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.

 

The Simple Psychology of Real Estate Recruiting [2nd Edition]

Unlock the secrets of effective real estate recruiting. Revised to include actionable frameworks for sharper execution and to help you turn psychological theory into a repeatable recruiting system.

The Attrition Variables

The Attrition Variables

While these attrition constants still have the greatest influence, there are some emerging attrition variables worth noting. People also tend to leave companies when: They feel like they’re not doing as well as others in their peer group outside the company. They feel like they’re not as far along as they should be at a certain point in life.

The Attrition Constants

The Attrition Constants

If you’re not focusing most of your retention effort on these issues, you’ll miss the mark. If you’re not focusing most of your recruiting effort on exploiting these weaknesses among your competitors, you’re missing the best opportunities.

The Persistence Mindset

The Persistence Mindset

A leader equipped with this mindset can have a profound effect on the life and career of each individual they engage. It works because an agent is getting a real-time glimpse of what it would be like to work on your team. But it only becomes believable when it is persistently applied over time.