Consumers are attracted to great products, but they are also attracted to great service. Zach Kennedy details how to mentally “click” between a ruthless product marketer and an empathetic service provider.
If you go into a sales meeting in the United States and ask, “Is real estate a product business or a service business?” I get the same answer every time.
“It’s a service industry.”
Agents are trained to say this. It feels noble. I feel safe. It separates us from the “salesy” stereotypes of the past. But this thinking is deeply flawed and costs agencies money.
Here’s the cold reality. We are measured on our services, but we are paid on our products.
We don’t get paid to be nice or answer the phone on Sundays. Payment will be made to us once ownership of the asset is transferred. If we can’t market homes with Apple-like rigor, we’ll be missing the boat.
Apple has proven that this hierarchy works. The iPhone is the “gateway” product for customer acquisition ($209 billion in sales), and the high-margin “services” segment (iCloud, AppleCare) is the driver of customer retention.
Similarly, car dealers often sell new cars on razor-thin profit margins just to attract buyers, knowing that nearly 80% of their profits come from the “back-end” service department.
The lesson is clear. Your listing might be an iPhone or a shiny new car, and that’s the hook for the purchase. Your expertise is in iCloud or the service department, and that’s the retention engine.
If you can’t market your product effectively, you won’t have the opportunity to demonstrate your services.
Successful agents master this duality and know exactly when to “click” into product mode to capture attention and when to “click” into service mode to win hearts.
The big divide: Attraction and retention
To fix marketing, we need to understand the fundamental divide in consumer psychology.
1. The lure of product marketing (The Bait)
Product marketing is key. It’s specific. It’s objective.
Goal: Create desire. Mechanics: features, specifications, price, aesthetic appeal. Psychology: “I want something because it solves a problem or enhances my status.”
In real estate, the product is the property. Buyers aren’t scrolling through Zillow looking for “responsive agents.” They’re looking for a four-bedroom colonial with a pool. The product is the bait that attracts the market.
2. Service Marketing Retention (Hook)
Services marketing is about providers. It’s intangible. It’s subjective.
Goal: Build trust. Mechanics: Responsiveness, expertise, problem-solving, and empathy. Psychology: “I trust this person to lead me safely through the fire.”
Service is a deal-breaker. This turns a one-time transaction into a lifelong referral.
Mistake: Doing marketing services when you should be selling products.
The reason many agents have a hard time getting listings, or selling listings once they have them, is because they apply a “service mindset” to a “product problem.”
They post photos of new properties, but the only caption is, “Check out my new property! If you know of any, please call!”
That is service marketing. And for buyers who just want to know if the home has a gas range or a finished basement, that’s extraneous noise.
Once you have a listing, you have to stop being a consultant and start being a brand manager. You have to treat the house like a product on a shelf.
How to “click” into product-based marketing
To put this mindset into practice, you need to remove your emotions and view the list as an asset class.
Define your USP (Unique Selling Proposition): Every successful product has a specific angle. Is this home a “turnkey luxury retreat” or a “wealth creation fixer”? You can’t market your product until you define what it is. “Specifications” are important: When selling products, accuracy creates trust. Apple sells its specs by listing processor speed and battery life. “Specifications” in real estate include floor plans, school ratings, and site size. Hiding or making mistakes will result in product defects. Packaging is non-negotiable. If you saw a pair of $1,000 sneakers photographed with a cell phone on a dirty rug, you’d think they were fake. But agents do this with $500,000 in assets every day. Professional photography, staging, and 3D tours are not “nice-to-haves” but standard product packages.
Winning formula: speed of product, longevity of service
The agents who dominate the next decade will be those who can switch between these two modes in an instant.
“Attract” phase (product mode)
When you start listing, be ruthless with your product. We spend money on “packages” (media). You are obsessed with “price point” (market value). Distribute your “inventory” to all channels possible.
Result: Leads are generated because the product looks undeniable.
*Feel free to incorporate these lessons into marketing other agents’ listings (with permission).
“Hold” phase (service mode)
When the lead calls, click the switch. Now, you stop selling houses and start selling your instruction. Demonstrate negotiation protocols. Communicate with complete transparency. You protect their property.
The result: Referrals are generated because the experience felt safe.
conclusion
Is real estate a service industry? yes.
Is real estate a sales business? yes.
If you focus only on service, you are a great friend without stock.
If you only focus on the product, you end up with a product that lacks loyalty.
The magic is in the middle. Market your listing as if that’s all that matters, and serve your clients as if that’s all that matters.
Zac Kennedy is a licensed broker with RealtySouth, serving buyers, sellers, and agents throughout the Birmingham-Hoover, Alabama metro area. Connect with him on Instagram and LinkedIn.
