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Realtors Are Swimming In A Red Ocean.

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Entering the Real Estate industry as a traditional broker/agent is not easy. W. Chan Kim and Renée Mauborgne co-author’s of the book “Blue Ocean Strategy” would call the profession a “Red Ocean.”

According to Wikipedia, “Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the red ocean bloody. Hence, the term red oceans.” I can see the red water just dripping off of Realtor’s backs.

Now this is not a new concept, we have all heard of the 20/80 rule – that a small portion of the most efficient Realtors make the majority of the money while the rest of us duke it out. Everyone who joins to profession doesn’t want to believe this will happen to them, but guess what – statistics are statistics. The majority of us will fail, and generations to come in the industry will be regurgitating the same old 20/80.

You have to admit becoming a Realtor is a very “average” business idea. You follow the heard into the profession, and you believe that you will be able to make a decent buck being your own boss; nothing revolutionary at all. Relatively low start up costs, ease of entry, cell phone, car, internet connection – done. You are now a Realtor.

So how do you take an average business idea, in a saturated profession into a “Blue Ocean?”

Stay tuned…

photo credit: seb79