outfront
VOL. 2.2 2020
South Africa
TRAINING
THE ECONOMIC MODEL: YOUR SHORTCUT TO MORE REAL ESTATE SALES
This article is the first in our “Back to Business Basics” series – one that is aimed at helping you achieve greater success by using models outlined in Gary Keller’s The Millionaire Real Estate Agent. The MREA gives you the “how” to achieve your goals and shows you where to focus your time to achieve the greatest impact. That’s because successful agents have left clues: which of their actions led to their desired results. The MREA is a compilation of those clues.
S
ince its original publication 17 years ago, the MREA has sold 1.3 million copies – withstanding market conditions and the test of time to help both new agents and seasoned pros alike.
Stop reinventing the wheel. Let the MREA be your guide. “Reinventing the wheel every time is just plain exhausting work. And it leads to breakdowns and burnouts. On the other hand, I think you’ll discover that modeling will be very empowering. In fact, it may make things appear so simple it feels like cheating. Powerful models usually feel that way.” – Gary Keller
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The Economic Model
It’s that simple.
Whether you’re struggling to build a real estate career or focused on taking your team to the next level, step one is to understand the Economic Model laid out in pages 129-132 of the MREA.
Start with a Big Goal
The Economic Model is a formula that shows how your investments and performance in key areas of business work together to produce net income. Unlike other complicated methods, it makes a clear connection between your desired net income goal and the basic activities that will lead to that number. In short, it’s a simple formula for how your real estate business will make money.
Before diving headfirst into the model, you must know exactly what you want to achieve in your business and your personal life. After all, the reason you’re in business is to achieve your life by design. When you know what you want to accomplish, work backward until you arrive at what you need to accomplish in one year to reach your Big Goal. From there, calculate the costs associated to reveal your annual net income goal. Do not think small – think BIG. Thinking big helps you to build up the momentum needed to surpass small goals on the way to achieving bigger success. Otherwise, you’ll slow down when a smaller goal is within reach.
TRAINING
Next, share your goals with accountability partners – your KW MAPS Coach, team leader, peers, and family. They will stand for your success, help you stay the path, and celebrate with you once you’ve reached your goal.
Know the Numbers You Must Hit Next, familiarize yourself with the basic formula of the Economic Model and fill it out with how your business is currently performing:
Once you plug in your numbers, the Economic Model calculations make it very clear: without appointments, you will not make any money. And without qualified leads, you will not get any appointments. For this reason, Gary Keller points to lead generation as the single, most important activity to succeeding in real estate. “Leads are the fuel to your economic engine. And here is a truth that you must never lose sight of: You can never have enough
door. Most clients only interview one or two agents before choosing one to go with. That means that if you work on setting appointments with leads who are serious about buying or selling, you’ll put yourself in a good position to secure a client! Successful appointments begin with setting appointments with clients who are ready and motivated to make a buying or selling decision. If a lead has dropped a hint that they might be willing to test the market, start a brief conversation with them to better understand what’s driving their decision making. What sort of urgency do they have? How prepared are they to make a move? If their motivation is strong, then setting an appointment with them should be a top priority.
Plug in conversion rates for seller/ buyer listings, appointments, and seller/buyer listings taken. If you are new to real estate and don’t have actual conversion rates yet, review the conversion rates on page 181. Enter the average sales price of a home in your market. Divide by 12. That way, you’ll know what areas of your business need to improve so you can achieve your goals.
Do the Activities – Focus on Appointments, Conversion Rates “Models represent a plan that was prepared in advance and, when properly systemized, should translate into a consistent set of actions you take every month, week, or day.”
good leads. Never,” he writes. With a pipeline full of leads, your next focus is to turn them into appointments, then to convert those appointments into buyer/ seller listings, and finally to successfully serve your clients and help them close a deal. Your gross revenue (your GCI) is driven entirely by this chain reaction of productivity. It doesn’t matter how many leads you have if they never result in appointments. It doesn’t matter how many appointments you have if you can’t convert them into listings. And, it doesn’t matter how many listings you take if they never result in a closed transaction.
So, what’s the trick? More often than not, the success of each appointment is determined before you ever set foot in the
Pro tip: pre-qualifying leads for appointments is also a great time to dig up relevant information you can use for your consultation. Use this time to identify different ways your business’s unique value proposition and service plan can help them reach their goals. Mastering these presentations will help boost your conversion rates.
Employ tools GCI Tools: With a growing book of business, it is challenging (and unsustainable) to manually keep track of all of your activities in relation to your goal. This is why Keller Williams Southern Africa has developed GCI Tools in MyEdge – its centralised, cloud-based business management platform. Goal tracking allows you to stay plugged into them via a dashboard since EVERYTHING on the platform is interconnected. The Millionaire Real Estate Agent: For in-depth tactics and strategies, purchase a copy of The Millionaire Real Estate Agent. Read it, then read it again. If you lead a team or market center, save big by purchasing the bundle! Follow the plan and models to create your path to success.
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TRAINING
BUILD YOUR TEAM THE MILLIONAIRE REAL ESTATE AGENT WAY* “By being strategic about hiring, you could be just three exceptional hires away from having the business of a Millionaire Real Estate Agent,” writes Gary Keller, co-founder and chairman of Keller Williams, in The Millionaire Real Estate Agent.
STEP
Hire for administrative help Administrative help will allow you to focus on dollar-productive sales activities such as lead generation, buyer and listing appointments. Depending on your personal production limits, your first, second, and possibly your third hires will be administrative help. The idea is to reach a point where you are wholly focused on lead generation, listings and selling.
STEP
Hire for buyers After you reach a point where you are wholly focused on lead generation and listings while your administrative team handles everything else, it’s time for a buyer specialist. This individual will handle many of the time-consuming tasks and processes of working with buyers. As you devote more time to listings, you may need to hire more than one person to handle the buyer side of your business.
Handles administrative duties and the contract-toclose process efficiently to make sure all your clients’ needs are met.
*
Source: The Millionaire Real Estate Agent, Model Four: The MREA Organizational Model
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Prospects for leads daily, closes leads to appointments, closes for agreements and conducts a high-level fiduciary needs assessment. Their 20 percent is to grow the buyer side of the team’s business.
Schedules walk-throughs with clients, accompanies them to every showing and answers all their questions.
TRAINING
TAKE THE GUESSWORK OUT OF HIRING STEP
Hire for sellers When you find that you still have more seller listings than you can handle alone, you’ll hire a listing specialist. Eventually, you could have a team of them and a lead listing specialist who oversees and reports directly to you.
Prospects for seller leads daily, closes leads to appointments and appointments to agreements. They provide high-level fiduciary advice on pricing and staging the home for sale. After an offer comes through, a listing specialist negotiates the offer and oversees the deal to close.
"The average person thinks the goal of a business leader is to run a successful business. Well, I’m here to tell you it isn’t. The ultimate goal is to have a successful business run by other people." - Gary Keller
Making a decision to hire a candidate or not has long-lasting implications for both the organization and the candidate. That is why Keller Williams created the Career Visioning model – to help you make the most informed decision possible about whether a candidate is a good fit for the position. “Career Visioning breaks down the hiring process into manageable steps so that anyone can find, interview, hire and train the right talent,” says Leslie Vander Gheynst, Leverage Series/KPA driver.
Four Steps to Hiring the RIGHT PERSON for the RIGHT JOB STEP 1
STEP 2
SCREEN
INTERVIEW
Who are you looking for?
Are they right for the job?
There are two main elements to hiring top talent. The first is finding the right person and the second is placing them in the correct position.
The process can help determine that while this person may not be the right fit for a particular role, there may be a better role for them within my business.
STEP 3
STEP 4
GET PERSPECTIVE
COMMITMENT
Are they right for the team?
Now you are ready to make an offer!
With the KPA, much of the analysis is done for you which allows you and your team to spend time listening to answers.
Designed specifically for Keller Williams, the KPA looks at thinking traits that are brought into play, which is critical to successful hiring and then training.
The process even includes a Job Fit Guide – an automatically generated guide customized to each individual candidate after they have completed the Keller Personality Assessment (KPA). It provides the interviewer step-by-step instructions on how to prepare and conduct the interview and word-for-word scripts for different scenarios. This allows for seamless and efficient hiring. View a sample Job Fit Guide and the Career Visioning process in action! blog.kw.com/topic/outfront 5
VIEWPOINTS
EARN YOUR UNFAIR SHARE OF PASSIVE INCOME
By Deon Terblanche
We take a closer look Growth Share and Profit Share and why it is beneficial to you, as the agent, to always relate and refer profitable agents to any Keller Williams Market Centre's Team Leader. As an estate agent, there's almost no better feeling than working hard on a transaction and finally receiving your well-earned commission. Almost.. At Keller Williams, our associates have an unparalleled and unlimited opportunity to participate in the growth and productivity of their Market Centres, and to receive a financial reward for their efforts. As a Keller Williams associate you will obviously still receive your sales commissions – you are an agent at the largest estate agency in the world, after all – but you will also be able to earn a passive income on top of your commission earnings. Our associates tell us that is an even better feeling. We will let you be the judge. And by “passive income”, we truly mean passive income. That's why our co-founder and CEO, Gary Keller, calls the Growth Share and Profit Share program an equal opportunity but unequal reward system. For those who take advantage of the incomeenhancing opportunities of the program, the results are life-changing.
The Growth and Profit Share program is revolutionary because it creates an interdependent relationship between agents and their Market Centre. KW associates are treated like stakeholders. Associates who are instrumental in attracting productive agents to Keller Williams will be rewarded with passive, potentially long-term income without investing any capital. Secondly, although our agents do not assume financial, legal or management responsibilities, they are rewarded for growth with a portion of the revenue, as if they were owners. It means you can be a part of your company’s success, and you are rewarded through the Growth Sharing Plan.
Build wealth with the Growth Share and Profit Share program In one of our previous posts we discussed the competitive commission We created a program splits and commission cap that would treat our real Gary Keller, offered to associates by estate sales associates like explains, “We Keller Williams South Africa. legitimate partners in the created a However, because we truly business. program that believe that our agents are would treat our the driving force in building real estate sales associates like legitimate the dominant real estate company in South partners in the business. We created a Africa, we reward them financially even program that allows associates to build a further when they help us grow. In the business inside a real estate company that United States and Canada this is through is as powerful as if they owned the company Profit Share and in the rest of the world it is themselves.” through Growth Share.
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Because that is how you treat your stakeholders. How does it work? It is simple! You just relate to and refer people who you believe would benefit from the income-earning potential, models and systems, training, technology or support to any Keller Williams Market Centre's Team Leader. So let's imagine you have a friendly relationship with Hope, an agent who is not with Keller Williams yet. One day at an open hour Hope tells you that her business is in a bit of a rut. Listening to her talking about her challenges, you realize that her sales results will improve as soon as she gets the benefit of great training, technology and leadership support. You talk about your Keller Williams experience with Hope and recommends that she meets with your Team Leader. The Team Leader will go through a thorough interview process with Hope to determine if joining Keller Williams is a win-win for her and the Market Centre. If Hope decides that Keller Williams is a fit for her, the Team Leader will do the actual recruiting if she is
VIEWPOINTS
convinced that Hope will enjoy and be a fit for the Market Centre's culture. Growth Share After joining Keller Williams, as Hope's sponsor, Keller Williams will pay you a portion of the income earned by Keller Williams on every sale done by Hope. It is important to note that you will not be paid a portion of Hope's sales commission. Instead, you will be rewarded by Keller Williams from its own revenue on each sale done by Hope. It is our way of saying thank you for playing a role in helping grow the KW Eden Market Centre in George with productive agents. You will earn Growth Share when you sponsor a productive agent to any Market Centre in the world outside of North America. In other words, to get your unfair share of Growth Share, simply sponsor an agent to a Market Centre in South Africa. Profit Share If you sponsor an agent to a Keller Williams Market Centre in North America, you stand a chance to earn Profit Share. The owner of the Market Centre will share almost 50% of the profit of that Market Centre in the United States or Canada with KW associates who sponsored agents to that Market Centre. Associates who participate in the program truly share in the profit of the Market Centre without assuming any of the risks associated with ownership. Go 7 levels deep As the person most impactful on the recruit's decision to join Keller Williams, Hope will name you as her sponsor. She is on your first level of recruits. After she has joined and if, by relating and referring, she is named by a new recruit, Ben, as his sponsor, Ben will go onto your second level. If Ben is instrumental in recruiting a third agent, Melanie, Melanie will be on your third level of recruits. You
Growth Share tree can go seven levels deep. How is your Growth Share calculated? Creating the dominant estate agency in the Garden Route by growing with productive agents is a win-win for KW Eden and our associates. It is also one of the reasons why we say that KW associates and the Market Centre are in an interdependent relationship. So this is how your Growth Share earnings will be calculated. A life worth living and a legacy worth leaving You will earn your Growth Share and Profit Share as soon as you sponsor productive agents to a Keller Williams Market
Centre.
Click to watch the video
years and one day, your right to receive your share of the “Gift� vests, which means that you'll always receive it. If you retire or leave Keller Williams' service, you will still get your payments from Keller Williams, provided you stay in contact with the Market Centre. You will even be able to bequeath this passive income stream to your surviving spouse or children in your will. In an industry that is often plagued by insufficient retirement or worst-case scenario planning, that's a life worth living and a legacy worth leaving. Are you ready to earn your unfair share? Why would Keller Williams offer this life-changing opportunity to our associates to share in the company's income? Because we truly believe that together everyone achieves more. By helping you leave a legacy, you will help us grow. If you want to investigate your opportunity to build wealth with the Growth Share and Profit Share program, contact us for a confidential discussion.
Keller Williams South Africa pays the Growth Share into your bank account on a quarterly basis. Even though Keller Williams is currently still only in its sixth year in South Africa, we have already paid out nearly 10 million Rand into our associates' bank accounts. Growth Share or Profit Share is real money that makes a real difference to our associates' and their families' lives. It pays school fees, it provides a back-up income during quieter months, it pays unexpected doctors bills, it enables our associates to help others, it pays for overseas trips to events like Family Reunion in the United States, and much more. And we have not even mentioned the most amazing feature of the Growth and Profit Share program yet. Amazingly, after three
Deon Terblanche KW Eden 7
M O N T H LY AWA R D S
Y E S A w a rd s Y o ur E xc e lle nc e S ho w s
TOP
PERFORMERS
FEBRUARY 2020
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VOL.2.2 2020
TOP MARKET CENTRES - REGISTERED TRANSACTIONS: COMMISSION
2
KW CENTURION
1
KW EDGE
3
Riaan van Deventer
Louis Joubert
KW PREMIER
Wayne Albutt
TOP MARKET CENTRES - REGISTERED TRANSACTIONS: UNITS
2
1
KW EDGE
3
KW CENTURION
KW ADVANCE
Riaan van Deventer Louis Joubert
Lucinda Liebenberg
NUMBERS
M O N T H LY AWA R D S
TOP
PERFORMERS
10
TOP-PRODUCING MARKET CENTRES #
MARKET CENTRE
1 2 3 4 5 6 7 8 9 10
KW Edge KW Centurion KW Premier KW Advance KW Clockwork Edenvale KW Clockwork Benoni KW Extreme KW Select KW Clockwork Sandton KW Impact
FEBRUARY 2020
LANGUAGE OF REAL ESTATE
PERFORMANCE AND OPPORTUNITIES Monthover-Month
Year-toDate
69%
69%
Registered Sales Volume
-35%
30%
Listings Taken
118%
37%
Listings Taken Volume
107%
17%
Listings Sold
65%
-13%
Listings Sold Volume
43%
-18%
Contracts Written
65%
-16%
Contracts Written Volume
49%
-22%
Registered GCI
43%
30%
Growth Share
43%
30%
FEBRUARY 2020 Registered Units
9
M O N T H LY AWA R D S
Y E S A w a rd s Y o ur E xc e lle nc e S ho w s
FEBRUARY 2020
TOP INDIVIDUALS - REGISTERED TRANSACTIONS: COMMISSION
2 4
KW CLOCKWORK BENONI
1
KW PREMIER
3
KW ADVANCE
5
KW EDEN
Cyndy Minnaar
Sandile Sibanda
KW NORTH
Thean Olivier
Karien Jordaan
Eben Meyer
TOP INDIVIDUALS - REGISTERED TRANSACTIONS: UNITS
2
1
KW CLOCKWORK BENONI
KW EDGE
3
KW EDGE
5
4
KW CLOCKWORK BENONI
Madeleine Marais
Sandile Sibanda
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VOL.2.2 2020
Deborah Chetty
KW ADVANCE
Juliana Papenfus
Thean Olivier
NUMBERS
M O N T H LY AWA R D S
TOP
PERFORMERS
TOP TEAMS - REGISTERED TRANSACTIONS: COMMISSION
2
1
KW PREMIER
3
KW CENTURION
Property Legends
50
KW CLOCKWORK SANDTON
Trevor & Lindsay
Jodi & Andrew
TOP-PRODUCING AGENTS
FEBRUARY 2020
NO NAME
MARKET CENTRE
NO NAME
MARKET CENTRE
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
KW Premier KW Clockwork Benoni KW Advance KW Eden KW North KW Clockwork Sandton KW Select KW Premier KW Select KW Clockwork Benoni KW Advance KW Select KW Edge KW Premier KW Premier KW Eplore PE KW Clockwork Edenvale KW Premier KW South KW Advance KW Edge KW Clockwork Benoni KW Extreme KW Impact KW North
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
KW Clockwork Edenvale KW Centurion KW Edge KW Extreme KW Explore PE KW Extreme KW Select KW Clockwork Edenvale KW Clockwork Edenvale KW Premier KW Edge KW Edge KW Clockwork Sandton KW Clockwork Benoni KW Coastal KW Impact KW Edge KW Clockwork Sandton KW North KW Advance KW Extreme KW Edge KW Advance KW Eden KW Impact
Cyndy Minnaar Sandile Sibanda Thean Olivier Eben Meyer Karien Jordaan Hillel Eschur Luan De Beer Lindi Brougham-Cook Avril Eliasov Deborah Chetty Tarryn French Veronica Mouton Madeleine Marais Brad Flynn Dave Wilson Tessa Semple Norman Moodley Richard Southey Tristan Smith Lizelle Lloyd Tertius van Zyl Cicilia Beukes Graham Geddie Sonthea Mouton Francois Auret
Sconna Zulu Gibbon Schickerling Karin Mitcham Sean Biden Jess Peens Eunice Rodrigues Mark Holder Brenda Seery Cathy Potgieter Sean McFarlane Juliana Papenfus Shaine Webb Lauren Baney Maritza van der Linden Peter Andrianatos Dee du Plooy Brenda Coetzee Zikhona Gaven Cecile Janse van Vuren Anouschka Lubbe Penelope Karsten Thomas Slabbert Jolanda Faught Mechiel Goosen Christabel Vosloo
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OutFront is published by Keller Williams Realty, Inc. The entire document of OutFront is copyrightŠ 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. CopyrightŠ 2018 Keller Williams Realty, Inc. All rights reserved.