Real estate agents lose money buying leads from Zillow Flex, which takes 40% at closing. Build a listing-centered system instead: one listing manager can handle 92 listings, each generating up to five commission checks through sales, referrals, and buyer leads from yard signs, with an 8-10x ROI versus 2.5x from paid leads.
Questions this video answers
Up to 40% at closing.
8 to 10 times return (8–10×).
Approximately $15,000.
Around $1,500 (all in with direct mail, systems, and tech).
92 listings.
The industry has become so lazy overall where we're just looking for someone else to get in the way of us and a buyer or a seller. And we're just going to pay for that lead, whatever they want to charge us. Zillow Flex is up to 40% at closing. At 40% at closing, that's a 2.5 times return. Essentially they're dictating the amount of money that you could make on that closing. My rule of Thumb is an 8 to 10 times return is what we're shooting for. So if you set up these systems properly, average commission check in your market is, you know, $15,000. It should cost you around $1500 all in with direct mail, with the systems, the tech and all of it to get that expired or for sale by owner to closing. But you're not going to just be able to, here's the crazy thing some of you would say all day long here I have, I can come up with $6,000. I want four closings. There's, that's not what this is. So we're going to build the systems out to generate closings at that kind of return. If I was selling closings, I would charge you $7,500 for a $15,000 closing. And then you'd never have freedom. And a lot of you would take that deal and I'm asking you to not take that deal and commit to the mindset of building systems in your business. The reason I was able to, and it was me and one listing manager. I got up to 92 listings, which sounds cool, but the market was crap and everyone was pissed off at me and a lot of them weren't selling. But I, I knew that if I could build a listing based business that all the good would come from it. I'd have signs up, I'd get more listings, I'd get a ton of buyers. My agents could run open houses for me. So listings have babies. There's a system that I won't go through today, but every listing that we take in our framework, we have systems in place to generate five commission checks total. So we can sell that one listing, that's one commission check. But then we can do, do a whole bunch of other good things, get another listing in the neighborhood. We can get a buyer off the yard sign, we can get a referral from that seller and then we can help that seller buy either via referral out of the market or buy locally. So there's five commission checks that we, we can build systems around to make sure and we're not going to get all five all the time, but it's a systems approach that we're after.
