Find Out How I Took My Business From $0.00 to $100,000 In Profit In Year 1.
Starting a new business or re-examining an old business model that is not working can always be tough. One thing I have found is that being uncomfortable makes you more successful than being comfortable. The more you put yourself out there the more opportunity will arise. There is no magic formula. No overnight success. Just hours of ongoing trial and error with various ideas. Your 30 seconds of interest in reading this page means your not giving up. Rather you maybe looking for a different path. Maybe my company will fit your style more, maybe it wont. No hard feelings on my side if it does not.
Gary Vee as he is known talks about "breaking out". Meaning you need to get out of a routine that is not working and form a new one. It can take about 3 weeks of doing something over and over to become a habit. Breaking a habit especially a negative one is one of the hardest things a human being can do.
I formed BCL Properties LLC originally as a property management company. As I have grown the management side of the company from nothing into a now 6 figure company I want to share how I did that with other agents so they too can grow. My believe is simple. Target your market, knock down the barriers, and scale the business up. The business model is the same for sales or management. Both require me to get new clients, work off of old ones for referrals, and break into new neighborhoods for business.
What do I know? Well I know that as a new agent or even one with 2-4 years in the business real estate can be overwhelming and difficult. Business is not steady. Deals fall through, and most end up leaving the business before year 1 is over.
This is not by any means a make millions over night speech, or some youtube video showing you how to press a couple of buttons on Facebook and you will have a million followers. As you see on my business page I don't. But the followers I do have are key to my business and help produce new clients. The process of being an agent can feel like a roller coaster. When your up it is great, but when your down it feels like things will never turn around. I get it. I have been an agent for 12 years now. Through ups and downs.
I also understand it takes money to make money. On a 50/50 split no agent will produce enough to continue to grow. After all the fees are taken, taxes accounted for, and bills paid there is not much left. My first goal is to increase commission structure for new agents. My financial tracks are simple. 70/30 and 80/20. No desk fees, No transaction fees, No fees at all. The splits are determined by past business experience/sales, and willingness to grow. I rather have 2 agents producing and putting that additional money into their growth than worry about some small fee. I rather not have 15 agents that are barely or not producing because my company takes a bigger split. So as your sales grow so will your split. Its that simple.
Why not 100% splits like some other companies are now doing? As a smaller brokerage company honestly it would not be a great business model for me because I would have to charge monthly fees in hopes you sell something to keep happy and continue on with my company. The turnover rate is extremely high in those companies because as the agent pays fees and do not produce frustration sets in as does blame on the company. Some companies charge a transaction fee I understand but even with that there is no broker support, or personal help if needed. So there is a give an take to these models.
100 percent splits are like any other marketing strategy. A tool that looks good from a far, but if your not producing 100% of nothing is nothing. Don't you think if this model worked well every agent would be at that company? The top ranking agents I have found are at smaller tier 2 or 3 companies that give higher quality of service both to their agents and customers.
( Tier meaning size of company )
Those agents are more than willing to give 20-30% on a transaction because they are producing and have found value where they are.
Personal marketing is 90% of being a real estate agent. The other 10% is writing contracts, knowing the law, etc.. Thats what I feel the larger companies lack in teaching. Branding yourself as agent ( a person, a human being ). I have heard this phrase all the time at real estate conventions. "This is your own business and you can make it as big as you want. So just keep signing up for all these classes and get this video series and you will be successful." Its like watching a bad infomercial. Its almost painful to watch.
Then they show you an example of 1 agent who made over $500K last year using their "system". But did the agent make that money with their book/video/training system ( maybe ), or did the agent learn and experience what I have learned. Breaking out of old routines, branding themselves with value, and connecting with more people while expanding their personal network. This business unlike others is a marathon not a sprint. Its not quick money. Your business growth is overtime, and takes a lot of effort. Typically it can take 2-5 years to establish a base of clients that may provide referrals. However if the business becomes successful the financial rewards start to become greater. Like in the movie Jerry Maguire most agents want to reach the "Quan" which although the word is not real the underlying message is that end result or reward. The feeling of success and wealth.
Getting back to agent vs. business owner. As I have now experienced both sides ( being an agent & now brokerage owner ) there is no comparison when it comes to the word business owner. In fact as an agent you receive a 1099, work as an independent contractor, and can technically leave your current brokerage firm for another within a day if you choose. Your very liquid in fact. As a business owner I cant do that. I have a vested interest in making the company grow and have spent money and time just doing that. There is no quick jump or way out.
The big debate I ask agents is: Is the client following you or following the company when you as the agent leave. Another words do you have enough positive history with the client to get them to go with you when you leave. Well the best way to find that out is to leave and see who follows. Not the easiest thing on the ego, but it lets you know where you stand. A well valued agent typically will retain their clients or most of them as they have developed a bond and trust with you. Agent hoppers as I call them go from one firm to another chasing this dream that the new company will make them successful. Now there can be differences in the way your treated by a new company or the way an office looks. Absolutely. But after the initial tour and meet and greet your basically back on your own. How are you going to grow at this new company? So they gave you a better split and a better office. How are you going to use that to your advantage?
Let me talking about what I feel clients value in our business.
PVB ( Personal Value Branding ) is they key to growing your client base. I started this company with 2 clients and continue to build and grow monthly. So it can be done. I did not re invent the wheel, but rather just starting to make the wheel turn in my direction. Creating value for clients rather than trying to sell them on the idea that I am the best manager for their property. Or best agent for their sale.
I have seen it for years. Agents jump from one company to the next being promised a wish list of stuff and 4 months later just pissed off again as nothing has come from it. You sit frustrated in weekly office meetings watching other agents have 10 listings and you having none. Listening to some broker tell you how wonderful the company is and how much they are helping everyone (remember office brokers are salaried not agents in most cases). But are they really helping? Is anyone really showing or guiding you. Is your once a year meeting with the broker making your business better? If it is then great! If not maybe its time to breakout and try something a little different. When you complain to the broker that you were supposed to get this great corporate training do they stick you in front of some video series that shows you how to make $400K next year by contacting your circle of friends? Really how many friends are going to give you that much business in your first 3 years as an agent? I have watched those videos, taken the seminars, paid for the training. At the end of the day it just came down to me. What action was I willing to take. How am I going to break into the market share of a neighborhood. Whether in property management or sales. There is always competition with other agents. How uncomfortable was I willing to get in my first year of building a business? At the end of the day real estate sales is for the independent business person who has larger goals and dreams than having a normal 9-5 job with set salary. But you have to ask yourself how uncomfortable are you willing to get for those dreams in 2017? Will you take action?
I am not promising that you will make millions although that would be fantastic. I would be giving you first hand experience on how I did things that helped my business. It may not be the answer for you, but it may enlighten you to a new way of thinking. New actions you have not taken. My goal is to get you to step out of your comfort zone as I did and still do everyday. Once you get a taste of the success the insecurity will subside. If you become obsessed with that success than obsession if directed properly can often lead to above average results.
I don't believe agents should be in an office sitting at a desk in a office all day. With smart phones and tablets you should be out and about in the area you want to work in. You should be out in the field showing property or socializing at events. I rather you be sitting in a busy Starbucks where someone may randomly see that your an agent because your looking at a real estate document and strikes up a conversation about the current market. Your time then would much better spent there than sitting in an office complaining to co workers that nobody will help me grow my business. This business is not about 4 hour board meetings with some complex marketing structure. Its just about creating value in what you can provide and getting that value to new clients. Everyone has something they can offer. You just have to figure out how to tap into that and show it to the right audience. There will always be the complainers, the haters, and the negators. Ignore them and focus on your goal.
When its time to write a contract or sit with a client we do have office space in two virtual locations in DC that can be booked in advance online for a small fee per hour. Most companies pay major bucks to lease 10,000 ft of office space all for 2 or 3 agents and an admin to come use it. It makes no sense to me. Unless a franchise requires it than I see no point. This business has become one of the best mobile business out there. Take advantage of it.
Learn to brand yourself as a person (PVB). Not as a formal business. Think about Facebook. People are addicted to looking at updates all day long in the interest of something happening with friends, or new pictures, or videos. Most business pages have likes, but the interaction is typically done on their personal page with others. That can often be re directed to their business page. I will share my experience and how I use Facebook for business. I have learned and still learning.
I hope to bring success in 2017 to my agents and please if you are interested in learning more go ahead and fill out the contact form above.
Owner / Broker
"YOUR LEGACY IS BEING WRITTEN BY YOURSELF.MAKE THE RIGHT DECISIONS." - Gary Vaynerchuck