steve kantor: Increase Net Profits and an Easy Extra $50-$100K
- 07/29/14 09:45 PM
Do you want to increase the net profit of your business? Of course you do. Do you want to do accounting and finances and monthly financials of income statements and budgets and balance sheets? Of course you likely CRINGE at the mention of those. We have a solution. The answer of wanting to increase net profit but not LIKING dealing with finances and accounting is to delegate the not-fun monthly finances and accounting in QuickBooks to Best Agent Business. We are doing this for about 5 of our 100+ clients and they LOVE IT. See a short video on our … (0 comments)
steve kantor: Analysis of a Top Brokerage
- 07/28/14 07:51 PM
I’d like to continue on from my last blog and explain why it’s not crazy that the Billion Dollar Agent profit model is 50% net profit. Let’s analyze an independent brokerage which evolved from a top team to a good brokerage. The brokerage has 50 agents and they did $3,000,000 in GCI. That is $60,000 per agent, which is pretty good. The net profit was only $260,000. That is a nine percent net profit. The net profit was better than an average broker, but far below a typical team. For example, a team doing $1,000,000, with an average net profit … (0 comments)
steve kantor: The Billion Dollar Agent Model is 50% Net Profit
- 07/22/14 08:02 PM
How much do you make in your business? How much should you be making? Do you know how much you are making? For simplicity, we will define your net profit as your salary equivalent. This is the amount of money you earn after expenses and before taxes. It is similar to what you would earn in a job.
After reviewing over 100 financial statements of Billion Dollar Agents, we created the Billion Dollar Agent Profit Model. There are three levels of business and profits. A brokerage is usually a very poor business model with net profits of zero to … (6 comments)
steve kantor: Keep in Touch and Get Some Door-Knockers
- 07/22/14 06:16 AM
Do you ever use that evil phrase, “Past Clients”? Never use that word. Call them Clients. I spoke to a Client who last worked with us in 2008. We had “kept in touch” over the years with monthly emails, periodic mailings, a hand-written note once or twice, and quarterly calls. He said that if he treated his ‘Past Clients’ the way we treat ours, his profits would be double. Watch Video Now - Short 2 Minutes Subscribe to our YouTube videos HERE. Billion Dollar Agent - Time Management Tips - Delete - Subtract Hyper Harry Driving - Do you spend too … (0 comments)
steve kantor: The Open House System of a Billion Dollar Agent
- 07/14/14 08:39 PM
This will be my last blog for a while on this topic. Thanks for your excellent comments; I can tell this is a topic that is being discussed frequently since everyone has a different way of looking at it. Let’s brainstorm a simple version of how open houses should work going forward. This is about ten minutes of brainstorming from someone who has never been a real estate agent and never hosted an open house: Open House Budget Joe Time - How many open houses do you want to host per month without getting burned out? It is super critical … (1 comments)
steve kantor: Open House Analysis – Wildly Profitable
- 07/14/14 08:17 AM
I’d like to continue talking about Open Houses this week since it’s such a big topic and everyone seems to have an opinion. Your first question right now is, ‘Does it make sense for me to do an Open House?’ To decide, it would help to then ask yourself these questions too: If you are doing $100,000 per year, or $250,000 to $500,000 in GCI, should you be doing an open house? How many should you do each year? What parts should you do versus delegate? Let’s dive deep and analyze how wildly profitable an Open House can be for … (2 comments)
steve kantor: Open House Management Depends On Your Personality
- 07/09/14 09:45 PM
Real estate, like most small businesses, makes it easy to become overwhelmed with the wide variety of marketing tactics and operational details needed to run the business and close a deal. The sooner you narrow marketing tactics to just a few and delegate everything else, the better it will be. This is particularly true with Open Houses. How you proceed should depend on your personality. No, really. Would you rather have ten hours of meeting with people for one hour of calling or would you prefer five hours of meeting instead of one hour of calling? These questions may seem … (3 comments)
steve kantor: A Reminder of Why You Should Do Open House Marketing
- 07/08/14 09:45 PM
I know I’ve written on this before and love them or hate them, Open Houses are a controversial topic in the community for sure. I’m strongly in the ‘love em’ camp and want to write more about why. Open house marketing is often an extremely profitable marketing segment for buyer and seller business. If you are not doing open houses in a market where open houses usually get five to 20 people, you are missing out on a huge opportunity. If you do open houses and they are productive, you can easily double your business from open houses using our … (0 comments)
steve kantor: Stop Buyer Agent Madness
- 07/02/14 11:03 PM
Why would you expect that a Buyer's Agent is good at calling buyer web leads for 2-3 hours per day, showing homes to buyers, and doing closing management paperwork? Out of ten buyer's agents you have hired, how many have been really good at all three of those talents? Watch the two videos below to catch my drift. Watch Video Now - Short 2 Minutes Subscribe to our YouTube videos HERE. · Mail to Buyer Web Leads · Lazy Buyer's Agent - Silly Business Owner Focus Unique Talent - Stop Buyer Agent Madness In the same way that … (0 comments)
Will you send me a photo or short 10 second video of your office desk area? No, really. I am sharing some Lead Lessons from a few client case studies this week. Put them all together and the lesson is Stop Wasting Leads. You can email it to me or reply to this blog. So when I asked you to send me a photo a few seconds ago, was your reaction of pride to show off your organized physical space? Or was it one of dread, guilt, or laughter of NOT wanting to show off the piles of files … (2 comments)
steve kantor: The Profit Model of a Buyer’s Agent is Broken
- 06/24/14 12:36 PM
With many of our clients, our concern is that the buyer business of many teams is broken. Even if the team closes 25, 50, or 100 buyer deals via buyer’s agents, the profit may be zero or very low. Let me walk you through an analysis. Here is a sample budget model for a large team with low profits: Brokerage – 10 Percent - Paying $100,000 on $1M in GCI because of overpaying brokers or paying for the splits/caps of the buyer’s agents Marketing - 20 Percent - Overspending on lead generation and wasting leads Assistants and General/Admin - 20 … (0 comments)
steve kantor: Don’t Run a Bozo Buyer Business
- 06/23/14 11:48 AM
Are you running a bozo buyer business? It is very frustrating. There is no shiny squirrel you can buy to make it magically better. Business is hard. Buyer business is hard, but the profits are solid with the Billion Dollar Agent model.
Billion Dollar Agent Manifesto Statements Here are some manifesto statements related to buyer business: Marketing is fun and easy, but the more you spend on marketing to generate buyer leads, the more likely it is that your profits will continue to shrink unless you have a buyer profit model. Shiny squirrels are fun. You can go buy … (0 comments)
Continuing on from my last blog about Buyer Business…What happens next after you seed the big picture? Agents usually decide to build a team and hire their first buyer’s agent. Overall, I would fire 80 percent of buyer’s agents. I believe that almost every top coach in the country would agree with a similar number. Here’s why: · First Buyer’s Agent - The first mistake is paying the buyer’s agent a 50/50 split without thinking through why you are paying 50/50. If 90 percent of teams have a poor business model and overpay their buyer’s agents, then you are … (0 comments)
steve kantor: Typical Lifecycle of Agent and Buyer Business
- 06/08/14 11:55 PM
New real estate agents often work mainly with buyers, doing open houses, getting buyer referrals from their broker, or other agents in the office who do not want to work with buyers, and doing buyer relocation referrals. By working with buyers, you will get exposed to inventory, buyer needs, and other aspects of the real estate business. Most importantly, you will build up your client database of people who may refer business to you, or need to sell their home in a few years. As a buyer in your early years you often drive the start of your seller business down … (0 comments)
You start real estate working with buyers. As your business grows, you get your first listings and start working with sellers. As you succeed, you focus more on sellers and less on buyers. You start to drop and ignore buyer leads that would have converted $5,000 to $10,000 commission checks a year or two ago. As your business grows, you may get buyer’s agents, and your buyer business will go from bad to worse. You may not even know your buyer business is bad because you just look at buyer deals, not buyer profits. At this point, you either … (0 comments)
Okay, I promise this is the last I’ll write about expireds for now…but it’s a huge topic and I promise to revisit down the road. What percent of market share are you getting of expireds that relist and sell with a different agent within one year? Until your number is 20 percent, the job is not done. Let's walk through the numbers. · In your market, there are 500 expireds per month which fit your area and price criteria. For example, you only pursue expireds above $150,000. · Of those 500, through research, we conclude that 100 per month … (0 comments)
steve kantor: Do An Expired Marketing Cost Analysis
- 05/29/14 06:42 AM
Usually, agents only think in terms of how much they would pay for a referral fee, how much they would like to spend for marketing, and how much it costs to buy a lead. Let’s review an expired at $200,000 for $6,000 in GCI. Referral Fee - Most agents would happily pay a 25 percent referral fee of $1,500 at closing. Please note that 25 percent is a very large number, but it is no risk because nothing is paid unless the deal closes. Smarter agents who are willing to invest cash in advance for marketing efforts seek to pay less … (2 comments)
Do you watch Shark Tank? I saw Barbara Corcoran speak last week at a Dallas Mastermind and she was fascinating. I have a wild idea involving Barbara Corcoran endorsing some top agents with her brand and some bigger ideas. Would you like to have Barbara Corcoran endorse you and use her name/brand in your marketing materials? If so, reply to this blog and tell me how much you would pay per year and I will send you my top secret idea. What percent of home buyer/sellers do you think know Barbara Corcoran from Shark Tank and have a positive view? … (2 comments)
steve kantor: Why is Expired Marketing so Hard?
- 05/20/14 11:43 PM
Continuing on from my last blog, ‘Expired Marketing is Hard’ I’d like to explain here why that is. Expired marketing is hard because it requires a mix of unique talents from three different people: · Database Management - You need to organize and manage the constant stream of expireds, re-listings, and seller ABC leads generated from marketing efforts. · Mailing - Expired mailings should be a combination of a long series of ten mailings over ten weeks, a larger 3D package-type mailing, and monthly jumbo postcards of expired, just sold testimonials to the entire database of expireds which are not relisted/sold … (3 comments)
steve kantor: Expired Marketing is Hard
- 05/19/14 07:24 AM
Expired marketing is a key profit pillar for a Billion Dollar Agent. All Billion Dollar Agents should fully commit to expired marketing sooner or later. Expired marketing is best done by a strong, well established team with solid listing expertise and a successful record and even then it’s hard to do. Expireds are preferable because they are seller leads and therefore more profitable than buyer leads. Expireds can be done with a focus on raising your average sales price which also will improve profits and expireds are listings which generate buyer leads for sign-calls. Expired success leads to more expired success … (0 comments)
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