Latest / The Real Estate Agent Playbook / Revenue Share vs. Starting a Team or Brokerage | Must See Results

Transcript

Revenue Share vs. Starting a Team or Brokerage | Must See Results · The Real Estate Agent Playbook

• 0:00
  starting a team or brokerage
• 0:02
  sounds like freedom sounds like leverage
• 0:04
  help with buyers help with sellers
• 0:07
  delegation all of those things but
• 0:09
  here's the thing that no one talks about
• 0:12
  and it's a big deal and this is why we're seeing
• 0:14
  more and more brokers more and more team leaders
• 0:16
  and more and more top producers deciding to go
• 0:19
  the route of a revenue share organization
• 0:22
  versus a team or a brokerage
• 0:24
  stay tuned we're gonna break it down the pros
• 0:26
  the cons the good the bad the ugly and let's roll
• 0:28
  I'm Jeremy Kane proud member of the Wolf Pack
• 0:31
  founding member of Carbon Collective a coaching
• 0:34
  uh based platform that helps our organization
• 0:37
  find exactly
• 0:39
  what they're looking for whether that's closing
• 0:40
  five to 10 more deals reaching your cap at EXP Realty
• 0:44
  reaching the icon award or growing a revenue
• 0:46
  share organization
• 0:47
  and changing your financial trajectory
• 0:49
  residually forever
• 0:51
  those are the things that we dial in if you're
• 0:53
  interested in learning more about that
• 0:54
  you can comment Carbon Collective
• 0:56
  below and I will reach out or you can book a call
• 0:58
  in the link below or go to R E Agent
• 1:00
  Wolf Pack and we'll get that sorted out
• 1:02
  as the son of a lifelong
• 1:04
  managing broker I watch my dad own his own brokerage
• 1:08
  as well as merge his company
• 1:10
  and become a managing broker so this team recruiting
• 1:14
  organizational thing
• 1:16
  isn't something new my dad loved training
• 1:18
  he was a great trainer I still go to trainings
• 1:20
  every single day
• 1:21
  they're like oh how's your dad doing right they know
• 1:24
  that I was his son I came in a little bit later
• 1:26
  after he
• 1:27
  had been in the business for 15 to 20 years and now
• 1:31
  he's retired but
• 1:33
  here's the thing that I also saw I saw
• 1:35
  the income dependency right you're now tied
• 1:39
  to bringing in more agents who are closing
• 1:41
  more deals who are you know
• 1:43
  you know in demand of your time right you now have
• 1:46
  legitimate
• 1:48
  you know
• 1:49
  problems out there you have a brick and mortar
• 1:51
  in most real estate situations
• 1:54
  you have to pay for you have rent you have overhead
• 1:57
  you have you know staff members and all of the things
• 2:00
  and all of that is dependent on your agents
• 2:03
  these 1099 contractors
• 2:05
  going out and selling more houses right and you become
• 2:09
  you know this different role
• 2:11
  okay it's not so much just the training
• 2:14
  right because you have the liability and you have
• 2:17
  the you know need you have the responsibility
• 2:20
  of almost being liable 24 7
• 2:23
  even though you have nothing to do with it
• 2:25
  if they don't take what they Learned in the training
• 2:28
  room over to the other side of the business
• 2:31
  then you never know right so your role transforms
• 2:35
  you're almost a therapist you're a
• 2:36
  full time you know on call
• 2:39
  and there's a lot of different things
• 2:40
  that has it all these problems
• 2:42
  flow uphill when you're managing broker or
• 2:45
  you know team lead you can call it whatever you want
• 2:48
  there's different sets of roles
• 2:49
  there's different sets of liabilities
• 2:51
  but when you're in charge of other people
• 2:53
  and your income is based
• 2:55
  mainly on other people performing more so than you
• 2:59
  as you know an independent real estate agent
• 3:02
  that's where things get changed right agent splits mean
• 3:06
  you earn
• 3:07
  a little bit from everyone but pay for everything
• 3:10
  right they have to go out and sell
• 3:12
  and you know then you get your return
• 3:16
  and you know there's a huge PNL difference there
• 3:19
  right you gotta
• 3:20
  go buy those things you gotta buy the trainings
• 3:22
  you have to you know bring people in
• 3:24
  and you have to provide the staff and the desks and the
• 3:27
  you know lights have to be on and then
• 3:30
  once they start selling houses and utilizing
• 3:32
  those tools then you you know get reimbursed
• 3:34
  and hopefully there's
• 3:35
  enough for you know a little bit of profit on the end
• 3:38
  because now your time is not able to be
• 3:41
  out there talking to clients
• 3:43
  and this is why you see so many managing
• 3:45
  brokers they start their business right they're
• 3:47
  excited they're gonna move out of production
• 3:49
  and sometimes they just never reach out of production
• 3:52
  and sometimes they don't want to and that's okay
• 3:54
  but the truth is if you ask them can they
• 3:57
  because the truth is probably not at that point because
• 4:00
  the income is so reliant on other people's
• 4:04
  success and other people's following
• 4:06
  following the rules right and the trends
• 4:09
  but then what happens when you train this person and
• 4:12
  you know everybody
• 4:13
  has it as a top producer had a lot of pressure
• 4:15
  are you gonna start a team are you gonna start your own brokerage
• 4:17
  what are you gonna do
• 4:18
  and I eventually made the decision to
• 4:22
  link arms with EXP and join a revenue share situation
• 4:26
  where I could do exactly
• 4:27
  what I wanted to do I can help grow I still have to you know recruit
• 4:30
  and retain and help agents
• 4:32
  but my overhead and my liability is almost zero
• 4:36
  compared to that of what my dad's was
• 4:38
  when he was running his own brokerage
• 4:40
  and I've talked to managing brokers
• 4:42
  and I've talked to team leads especially
• 4:44
  through this little market correction that we've seen
• 4:46
  and the truth is
• 4:48
  is that it seems to be spinning the wheels
• 4:50
  very few of them
• 4:52
  have despite what you see on social media
• 4:55
  have amazing setups and
• 4:57
  you know that the team lead is making you know Buku
• 5:01
  Bucks
• 5:01
  and it's just like they thought right they were gonna delegate
• 5:03
  they were gonna have buyers agents and listing
• 5:06
  agents they were gonna provide this amazing culture
• 5:08
  and they were gonna go sit back and
• 5:10
  kick their feet up on the beach
• 5:12
  not to say that that's what every team leader
• 5:14
  broker wants to do but it's in the back of their head
• 5:16
  right you have to leverage
• 5:17
  people you have to leverage
• 5:18
  people to get back your time
• 5:20
  and hopefully your income is not you know affected and
• 5:24
  sometimes there's some great teams
• 5:26
  out there especially
• 5:27
  right now that are on the Zillow Flex program
• 5:29
  that's a different they partnered
• 5:31
  with the right people and they're providing leads
• 5:33
  at least for the time being uh that you know is causing
• 5:39
  there's no overhead in that right a Zillow Flex team
• 5:42
  they pay Zillow 40% off the top and then the team lead
• 5:45
  splits with the agent
• 5:46
  and they go from there right where traditional
• 5:49
  lead generation is a massive cost
• 5:51
  to bring those leads in and then the agents
• 5:54
  have to go and close
• 5:54
  them so that you get your portion of that split
• 5:57
  as the team leader managing broker
• 5:59
  so there are setups that are working
• 6:00
  I'm not here to tell you it's all doom and gloom
• 6:02
  but you can't just
• 6:04
  flip a coin and say I wanna be a Zillow Flex team
• 6:06
  and you're ready to go and the future of Zillow
• 6:09
  Flex is a little bit uncertain let's be real
• 6:11
  so the truth is a team isn't freedom it's a production
• 6:14
  overhead and more people depending on you meaning
• 6:17
  more pressure and more stress can you do it
• 6:20
  can you make it happen if that's your dream absolutely
• 6:23
  but
• 6:24
  let's talk a little bit about why I didn't open a brokerage or why I didn't
• 6:28
  open a team opening a brokerage
• 6:29
  sounds like you've made it it's impressive it's fancy
• 6:32
  your name on the door your brand
• 6:34
  all of that but here's the brutal reality
• 6:36
  the reality is thin margins on every transaction
• 6:40
  liability for every agent and their actions
• 6:42
  constant recruiting constant you know revolving door
• 6:46
  people get good
• 6:47
  enough and they go off on their own they chase
• 6:49
  that next opportunity
• 6:50
  and then you have to retrain and and refocus otherwise
• 6:54
  you have to keep them retain them as an employee
• 6:56
  and then your overhead only increases obviously
• 6:59
  you have the compliance issues and all of that
• 7:01
  so typically that's hired out let's be real agents
• 7:04
  hire out their compliance
• 7:05
  to transaction coordinators so do
• 7:07
  so do you know office staff
• 7:09
  which leans into the overhead
• 7:10
  right you have offices you have
• 7:12
  staff you have tech you have insurance
• 7:14
  you have all of that that goes on and heaven
• 7:16
  forbid a lawsuit gets opened up
• 7:18
  and your brokerage gets named
• 7:20
  that's where things get really ugly
• 7:22
  right where you have to take the time
• 7:24
  to fight that and heaven forbid
• 7:26
  you be found liable for something that happened
• 7:29
  and have to pay a monetary fine or or worse
• 7:32
  so that's where it comes
• 7:33
  the truth is that most independent brokers
• 7:35
  quietly earn less than their top producers net
• 7:38
  when it comes down to it and that's absolutely insane
• 7:41
  as a team lead
• 7:42
  as someone who's opening their own brokerage
• 7:44
  that's not how it's written up that's not how it's planned out
• 7:47
  but the truth is in most cases it's very realistic so
• 7:51
  you're not building wealth you're building a payroll
• 7:53
  and you're like okay
• 7:55
  I'm not gonna start a managing
• 7:56
  broker I'm not gonna do that I'm gonna be a team
• 7:58
  we still have overhead for leads you still have
• 8:00
  responsibility for those agents
• 8:02
  and if your agents you know produce and
• 8:05
  they're having great success again
• 8:07
  where are they gonna go and as a team leader
• 8:10
  if you're at a traditional brokerage
• 8:11
  and you create this next rising
• 8:13
  star and they absolutely crush it
• 8:15
  they're like okay I'm gonna go start my own team over here
• 8:17
  you as the team
• 8:18
  leader you who brought them into the company is
• 8:21
  probably not going to have any other compensation
• 8:24
  unless there's some other partnership that's formed
• 8:26
  in that in that reality and so that's something that
• 8:31
  we have to understand the retention is different
• 8:33
  so whether it's being a broker whether it's a team lead
• 8:36
  or whether it's a revenue share organization
• 8:38
  you have to understand
• 8:39
  the model you choose just isn't about money
• 8:42
  it's about what you're willing to trade your time for
• 8:45
  and your time is the most expensive asset
• 8:48
  and how you have to pour
• 8:51
  into those different roles
• 8:52
  in different times is absolutely the key
• 8:55
  I'm not here to tell you there's no time put into my revenue
• 8:58
  share organization
• 8:59
  but I am here to tell you it would have taken
• 9:00
  me a long time to get into 39 states
• 9:02
  in four different countries
• 9:04
  and benefit from those agents
• 9:05
  closing transactions with no liability
• 9:08
  than the four and a half years I've been at this company
• 9:10
  the truth is when this became a reality in my business
• 9:13
  I was selling 40 or 50 homes a year
• 9:15
  and it was my time to become a leader become
• 9:19
  you know my own brand whatever that looked like
• 9:21
  the question was what model actually lets me lead
• 9:24
  and scale and coach without
• 9:28
  drowning in overhead and all of the
• 9:30
  liability that comes with it
• 9:32
  and the obvious answer was
• 9:34
  EXP Realty the revenue share model right
• 9:37
  allows for time freedom eventually
• 9:38
  flexibility for my family uh
• 9:41
  once I am out of production
• 9:42
  this is something that will absolutely change the game
• 9:45
  legacy it's now a willable asset so I'm not just
• 9:48
  you know building this brokerage up and hopes
• 9:50
  that one day it will sell to someone and
• 9:52
  you know some of that money can go to my legacy
• 9:54
  and it's
• 9:55
  scalable leadership I'm allowed to partner with other
• 9:59
  leaders and help them become leaders
• 10:01
  so that they can help their next phase of leaders
• 10:03
  and the beauty is it's seven tears deep
• 10:06
  so I'm compensated for each and one
• 10:08
  each and every one of those efforts
• 10:09
  and unlike being a team lead
• 10:12
  yes if someone leaves the brokerage
• 10:15
  that's when the revenue share stops
• 10:17
  but if they're ready to you know go out on their own and build their own thing and do
• 10:20
  do what they wanna do
• 10:22
  similar to what we did with Carbon Collective
• 10:24
  we didn't leave the Wolf Pack we're still in it
• 10:26
  but we wanted to add our
• 10:28
  stamp on the amazing organization that it is
• 10:31
  then we're able to do that
• 10:33
  and we're still here when we close deals our upline
• 10:35
  still benefits
• 10:36
  when those agents that we're coaching and training
• 10:38
  up to close more deals our upline still benefits
• 10:41
  so it's the best of both worlds we're able to kind of
• 10:44
  leave the coop
• 10:45
  a little bit and you know start our own thing but also
• 10:48
  continue to partner and
• 10:49
  continue to build the lives of agents
• 10:52
  everywhere with more direct coaching and training
• 10:56
  if you do want the two week uh access pass comment
• 10:59
  Carbon Collective
• 10:59
  launch below and I'll make sure I get you that two week access
• 11:02
  pass I'll send you a DM I'll track you down somehow
• 11:05
  and we'll go from there
• 11:06
  so that's when I found revenue share and I
• 11:09
  continue to fall in love with this concept
• 11:11
  the more and more the advantage zero overhead
• 11:15
  scaling is something that's absolutely
• 11:18
  on you know on the radar when I have an agent
• 11:21
  that can go down the street and recruit
• 11:23
  another agent and that helps all of us win
• 11:26
  that's absolutely incredible right
• 11:28
  I don't have to babysit
• 11:30
  all I have to do is help these agents
• 11:32
  you know with their production which is my expertise
• 11:35
  growing through sphere of influence and all of that
• 11:37
  and then I have to help them become leaders
• 11:39
  which is part of my passion I was a teacher uh I
• 11:43
  you know coached a long time and so that's exactly
• 11:46
  what I love to do
• 11:47
  so I'm able to do what I love to do right
• 11:49
  and then that just compounds on itself I teach leaders
• 11:53
  to be leaders and then I teach the leaders
• 11:55
  to find leaders and grow leaders then that's absolutely
• 11:57
  incredible it's a compounding effect and then
• 12:00
  when I do pass away hopefully in many many years
• 12:04
  I can will
• 12:05
  this asset to my wife if she's still around or my kids
• 12:08
  and it just continues to build on itself
• 12:10
  because of what we grew and what we built
• 12:13
  so it's not just a one time thing it's not just a right here right now input
• 12:17
  it's a long lasting long play
• 12:19
  that continue to scale that continue will grow revenue
• 12:23
  for my legacy long after I'm not here
• 12:26
  and that is a game changer
• 12:28
  right if I were to pass away and I was managing broker
• 12:31
  you know my wife or
• 12:32
  some partner somebody would have to come in
• 12:35
  and run that business
• 12:36
  they'd have to get a license with the state
• 12:38
  you know as a managing broker and do all these things
• 12:40
  yes I still have to get a real estate
• 12:42
  license but that's a lot less
• 12:44
  strenuous than getting a managing
• 12:45
  broker license and then being able to do it
• 12:47
  first and foremost
• 12:48
  you can't do it unless you're in the business
• 12:49
  for two years here in Colorado so as we as we go
• 12:54
  it's truthfully
• 12:56
  so here's the final distinction that made
• 12:58
  this all come to fruition for me a team you can own
• 13:02
  the problems right that's what you do
• 13:05
  a brokerage you own the liability
• 13:08
  at as a managing broker you own nothing
• 13:10
  really because you're just a managing broker
• 13:13
  with revenue share
• 13:14
  you own all the upside and that's exactly what
• 13:17
  I was willing to do when I took this
• 13:19
  leap from my dad's brokerage to
• 13:21
  EXP Realty four and a/2 years ago
• 13:23
  right I wanted freedom not a job
• 13:26
  wanted to lead and not have to chase
• 13:28
  that next deal over and over and over again
• 13:30
  am I still chasing deals
• 13:31
  am I still doing real estate absolutely
• 13:33
  I may never give that up but it's becoming
• 13:36
  less and less of a requirement to put food on my family's table
• 13:39
  and I wanted to build something that could compound
• 13:42
  while I was still producing and that's exactly
• 13:44
  what I found the ability to show up for people
• 13:46
  continue to show up for my clients and build
• 13:49
  an amazing culture an amazing community of agents
• 13:52
  who also can help more people
• 13:54
  reach the American dream and own
• 13:56
  real estate in this country
• 13:58
  absolutely incredible opportunity
• 14:00
  I made the right choice it's not for everyone however
• 14:03
  if you're in that situation where people are like what are you gonna do are you gonna start your own brokerage
• 14:07
  are you gonna start your own team do me a favor
• 14:10
  take a look at revenue
• 14:10
  share book a call below no pressure no obligation
• 14:14
  I'd love to chat with you and see how this could
• 14:17
  be a choice of freedom for you or whoever
• 14:21
  you know you send this video to so
• 14:23
  I really appreciate that like comment subscribe
• 14:25
  we'll see you next time bye bye