Transcript:
I think, for most of you, the goal is to make north of $500k to $1 Million without having to meet with clients. Net. The only way do to it is to build a team - not just any team but a team based on business principles. The year I sold 66 homes, 33 buyers and 33 sellers, I got to a point where I just said, "This is not sustainable. At all."
Even if you give up buyers, just kind of working deals, offers just come at times where it's not cool. If an offer comes in at 7pm Friday and you're on date night, your clients not going to want to hear that you waited. And then you've got stuff with the family on Saturday and you wait 'til 2pm on Saturday.
So leveraging yourself through better organization and delegation. I learned 2 important things the year I spent with Harold Ware. The "Corporate Model" is what he called it. It basically has three features.
Lifetime Value
He calls it lifetime value. I'm very clear that I want to control the relationship with all our clients. We've got good agents and they deliver good service, but at the end of the day, I want them to say, "Man, Lars's team kicked ass. The Lars Group kicked ass."
We've gotten reviews from buyers that didn't mention their agent in the testimonial. They say "Lars did a great job," and I never met the person. I haven't met with buyers in three years. So I do believe you need to control that experience with a client and control the lifetime value. So the company maintains the client's lifetime value and delivery of value proposition to consumer vs. giving up control to your agents.
Administrative Staff
More of the workflow is performed by admin staff. We have a Buyer Client Care Coordinator and a Listing Client Care Coordinator. Their job is to take as much of the admin load off the agents as possible. The reason for doing so is, it's a dollar productive activity thing, but it's also so we control the process.
On the listing side, we used to have a separate Listing Coordinator and a Closing Coordinator, but our clients didn't like that at all. They felt like it was too many people, a little clunky. So we went to having one person on the listing side. So the listing person gets the paperwork, and that one person is going to take them all the way through closing. It's worked out really, really well. And even if you're Closing Coordinator does your buyer closings, to have them control that whole process is a smart move.
This applied to inside sales as well. We're not all inside sales, and we'll talk about the different models you can pursue. There are teams that separate all prospecting from their agents. There are teams that have no inside sales. But we do want to control a portion of that new business development regularly.
Value Based Commission Structures
Here's probably the biggest thing. Even a lot of the smaller teams that are just with me are surprised by the commission splits we're able to get - the gross margin we're able to pull on the buyer side and the listing side. It's partially in the way you present it, but it's just value based commission. That's my game now, just always looking at gross margin. Every time I open up my Business Tracker, I'm going to gross margin. I want to see if it's moving on either side.
And I'm focused on where my agents are pulling business from. If my agents are getting a lot of business from their sphere, I know it's a potential risk for my team. So if I have one agent at 40% from their sphere, which is by far the highest on our team, I know the agent at any moment could decide to not work as hard and just do it on their own. So having that clarity is super important.
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