Want Exponential Growth? Stop Trying to Beat the Competition (Correlation Graph)

Choose different over better. A company has a greater chance of achieving exponential growth by differentiating vs. outperforming competitors. Market competition is an infinite game and being better is futile. A focus on outperforming competitors often leads only to incremental wins and gradual growth. Instead, real estate companies that find unique ways to serve agents and solve big problems add significant enterprise value and capture greater market share in the long term.

After 25 years working with (and for) real estate companies, I understand the hesitation to take a leap towards true differentiation. It's not easy, takes time, and results are not immediate, predictable, or guaranteed. Further, execs are under pressure to meet quarterly targets and show continuous progress to their Boards. Shifting from predictable, incremental improvements to ambitious transformation demands courage and is often avoided by risk averse leaders. Finding the right balance is key.

Companies aiming for 10x growth need to be willing to experiment, pivot, and invest in bold strategies that could yield transformative results. Significant growth requires stepping outside comfort zones and taking calculated risks to differentiate.

The Courage to Think Blue Sky

Taking a "blue sky" approach fuels differentiation by implementing new, unconventional ideas without being constrained by competitive pressures. It allows for experimentation, risk-taking, and testing bold and disruptive concepts that can lead to unique market advantages and significant growth.

Example: Airbnb disrupted the hospitality industry by offering a platform that allows individuals to rent out their homes or rooms to travelers. This peer-to-peer model provided a unique alternative to traditional hotels, contributing to its rapid growth, with the company expanding from 2,500 listings in 2009 to over 7 million in 2022. Its valuation soared from $1 billion in 2015 to over $100 billion by 2021 (Forbes, Statista).

Not So Unique Selling Proposition (USP)?

Typically, the more unique a company's selling proposition (USP), the better positioned it is to achieve exponential growth. However, there's a lot of USP overlap among many of today’s residential real estate companies. Common to most is an agent-centric model focused on agent success. Consider popular brokerage slogans:

• The Best Place to Work in Real Estate

• Helping You is What We Do

• Your Success is Our Success

This makes sense given a brokerage's success is typically correlated with its agents' success. Yet, for agents seeking a new brokerage, the convergence of value propositions has diluted their individual strengths, weakening brand affinity. Top-performing real estate agent, Guillermo T. Figueras, with 22 years of experience says

"Brokerages always seem to echo the same claims. None manage to stand out in a truly meaningful way." 

To maximize agent recruitment and retention, brokerages must differentiate, be memorable, and provide exceptional service.

No Risk, No 10X

To achieve 10X, it's essential to embrace risk and innovate beyond incremental improvements. Over the years I've learned:

• Short term-focused companies focus on immediate profit. Achieving the next quarter's projections is top priority often leading to shortcuts and weak strategies - sometimes at the expense of the agent experience. 

• Exponential growth-focused companies prioritize the agent experience. The goal of extending agent lifetime value (LTV) and creating enterprise value guides decisions and investments. A culture of innovation is clearly felt.
  

Here’s why differentiation is so crucial:

• Break Through the Noise: In a saturated market, making minor tweaks won’t suffice. To capture attention and gain a competitive edge, a business needs to offer something truly distinctive—whether it's a groundbreaking product, a unique service model, or a novel way of solving a problem.

• Create Unprecedented Value: Incremental changes often lead to incremental results. For 10x growth, a company must deliver exceptional value that significantly outstrips existing solutions. 

• Disruptive Innovation: Achieving exponential growth typically requires a disruptive approach. This means challenging conventional industry norms and creating new paradigms that redefine how things are done, often leading to new market opportunities and customer segments.

• Scalable Solutions: To grow tenfold, a company must develop scalable solutions that can handle increased demand without proportional increases in costs or complexity. Innovations that streamline operations, enhance efficiency, or expand market reach are key.

• Focused Execution: Alongside innovation, disciplined execution is essential. Implementing new strategies effectively requires strong leadership, clear vision, and a commitment to overcoming challenges as the company scales.

By embracing these principles and building something fundamentally different, companies can position themselves to achieve extraordinary growth.

Struggling to find the right balance between strategies? I can help.

Hi, I'm Jocelynne Haslett, Fractional CMO at Fervor Marketing Solutions, with 25+ years of real estate experience. I build tailored marketing strategies for companies between $1M-$50M to increase market share and lead the execution until I'm no longer needed.

If you'd like to chat about your marketing strategy or biggest challenge, let's have a call. Book a meeting here. 

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