What Are the Perks of the Corporate Model in Real Estate?

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Transcript:

Today, I want to explain the Corporate Model, which is focused on leveraging yourself through better organization and delegation. The only way you can earn $500k-$1 million is to build a team. Not just any team, but a team based on sound business principles.

At the most elementary level, the Corporate Model has three key features vs. the traditional brokerage or team models: 

1. The company maintains the client's lifetime value, including the delivery of value proposition to consumer, vs. giving up control to your agents.
2. Work flow processes are performed by specialized employees rather than a jack-of-all-trades traditional agent.
3. Agents are transitioned from traditional high splits to much lower splits in line with the value they provide in the transaction.

Put more simply, the company as a whole maintains client relationships, work flow processes are specialized, and agents receive splits that reflect the value they bring to any given transaction in the Corporate Model. Ideally, gross margin will be around 40% for the owner, leaving about 60% to pay expenses and yourself as the business owner. In other words, the more value you and the company bring to the agent, the more money you get to keep as the owner and operator.