really simple.

Not to be nitpicky, but commodities are considered a replaceable and renewable homogenous product sold on the open market by producers to other business who then refine or remarket them.

Since stocks are not readily renewable (there is usually a fixed number of shares), they are not a commodity.

Maybe what you meant to say is that they (stocks) are a security. Securities are loosely defined as a financial instrument backed by ownership in a firm.

Since we own homes and they are considered financial instrument, real estate is nearer in definition to a security than a commodity (real estate doesn't grow on trees).

StockBROKERS and Real Estate BROKERS (as well as other types of BROKERS) are essentially the same.
We facilitate the purchase and sale of an asset (or even a service) that is not ours between more than one non-related principal. We do this for a fee.

So, I am right. You are wrong.

By the way, Navarac- You need to get a sense of humor or you will have a stroke or heart attack. My comment was intended to be tongue in cheek since most discounters, as well as some full service brokers (I have seen your posts where you claim to have some sort of "secret" marketing tool), think they can reinvent the wheel.

Any better mousetrap that is invented in this industry makes it to market in record time. A "magic button" does not exist. This includes "top secret marketing", various discount methods, etc.