Four levers grow a real estate business: more clients, higher prices, better commission rates, and repeat purchases. The talk covers building teams, direct-response marketing on Facebook and local papers, converting leads into referrals, and tracking every appointment and conversion to find what actually works.
Questions this video answers
Increase number of clients; increase average sales price; increase the commission rate charged; increase the frequency at which clients buy.
Projected commission check rose from $200,000 to $250,000 (a 25% increase).
$10,000–$12,000 per month (net from transaction fees).
72% overall business growth (claimed by focusing on sales price, commission rates, and referral rates in addition to size).
Foreign. So Tony Robbins has seven forces of business mastery. And I just want to go through. I'm going to spend a little bit of time on the raving fans part of it, because I think that's where a lot of you are missing out. So we'll kind of go through some of that stuff here. But. But I want to go through each one of these. So his first force of business mastery is creating an effective business map. And he kind of goes through. If you haven't seen any of Jay Abraham's stuff, Jay Abraham goes through, there's only really three ways to grow a business. In real estate, there's kind of four. Okay, so four ways to grow your real estate business. This is a document. It is in your drive under business ownership. And it's a really good exercise. I first went through this exercise when I read Jay Abraham's book getting everything you can out of everything you've got. I forget the exact name of it, but looking at these numbers, and you honestly don't need to spend a lot of time here. But most people think that the only way to grow your business is the number of sides. So let me give you a good example. So let's take my business. I first projected all my numbers at a $200,000 commission check. And so today we're running at 250. So that's actually a 25% increase to 250. So the impact of last year was 320. You know, we will go to. What's that? Another 25% growth to. Let's just call it 400. It's actually about 425 this year. We'll hit our price point. Didn't just last year increase from 200, but I started out at 200 and went up to 250, our average commission check. We're honestly not getting a lot of growth out of our average commission checks. We'll put that at about zero. And then our referrals, we're focusing on getting more referrals so we can get 72. The bottom line here is that you can get 72% growth out of your overall business by focusing on something more than just increasing size. So being conscious of sales price, be conscious of your commission rates and your referral rates. So that's the four things increase the number of clients, your average sales price, the commission rate you charge, and the frequency in which your clients buy in. This commission rate is, you know, charging transaction fees. So that's not. Not included in here. But we get, you know, I net about 10, 12,000amonth from transaction fees, which pays for a couple or three actually staff members, which is cool. All right, so hopefully that's just an interesting way to look at it. Strategic innovation. I mean, it goes without saying that our industry is changing. All of you are part of this group because you realize that running a team is the only response. In my opinion. If you're not running and building a team similar to the one that I have, I believe you're going to be working for one. You know, there's no way these small agents, these small, do it yourself brokerage type agents selling 10 homes a year are going to be able to compete with the businesses that we're building. Number three is world class marketing. It's all about marketing. Sometimes I get emails from clients that says, hey, these letters aren't working or your postcards aren't working or whatever. And it's not about a specific letter working, it's about you becoming a marketer. So one of our members, Chris Lindahl, and I don't know if he's on the call here, he owns, I mean owns Facebook. He is a master of Facebook and he's becoming a world class marketer on Facebook for the real estate industry. Just go on his team website to see what he's doing to get a flavor for what is possible from marketing perspective. The stuff he's doing with Discover Pubs, I mean I did Discover Pubs and it was a, it was kind of a, I don't want to say waste of money. I mean we, we got some return out of it, but not more than a one time return. We didn't pay for it. He started out with that newspaper and made it hyperlocal, put a bunch of effort into making all the content hyperlocal. Launched a Facebook page around that newspaper and within two, I think his first, his first, he picked up, picked up two builder accounts with his first, first newspaper. So it's just, it's crazy. So become a marketer. Anything. Direct response from Dan Kennedy is worth worth reading. In terms of sales mastery, there's a pipeline that you need to manage as a team leader. So think of your business as leads come in. You need to massage those leads through calling, through texting, through email, through content marketing to get appointments. You need to secure those appointments into relationships, get loyal clients and you need to make those clients, get them under contract, sell their home or sell them a home, get them to closing and get them to send you referrals. That's the entire business. So mastering each one of those touch points is critical to your ability to truly scale and scale the business profitably. In terms of number five, constant anticipation, the power of financial analysis, there's going to be a version 2.0 of the business tracker that we're going to have access to. I'm working on it with Kirby. It includes an appointment tracking element to it. So every appointment that is set, we track the lead source and the conversion rates of every appointment that come into the business. In addition to the cash flow, the roi, the P and L, the agent, productivity, agent profitability, all of those things are going to be in addition to the appointment tracking. So knowing your numbers, I can't emphasize enough that you have to implement the business tracker. You have to, you have to make it a part of your business. Some people implement it and then I ask them about it and it's like, oh, we haven't, you know, it's three weeks. All the data that's in there, I've got people in the business tracker. You know, there's two, two main people, Sheree and Jessica, who are in there every day. And so Dropbox is, is pretty team friendly, multi user friendly now where it alerts you if there's a different version and you can update to that version. So it works pretty well in terms of optimization and maximization. That's the job of a leader. It's from a people and culture standpoint, but also a process and execution standpoint. So I'm going through. Tomorrow's going to be a difficult day for me. I've got to release someone from the team doesn't fit the culture. So we're always a top producer. So from a people culture standpoint, that's critical and on the operations side to make sure your processes are dialed in and you're executing properly so you don't have to throw bodies at your business, but you're running your business on systems and then raving fans and culture. You have to be shooting for World Service.
