Eliminate Bad Business Habits with Accountability

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Transcript:

What would I have done differently? Not a whole lot, but for best agents that have been newly licensed, don’t maintain bad habits. The three or so years where I didn’t figure out hiring, I went on to hire Chris, my first hire who’s still with me today. I went on to hire Chris and just a bunch of agents that weren’t the right fit. They were old school and made excuses.

They didn’t embrace accountability. The quicker you can own the fact that the system we created here -- with accountability and tracking -- you need to step into that and say there is no other way. There is no exception. No, you can’t not prospect for two ninety minute blocks every day. You’re not going to be successful if you do that. If you don’t have appointments, you’re prospecting for eight hours a day. The sooner you own that position, the better. It took me years to figure that out and get comfortable with it. It took three or four years, if I’m being totally honest. Embrace that.

If you haven’t seen the buyer agent screening filter, it’s been posted on Facebook. It’s the eight things I learned about real estate agents, like the primary income earner. There’s no traditional agents -- no drama, they’re eager, you’ve met with their spouse. You have to come up with your own filter.

A value based commission structure, I covered this before. You have to decide how the world will look on your team. You have to get to the right gross commission levels. The agents on your team should be productive and make a lot of a money -- because of productivity, not from overpay. We focus on recruiting the net income our agents can earn on our team.

We offer a clear path to $100,000 in the bank without any expenses. Buyer agent splits are 90% of 34/40/50/60. Our top split is 54% and lowest is 27%. Listing agents make 90% of 25 or 35. Sharon is already over $200,000. John will get really close to that this year. I have their success stories of Jen and Chris, which are both around $100,000. Our new agents -- three we hired in March -- sold 37 homes between the three of them this year. That’s pretty much minimum quota. They were on the team for eight months. They’re off by their two minimum per month, but that account for their ninety day improvement. They’re on track for sure.

Culture has been way more important than I thought it would be. Agents respect accountability and leadership, but we both work and play hard! We’re having fun with our families when we play. You know, we divide the world.

You want to have growth margin targets on both sides of the business. Obviously, if you’re only doing listings, you want to have a 100% gross margin. You’re ready to give that position up when you have 300 to 400 of gross commission income on the listing business alone. You can pay someone 25% and step out. Buyer business gross margin target is 55% to 60% with a 40% to 45% buy out. The overall gross margin target is 65%, which is what my team runs out today.

This is the number one thing jacked up for all real estate teams. They just don’t have a compensation model. I still review financials in detail by the fifth of every month. I do not miss this appointment with myself.