The Best Way for Realtors to Make More Money and 3x Your Production!
If you are a real estate agent then I applaud you! You are in an extremely competitive industry building a business and career of your own while serving others in the community around you. Being a real estate agent is something you need to be proud of, and can be extremely rewarding. You get to choose your work hours (aka, you get to choose which 80 hours of the week you get to work), be your own boss, and have the potential to make as much money as you want.
But that doesn’t mean that being an agent doesn’t come with its pain points and challenges. One of the biggest challenges that real estate agents have is that they want to sell more houses. Although that’s the number one thing agents will say when they are asked what would make their business and life better, what they really mean is that they want to make more money.
For the majority of real estate agents in the world, the only way they think that they can make more money is if they sell more houses. How can you sell more houses? Most agents will suggest different strategies to either generate more leads or convert more leads to increase your personal production. But what if there was a way for agents to sell more houses without generating or even converting more leads? What if agents began to think outside the box for a change. What if there was a way for agents to double their income without having to work twice as hard?
There are a few agents in the world who have figured out this formula, and although the number of agents who have solved this problem in their businesses is increasing by the day around the world, they still only occupy a very minute percentage of total real estate agent population.
These agents are the team leaders and broker-owners.
If you are a real estate agent reading this article, then you most likely are looking for ways to sell more houses to make more money. And while there are a number of different strategies that can work, by far the best way for a real estate agent to sell more houses so they can increase their income is to build a team. When you build a team, you are not only able to make more money, but you are able to take back your time as well and work fewer hours or the same hours for more income.
You are able to do this because you are leveraging the production of other agents to make more money than if you were working alone. In this article, we will discuss how real estate agents can make more money and free up more time by building a real estate team!
The Power of Leverage
In business, the word “leverage” is thrown around a lot. And for good reason! Leverage is what separates successful businesses from the ones that struggle and fail.
Leverage simply means using something other than your own time to your advantage. And in the world of real estate, one of the smartest things an agent can do is use leverage to their advantage.
When it comes to making more money, real estate agents have two primary sources of leverage: people and money.
Let’s start with the first one: people.
People are the most important asset that any business has. And in the world of real estate, this is especially true! The reason for this is that real estate is a relationship-based industry. You are not selling widgets or cars here; you are selling a service that requires interaction and trust between two human beings. Because of this, your ability to develop relationships with others (clients, other agents, etc.) is essential to your success as an agent.
The best way to think about leveraging people in your business is through creating relationships with other agents so that you are able to provide them some form of value so that every time they close a transaction you are paid a percentage of their commission size.
This is where building a team comes in. When you have a team of agents working underneath you, you are able to earn a piece of each of their efforts by providing them value in the form of leads, referrals, systems, training, etc (more on this later).
The second source of leverage for real estate agents is money.
Money is what allows us to do things in life like buy a house, put our kids through college, finance marketing in our business, and travel the world. The more money we have, the more options we have in life.
Usually, agents who want to make more money leverage money through investing in their marketing and lead generation in order to generate more client leads and to sell their clients’ properties faster so they can improve their services.
Like we mentioned earlier, real estate is a business based on relationships and human interaction. An agent’s time and presence is crucial to the success of a real estate transaction and without it, there would literally be no business to be done. Real estate is a business that is dependent on the presence of the agent.
With that in mind, it is easy to see why leveraging people is much more effective than leveraging money in your business as a real estate agent. If you only leveraged money and doubled your marketing dollars, you would generate (in a perfect world) twice the leads, work with twice the amount of clients you do now, and more importantly work twice the hours. Unlike businesses that sell products such as an eCommerce store, generating 500 client leads is useless to a real estate agent if they don’t have the time to work with each one individually.
Since everyone, including real estate agents, only have 24 hours in a day, no more no less, in order for agents to make more money, they need to expand and stretch time in their business. They can do this by building a team and leveraging the time of other real estate agents.
When you leverage the time of other agents in your business, you are now able to work with more clients through their time and efforts rather than relying on the limited 24 hours you have in your day personally.
Think of it this way, since everyone has 24 hours in a day, if you recruited 3 other agents to work on your team with you, your business instantly goes from having 24 hours a day when you were a solo agent to having now 72 hours in a day. Or for example purposes, considering that every agent works 8 hours a day, your business now has 24 hours of operation with 3 other agents rather than only 8 hours if you worked by yourself.
Assuming that the agents on your team have the same closing rate that you do, you can literally increase the number of houses you sell by 300% simply by building a team of 3 additional agents! Now obviously that will not be the case for every agent that you bring to your team, most of the time the agents who do work on your team produce less than you do. But even if your agents have a closing rate that is half as yours, you can still more than double your business.
Even if your agents are working at a rate of 1% of your current effort, you can still outearn your personal production through the team’s duplication if you recruit enough agents to your business. It’s like what the great capitalist pioneer John D. Rockefeller once said, “I would rather get paid on 1% of 100 people’s efforts than 100% of my own efforts.”
If you are looking to build a real estate team so that you can double, triple, or even quadruple your income, the fastest-growing real estate team in the world is currently looking for a few partners to work with! Click below to find out more about this incredible opportunity!
Self-Employed vs Business Owner: Own a Job or Own Your Life
If you’ve ever read Robert Kiyosaki’s best selling financial literacy book Rich Dad Poor Dad, then you are familiar with the concept of passive income and the cashflow quadrant. The cashflow quadrant explains 4 ways that income can be generated and divides the people of the world into 4 quadrants based on their main source of income.
The 4 quadrants are: Employee, Self Employed, Business Owner, and Investor. Without going into too much detail, here are the definitions of each:
- Employees trade their time for a fixed salary, they have a job
- Self-Employed people trade their time for money but work on their own schedule, they own their job
- Business Owners leverage other people’s time, money, and systems to make money even if they are not working
- Investors make money by purchasing cashflowing and appreciating assets, their money makes them more money
Most real estate agents today fall into two of the quadrants: Self-employed or Business Owner.
The difference between being self-employed and owning your job or being a business owner and leveraging other people’s time and expertise so you can step away from your business and still earn money is the ability to live life on your own terms.
When you are self-employed, you own your job, you are trading your time for money. You work a certain number of hours in order to generate an income that allows you to live the lifestyle you want. The more hours you work, the more money you make. But like we touched on previously, there is always a limit to how much money you can make based on how many hours per day/week/month etc. that you’re able and willing to work.
On the other hand, when are a business owner you own your life. You are leveraging other people’s time and effort to do the work for you. You can step away from your business, take a vacation, or simply not work as many hours and still generate an income.
The beauty about being a business owner is that you have the ability to live life on your own terms. You’re not trading your own time for money, you’re generating an income through other people’s efforts so you can have more freedom in your life.
In order to be able to live life on your own terms, it is important that you find a way to leverage other people’s time and expertise in your business. This is why building a team of real estate agents is one of the best things any real estate agent can do to not just increase their income but also free up more time.
Agents who recruit other agents and build teams earn overrides of the commissions that the agents on their team generates. This means that real estate team leaders are leveraging other people, or the agents on their team, to make money for them even when they are not working. This allows agents who have teams to have more freedom to choose what they want to do with their time, rather than being forced to work for income. They can now spend more time with family or friends, take some time to relax on their own, or use that time to recruit more agents and increase their income.
Learn More About How Agents Going From Being Self-Employed to Business Owners at eXp Realty
Financial Stability
One of the most overlooked aspects of the real estate industry is the lack of financial stability that a real estate agent has. Unlike other industries, a real estate agent can go from making $100,000 one year to making nothing the next. This is due in part to the fact that most agents are self-employed and have no guaranteed income.
When you are you’re self-employed, your income can vary greatly from month to month which can make it difficult to save money or plan for retirement. Real estate agents who do not have closings in their pipeline constantly are actually living an incredibly risky life.
There’s a popular saying in the industry that whenever an agent closes a deal, they instantly become unemployed.
This is why building a team of real estate agents is so important. By leveraging the production of other agents on your team, you create more stability for yourself financially. You now have an additional stream of income that is not reliant on you generating a commission on your own.
This additional stream of income can be extremely helpful in times when business is slow or you have a dry spell. It also allows agents to save more money and plan for their retirement.
Also, if you are a real estate team leader who is not sure whether to spend more time doing personal production or recruiting agents to grow your team, think of the value that each task can provide you. When you spend one hour on your personal production, you are trading your time to be paid once, when you spend that same hour recruiting an agent, you have traded that time to be paid over and over again as long as that agent is on your team.
Team building is what is called a forced multiplier, it yields you more results that last for a longer period of time when you spend the same amount of time on it rather than on a task that only pays you once.
When it comes to real estate, having stability financially is one of the most important things an agent can have. Building a team of agents helps provide that stability.
If you are looking to build a real estate team so that you can double, triple, or even quadruple your income, the fastest-growing real estate team in the world is currently looking for a few partners to work with! Click below to find out more about this incredible opportunity!
Expanding Your Market Share
The size of your business is the size of your market share. The more people and sectors of the market that you are able to serve, the more money you are able make. That is why international businesses always outperform local ones financially given that both businesses have the same levels of competency.
That is why another great benefit of building a team of agents is that you are able to expand your market share through your agents’ expertise.
When you have a team of agents, they each bring with them their own expertise. This means that as a team leader, you now have access to more potential clients than if you were working on your own. Your team can help you reach new markets that you would not be able to reach on your own.
For example, if you are a real estate agent who had never sold a luxury home then it would take an extensive amount of time and effort for you to learn to be a luxury agent yourself and expand your market share. Through team building, you are now able to recruit luxury agents to your team by offering them value by giving them additional training in specialized areas such as video marketing. Now your business can reach the luxury market, something that you could not do on your own.
This can also be applied in terms of the actual location of markets that your business is able to reach. If your team has a model that allows you to recruit agents outside of your current local market, then you are now able to expand your business into new locations and serve a whole new crop of clients. That is why the ability to have a national or even global market share is so important for agents who want to earn more money. A business’s income is capped by their market share, so if you have access to a national or even global market, your business can earn exponentially more income.
Not only do teams allow for the expansion of market share, but they also provide additional resources and support. Teams offer real estate agents an opportunity to learn from one another and grow together professionally. As a result, teams tend to outperform individuals in terms of production and income.
Learn More About How Agents are Growing Global Real Estate Businesses at eXp Realty
Team Building is the Best Way for Realtors to Make More Money!
Building a team of real estate agents is one of the best things an agent can do to increase their income. Through team building, agents are able to expand their market share, have finanical stability through duplication, create a fulfilling lifestyle with passive income, and exponentially grow their income through the power of leverage. If you are a real estate agent struggling to increase your income or wondering how you can make more money, stop trying to generate more leads so you can sell more houses, because the best and most efficient way to sell more houses as a real estate agent is to build a bigger team!
Are you a real estate agent that want to sell more houses and make more money, learn how you can start building your team today with the fastest growing real estate brokerage in the history of the world!
If you are looking to build a real estate team so that you can double, triple, or even quadruple your income, the fastest-growing real estate team in the world is currently looking for a few partners to work with! Click below to find out more about this incredible opportunity!