Last week, I purchased a light switch for 40 times what a normal light switch usually costs.
Why? Because I had a problem.
I needed a light switch on the outside wall of a pocket door cavity.
This $79 light switch allowed me to install a remote that looks like a light switch but does not have wires or boxes behind the drywall.
To control the lights, the remote communicates with the traditional light switch at an inconvenient location in the room.
The problem was solved and I’m 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 is 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, the best recruiting prospects will quickly see through this scam.