Summary
Instead of rejecting low-price leads, charge a flat minimum fee ($4,000). Positions the agent as premium. The seller pays the fee — the buyer never writes a check. Solves the "not worth my time" problem on sub-$150K transactions that plague rural agents.
The Problem
Rural agents routinely get $80K-$160K leads. At 2-3% commission with Flex/OpCity splits, the agent might net $1,000 or less. Common reaction: reject the lead. But that tanks Flex performance metrics and wastes opportunities.
Real example from the call: Joey had a $160K transaction with a $500 inspection impasse. Couldn't pay it out of commission because at 1% fee there was nothing left. Deal terminated. Hours wasted.
The Tactic
Fred's coaching framework (currently being taught to rural agents):
The pitch:
"I'm the most expensive buyer's agent you're going to talk to because I'm the best in the area. I've got a VIP buyer program. I have a flat fee — it's $4,000. You're not going to pay it. The seller's going to pay it. If they don't pay all of it, I'll waive the rest. You will not have to write me a check at closing. If you want a 2% door opener, call somewhere else."
The positioning:
- Best of Zillow, Zillow Pro, Zillow Showcase, Zillow Premier, top 20 in the area
- "We close all these deals. You want a jabroni agent, I'll give you three names right now."
- Offer to refer them to competitors if they don't see the value
Why It Works
- Buyers don't care about the fee. Look at what they pay Veterans United in funding fees. A $4,000 line item on a closing statement is noise if the agent did a good job.
- 8 out of 10 will say no. That's fine. Those 8 weren't worth the time anyway.
- The 2 who say yes are better clients — they value expertise, they're serious, and the agent has a fee buffer to hold deals together (cover inspection issues, make concessions, keep the deal alive).
- It's better than rejecting. Agent was going to hit "do not take" anyway. At least this way there's a chance at revenue.
When to Use
- Any lead under ~$150K where standard commission makes the deal unprofitable after splits
- Flex leads in rural zip codes with low price points
- OpCity connections in balance zip codes
- Any situation where the agent's instinct is "not worth my time"
Related
- zillow-flex-program — The lead source where small deals are most common
- market-vip-opcity — Also generates low-price leads in rural balance zips