The Goldilocks Equilibrium

by | Sep 29, 2021

In a recent blog, Seth Godin explains the Goldilocks equilibrium.

It’s the belief that when a service is offered, a few people will like it really hot, a few people will like it really cold, but most people will like right in the middle.

Naturally, you’d want to craft your offering to meet the needs of the middle.

But what if your assumptions about the middle are wrong? According to Seth, they usually are:

Seeking the Goldilocks equilibrium is a trap.

While it might diminish criticism, it maximizes apathy.

While it might increase your appeal to a hypothetical middle-of-the-road consumer, it might be that there aren’t many of these.

For many services, the middle is hollowed out.

What you’re left with are the people who want a lot more or want a lot less of whatever it is you’re able to adjust.

This is exactly what is happening in the real estate recruiting marketplace.

Some brokerages serve agents by offering them a high-service/high fee model.

Some brokerages serve agents by offering them a low-service/low-fee model.

But many brokerages are still attempting to serve a diminishing number of agents in the middle by offering them a Goldilocks alternative.

It may be time to pivot.


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