Good Enough vs. Perfect in Business
Perfect is the Enemy of Good: Maximizer and Satisficer
In real estate, there are a ton of choices to make. You might be trying to choose the perfect script before starting your prospecting or choosing the perfect CRM before organizing your clients. Author Barry Schwartz in his book The Paradox of Choice states that people are either maximizers where they strive for perfection or satisficers where they shoot for “good enough".” The amazing finding is those that strive for “good enough” usually are happier with the out come.
In this real estate agent training podcast, you will learn about good enough vs perfect in business.
[00:00:00] Hello and welcome to Rev Real Estate School. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. And now your host Michael Montgomery.
[00:00:11] Hello and welcome back to Rev Real Estate School. I'm your host Michael Montgomery. Today we are talking all about choices and how you can make the right choice in real estate. So this applies to a number of different things. This applies to if you're making a choice on a CRM or a Web site provider or a brokerage or even on your choice of how you're going to present your information and how do we go about making the right choice in real estate.
[00:00:41] First off I want you to imagine for a second that you are about to go out for dinner on a Friday night so you and your partner or your friends. You have two options. Your first option is to look at every single review in your city and determine which is the best place to go for dinner or you can choose a place that is nearby that has okay reviews. Of those two options which one would you choose would you want to go through all of the details and then pick the one with the highest ratings. Doesn't really matter how far it is from your house or would you rather go to one that's nearby but has okay reviews or satisfies a certain number of criteria. That makes sense for you. So depending on which one of those choices you make will indicate how much you enjoy the meal. If you were the type to pore over all the reviews and try and pick the best one you would be what's called a maximize her and chances are you'll dislike the meal and you could be upset that you didn't spent more time reviewing the options that are out there. If by chance you chose something that was nearby but had pretty good reviews you would be called a satisficer and you would have a lot better likelihood of enjoying your meal and being happy with the choice that you made.
[00:02:07] These two concepts are either a maximizer or a satisficer her if you want to look into this concept more definitely grab the book by Barry Schwartz called Paradox of Choice. Now this has been shown in a number of different studies but he has really popularized the idea of fewer options actually leads to a person that is more satisfied with the outcome. Now that doesn't necessarily mean that you have to have a low standard and go for things in life that are just worse because you don't want to have all of the options that are out there it just means you have to be mindful when selecting things. This comes up a lot of times. Let's say that you are going to watch a movie on Netflix ,I am awful for this, and you start looking at all the movies that you have to choose from. Do you pick one that's in a criteria that you like and has decent reviews or do you spend an hour going through all of the different reviews going to different websites and finding all the different views that are on that movie before you make a selection? Oftentimes If you do that you will be less satisfied with the movie selection. If you were just to pick one that's in the genre that you like and has decent reviews chances are you would be more satisfied with that selection.
[00:03:22] How does this apply to real estate and why is it so important? It's because there are so many options out there for us. For example we spend a ton of time going through a number of different website providers CRM providers we pore over our scripts to make sure that they are absolutely perfect or we go to every single brokerage and we go back to every single brokerage until we find the exact right fit. Now that's not to say that you should have a low standard and you should use poor scripts or go to a brokerage it's not the right fit. That's not at all what it's saying. What it's saying though is you are going to be more satisfied if you have a set of criteria. And as long as the option you choose fits that criteria. So for a website maybe it's a budget and it has to have a certain functionality as long as it hits those points. Then you don't have to worry about going through every single different option that's out there. You can but chances are you'll be more satisfied if you choose the option. That's quick but it makes the most sense.
[00:04:24] Now the reason the Barry Schwartz calls this the Paradox of Choice is because we think by having more options we will be more satisfied. There was a study done by the University of Columbia on this and it had to do with choosing. So you had 24 jams. They set out 24 jams and people either had the choice of tasting six jams or tasting all 24 jams of those that only tasted six 36 percent were buyers. They turned into buyers whereas the ones that tasted 24. Only three percent bought and they also reported that having the ones that had six options thought the jam tasted better. So do you think if you're out with a buyer and you're going out and they've sent you a number of properties to see and you book all 20 of those for one day that they're going to find anything that they really like or if you narrow that down to maybe four and you end up showing them properties in the morning and then you have the afternoon to do other things. Will they be more satisfied with their tour. Now we would think that seeing more properties will make you more satisfied. But as we've seen the studies will say something differently.
[00:05:44] We need to use this to our advantage. We can use it to our advantage when we're dealing with buyers on that front with sellers. I've seen the mistake where people will have these commission plans and they'll say OK if you want professional photos of this if you want this it cost this and they start adding all of these things up. And what you're getting are too many options again. Whereas if you just have here's my structure and here's what's included or here's two different structures and you can choose one of those two chances are they're going to be a lot more satisfied at the end of the day then if you have a structure where here's your base and then if you add all these different marketing features the price goes up. So I would definitely caution you to move away from that on the selling side on the buying side. Remember that less is more. And then on your own side when it comes to your own business understand that at a certain point good enough is good enough. So this can happen when you're picking out programs brokerages that sort of thing working on scripts making sure that a script that's good enough is good enough and it will not get a ton better by just researching you have to actually get out there and use it.
[00:06:48] The same thing holds true when it comes to getting started with certain things. So one thing that I'll see is oh I'll start my email list when I have enough buyers or when I have enough prospects is when I'm going to start this marketing campaign. What you're doing is you're trying to maximize. You're trying to hit a certain target before you get started. Instead if you just move towards more of the satisfying side of things you just get started with where you're at. Chances are you're going to be more satisfied with the result.
[00:07:23] Thank you very much for listening this episode. I really appreciate it. Remember you can ask a top producer anything. All you have to do is write and review the show and then head to our website revrealestateschool.com. Go to the free coaching section and sign up right there.
[00:07:35] Thanks again for listening. This episode of Rev Real Estate School has come to a close. Thank you for tuning in. We'll see you back here for the next lesson.