Last year, we renovated a few rooms in our home.
In the process, I purchased a couple of light switches that were 20 times more expensive than normal light switches.
Why? Because I had a problem.
I needed a light switch on the outside wall of a pocket door cavity.
This $99 light switch allowed me to install a remote that looks like a light switch but does not have wires or a box behind the drywall.
To control the lights, the remote communicates with the traditional light switch that is at an inconvenient location in the room.
The problem was solved, and I was happy to pay extra money for the perfect solution.
The same economic principle applies to recruiting.
Think about how you’re conceptualizing and selling your value proposition.
There’s always a tendency to drive prices (and margins) to the lowest possible level to compete with the low-cost providers.
But for most brokerages and teams, it’s better to identify a niche with a problem, offer a unique solution, and charge more for it.
The higher margins will always go to the companies who are most innovative, creative, and courageous.
But this only works if you’re providing a unique solution to a legitimate problem.
If you’re offering the same solution as your low-cost competitors and trying to charge more for it, your recruiting prospects will quickly see through this scam.
