By one of Australasia’s fastest growing real estate franchises
CEO and founder of Mike Pero Real Estate in New Zealand, Mike Pero has introduced transformational business practices to real estate. From advertising properties on national television to spearheading the brand’s identity and locking in set commission rates across the franchise, Mike Pero’s business model has reframed how real estate does business.
After selling his highly successful personal finance business, Mike Pero Mortgages, in 2004, it was in 2010 Mike Pero identified his opportunity in real estate.
“Having observed various markets and industries I thought there was an opening for a real estate brand that operated differently – where marketing initiatives would be smarter and the business used the latest technology and systems.”
In 2014, Mike Pero Real Estate was ranked 23rd in the Deloitte Technology Fast 50 index, which ranks businesses according to their rates of revenue growth across a wide range of industries. In six years the Mike Pero Real Estate franchise has grown to 61 offices nationally.
Mike Pero outlines some of the brand’s key strategies.
1. Set commission fees
For transparency and consistency all agents charge a set commission fee across the Mike Pero franchise, this is non-negotiable.
“All agents have the same set commission, ours is 2.95% across the country. It reduces down to 1.95% beyond $390,000 dollars,” Mike explains. “Other brands start higher and then say they are negotiable but I wanted a clear message sent to our prospective customers, this is our price we don’t negotiate. If we were in a position to negotiate lower we would have offered it in the first place.
“Typically other brands in New Zealand will say they charge 3.95% but that maybe they can cut it down. This seems a little cheeky to me, we just say our price is this and stick to it.”
2. A brand with a face and a name
Mike Pero is more than a high-profile personality fronting the brand, “our business owners like the fact I am the CEO, a director and stakeholder in the business, not just an employed CEO.”
On the marketing front, no other real estate brand is lead by a public figure, this has engendered considerable consumer trust and confidence.
“The brand has so many differences but I believe the biggest one would be our perception out in the marketplace, that we are a brand which cares about our customers.” Mike says. “I’m a person that is prepared to back the brand – I know my integrity and our customers know it too. We’re new and have a fresh approach to real estate – most of all we get results.”
3. Television advertising for property
Another unique marketing approach is advertising property on television.
“We go where others don’t go. Every property listed, with a few exceptions, is advertised on TV. Each property is shown and talked about for 10 to 12 seconds, this is aired on TV including TV One, TV3 and Prime TV and on our website,” Mike says.
“We do everything else, online and print, but we can reach the whole of New Zealand with our TV ads.”
4. Smarter marketing
The Mike Pero franchise is able to achieve great exposure for properties, at a very reasonable price, using television and the latest online and multimedia communications. However, Mike cautions, even with all the new and exciting marketing innovations on the market, without the right internal systems, processes will fall down.
“Every one of our franchises uses Campaigntrack for marketing. We’ve made it a directive there is no option,” Mike says. “We direct Campaigntrack as to what we need, the artwork templates are then created and all our bookings and pagination – everything comes through Campaigntrack.
“We use Campaigntrack as much as we would a Microsoft Office product, it’s a critical part of our business.”
5. Think of real estate like a board game
“I liken business to a combination of Monopoly, Snakes and Ladders and chess,” Mike says. “As you can imagine, everyday something comes up, or at least every week, that will disappoint you or peeve you off and that’s your snake. Then you’ll have your ladders, where someone offers you an opportunity and you feel great. Then it involves a bit of strategy like chess and a bit of planning like Monopoly. Finally, to top it all off – a lot of luck.”
6. The secret to success
Mike believes the basic fundamentals that apply to real estate, life insurance and mortgages haven’t changed. Agents need to talk to people, press the flesh and be consistent.
“There is a secret to success but it’s not a secret. It comes down to the amount of energy and drive and the systems that an individual has. Everyone has varying levels of these attributes but it comes down to how much you want success,” Mike says. “Everyone performs at different levels but we’ve all got the same opportunities when we are born. Some of us shine long term and some of us shine in short blasts and then crash. It’s also about keeping your feet on the ground.”
So what drives Mike to achieve?
“I love the people I work with, I love the industry, I love the marketing,” Mike explains. “It’s not about the money, it’s more about the satisfaction of seeing happy people, customers and also business owners and helping them.
“I feel like over the last 35 years I have learned a lot. I have learned how to make decisions, good and bad, I’ve got what I’d guess you’d call wisdom and like sharing it with other business owners.”