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MARIA BELEN AVELLANEDA is generating new business while still spending smart. p.9
FROM
YOUR
LEADERSHIP
OWN Q1 In “traditional” real estate, business slows during the winter months. Agents let up on the activities that generate big results. They accept lower production … because that’s what traditional real estate has taught everyone to expect. A similar groupthink affects how agents approach a market SHIFT. They content themselves with lower production because they’re convinced that’s all they can get. The best agents succeed year-round. They not only survive market downturns … that’s when they thrive! They recognize Q4 and Q1 as opportunities to differentiate themselves from the competition. They see market corrections as openings to expand market share … and fund bigger lives for their families. The Keller Williams Career Growth Initiative (CGI) is a powerful tool to offset these stubborn myths. And in this issue of OutFront, we present the stories and success strategies of some of the world’s top real estate agents. Because we’re committed to helping you grow your business and gain your unfair share. You’re in charge of your business … not the people who perpetuate these myths about traditional real estate. Commit to the CGI and its tools … and watch your production and profits expand!
JOHNDAVIS PRESIDENT
CHRISHELLER
CEO
4 GOALS WITHIN REACH Associates share how the CGI tools are getting them closer to reaching their big goals.
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BIG MOVES AND NEW HEIGHTS Claudia Restrepo credits KW MAPS Coaching in part for her success earning the top spot on the NAHREP 250 list.
CONTENTS 6
McCLAIN HERMES DID IT!
7
SPEND WITH PURPOSE
10 14 17 18 16
22
DEEPEN YOUR TALENT BENCH Learn how Career Visioning is helping associates find the right talent for their team.
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Daughter of KW associate reaches goal and competes in 2016 Rio Paralympics.
Maria Belen Avellaneda shows how to deliver VIP service while keeping expenses in line.
KW WORLDWIDE EXPANDS TO 4 NEW REGIONS Welcome KW France & Monaco, Israel, Nicaragua and Poland to the KW Worldwide family.
MASTER BUILDERS The Growth Initiative puts the Overland Park (Kan.) market center on track to a billion in production.
KW CULTURE IN ACTION Associates responded with open hearts and helping hands to assist those affected by the devastating Louisiana flood.
HEAD-TURNERS A look at some top producers who recently joined Keller Williams and why they joined the winning team.
DEFY SEASONALITY Kim Ziton of Woodbury, Minn., shows how she keeps business warm all winter long.
ECONOMIC UPDATE Your expense management and budget questions answered.
Look for associates launching their goals with KW MAPS Coaching. BOLD Graduate
KW MAPS Mastery Coaching Client
By Shelby O'Neill
CGI TOOLS
GOALS
W I T H I N REACH On July 11, 2016, the Career Growth Initiative (CGI) rolled out and, in less than 60 days, more than 110,000 associates met with their market center leadership to set up their production goals and unleash unlimited potential. Here’s what some associates had to say on how the CGI tools and conversations are helping them fund big lives and build big businesses. Fueling Big Whys
Being able to break down big goals into daily activities, as well as gaining insight into where an agent is today and where they expect to be tomorrow is the power of the CGI. “That’s really the highlight of the CGI tools – to see what that progress looks like over the next 12 months and what the daily activities are that have to happen to achieve the maximum results in the shortest amount of time,” KW mega agent Kelly Hager says. Prior to the CGI tools, Hager relied on spreadsheets to track her success, so having everything in one tool simplifies it. Associate Tom Basler agrees. “To try to arrive at the same answers, it took spreadsheets and several other things to compile all this,” Basler says. “This gives us a very easy snapshot, where you plug in your goals and it tells you what needs to be
SHERYL DESKINHESSLER
“It makes it simple,” she says. “It breaks down everything to specific appointments needed to attain the GCI you’re looking to earn. By understanding these numbers, it’s allowed me to focus on what I do best and stay in my 20 percent.”
Growing Top Teams
done. It’s another tool to allow us to run this as a business.” For associate Sheryl DeskinHessler, the tools make it easy to focus on what’s really important.
Not only do the CGI tools help associates reach their big goals and fund their big lives, they are attracting top talent to growing teams. “We added eight new team members this month and have
MARKET CENTER
SUCCESS IN
ACTION
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MCA KATHY SENSING LAUNCHING CGI WITH ASSOCIATES IN THE CLARKSVILLE (TENN.) MARKET CENTER
PRODUCTION
KELLY HAGER
16 people joining us next month,” Hager says. “We’ve found that having these tools enables us to attract higher producers to our team because they see that we’re very systematic and there’s a method to help them build a big business. Because of the models, systems and tools, you can take your talent from potential talent to emerging talent.”
Shift-Proofing Businesses Associate Dawn Krause points to the coming shift as another reason why the CGI tools are essential. “People are looking to get off the real estate rollercoaster and want to be able to run their business as a business,” Krause says. “We see people struggling as the shift is
coming again, but whether we’re shifting or not, predictability in a business is critical. It’s just more top of mind when we’re shifting because people are coming from fear. These tools can help them overcome that fear.” With the shift approaching, the CGI tools provide an avenue to be proactive. “With most agents, by the time they realize they’re behind on goals, it’s too late,” Basler says. “For example, if I’m four months into it, I can never catch up, but the CGI tools keep it in front of me daily, weekly and monthly. I know by the end of the week if I met my goals. It’s a constant reminder.” Those constant reminders are already paying dividends for the agents implementing the tools. “I’ve more than doubled my volume from $12 million to $25 million for 2016 and expect more of the same in the future,” DeskinHessler says. “Being a member of the ALC has me aware of the multiyear trend and running my business like a business with clear goals and a budget. Being held accountable to my team makes a huge difference in how we do business.”
When the CGI tools launched in July 2016, MCA Kathy Sensing and her staff were ready – down to their #MyCGI T-shirts. Three workshops were scheduled, during which agents set goals and received copies of their Trend and LORE reports. “The agents were very excited we had provided something of value to them,” Sensing says. Through breakfasts and ice cream socials, Sensing worked to meet a goal of 80 percent of her market center’s
TOM BASLER & DAWN KRAUSE
Building Big Businesses In addition to assisting agents with their individual businesses, the CGI tools help the team achieve its larger goals. “If everyone on our team is tracking their own goals and reporting them, and if our team goal is $125 million, we can see if we have enough people to meet the team goal,” Basler says. “If we’re not getting there, it’s a clear indicator that we need to make adjustments.” At the end of the day, the CGI tools provide the accountability necessary to ensure agents can live out their Big Why. “For me, it’s about financial freedom,” Hager says. “It’s being able to retire in the next five to 10 years, because I think wealth comes from money and also from experiences and buying back time. These tools are going to allow me to get to my goals more quickly because I’m working smarter, not harder. Then I can go and do the second half of my life in retirement and help other people.”
agents using the tools before Mega Camp, and she achieved it. Along the way, big breakthroughs came in oneon-one conversations. “One of my agents brought me to tears when he told me that by setting his goals and focusing on the CGI, he realized he needed to lead generate,” Sensing says. “He is now in KW MAPS Coaching. These tools have helped him tremendously and his production is increasing.”
Each Monday, agents attend weekly calls before group discussion. “Sometimes agents lose focus on what they need to do to keep the momentum going to achieve the goals that are needed to fund their life,” Sensing says. “They will have great months and notso-great months, and they worry about what they need to do. With the CGI tools, it shows them exactly how many appointments, listings and buyers they need to keep their production up.” 5
MCCLAIN HERMES
CULTURE
ATL ANTA, (GA.)
By Catherine O’Donnell
McCLAIN HERMES
TURNING DISABILITIES INTO
ABILITIES In a typical week, McClain Hermes will train 9 - 12 times. “My life is swimming, training, classes, eating and sleeping.” – McClain Hermes The daughter of Keller Williams associate Matt Hermes, of the Atlanta – Sugarloaf (Ga.) market center, McClain Hermes first delighted the Keller Williams family in 2015 when she appeared onstage during Inspirational Brunch at Family Reunion in Orlando, Fla., to share her inspirational story and reveal a big goal. McClain is a competitive swimmer – the top-ranked American swimmer in her category. She told the audience that day at Family Reunion that her goal was to make the 2016 U.S. Paralympic Swimming Team and she did it! McClain competed in three events: the 100 Breaststroke, 400 6
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Freestyle and 100 Backstroke. During one race, her goggles lost suction and filled with water, but that didn’t stop her. “It’s not like I could have stopped to fix it, so I just swam through it. I didn’t let it stop me or slow me down,” she says. Born with a love for the water, McClain began swimming when she was 4 years old. She started losing her vision when she was 8 years old. As of today, McClain has undergone four emergency eye surgeries due to retinal detachments and is now completely blind in the right eye and has only a 5-degree field of vision in her left, with a corrected acuity of 20/600. McClain’s doctors expect her to be completely blind within six months to a year. But that hasn’t stopped her from being anything less than amazing. McClain fulfilled her lifelong goal of representing the U.S. Paralympic swimming team in Rio in September 2016. She was the youngest team member and went
holding 16 American records, 2 Pan American records and 1 World record in swimming – the World record being in the 1500 Freestyle, Class: S12. Her degenerative disability doesn’t define her – what she is doing with her life does. And this is exactly what she wants you to know about her. What does McClain plan to do when she returns from Rio? “2020 Paralympic Games in Tokyo! I got back from Rio on the 19th and on Sept. 20 I began training for Tokyo,” she says.
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NYC-MANHAT TAN
PURPOSE
E X P E N S E M A N AG E M E N T
SPEND
MARIA BELEN AVELLANEDA
WITH
In New York City’s fastpaced, high-stakes real estate market, Keller Williams associate and KW GPS member Maria Belen Avellaneda of the NYC-Manhattan market center understands the importance of delivering top-notch VIP customer service while managing MARIA BELEN AVELLANEDA
expenses. 7
MARIA BELEN AVELLANEDA
NYC-MANHAT TAN
By Deborah Blumberg
S P E N DWITH PUR POSE Economics During a Shift With a background in finance and economics, Avellaneda is well aware that economic data points to a possible downturn in the real estate market. However, rather than arbitrarily slashing her spending, she plans to focus on generating more business by “spending smart,” an approach to expense management she believes can help agents maximize their profits as the market shifts. “I spend more on loyal clients, returning clients and people coming from strong referrals,” says Avellaneda, a Keller Williams associate since 2013. “It’s very important to spend smartly. Don't throw away resources without a specific purpose.” That approach, along with carefully cultivating client relationships, making herself available to her clientele 24/7, and keeping up to speed on economic developments and trends, has led to an incredible year so far for the Argentina native. Her closed volume through June 2016 came in at $64.6 million, nearly five times her $13.2 million total closed volume for 2015. This March alone, she executed a 1031 exchange for a family office that topped $34 million, selling an Upper East Side condominium for $23.1 million, and using the proceeds to purchase another one for $12.9 million. She carried out the exchange in a single week. A 1031 tax exchange allows investors to defer taxes by selling and reinvesting in a similar asset.
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Spending With a Purpose “Success comes with hard work, time, discipline and integrity, and education and good manners are paramount,” says Avellaneda, who resides on Manhattan’s Upper West Side and has called New York City home for the last 10 years. “I build and cherish relationships beyond a single transaction.” She also keeps herself highly informed about what is happening in the rest of the world and the economic forecasts for certain regions. “And I target my clients accordingly,” she says. China is one area she keeps close tabs on, and currently, she has her eye on developing contacts in India. When it comes to managing expenses, Avellaneda is strict – she only spends with an investment purpose. She’ll analyze each client and their seriousness to buy or sell. Those who are serious price the properties correctly and follow her advice, she says, and real buyers also act fast, have their paperwork in order and are ready to proceed. She spends much more money – and time – on that type of client, she says. She also targets spending on areas that truly matter to her clientele. “Many of my best clients are extremely wealthy, but very low profile,” says Avellaneda. She works with ultra-high-net-worth family
E X P E N S E M A N AG E M E N T
offices, helping them build their real estate portfolios to protect capital and maximize returns. “They don’t need fancy parties or dinners, but they want to make sure I invest in the marketing, people and technology to sell their properties.” A couple of her worthwhile larger spends include hiring private drivers to ferry her ultra-high-net-worth clients between luxury properties in Manhattan, and strategically advertising where she will reach her target market. Avellaneda regularly advertises her services in top-tier publications that target affluent buyers and sellers, like The Wall Street Journal, where a single ad can cost $15,000. And it’s not uncommon for her to shell out the cash for a 10-hour flight abroad for one hour-long client meeting.
VIP Service One of Avellaneda’s keys to success is making sure her clients have a top-notch team to help ensure their deal will go through and that they spend successfully – attorneys, appraisers and designers. She’ll also go above and beyond for clients, helping to make their time in New York City more comfortable, and accommodating the schedules of clients who live abroad. She’s developed relationships with local hotels in New York and helps secure competitive rates for her clients. More than once, she’s arranged a private charter jet for a client she needed in Manhattan immediately to see a property. It’s also not unheard of – with clients residing across the globe – for Avellaneda to take a call at 2 or 4 a.m. She works long hours, and she prides herself on hard work. “I’m fortunate to work with some of the wealthiest businesspeople on earth,” Avellaneda says. “They’re smart and demanding, so I need to provide outstanding service always.”
A Passion for Investments On a typical day, Avellaneda could find herself poring through a stack of International Monetary Fund or World Bank reports piled on her desk and checking the latest economic data on Bloomberg. Later, she might meet a client to see a property or walk through a New York neighborhood to help them assess the pros and cons of buying in the area. If time permits, she may meet her investment banker husband and 13-monthold daughter for lunch before jetting off to her next appointment. “My baby daughter and my husband are a constant support, and are key to my success,” she says.
“It’s very important to spend smartly. Don't throw away resources without a specific purpose.”
Prior to Keller Williams, Avellaneda worked as a senior adviser to multi-million dollar family offices, governments and multilaterals. She was a consultant for the World Bank and the U.S. Department of the Treasury, and worked at the Inter-American Development Bank and Banco Provincia in Argentina. “That gave me access to an incredible network of relationships,” she says. She came to the Big Apple from Argentina to pursue her master’s degree at Columbia University in international finance, economics and quantitative analysis. But her interest in the market started long before grad school. Real estate is in Avellaneda’s blood. Her family has invested in real estate in New York and Latin America for the last 30 years, acquiring luxury properties in Manhattan’s most exclusive neighborhoods and residential properties and hotels abroad. “We’re very passionate about investments,” Avellaneda says.
Keller Williams Realty’s Global Reach For Avellaneda, Keller Williams Realty has been a huge support over the last several years, she says, providing her with an excellent platform to help her grow both professionally and financially. She joined the Keller Williams Global Property Specialist (GPS) program after her team leader suggested it, and has found the program offers excellent tools, especially for presenting pitches to potential sellers. Through the program, agents network with likeminded colleagues, receive special training and get access to best-inclass technology platforms. Through the program, Avellaneda has gained invaluable exposure to other brokers and an international platform. “And as more and more agents use the platform, the more powerful it will become,” she says. “With Keller Williams, I feel I can run my own business and, at the same time, I know I have management support when needed,” says Avellaneda. “I also love that the company is becoming more and more global and that there’s potential referral business related to that globalization.” Recently, Avellaneda traveled to California to attend a client’s wedding. With her priority on building and maintaining relationships, she finds she’s often included in her clients’ life events. “Being part of people’s lives and leading them toward happiness is extremely rewarding,” Avellaneda says. Avellaneda says she can’t imagine doing anything else but real estate. She loves meeting high-caliber executives, learning from company owners, and helping families to find their dream homes. 9
KW FRANCE, MONACO, ISRAEL, NICARAGUA AND POLAND
KELLER WILLIAMS EXPANDS INTO... At Mega Camp 2016, Keller Williams announced with much fanfare that it increased its international agent count more than 38 percent, adding more than 810 new agents across 88 overseas offices. “In 2016, we have continued our historic rate of growth internationally,
LEFT TO RIGHT: ILAN BRACHA, RUSSELL PUTTERMAN, ADAM SHUV, HAIM BINSTOCK, CHRISTOPHER ABBRUZZESE, AMOS NAIM
adding 27 new real estate offices,” said Bill Soteroff, president, Keller Williams Worldwide, the international division of Keller Williams.
LEFT TO RIGHT: STEPHAN MEYER, JÉRÔME FABRE, CARINE DESPEYSSE, CHRISTOPHE DESPEYSSE
FRANCE & MONACO 10
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ISRAEL
During the State of the Company presentation on Aug. 9, Soteroff also announced the addition of Keller Williams’ first franchises in France, Monaco, Israel, Nicaragua and Poland. “As we add our newest countries and regions into our KW family, we’re extremely proud of the momentum underway surrounding our franchises across the globe,” said Soteroff. Outside the United States and Canada, Keller Williams Worldwide is now home to 2,921 international agents across the 29 countries and regions it has to date awarded master franchise agreements.
implementation and expansion of Keller Williams’ proven systems, models and agent-centric culture within the new region. “The Keller Williams systems, models and training will foster big change in France and Monaco, increasing the level of professionalism for real estate agents,” says Fabre. “With transactions currently up, prices stable and rates very low, it’s an optimum time to introduce Keller Williams as people are craving something new.”
KW France and KW Monaco
KW Israel
Keller Williams has signed a master franchise agreement to open initial offices in France and Monaco. Jérôme Fabre will serve as the regional operating principal of Keller Williams France and Keller Williams Monaco. Along with a strong team of business and investment principals, Fabre will oversee the
In Israel, Regional Operating Principal Amos Naim has amassed a strong team of principals to implement and manage ongoing operations, as well as stage future office openings. An industry veteran, Naim is the founder and CEO of NMH Group, a real estate holding and management company.
WORLDWIDE
“The brokerage profession in Israel is not as appreciated as it can and should be,” says Naim. “Currently, 4,000 people a year take the broker exam in Israel, yet less than 10 percent stay in the business. There is a strong need for real estate coaching and training to teach real estate professionals how to operate businesses and grow long-term careers.” “And, we’re going to mature the market with Keller Williams’ models and systems,” says Naim.
POLAND
KW Nicaragua Led by Regional Operating Principal Roberto Serrano, the Keller Williams franchise in Nicaragua is also currently initializing operations in 2016. Together with his robust team of principals, Serrano is scheduling the first office launch and overseeing the recruitment of agents to take leadership roles. “An emerging market, Nicaragua continues to produce increasingly strong opportunities for real estate investors across the U.S. and the globe,” says Serrano. “The Nicaraguan economy has grown 4 to 5 percent consistently over the past seven years and tourism is also growing at more than 6 percent a year.” “We chose Keller Williams as the franchise’s vision and mission just clicked with how our family has already chosen to conduct business for decades inside the country.”
KW Poland Keller Williams has signed a master franchise agreement to open initial offices in Poland. Led by Regional Operating Principal Krzysztof Kraicziczek and a strong
LEFT TO RIGHT: ALDO SERRANO, ROBERTO SERRANO, MARIA AGUSTINA CASTILLO, MIGNON HOOPER, RONALD CUADRA, ANGELA VICTORIA, ROBERTO SERRANO JR.
NICARAGUA
LEFT TO RIGHT: KAMIL TOMALA, PATRYK SIWY, KRZYSZTOF KRAICZICZEK, KRZYSZTOF SOBOTA
team of principals, KW Poland has already scheduled its first real estate office launch and is actively recruiting agents and for corporate leadership roles. “Currently, the quality of the experience provided by the real estate profession in Poland has been decreasing,” said Kraicziczek. “With Keller Williams, we will have high-quality business and real estate training to raise the quality and ethics in our industry.” “We also plan to launch each new real estate office with a commercial real estate division to leverage the current trend of corporate relocations to Poland,” says Kraicziczek. “We fully expect commercial real estate deals to encompass approximately 10 percent of local office profits.”
KW Worldwide Outlook Keller Williams Worldwide is currently exploring further expansion opportunities across Central and South America, Central and Eastern Europe and throughout Asia. “In business development conversations, our focus remains solely on choosing the right people to lead Keller Williams’ franchises worldwide. On average, we spent more than eight months in extensive training before officially launching a franchise. It is a complex process for a reason as each new leader becomes the standard-bearer in their country,” says Soteroff. Core criteria for new franchises starts with having a qualified leadership team grounded in the Keller Williams culture; the company also strives for government, banking and judicial system stability and a higher maturity level for a real estate market.
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CLAUDIA RESTREPO
By Gwen Moran
SPOK ANE, (WASH.)
4
CLAUDIA RESTREPO FIRST WOMAN TO EARN THE NO. 1 SPOT ON THE NAHREP® TOP 250 LIST
BIG MOVES NEW HEIGHTS TO ACHIEVE
Give Claudia Restrepo a goal and it’s a good bet that she’ll exceed it. Now an agent with Keller Williams Realty Legacy Group in Spokane, Wash., and operating principal (OP) at the Coral Gables-Coconut Grove (Fla.) office, Restrepo arrived in the United States from Colombia in
2003, alone and not speaking a word of English. Within five years, she built a successful mega agent team in the Spokane market, closing $72.9 million in transactions in 2015. In 2016, she became the first woman ever to reach the No. 1 spot on the National Association of Hispanic Real Estate Professionals (NAHREP®) Top 250 list.
The American Dream, Realized Restrepo’s story is one of persistence, courage and determination
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in reaching the “American dream.” After making her way to Spokane, she immediately began taking classes to learn English, picking it up quickly by practicing with her roommate and other Englishspeaking friends. Soon, she landed a job as a bank teller. She was on her feet for eight hours each day,
processing transactions and counting money, because the bank didn’t permit tellers to sit down. Restrepo was paid $800 per month. Soon, she began to look for other opportunities. She had worked for a real estate professional in Colombia, prospecting for rentals, so she decided to earn her real estate license. Shortly after doing so, she noticed a customer wearing a KW shirt in her bank branch. One of her fellow employees knew about her real estate
COACHING
aspirations and urged her to speak to the customer. “Somebody told me, ‘You should go there because they teach you,’” she recalls. “I talked to the guy, and he invited me to join him. I didn’t do any research; I joined his team as a buyers agent on day one. Within six months, I knew this was what I wanted to do – I eventually wanted to open my own team.” In 2007, she opened The Legacy Group with a partner. And then the market crashed. While it would have been easy to panic, Restrepo says that didn’t even enter her mind. Instead, she kept her focus, and managed to close 120 transactions in the first year. But roughly 80 percent of those transactions were buyers. If she was going to grow The Legacy Group the way she intended, she knew she had to change the ratio to include more sellers. She and her partner invested in marketing, especially radio advertising, and she hit the phones every day, becoming the “expired listing queen” – calling the owner of every expired listing she could find, she says.
Doing What Works For the first two years, her entire world and most of her time revolved around building her team. The marketing and prospecting were working, but Restrepo realized she needed help in helping her team grow and turned to KW MAPS Mastery Coaching. She hired a KW MAPS Coach – a move to which she credits much of her success. Her coach helped her do everything from setting up systems to learning how to find
Restrepo moved to the Miami area and worked remotely to help Graham get up to speed, traveling back periodically when necessary. Shortly after her relocation, Restrepo met the team leader of the Coral Gables-Coconut Grove market center, who wanted to get back to doing what she did best – selling homes. Restrepo knew she needed a strong candidate to fill the team leader role. She interviewed people and hire the right people. In addition, he helped her for two months until she found identify her own strengths and weaknesses so she could Maria Elena Arias and offered her use or address them to grow her team. She stayed in the position. Within three years, the close contact with her coach, ensuring that she followed market center has grown to more the KW systems to a tee to facilitate the growth of than 350 agents, distributing more her team. Now she was driven to support her team, than $250,000 in profit share. Its whatever it took. Her goal was to reach the 7th Level reputation attracts mega agents within five years, but she says her team was ready by and icons, doing the same things their third year. that have worked before: finding Even as her business grew, Restrepo began thinking good people, prospecting regularly, about moving closer to Colombia. She had been investing in marketing, and involved in Keller Williams Realty International’s working with the KW systems. operations in Colombia and wanted to be able to Even with all of her success, return to her homeland more easily than she could Restrepo says that when she from Spokane. To see if her team was ready to operate submitted her information to be without her, she began taking two weeks off, or just considered for the NAHREP® list, going into the office two days a week. She was able to she thought she would land in the take off three months, and the systems worked without top 10. Finding out that she was her. It was time to find her replacement to lead the the first woman to top the list was 24-person team. confirmation that she was doing the She worked closely with her coach to find just the right things for herself and her team. right person. After extensive interviewing to ensure “You cannot take this as a job. their work styles and goals were aligned, Restrepo You got hired as CEO of your own made an offer to John Graham in April 2012 – seven business, and you should show up months before her goal date. At first, the transition had at 7:30 in the morning and leave its growing pains. She still went to the office every day when the work is done,” she says. and found herself managing the team and still doing “This business is fantastic, but you everything she hired Graham to do. have to put in the time. It doesn’t “I would tell him what he was doing wrong, and he happen overnight. You’ve got to be would say, ‘Look, Claudia. You hired me to do your ready for it.” job, but when you come in here, you’re doing your job, so there’s nothing for me to do,’” she says. Now, they laugh about it.
"I credit much of my success to my KW MAPS Coach who helped me do everything from setting up systems to learning how to find and hire the right people."
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MASTER BUILDERS
By Celesta Brown
OVERL AND PARK (K AN.)
MASTER BUILDERS
LAYING DOWN THE RAILS The Growth Initiative Puts Overland Park on the Track to a Billion in Production FROM LEFT TO RIGHT: LUCAS SHERRADEN, PAM HENDRIX, ADRIENNE USHER AND STEVE JOHNS
Leaders at the Overland Park market center in the Kansas City, Kan., metropolitan area unanimously point to early adoption as a key to the success they have had with the Growth Initiative. When they understood and then fully embraced the program, which helped them speak agents’ language, they saw immediate results. Looking through the market center’s trends and reports, Lucas Sherraden, CEO and team leader, points out the exact month they implemented the Growth Initiative. “It’s obvious,” he observes. It is clear that by embracing the program early and quickly, they have mastered it. When the Overland Park market center first began to use the tools of the Growth Initiative in 2012, they were at $212 million in production, and now, at the end of September 2016, they are at $960 million and well on their way to more than $1 billion by year’s end. With those impressive results, it is not surprising that the Overland Park market center has increased market share in the state of Kansas.
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Steve Johns, operating principal, credits Sherraden with what he calls “real growth.” “When our team leader bought into the systems and models of the Growth Initiative and focused on the proven activities that drive that growth, we grew in agent count and in market share.” Johns says it is the Language of Real Estate (LORE) that attracts agents who want to be a part of the No. 1 brokerage in Kansas City. Pam Hendrix, ALC member, agrees with the power of intentional conversations, “Lucas and the staff have created a culture of productivity where agents and team members all speak one universal language. There is no room for or attention given to low-minded
conversations. The focus of the discussions in the office are around leadership, growth, listings, market share, skills, preparing for the shift and giving back. At our ALC meetings, where anyone can attend, Lucas and Mindy Gaines, our assistant team leader, model how the Four Conversations are properly utilized. Mindy stands at the white board and Lucas leads the coaching discussion through the Four Conversations, which are used to evaluate our actions and outcomes. In addition, at every team meeting Lucas is sharing how we are competing in the market as well as talking points, which we as agents can carry forward to listing presentations.” The leadership team hosts weekly classes to promote, teach, train and communicate the goals and methods of the Growth Initiative and to encourage 100 percent participation and implementation. The steady and sizable growth solidifies Overland Park’s value in the market and validates a seller’s decision to work with an agent in the office. Top
GROWTH
A CONVERSATION WITH LEADERS
What advice would you give market centers wanting to grow?
How is value measured and communicated in your market center? Steve Johns: We measure value with our Trend reports, LORE reports, and our Training Tracking report. We communicate these reports on a daily basis. › Our staff email signatures have our monthly Training Tracking results. › Our market center’s LORE numbers are on a board in our training room and are referred to during weekly business meetings. › During our ALC meetings the Four Conversations for our market center are discussed. › Sharing these reports with our agents so they can use them in listing presentations and marketing has been key in communicating the value.
producers are attracted by the numbers and the outstanding reputation of the market center, where Hendrix explains there is a “culture of abundance and collaboration” that makes agents want to join and stay. “When top producers join our market center, our market share increases and the dominoes continue to fall in our direction. It makes it easier for all of us!” Sherraden says that, for him, it has never been solely about recruiting. “I’m presenting a business platform that changed my life.” With more than 450 agents and counting in Overland Park, Sherraden points to the Growth Initiative as a way to stay out of weak conversations and keep agents focused on results. MCA Adrienne Usher adds that the tools create a positive universal language and do not need to be edited or augmented. She encourages, “Do not be creative with your systems. They are already proven. Make the decision and put forth the effort to be all in! Just run the play!”
Lucas Sherraden: The Growth Initiative tools do all the heavy lifting. Buy in and implement them. Charm and personality are limited resources, but the tools work whether you are on your game or not. So embrace them and then commit to mastery.
How has your market center responded to the Career Growth Initiative (CGI) tools? Adrienne Usher: We had our first workshop on the day it launched and had a full house! And we didn't stop that momentum. Because of the success of the Growth Initiative, we knew the immediate impact it would have on our associates' businesses. They were ready to embrace it because it is the way we do business. Our commitment to the systems and models of this company gives them confidence in a plan they can trust to run their business like a business -– one that thrives in spite of market conditions and seasonality.
How are the CGI tools helping you fund your Big Why? Pam Hendrix: The CGI tools give us the field to run on and the play to run. We know where we are at all times and what is needed to reach our goal. We are focused, looking ahead and working to accomplish the activities of today. The CGI tools keep us off the real estate roller coaster, and they give us consistency and fund our Big Why. These tools provide us with a windshield view of what is to come and a rearview mirror view to show us where we have been. The CGI tools are an essential wall of value when coaching and leading our team to achieve each person’s Big Why. A combination of Ignite, BOLD, the CGI tools, KW MAPS Coaching, BOLD, a multitude of KW MAPS Group Coaching programs, and a stellar market center leadership team have all helped us grow and develop into the business that we have today. We are grateful to be leading a life truly by design and helping families and other agents achieve their goals along the way. Together everyone achieves more, right?
15
CAREER VISIONING
“Understanding a candidate’s unique talents and personality traits helps you align their personal goals with your business growth.”
DEEPEN YOUR
TALENT BENCH
John Davis President of Keller Williams Realty
“It’s not just about finding talent. It’s about finding the right talent.” Chris Heller CEO of Keller Williams Realty
Finding and hiring top talent is on every business leader’s radar. And many use behavioral assessments to improve the hiring process and ensure they get the right talent in the right position. Find out how Career Visioning is helping leaders align talent with opportunity. In 2016 Keller Williams introduced the Career Visioning course. “Understanding a candidate’s unique talents and personality traits helps you align their personal goals with your business growth,” says John Davis, president of Keller Williams Realty.
Career Visioning Career Visioning provides proven hiring systems to ensure that the best and the brightest join your team and take your business to the next level. It also underlines the importance of having a system in place for recruiting and hiring. “Career Visioning breaks down the hiring process into manageable steps so that anyone can find, interview, hire and train the right talent,” Leslie Vander Gheynst, Leverage Series Driver, says. “This course is for everyone looking to grow their team. As the Leverage Series driver, I am here to provide assistance to our agents in the field through the hiring process.”
4 Steps to Hiring the RIGHT PERSON for the RIGHT JOB 16
VOL.13.3 2016
KW Regional Director John Schumacher first taught Career Visioning in his region in the summer of 2016. “The beauty is in its simplicity. The process is turnkey and far less complicated. Much of the analysis is done for you and we’re not being asked to become amateur psychologists.” As for those associates who want to use the DISC without first taking Career Visioning, “It shouldn’t be happening because it is part of a larger process,” says KW Regional Director and Career Visioning instructor Madison Offenhauser. “Learning how someone thinks is critical to successful hiring, and Career Visioning helps people understand the entire hiring process.” Now is the time to get into business with top talent and master the process of truly understanding a person’s personality and behavior.
LESLIE VANDER GHEYNST discussing Career Visioning at Mega Camp 2016
CAREER VISIONING ATTENDEES LEARN HOW TO: Use a simple business PLAN to map your vision for your future empire. BUILD a pipeline of quality candidates. MASTER a comprehensive interview process that reduces the guesswork. CONSULT with individuals on their behavioral profile. Set new hires up for success with expectations that EMPOWER.
STEP 1 SCREEN
STEP 2 INTERVIEW
STEP 3 GET PERSPECTIVE
STEP 4 COMMITMENT
Who are you looking for?
Are they right for the job?
Are they right for the team?
Now you are ready to make an offer!
WHO will take your company to the
NEXT LEVEL?
CULTURE
KW CARES
STRONGER THAN EVER Once again, Keller Williams associates came together to help those in need in the wake of a natural disaster. In the two weeks following the catastrophic flooding in Louisiana, thanks to the generous donations of KW associates, KW Cares provided more than 200 emergency grants totaling over $1 million to affected KW associates and their families. In August 2016, flood waters engulfed parts of Louisiana during what was called a once-in-a-millennium storm, leaving at least 10 people dead and more than 100,000 homes destroyed. Without hesitation, countless Keller Williams associates stepped up and provided much-needed help to those affected by way of monetary donations and on-the-ground volunteer support. “Until help arrives, there is nothing anyone can do. People are stranded with no food, water or shelter,” says Keller Williams Realty International’s Director of Vendor Relations Tom Freireich. “24 hours after we learned about the disaster, Mary Tennant called me and said we need to go help. She, Randy Neu and myself got in an RV the next day and headed to Louisiana to help with the relief efforts and to get the supplies to those in need.”
On-the-ground Support Numerous Keller Williams Realty International associates left Austin and went to Louisiana to assist. From dawn until dusk, they worked with cleanup as well as delivering supplies and food. “When you are there, you are in awe of the destruction and seeing people trying to live on what was salvaged,” Freireich says. “Having a team of people show up from out of town just to help gave them hope and showed them that together they could rebuild.”
Adopt-a-Family Led by Keller Williams Realty International’s Director of Talent Holly Priestner, an adopt-a-family program has been implemented to help rebuild lives. “We need market centers to adopt a family devastated by the floods,” Priestner says. “The rebuilding of lives requires extensive, months-long time, talent and treasure.” “After being offered the opportunity to sponsor a family in Louisiana affected by the flood, our Cultural Ambassador Betty Ahing and ALC member Pedro Casanova stepped up to the plate and are matching $1,000 of donations received as well as donating $500 to our adopted family from every closing until the end of the year,” says Michelle Diaz, MCA of the Miami Kendall (Fla.) market center. “When agents reach out to a family that has been flooded, it is a magnificent ray of sunshine in one of their darkest times,” says Mark Olesh, regional director of the Florida-South Region. “It lifts their hearts and gives them hope.” Disaster assistance efforts are always ongoing. To help support those in need, visit (kwcares.org)
KELLER WILLIAMS ASSOCIATES LENDING HELPING HANDS 17
HEAD HEAD-TURNERS
ERS S BART OLSZEWSKI NYC – QUEENS/JACKSON HEIGHTS
When Olszewski was considering the move to Keller Williams Realty, he had already been thinking about it for several years. Having previously attended Family Reunion, Olszewski says that Keller Williams was the only brokerage he considered. “I was the topproducing agent for Better Homes and Gardens for the past three years,” he says. “My production had peaked and I was at a plateau professionally. I needed a push to become a better agent; I needed more incentive and motivation to push my competitiveness.”
“It’s nice to come onboard with the company and have all of the things that you were promised come true. Keller Williams has delivered already on their promise to me.”
18
VOL.13.3 2016
Olszewski came to Keller Williams in March 2016. “The continuity of the brand and the high level of professionalism spoke volumes to me,” he says about his decision. “Also, once I attended Family Reunion and saw firsthand how Keller Williams operated, the passion for the industry and the training available, the move made sense,” he says. “It’s not just about how much money I could make – there is so much that would allow me to grow. The systems in place make people want to help others. Here everyone is sharing their successes.”
TURN CANTON, OHIO
JOSE MEDINA
Jose Medina, of Canton, Ohio, joined Keller Williams Realty in June 2016 as the No. 1 RE/MAX agent in the state with a 12-month total closed volume of $80 million. However, he says that he operated under the Keller Williams model long before joining the company. “Ever since The Millionaire Real Estate Agent came out, I have used it as my manual for how to build my business,” says Medina. With 14 years of experience in the real estate industry, Medina has earned himself a reputation of integrity and proven results. He puts his public communications degree to work with his ethics and prowess to reel in the results that he achieves. Medina is soaking up the training opportunities Keller Williams has to offer. “I have attended a local mega
“My team and I have been so appreciative of how helpful Keller Williams agents have been. The culture, training and camaraderie have made us a better team.”
agent panel, Franchise Systems Orientation and Operating Principal Boot Camp, all of which have been mind-blowing,” he says. “I am excited to take several of my team members to Family Reunion and tap into all of the regional training offered.” Medina is the operating principal of the Keller Williams Legacy Group market center. Medina was initially nervous moving a large team, but the transition was seamless and unexceptional – in a good way. “I was concerned about the transition. We have a goodsized team, so the monumental task of transferring everyone was not downplayed. I took into account not only my team, but my clients, and everyone associated with them.” Medina continues, “The transition to Keller Williams was remarkably uneventful.” 19
HEAD-TURNERS
ZOE MOORE INDIANAPOLIS, IND.
Zoe Moore of Indianapolis, Ind., “I only had one concern about joined Keller Williams Realty in transferring companies and it had August 2016 from RE/MAX with nothing to do with Keller Williams,” a total 12-month closed sales she says. “It was the process of transferring a business. I’ve volume of $20 million. changed brokerages in the past “I have wanted to build a team and know how much mental since my first year in the business,” and physical work a transfer Moore says. “I realized, however, can be. However, this change that to build a successful team was seamless. I really ended up on my own was so much more having nothing to be concerned difficult than I thought.” about at all.” “Even though I have only been Moore says she is excited to with Keller Williams since August,” be surrounded by a community she continues, “I’m already that is so involved in coaching. strengthening my team instead of “It’s not only a benefit to me trying to recreate the wheel.” personally, it’s also an opportunity Moore was most attracted to the for me to become a coach. This is coaching and training offered by something I’ve always wanted in Keller Williams as well as the my career.” company philosophy “God, family, then business” which is very much in line with hers.
“To be a part of a community of agents who focus on creating better lives for themselves is so rewarding.”
20
VOL.13.3 2016
KELLI EWEN THE GREATER ST. LOUIS AREA
For years, Kelli Ewen was consistently producing $20 million in annual sales and closing about 75 units. She had been with RE/MAX for 12 years, slowly building her business until she hit a ceiling. “I didn’t have access to the right resources to take my business to the next level, so I really just stopped growing,” she recounts. When she looked at Keller Williams Realty, she was attracted to the way the company helped its agents set and meet goals, as well as step-by-step processes, programs and systems. “I saw the company’s models as a road map to a destination, a well-worn path that I could follow to start growing again.” Ewen joined Keller Williams Chesterfield in July 2016 and enrolled in BOLD. “I am really looking forward to all the educational opportunities,” she says. Ewen has always been people focused. She muses, “Though varied, my path has always led me to working with people. My diverse background allows me to bring a unique perspective to working with my clients.” Earlier in adulthood, Ewen moved 10 times in 13 years. With that type of experience, she can relate to anyone who wants to buy or sell and can offer them personal and professional insight and expertise.
“What I like most is the culture. I really appreciate the way everyone is for one another; they embrace you with support and bend over backward to share their knowledge and help you succeed.”
THE LACKS HOTICH TEAM
CHESTERFIELD, MO.
“The Career Growth Initiative is changing the way we Lacks’ husband is a successful attorney who is ready to retire. She wants to fund succeed in the lifestyle that he has worked his whole business by life to achieve and let him relax. Hotich simplifying the was a Bosnian refugee who made his way to the United States in order to experience steps we need the American Dream. As an entrepreneur, to take in he realizes that in America he has the order to reach opportunity to control how much money he can make. He sees that the world is at our goals. his fingertips. It’s helping Lacks and Hotich know that the road to us focus success has been traveled before. “CGI on what’s shows us the very clear path to get there. We know how much money we need to necessary to make to fund our Big Whys, and the Career get to where Growth Initiative shows us the exact steps we want to that need to be taken to reach our goals.” They add, “This is a game changer for go!”
The Lacks Hotich Team joined forces with Keller Williams in May 2016 and were excited to learn how the Career Growth Initiative, available only to KW associates, can help them fund each of their Big Whys.
our entire team because each member benefits from our success. CGI gives us each our specific duties, and when we do what the tool tells us to do, it leads to paychecks in 90 days.”
21
KIM ZITON
By Catherine O’Donnell
WOODBURY – EAST SUBURBAN (MINN.)
KIM ZITON
MAKING
PROFIT
ALL
YEAR
LO NG
Multi-million dollar producer Kim Ziton of Keller Williams Premier Realty in Woodbury, Minn., shares how she maintains her production status and stays busy all year in an area that is known for its bonechillingly long winters. Ziton is consistently ranked as one of the top-producing real estate agents in the Upper Midwest and has repeatedly been named a top agent in Woodbury. In 2015, she closed more than $41 million in volume. Some of her accolades include being named a Residential Rock Star in the Minneapolis – St. Paul Business Journal Book of Lists in 2013 and 2014. Ziton’s record of success continues to capture attention, most recently culminating in her inclusion in Top Agent Magazine (Minnesota edition) in 2015, as well as ranking among the nation’s top real estate agents in REAL Trends America’s Best Real Estate Agents list, which ranks agents’ sales volumes in all 50 states.
Born With a Passion “I knew I was going to get into real estate since I was a young girl,” Ziton says. “I would spend hours decorating my room, everything from bedding to small trinkets. I’ve always had an appreciation for making things look nice and showcase presentable.” Having this passion for her career, it’s no surprise that she has been ranked as a top producer in her region for four consecutive years.
22
VOL.13.3 2016
PRODUCTION
PRO TIP from Ziton Keep your website current and up-to-date with information such as: Featured listings Current bio Testimonials Keller Williams profile Specialty designations or memberships like KW Luxury Homes International › Local area information › Sold homes representing buyers › Sold listings representing sellers
› › › › ›
the market. “If an agent doesn’t have that then this isn’t the right area of real estate,” she says. Ziton serves both buyers and sellers in such sought-after communities as Wedgewood, Powers Lake, Dancing Waters, and Stonemill Farms in Woodbury, as well as other estate homes in the Eastern suburbs, such as Afton, West Lakeland Township, Baytown Township, Lake Elmo, Stillwater, North Oaks, and Shoreview.
Production All Year Long And what better time to update your site and add new content than in the winter when showings tend to be slower?
One reason Ziton continues to rank as a top performer in her region is because she works on her business all year. And this is no easy feat in an area with a climate like Minnesota’s. “Winters are no surprise to Minnesotans,” Ziton laughs. “We are prepared; we plan way ahead so that we are not stalled by the snow or extreme cold.”
Luxury Real Estate Ziton started her real estate career working as a new home consultant for a custom home builder. Her 16 years of experience afforded “You have to be working her with a great appreciation for customization and details. This on your business all experience also gave her a huge netyear,” Ziton says. “Just work of clients to work with as she because it may slow in continued to build her own luxury real estate business. the winter doesn’t mean “The luxury home market is you can take a break. I complex,” she says. “It’s about identifying the details, having ramp up my business a vast knowledge base and the in the third quarter to experience.” Ziton says. Ziton is known in her community for her ensure I get paychecks close connections to her clients, in the winter.” her attention to detail and her appreciation of luxury homes. “There is an expectation in luxury real estate that is different than other areas,” she says. “Luxury She explains that there is a clients expect me to have a level marked decline in showings in of knowledge, market savviness November and December, which is and service that is unique to the not necessarily an irregular trend in luxury market. There is no room for real estate because of the holidays. hedging or guessing in this market.” But the effects of winter can be But most importantly, Ziton says intensified in colder climates. “If luxury agents need to identify with we’re experiencing dangerously low
temperatures or snow amounts, people don’t want to be out in it. People tend to want to hibernate. It’s how we get through,” she says. However, Ziton isn’t one to hibernate. By staying active with her marketing efforts and listing appointments, Ziton is able to bring in income every month. “February is my slowest month, but even one or two sales can make a difference, so I never slow down my efforts.”
Marketing Local Expert Services Ziton’s clients have come to depend on her market knowledge and results-producing marketing strategy she deploys for each listing. And she also markets her services as aggressively as she does her listings. Ziton stays blanketed with a multi-touch marketing plan that includes the most up-to-date strategies. “I do a lot of postcard mailings,” she says. “I’ve had clients show me one of my postcards to illustrate that this is how they found out about me or a particular listing. I appreciate it. Marketing is very important.”
A Genuine Professional Ziton says that Keller Williams Realty has allowed her to be the agent she wants to be. “I pride myself on my identity,” she says. “This is why Keller Williams works so well for me. They allow me to work in the business on my own in a way that suits me best. I am not confined to rules and rigid boundaries. Keller Williams sets themselves apart this way. It’s an amazingly successful business model, and for people like me, it truly works. I have the amount of individuality that I want and a great business partner in my broker.”
PRO TIP from Ziton Plan your photo shoots in the fall. Don’t expect to photograph properties in the winter. “It isn’t as pretty around here when the winters are coming to an end. I avoid photo shoots if I can at that time.”
23
T H I R D Q UA R T E R 2 016 *
NU M B ER S YOUR
24
VOL.13.3 2016
NUMBERS
50
TOP-PRODUCING TEAMS
NAME
CITY, STATE
1
Bob Lucido Team
Ellicott City, Md.
$3,831,446.32
453
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Alchemy Real Estate Group Jeff Glover & Associates Kevin Blain Team Global Living The Peggy Hill Team The Loken Group, Inc. Ben Kinney Team The EZ Sales Team Sue Adler Team Jennifer Young Team Daniel Beer Group Tom Daves Group TeamBuilder KW The Rider Elite Team The Wemert Group Jessica Hargis Group
Seattle, Wash. Plymouth, Mich. Visalia, Calif. Philadelphia, Pa. Barrie, Ontario Katy, Texas Bellingham, Wash. Westlake, Ohio Summit, N.J. Chantilly, Va. San Diego, Calif. Roseville, Calif. Kirkland, Wash. Scottsdale, Ariz. Orlando, Fla. Rockwall, Texas
$2,071,826.74 $1,516,116.44 $1,474,240.92 $1,447,932.51 $1,434,683.25 $1,360,532.37 $1,286,425.54 $1,265,694.71 $1,234,643.19 $1,145,186.53 $1,139,323.56 $1,128,552.34 $1,120,539.22 $1,082,937.14 $1,047,236.93 $1,032,445.19
86.05 248 275.75 174 160.25 376.25 216.967 285 60 107.55 64.95 113 170.5 190 131.125 135.4
18
Lee Tessier Team
Bel Air, Md.
$1,025,367.36
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
The Merrick Team Unity Home Group Boyenga Team Joe Rothchild Realty Bouma Group Eng Garcia Properties Lysi Bishop Team The Stephen Cooley Real Estate Group Laurie Reader Team The Jeff Silva Team Noel Team Christie Cannon Group Reynolds Team Realty Pomerleau Team The Heyl Group Anderson Real Estate Group The Julie Kinnear Team Kenny Klaus Team Laura Gillott Team Pyron Team MG Residential The Kelly Group Real Estate The Mark Z Team Chris Suarez PDX Property Group The Kendra Todd Group Legacy Group The Perna Group The Shawn Lepp Team Mitchell Team The McSporran Team The Amy Kite Team
Peoria, Ill. Anchorage, Alaska Los Gatos, Calif. Katy, Texas Ann Arbor, Mich. Washington, D.C. Boise, Idaho Fort Mill, S.C. Plantation, Fla. Bryn Mawr, Penn. Santa Monica, Calif. Frisco, Texas Chantilly, Va. Maple Grove, Minn. Austin, Texas Long Beach, Calif. Toronto, Ontario Mesa, Ariz. Corvallis, Ore. Southlake, Texas Washington, D.C. Portland, Ore. Novi, Mich. Portland, Ore. Seattle, Wash. Spokane, Wash. Novi, Mich. Whitby, Ontario Newmarket, Ontario Burlington, Ontario Naperville, Ill.
$996,070.82 $971,591.88 $970,242.67 $967,191.94 $963,261.00 $957,337.57 $941,248.36 $937,384.47 $933,880.66 $931,280.23 $928,839.38 $920,616.02 $896,447.84 $888,144.84 $886,049.24 $885,028.82 $871,416.65 $862,572.03 $858,732.97 $849,000.62 $848,611.52 $844,581.23 $842,670.98 $837,206.94 $836,615.05 $831,813.56 $793,583.36 $788,304.96 $783,299.78 $772,323.11 $772,265.44
203.225 137 34.5 246 106.5 51.05 83.759 153 118.792 104 29 102.1 67 104.7 90.5 64.7 39 134 124 120 68.6 84 133 51 85.5 106 117 62 59.517 65 145
50
Westone Properties LLC.
Portland, Ore.
$769,058.29
80
*Based on data/transmittals received for 2016 (July to September 2016). Closed transactions identified with specific agent/team.
GCI
UNITS
156
E C O N O M I C U P DAT E
STAFF ECONOMIST
MANAGE EXPENSES,
INCREASE PROFITS RUBEN GONZALEZ Keller Williams Realty Staff Economist
With the market hitting highs this year and potentially moving toward a peak, questions have been coming up about what agents should do when the market slows down and, specifically, how to manage expenses. To help with this important conversation, I interviewed Garrett Lenderman, lead writer and researcher of KW Publishing. Lenderman, who works directly with Jay Papasan and Gary Keller, has spent a lot of time studying the Budget Model as well as the accounting and spending habits of agents to provide some insight for others on how they can manage expenses and increase profits, even in a shift. Gonzalez: I want to talk about how agents should manage their budgets during shifts. But first, I want to start just by asking you, what is the single biggest observation you have had while looking at agent budgets? Lenderman: The biggest observation I’ve had is that agents need to stay committed to having a budget and maintaining a P&L. Not many agents enjoy looking at numbers, and who can blame them? It’s important for agents to keep score and take into account things like their ROI when making decisions about spending money. Doing so creates accountability and is a diagnostic tool because it’s difficult to continually make smart decisions when you go with your gut. Gonzalez: On to the topic of shifts, what do you think are the things agents need to watch out for if they are headed into a slower market? Lenderman: The first place I’d start with are expenses that sit below the line, and by that I mean expenses that aren’t necessary to the operation of your business. It’s tempting to treat your business as a personal account, but it’s important to separate that from your business expenses. If you do a good job
GARRETT LENDERMAN
of that already, the next place I’d look are expenses that aren’t vital for generating revenue. It’s easy, especially when things are going well, to take on extra expenses that aren’t directly driving revenue. But in a hard shift, those expenses can take you underwater. It’s also important that you don’t make decisions you can’t outlast if things take a turn for the worst. This means either building up reserves that will prop you up in a shift or taking a good look at the affordability of long-term fixed expenses – especially those that would impact lead generation. When revenue starts to drop, you want to have minimal commitment to fixed expenses.
Lenderman: The same rules apply for teams. However, I would say one of the biggest issues for teams now is their cost of sales. When things are booming and competitive, it can be a challenge to keep splits and salaries in check, but those are things that could make or break a team and will be a lot harder to negotiate down than it will be to keep them in line. Make sure you are making decisions that your business can survive when things get more difficult. Gonzalez: Any final thoughts? Lenderman: Watch out for shiny objects. It’s really easy when things are going well to start spending money on cool new systems, apps, fashionable furniture, sleek logos and watercoolers, but you need to really make investments that give you back multiple dollars in return. Hold your money accountable and have specific goals set for your investments. If you aren’t getting the return you want on something, cut the cord.
Gonzalez: What about teams? Are there some specific things that could get a team in trouble when things start to slow down?
25
NUMBERS
T H I R D Q UA R T E R 2 016 *
20
MARKET CENTER
CITY, STATE
TEAM LEADER
1
Ballantyne Area
Charlotte, N.C.
Chip Walton
$579,662.91
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Arlington Austin SW Grand Rapids East Houston Metropolitan Heritage Dallas DFW San Antonio City-View Charlotte - South Park Greater Howard County Greater Portland Ridgewood Austin NW Greater Hartford KW Chervenic Realty Houston Premier Long Beach Pacific Estates Metropolitan NYC - Manhattan
Arlington, Texas Austin, Texas Grand Rapids, Mich. Houston, Texas San Antonio, Texas Southlake, Texas San Antonio, Texas Charlotte, N.C. Columbia, Md. Portland, Maine Ridgewood, N.J. Austin, Texas West Hartford, Conn. Stow, Ohio Katy, Texas Long Beach, Calif. Bedford, N.H. New York, N.Y.
Dennis Tuttle Diane Johnson, Melanie Kennemann Judy Brasseur Stephanie McClimon Craig Owen, Lisa Munoz Dustin Wright, Lesli Akers Amy Clifton, Lorri Cutler Stefanie Scroggins Dirk van Reenen Shannon Selig Sally Ponchak Christi Davidson Christopher Grant Carla Ponikvar Terri Montgomery David Culen Gregory McCarthy Lezley Dawn Schad
$571,384.86 $493,550.03 $417,432.32 $385,589.85 $382,985.55 $378,860.84 $377,364.08 $351,400.40 $344,352.67 $344,071.46 $342,281.29 $322,657.08 $322,088.85 $311,698.62 $309,804.39 $302,816.05 $298,160.69 $297,584.09
20
Boise
Boise, Idaho
Stacie States
$296,665.21
20
5
TOP STAKEHOLDERS ASSOCIATES SPONSORED
NAME
MARKET CENTER
1
Brent Mitchell
Austin SW
47
2 3 4 5 5 6 6 6
Monty Maulding David Popplewell Bodie Stark Brett Tanner Irene (Rena) Peterson Wade Blair Timothy Kinzler Jeffrey Ristine
25 19 13 11 11 10 10 10
7
Michael Joseph Devlin
7 7 7 8 8 8 8 8
Paul Lee David Snyder Stephen Waniak Martin Porter Dolores Roth Mike Popowcer Allan Zapadinsky Ruth Story Brandon Lucido Karen Gear
Austin SW NYC - Manhattan DFW Metro SW Tempe - Scottsdale KW Westfield Carlsbad Boca Raton East Naperville San Carlos, Santa Rosa, Silicon City Newport Beach Bryn Mawr, Philly South Princeton Beverly Hills Palm Beach Central Palatine NYC - Manhattan Fort Worth Dallas Preston Road Midlothian
v 10
26
TOP MARKET CENTERS
VOL.13.3 2016
9 9 9 9 8 8 8 8 8 8 8
1 2 3 4 5
PROFIT
TOP COMMERCIAL
NAME
CITY, STATE
GCI
UNITS
Cindy Hill Raymond Rodriguez Kimberly Stepp Levon Alexanian Robert Stepp
Studio City, Calif. Calabasas, Calif. Santa Monica, Calif. Burbank, Calif. Long Beach, Calif.
$594,830.00 $311,684.00 $292,750.00 $290,000.00 $278,379.00
11 11 4.55 2 13
*Based on data/transmittals received for 2016 (July to September 2016). Closed transactions identified with specific agent/team.
NUMBERS
50
TOP-PRODUCING AGENTS NAME
CITY, STATE
GCI
1
Stephanie Vitacco
Encino, Calif.
$1,083,990.88
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
Coco Tan Gail C. Eshleman Kyle Seyboth Lawrence Toth Grant Linscott Jonathan Lu Vivien Chen Disen Cai Sheri Bienstock Jeffrey Tricoli Erin Crawford Jani Spencer Nicholas Peter Delis, III Jennifer Jones Eric Delgado Jessica Ye Rumana Jabeen Jennifer Gelfand Kimberly Ziton Cynthia Cohn Trish A. Mutch Trevor Street Sam Jacobson Paige Martin Bricena Aragon Rama Mehra Tara Savage Margaret Wang Chris Scott John Walker Hunter Croan Nobu Ito Daniel Lyons Burkhart, Rory Joe Clair Christine Cardoso-Moore Peter Young Oh Michael Koshet Kathleen Kulik Julie Hopkins Brian Beckwith Melanie Fleet Suzan Reily Wendy Gimpel Carolee Chirico Evangelyn Lin Bruce Dooley Juliette Kulda
Cupertino, Calif. Bothell, Wash. Cumberland, R.I. Ann Arbor, Mich. Los Angeles, Calif. Burnaby, British Columbia New York, N.Y. Burlingame, Calif. Los Angeles, Calif. West Palm Beach, Fla. Montclair, N.J. Bellevue, Wash. Burlingame, Calif. Newmarket, Ontario Encino, Calif. Cambridge, Mass. Burlingame, Calif. Boston, Mass. Woodbury, Minn. Pasadena, Calif. Toronto, Ontario Port Coquitlam, British Columbia West Hollywood, Calif. Houston, Texas Albuquerque, N.M. Danville, Calif. Charlottesville, Va. City of Industry, Calif. Ottawa, Ontario Falls Church, Va. San Antonio, Texas San Francisco, Calif. Burlingame, Calif. Wilmington, Del. Durango, Colo. Oxnard, Calif. Los Angeles, Calif. Encino, Calif. Montclair, N.J. Park City, Utah Montclair, N.J. Newton, Mass. San Francisco, Calif. Woodbury, Minn. Woodcliff Lake, N.J. Pasadena, Calif. Columbus, Ohio Burlingame, Calif.
$746,240.82 $646,516.81 $545,899.01 $496,688.94 $475,703.81 $436,844.16 $409,500.00 $408,595.50 $407,074.50 $380,238.00 $373,802.81 $361,812.06 $359,665.00 $351,699.05 $351,043.20 $350,491.00 $346,322.50 $332,805.00 $332,098.35 $327,018.75 $322,058.50 $318,939.09 $314,918.75 $313,349.39 $307,049.63 $306,304.65 $298,948.22 $298,505.97 $297,598.26 $296,800.00 $296,749.23 $294,426.23 $289,344.00 $283,241.50 $283,099.13 $277,886.08 $275,525.00 $275,000.00 $272,885.50 $271,398.85 $270,387.50 $269,650.82 $269,625.00 $269,501.06 $268,338.25 $257,857.00 $257,117.50 $256,930.00
50
Jason Woodruff
West Hollywood, Calif.
$254,660.00
Executive Editor: Annie Switt Editor: Allison Teegardin Communications Manager: Darryl Frost Copy Editors: Jeff Ryder | Owen Gibbs Design Manager: Caitlin McIntosh Designers: Ashley Rogers, Karla Teceno Contributors: Catherine O'Donnell | Celesta Brown | Deborah Blumberg | Gwen Moran | Shelby O’Neill Advertising: Tom Freireich (advertising@kw.com) Job Inquiries: (outfront@kw.com) OutFront is published by Keller Williams Realty, Inc. The entire document of OutFront is copyright© 2016 by Keller Williams Realty, Inc. No portion may be reproduced in whole or in part by any means, including electronic retrieval systems, without the express written permission of the publisher. Editorial or advertising does not constitute advice but is considered informative. Copyright© 2016 Keller Williams Realty, Inc. All rights reserved. Vol.13.3 2016 OutFront is a publication of Keller Williams Realty, Inc. 1221 S. MoPac Expy., Ste. 400 Austin, Texas 78746 512.327.3070
*Based on data/transmittals received for 2016 (July to September 2016). Closed transactions identified with specific agent/team. 27