Limiting alternatives, niches and more to three, trainer Bernice Ross writes, allows you to narrow your focus and make your branding, marketing and negotiations more effective.
March is Marketing and Branding Month here at Inman. As we enter spring selling season, let’s explore which tried-and-true tactics and cutting-edge innovations are getting deals done in today’s market. We’ll also recognize the industry’s marketing and branding leaders with Inman’s Marketing All-Star Awards.
You have shown your buyers 20 houses, but they can’t decide which house is right for them. The Law of Three is a widely used sales strategy that can assist your clients in arriving at buying decisions more quickly. It also provides a practical framework for structuring your branding, digital and print advertising, and client communication.
Dating back to Aristotle, the Law of Three is a time-tested principle in human communication. Psychologically, three is the smallest number that creates a pattern, providing just enough detail for clarity while avoiding information overload. When marketing messages follow this rule, consumers are more likely to understand, remember, and act on them.
The Law of 3: A powerful tool for persuasion and memorability
Whether it’s your favorite Chinese restaurant where you pick your soup, appetizer, and entrée or a tech company offering basic, pro, and premium plans, the Law of Three simplifies choices. In contrast, offering more than three choices can overwhelm consumers, leading them to walk away instead of purchasing.
Take a cue from Apple
Apple just released its latest Macbook Air. Here are two screenshots that illustrate exactly how the Law of Three makes it simple for Apple customers to decide which Macbook Air is best suited to them.
Please note the “three across” X “three down” arrangement of the laptops on the left side of the page and the three across arrangement that describes what the “M4” chip does on the right side.
Personal branding is the cornerstone of real estate success
A huge marketing mistake that many real estate agents make is trying to be all things to all people. Here’s a classic example — exactly what type of buyer does this agent serve and exactly in what part of Miami?
To apply the Law of Three in your business, here’s what to do:
- Begin by identifying the specific niche(s) you serve.
- Second, you must be able to state your value proposition clearly. Many marketing savvy agents provide a simplified version of this in their tagline.
- The third step is to apply The Law of Three in both in your digital and print advertising.
Chris Cortazzo’s website is a beautiful example of how the Law of Three can work on an agent website. (This is a screenshot from the video that plays when you navigate to his site.)
Again, note the three across X three down organization, plus his three-part tagline. Do you have any question about which market Cortazzo serves and what his value proposition is?
Applying the Law of 3 on buyer showings
In his classic book Predictably Irrational, Daniel Ariely demonstrated that giving people too many choices can kill the sale. In contrast, limiting choices to three simplifies the decision-making process, making it easier for the buyer to write an offer.
To use the Law of Three on your next buyer showing appointment, Ariely recommends that you show three houses, two of which are in excellent condition and the third that needs work. By giving the buyers a third, less desirable choice, it will be easier for them to decide between the two “A+” houses.
If you must show your buyer more than three houses, you can also use the Law of Three to have the buyers rank order the houses you have shown them. For example, if you have shown the buyers five houses, ask them to rank their top three houses from what they have seen.
Once your buyers have identified their top three houses, if you show them a fourth house that they really like, ask them where it fits in the rank order and which property will be removed from their top three.
Negotiating using the Law of 3
One of the most powerful negotiation strategies for closing a buyer is the “alternative-choice close,” coupled with the question, “It’s your choice, what would you like to do?” This takes you out of the decision-making process and puts it back on your clients.
For example, assume that you’re negotiating a multiple offer for your buyers. The following script illustrates how this works:
“Mr. and Mrs. Buyer, there are several other offers on the property you like. You have three options for dealing with this situation. (Alternative choices).
“The first is to make an offer as if no one else is involved in the bidding. If you really want this property, the second option is to make an offer at asking price or over asking. The third option is to walk away.
“It’s your choice, what would you like to do?”
Limitations to consider
The Law of Three is a proven strategy that works in a wide variety of situations, but it certainly doesn’t apply in every situation. If every marketing message you use follows the same three-point pattern, it can become formulaic and lose its effectiveness. In terms of your advertising, it’s smart to create some variety.
Test drive the Law of 3 for your real estate branding and marketing
Effective use of the Law of Three can provide you with the edge you need to connect with more clients and close more deals. Make sure that you have identified one to three very narrow niches that you serve, that you have a tagline that aligns with those niches, and adjust your website and other marketing materials to take full advantage of this powerful approach.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.
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