A short YouTube video by Andrew Lamb (regional director for Five Doors Network and owner of the Andrew Lamb team) explaining the difference between local real estate teams and expansion teams. Lamb defines an expansion team as one that centralizes support services (transaction coordination, listing management, marketing, admin) at a hub while placing sales agents in other markets to capture leads/referrals (example: Vacaville leads for Napa). He contrasts earning referral fees (noted at ~25%) with placing an agent on an agreed split to keep more revenue, and highlights Keller Williams' corporate platform and leaders (Gary Keller, Kristen Cole) supporting expansion. Lamb closes with a call-to-action inviting questions and contact.
Questions this video answers
October 5, 2017.
25% referral fee.
Kristen Cole.
Gary Keller.
About a 30-minute drive.
Chapters
Hey, today we're talking about local real estate teams versus expansion teams. Hey, it's Andrew Lam here, a regional director for five doors network and owner of the Andrew Lamb team, powered by five doors network. And today we're just talking about local real estate teams versus expansion teams. And maybe you've heard the term expansion, maybe you haven't. Basically an expansion team is a local team that has kept all of its core services, all of its hub services, we would call them the hub in one location. That would be support like transaction coordination, listing management, marketing, anything like that. Any kind of administrative support for the agents, keeps those in house and then would find a sales agent in another market. So let's say, you know, I'm in Vacaville, California and we get quite a few leads for Napa, California. It's about a 30 minute drive, very close. And yet most real estate agents in the Solano county area or where we are in Vacaville, do not want to make the drive to Napa and don't know the area super well. So what they would end up doing is referring, and we've done this before, referred clients to Napa agents. What's great about that is it's an easy handoff, right? Normal referral fee. What's not so great about that is at a certain point you realize, wow, we've sent a lot of referrals to Napa and it might make more sense to place our own sales agent in an office in Napa and potentially just find someone already working there who wants to join a team to get systems, leads, a model that works and consistency in business. Because if we're pumping in all the leads and providing all the administrative support, that person just has to be there and sell. They don't have to do anything else. So at this point that means the split then is not just a 25% referral fee, but whatever split we agree upon. So it can be a much more profitable business rather than simply just referral fees all day, every day. So that's what we've seen people do with expansion mega teams, as we call them within Keller Williams, where there's one agent who has done a lot of business and ends up adding on talent, adding on leverage, so they can keep a little bit more of their time. Maybe with the buyer's agent, listing agent, administrative staff, that local team then would expand. And we at Keller Williams have created a platform. Gary Keller was extremely visionary in this process of creating a platform and a system within Keller Williams, an entire division to support agents who want to expand. And Kristen Cole is the vice president of expansion within Keller Williams and she has also created an amazing platform with tools and resources and systems for agents to be able to launch into this realm of expansion. It's basically like the Wild west, new pioneer in real estate because most businesses tend to expand Walmart, Costco, you know, most retailers and yet most real estate agents have remained local for the better part of, you know, few centuries. So it's kind of this new wave within real estate, especially within Keller Williams, because as a company we've adopted it and support it and teach to it and train for it. So if you have any questions at all about what that kind of means, the the team versus expansion local team versus expansion team concept, feel free to give me a call. I'm happy to help, happy to talk more about it and would love to answer any questions you have. Shoot me off an email or reply. You can write a comment on this video or click the button to the left and let me know if you have any questions. Thanks.
