Three reasons why speakers are paid a fee while agencies earn a commission
By Khalil Adis
Recently, I was approached by a real estate agency in Singapore for an upcoming launch event.
I generally work directly with developers and try as much as possible to avoid working with a real estate agency as they have a very unrealistic expectation.
It turns out I was right.
During the first meeting, I had asked if their client has a budget. They said no. However, they said they can pay me a commission. That itself was a huge red flag.
Nevertheless, I continued with the meeting to see where it was going.
However, I still wasn’t sure what the deal was.
I do know they needed a speaker and someone to conduct their agent training.
They subsequently asked for a copy of my presentation slides and samples of my editorial work.
A second meeting was then requested but I made it clear that I do not operate on a commission with zero marketing cost as that would be unfair to my paying clients.
They then requested I do up a marketing proposal and the costing for their client to consider.
The second meeting was supposed to be a conference call with the developer but it was delayed and subsequently cancelled.
They did inform me that the client will contact me to ask me further questions.
However, I never heard from their client nor received any confirmation about my proposal.
With nothing signed off, I am therefore not legally bound to provide any form of services.
It got me thinking about the potential conflict of interest when working with real estate agencies and why I generally avoid working with them.
#1: Developers leverage on the speaker’s expertise
I have been very blessed that developers look for me when it comes to launching their projects in Singapore and Malaysia.
It is because they see the value in the research, books and analysis that my company had done over the years.
We provide unparalleled insights into the property market from a Singapore perspective.
They also understand that consumers generally trust an unbiased point of view which will thus act credibility to their project.
On the other hand, an agency operates solely based on commission.
They also justify paying a referral fee for any closing.
As a business owner, this does not make any sense as the risk and marketing cost is totally on me.
In addition, it does not justify freeing up my time at the expense of other clients.
#2: A speaker has marketing missiles
When I do events with developer clients, I would put together a strategic marketing communications plan to ensure the client gets its bang for its bucks.
From public relations, social media content, book signings to a dedicated electronic direct mailer campaign, this helps to ensure the desired communication strategy is achieved when communicating with the public, consumers and shareholders.
Having a book signing and giveaway also helps to attract the public to come to the developer’s event.
This helps the agency to do their closing.
A recent Singapore event saw a client closing eight units.
#3: A speaker should not be involved in sales
In the life of a journalist, we must declare any potential conflict of interest that may impact the credibility of our story.
It is how journalists are able to write the truth and earn the trust of the public.
Likewise, a speaker must not be involved in any property sales as it impacts their credibility in the market.
In the past, developers and agencies had tried to exploit this to their advantage.
This is one reason why I decided not to renew my real estate agency licence.
In closing, I would like to remind real estate agencies that there is a service fee for any form of work and that their client should respect someone else’s time.
It also is an insult to the speaker when you request them to do a dry run presentation when they had spent many years conducting research, writing books and honing their skills.
And that is what separates a good speaker from the average.
An independent analysis from yours truly