Business is for PROFIT

Via Loreena Yeo – Realtor® Frisco TX Homes (214) 783-2210 (3:16 team REALTY):

Karen Fiddler inspired this Saturday morning post, Don’t House Flippers Deserve a Profit? It is a great read, if you haven’t read it, it’s highly recommended. It really gives me a small insight to how some consumers may think about our Real Estate Business.

Have you ever been ditched by a client even though a Buyer’s Representation Agreement has been signed? First of all, I want to tell you that I would never arm-twist any person who no longer wants to do business with me. After all, people’s financial situations change, people move, people do that for all sorts of reasons. Some valid, some valid in their minds. So, sometimes, some clients do end up disappearing on me. When you finally catch up with them, a short and quick email, “I’m no longer in the process of buying a house. If I do get back in the mode someday or know of anyone who might need an agent, I’ll get in touch with you. Until then, good luck”. That’s it. After all the months of showings, and family sacrifices made along the way, just go “POOF”!

In my years of dealing with “consumers”, what I find are the best clients are those who understand how we, the self-employed run our businesses. Many people cannot comprehend how the self-employed, especially in the 100% sale commission earn a living. We sell nothing, we eat nothing.

Nope, our cars are not company’s, our cellphone and gas comes right out of the Profit and Loss Statements.

We are not in the BUSINESS of MAKING MONEY. We are in the BUSINESS of MAKING a PROFIT. There is a difference. A clear one.

It’s also not wrong to make a PROFIT. Seriously, like that’s a secret how we pay our bills. But what most self-employed needs to understand is that MAKING MONEY sometimes just merely mean making enough to pay life and business bills. It’s the SURPLUS (ie. the PROFIT) that helps us fund the lifestyle we want: vacation, shopping, eating out, etc.

Some of my best clients understand my 100% commission pay scale. Some of them are earn a living that way. No matter what they do, they remember to include me along the way.

Then, I have some who aren’t so sensitive about issues like this. They milk the last drop out of you, then go POOF into THIN AIR. I dont even want to know if they ended up with real estate or not. If it wasn’t me, I don’t need to know.

REAL ESTATE BUSINESS is a FOR-PROFIT COMPANY. We don’t run a NON-PROFIT AGENCY, show homes just to be of service to the community.

 

Here’s the BEST story about BUSINESS for PROFIT that I’ve heard:

TOMS Shoes founder, Blake Mycoskie started a SHOE MOVEMENT. TOMS is beyond a shoe company. For every TOM shoe sold, TOMS donates a free pair of shoe to a child in need. TOMS SHOES very quickly became a hit because everyone wants to help. Blake, an entrepreneur who started 5 other companies prior to this ended up selling one of his companies with a profit of $40,000. With that $40,000, he re-invested it into TOMS.

When asked, why is TOMS a FOR-PROFIT company? Why is TOMS not a non-profit agency since its clear intention is to help? This brilliant entrepreneur replied,

“Had I bought shoes with the entire $40,000 of that money, perhaps 10,000 kids could get a pair of shoes. But with the re-investment of the profit into his company, today, over 160,000 pairs of shoes are donated to children who are under-privileged, where a pair of shoes is a matter of life and death in poverty-stricken countries such as Argentina. Young children die from foot disease when a pair of shoe can completely preventable from the disease. That’s why it made business sense to invest in a FOR-PROFIT company.”

Blake saw that. Blake deserves all the PROFIT from that, including an upgrade on his own lifestyle.

As a side note to this post, Please buy a pair of TOMS shoe as a child’s birthday present in the next coming year. Include a note with that gift that another child in another part of the world will also be receiving a pair of shoe because of this gift. What greatness is that.

 

So now, could you tell, why is a BUSINESS for PROFIT entity perfectly and completely VIABLE?

 

 

 

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Loreena Yeo - Realtor(R) in Frisco TX
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, & North Dallas area communities.

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Copyright © 2010 by Loreena Yeo (3:16 team REALTY)
Business is for PROFIT