To Maximize Sales, Focus on Client Needs, Not Commission

Always putting the needs of clients ahead of your own is the “magic bullet” for building a thriving business, according to a couple who have succeeded in the competitive real estate industry.

Why the “client first” principle works and how to put it into practice is the subject of the bestseller Clients First: A Two-Word Miracle (Wiley, 2012), by Joseph and JoAnn Callaway. The Callaways are co-owners of the real estate firm Those Callaways in Phoenix.

The Callaways say putting their clients’ welfare ahead of their own short-term financial interests has helped them achieve over $1 billion in sales.

Relevant for travel
While real estate differs from travel in some aspects, putting clients first is no less relevant for travel sellers than it is for realtors, Joseph Callaway told Travel Market Report.

“There are a lot of parallels between real estate and travel,” he said. “While people can book travel or find a house on the Internet, they still need a professional’s expertise.”

Change of mindset
The Callaways entered real estate in 1996, “at a time when we were completely broke and needed a loan from my father,” Callaway said. “We were hungry and motivated. In our minds it was all about us and about the commission. We’d do whatever it took to get it.”

After 90 days in their new business, the couple underwent a complete change of mindset. During one house sale, it became apparent that neither the buyer nor the seller – both of them clients – would benefit. So the Callaways put a stop to the deal in the interest of their clients.

“From that moment on, we told everyone the way it is – we would not manipulate the truth in the interest of a commission,” he said. “We became advocates for our clients, because we put them first.”

Through dark times
With the client-first mindset, the couple has weathered everything from the housing bubble to the foreclosure crisis and the economic downturn Callaway said.

“Even through the darkest days, our clients kept calling and coming to open houses,” he said. “They took care of us, just as we had taken care of them.”

Over the years, the Callaways have built a database of more than 5,000 clients who have done business with them through thick and thin.

“Our database supported us when things got tough. In some cases, we were called on to help clients who had bought at the top of the market and now had to move to another state.”

Word of mouth
In building the database, the Callaways never advertised or made cold calls. “By doing the job we do, it’s our clients who bring us the business – they pass on the word,” he said.

Callaway believes that travel agents who put clients’ need first will have a similar experience. “It applies to any business, including travel. You want your clients to have a good travel experience. If they do, other people they know will want to go too.”

Dealing with tough clients
In building their clientele, Callaway said the couple has never “fired” a client for being too demanding.

“Clients will get stressed about real estate, as they do about travel,” he said. “However, sometimes it is the toughest clients who end up praising you the most. If you can win for them, they will be your biggest advocates.”

The Callaways do make it a practice not to take on clients whose needs are outside their area of expertise, which is residential sales. “If someone came to us to handle an office building, we would recommend someone who can take better care of them,” Callaway said.

Just the facts please
Putting clients’ needs first doesn’t mean telling them what they want to hear, he added.

“It’s important to always be frank with people and give them the straight truth about a transaction,” he said. “It will ultimately be the client’s decision, but even if they make a wrong one, they will appreciate that you gave them the facts.”