Author: bridgetannstuart

BRIDGET: Hi I’m Bridget Ann Stuart, Mastery coach with MAPS coaching and I’m  very excited today to introduce you to a longtime MAPS client and real estate agent extraordinaire, Yau Lung Chan.  

YAU: Hi Everyone.

BRIDGET: He’s a realtor with Keller Williams of Greater Nassau. He’s been a realtor since 2005 working with buyers and sellers all over Long Island and New York City. 

YAU: Yes

BRIDGET: What impresses me the most about Yao is once you became a real estate agent there are so many avenues for additional education and training at Keller Williams. And Yau have an AVR, which is an advanced training in buyer representation. Right?

YAU: Correct.

BRIDGET: A CIPS, which is a certification in an international property specialist.

YAU: Yes

 BRIDGET: A CHLMS. That one means you’re certified in luxury sales!

YAU: That I am.

BRIDGET: And a GRI which, quite frankly, in our industry is like getting a master’s degree in real estate.  You’re also a graduate of the realtor Institute and have an SRS, which is a seller representation certification. So man, Yau, you take real estate seriously.

YAU: Very. It’s about representing our clients the right way. Being knowledgeable.

BRIDGET: Tell us, first, as a MAPS client … How long have you been with MAPS and what changes have you seen in your business and life from being a part of the Mastery community? 

YAU: I’ve been with MAPS about four years now and I’ve been with you for 3 years. Since being with you my business has grown exponentially.  I love what you do with me with the second person perspective. I think that’s a very important to me. Being able to take my ideas and giving me different perspectives on them. 

BRIDGET: Yeah I feel like that’s critical you know. As I’ve I shared with you, I also have my own MAPS coach and I love that perspective as well. It just gives us a chance to get out of our own way by stepping back and looking at it with that business partner now beside us. 

If you were talking to somebody with Keller Williams who was considering getting into coaching and hiring their own coach, what would you share with them?

YAU: First off, they would need to give you call. (Bridget laughs) 

That’s the best advice I can give and I give it constantly – you know that. You always leave to the expert to talk about it.  All I can do is actually share what it’s done for me. And it’s one a lot!

BRIDGET: Good. I know you’re setting up for 2020 to be one of the biggest years you’ve had a real estate. if not the biggest, from the business plan that we worked on and we’re still refining it right now.  with the clarity that you’re getting around the leads needed to accomplish your goal and your strategies, how confident are you in meeting your goals in 2020?

YAU: I believe that, with the help of systems that have just come out like Command and what you just brought to the table with going back to Old School. Writing it on paper week after week and going though it with you. Especially with the Command.  I think that’s a great tool.

BRIDGET: I do too.

YAU: I think with it we went from 750k to having 1.5 million in estimated income in order to reach my goal. 

BRIDGET: Right. You’ve really been good about jumping in there and figuring out how to use the opportunities within command. I’ve noticed that your energy and your diving into finding the business is stronger than it’s ever been. I feel like command and that opportunity and seeing that number of projected income opportunities grow is getting you into action every day. I think that’s really awesome.

YAU: I thank you for that. Because there are things I wouldn’t have thought of. Which is pretty cool. And I always try to integrate whatever you talk about.

BRIDGET: Well good. Thank you for that! You’re an excellent client I am inspired by working with clients like you.  It’s a real win-win. I feel like we’re contributing to the Y for CTTS because it’s a win-win while we work together. 

YAU: Yes.

BRIDGET: So… Yau Lung Chan you are a real estate agent, a realtor with many designations and you are with Keller Williams Greater Nassau, correct? 

YAU: Yes. 

BRIDGET: And you’re part owner in a couple of market centers as well.

YAU: Yes. This company – that’s the greatest thing is it provides you with a lot of opportunities. It’s unlimited. It’s really what you can see, recognize and achieve and go for.

BRIDGET: When I think about you in your Market Center, I see you as a leader in that Market Center. One of the ways that I see that is the way that you support and interact agents as they’re developing their business.  What is most satisfying for you in your leadership role within Keller Williams? 

YAU: when another person is actually succeeding. They’re breaking through their ceilings. What they is say is true: Success through others. I’ve learned that to a very high degree. And we always talk to the agents about mastering something and always taking it to another level. “What else can I do?”  And you always drill that into me also. So it becomes second nature.

BRIDGET: Right. I feel like that is shown up for you even in one-on-one conversations that you share with agents that are in your Market Center. You also teach some classes, correct?

YAU: Well I say I don’t teach classes.  I have no right to teach.What I do to is that I share. 

BRIDGET: You share. Very good. Are you part of ignite training in your market center? 

YAU: Yes. When asked, for sure, for sure. 

BRIDGET: Good.

YAU: Its always about letting other people step up also. Developing   other leaders.

BRIDGET: Yes. I feel like you look for those opportunities within your agent population and then I also see you as developing leadership opportunities within the staff in the Market Center. I believe you’re launching a market center right now.

YAU: Yes. Franklin Square has actually launched. 

BRIDGET:Awsome. 

YAU: Off transmittal. Profitable.  

BRIDGET: Fantastic. 

YAU: Following the models and all that.

BRIDGET: And that’s Keller Williams Franklin Square? Is that the name? 

YAU: Yes. It’s located in Franklin Square.

BRIDGET: Very good. You bring up that Keller Williams…, and I have experienced the same thing.  A lot of times, in my opinion, when you’re a real estate agent and you join a company the only place to go is more sales. But with Keller Williams you have the opportunity for ownership or becoming a coach or leading people. It provides more opportunities in terms of a fulfilling career path than many of the competitors. 

YAU: Yes. We own a business.  Why are we not treating it like a business?  

BRIDGET: Right. Well I think that’s fantastic. If someone were talking to agents in your area, Greater Nassau, Franklin Square –  anywhere in your geographic area – and they were looking for a place to build their real estate business, why should they come to Keller Williams Greater Nassau or Keller Williams Franklin Square? What sets you apart?

YAU: What sets us apart? I would say that everyone here from ownership to leadership to even the agents it’s about giving back, about really supporting each other. I think it’s the support.  

BRIDGET: So they’re going to have support and you were saying it’s like the other agents and leadership.  So is it like the environment of the office is a place where they can come and grow?

YAU: Oh yes. The culture, you know, like they say, “Kool-Aid”? Give me more. You know, because it’s so cool. Once you step through the doors you can feel that it’s different. 

BRIDGET: It sounds like you’re constantly looking to grow and improve, not only your customer service, but the depth of your knowledge in negotiating contracts and really representing people to achieve what’s most important to them. Is that an accurate representation?

YAU: Yes. I take it very seriously because we’re dealing with families. We need to do it right.

BRIDGET: Yeah. It’s not just houses. Right?

YAU: Yes. It’s not about houses it’s about families. Relationship building. Which builds on our business also because we do a great job. What happens is they refer us to their family and friends and co workers. 

That’s what it’s about, right?.  

BRIDGET: When you think about meeting with new clients and achieving their goals in real estate what is most important for you?  What are you looking for when you first meet with a client? 

YAU: If we’re a right fit. We have to be able to represent them correctly. The way they want to be represented. That’s the most important, really.   

BRIDGET: I think that’s a really great answer. It sounds to me like you’re not just looking for the next deal, you’re looking for a situation where the clients needs will be met by the skills that you offer. Is that what i’m hearing?

YAU: Yes

BRIDGET: What would happen if you met with a client and you felt like it was not quite the right fit or that you felt that even with your extensive list of certifications, your experience firsthand in the market, your ability to interpret market data and present it in a way where people can make strong decisions… If you felt like that wasn’t what would you do?

YAU: I would respectfully inform them that I was not the right broker to assist them and their family. I would recommend someone else from my market center that would be a better fit for them and their family.

BRIDGET: You know it’s funny that you said that because when I think about you and your position within your market center, I believe that you are uniquely qualified to actually match people for that right fit. Not only are you a realtor building your own business, but you’re also in a position of leadership at a couple of Keller Williams market centers now. So, first off, I don’t think there’s many people where you would not be a good fit and when that does happen your depth of knowledge, of knowing the agents in your market center and their strengths, I believe you’d be able to connect people in a really powerful way.  In fact, I’m sitting here thinking about a couple of times where you did refer agents and the clients were very satisfied. 

YAU: Yes. You have to match people up. Life is psychology. We definitely have to take that to a different level be able to recognize all the things. Same thing as matching my clients up with vendor partners. It’s the same thing.  Which attorney will work better with their personality. Which loan officer would, even home inspectors are very important.  It’s just like you say, it’s a win-win. You have to create that for them. So from beginning to end impacts. Always. 

BRIDGET: And connect everyone.

YAU: Yes.

BRIDGET: I realize as I’m talking to you, it really is about the people.I think outsiders looking in at real estate think it’s about the houses, but it’s really about the people.

YAU: Yes.

BRIDGET: And that shows up. In being your business partner for 3 years now, that’s what I have seen that shines through in your customer service. Is that it’s about the people and it’s about what’s important to them in that particular real estate transaction.

YAU: Yes it is.

BRIDGET: And you’re very passionate about it.

YAU: I am. I always ask other people, because I was asked by my cousin, Linda Chan the same thing: What is your value proposition? It took me six months to figure that out -being told no, no, no. Actually, that’s why I believe I’m very successful. Because my value proposition  is my knowledge, my experience, my passion and my confidence. These are the 4 pillars. Everything else falls under these 4 pillars. 

When I am talking to other agents, I always ask them what is your value proposition. Because if you’re not getting the conversions then most chances are there’s somewhere in your value proposition that’s not strong enough at this time. Not that you don’t have a value, it’s just not discovered. Just like you do. You help me discover a lot of different things when we speak.

BRIDGET: Right. And then your clients benefit from that.  Clarity is power. When you have clarity about why people should choose you as their real estate agent that clarity comes through and all of your communication with the clients giving them confidence in the whole process. 

YAU: Exactly

BRIDGET: It really carries over. When you think about the families that you’re going to work with in 2020 and the market that you’re facing and greater Nassau Franklin Square… I know you cover a graphical area there… What do you think of the biggest opportunities in real estate in 2020 that we’re going to see in your market?

YAU: It’s just like when a person asks me “how’s the market?” Regardless of  wether this person is a potential client, a loan officer, attorney, somebody always ask me “how’s the market?” I say it’s great and they look bewildered. “What do you mean it’s great, didn’t it just shift into a buyers market?” I say, “Sure it shifts.” It’s always gonna be constantly shifting. But we’re able, from our experience to shift along with it. 

Not only that, it’s like, you’re able to  recognize the pattern of something. If you’re only, essentially,  following the pattern, you create an artificial ceiling above yourself. But once you’re able to recognize the pattern, you should be able to create the pattern to a certain degree. So when they ask me “how’s the market?” and I say “it’s great!”, I further explain to them that it’s because we create the market. We don’t have to sit back and wait for business, we’re prospecting. So of course it’s always great. Make sense? 

BRIDGET: It does make sense. And you know that’s the reality. You know you and I have been in real estate since before the last recession and we made it through that. And the reality is there are always people that want to buy and there’s always people that want or need to sell.  So, as you said, if you are intentional about creating your own market then you don’t need to worry about what’s happening outside of you.

YAU: No. Exactly. It’s not worrying it’s just recognizing it and being proactive not reactive.  And I think that’s what we strengthened on because we often find ourselves more reactive than proactive and shouldn’t be that way – especially as a business owner. People need to advance from being single dimensional thinking to multi dimensional thinking. That way they can recognize opportunities and eventually create opportunities. Because you always have to ask “What else can I do? What else is there?” You always have to question. Take it  a step further. Take it to another level, right? 

BRIDGET: Absolutely. It really is. And that’s part of what makes our industry so engaging and so exciting for people to really thrive and develop a big career. 

Thank you for your time today.  It’s been great speaking to you about the passion you have for your clients as well as your understanding that real estate is about the people not property.  It’s a pleasure to be in business with you and I can’t wait to see everything that’s achieved in 2020.

YAU: Bridget, I’d like to thank you for everything you do for me and my family. I appreciate it.

BRIDGET: Thank you so much.  Have a great day.

YAU: You too.

MODEL #1 – THE ECONOMIC MODEL

The ECONOMIC MODEL is the first of four models that we’re going to cover in the next month or so.  So why start with figures? Here’s why: Numbers confuse a lot of people, so I thought if we face that fire right out of the gate it will ensure a faster path to success and eliminate any potential fear and excuses that can stand in the way of your sales goals. So let’s face 2020 head on and dive deep into the raw economics. 

Everyone has different goals. I have some clients going for 25 sales annually and I have others that are striving for 240 sales next year.  Regardless of your individual goals, this economic model works. 

To drive this point home, I thought it might be fun to use the model based on a goal of selling 1000 homes per year. You read right, 1000 homes in one year.

In fact, we’re going use the 1000 homes sold projection in all four models that we’ll be covering in future articles. Even though leadership designed the models that way, some of you might actually be motivated to go for 1000 units after this.

This formula describes the way all business works. It is very much a business model and framework that for our purposes caters specifically to real estate sales.  I’m sure most of you already believe in the power of models.  Most successful business owners, Gary Keller and Warren Buffet included, swear by a sound model.                                           .

Where the pyramid has the model at the base and the creativity on the top is stable.  When you get “creative” and stray from the model – it becomes unstable and doesn’t work properly

Sound Economic Model v. Unsound

• Shows where your money comes from (GROSS Revenue)

• Shows where your money goes (Expenses)

• Shows how much is left (Net)

• Not sure where money will come from or when

• Not sure which expenses are critical and which are not

• Not sure how much will be left at the end of the year.

As I tell my clients, let’s learn the model then we can customize it with creativity to suit your individual specifications. This is why a sound economic model is a key starting point. Agreed? Good. So let’s get down to it.

First, find out how much comes from your gross revenue? Make sure it’s your GROSS REVENUE: The full commission from the sale before anything has been removed. The commission prior to royalty, prior to the company dollar, prior to expenses, prior to splits. The full gross amount. Got it?  

Next, we’re going to use our economic model to show where the money is going. Since we are in real estate, we have cost of sales and we have expenses. Although those are two separate categories, in this model we  combine them as one.  Subtract that from your gross and write down that balance. I know it may seem simplistic but why over complicate things? 

A sound model also depends on your ability to identify a good return on your investment – gauging a worthwhile dollar to be spent in the strongest place. Your economic model becomes unsound when you’re not really sure where your money is going, where it comes from or if you cannot decide which expenses are critical.  

Another quality of an unsound economic model is not being able to estimate what your end balance might be. So we want to make sure that we have at least some clarity in that. Crystal balls don’t count, sorry.

The first key area of the economic model to focus on is the numbers that you “must” hit to make your goal. If you have ever read or listened to Gary Keller, you’ll know when the word “must” is used… it’s important. 

Key Areas of the Economic Model

• Focus on the numbers that you must hit
• Focus on Appointments
• Focus on conversions rates (goal of 75%)

In this economic model it’s vital to know the numbers that you “must” hit and commit to that goal. It starts with tracking your appointments which are the number one lead indicator of whether or not you’re going to hit your sales goal. You’ll also want to monitor your conversion rates.  

Goal = 1,000 Homes Sold in 2020

LISTING DIVISION

Listing Appointments 1,066  (75% ratio)

Listings Taken 800 (75% ratio)

Listings Sold 600

Average Sales Price $300,000

Seller Sold Volume $180,000,000

Commission 2.75%

Gross Revenue $4,950,000

BUYER DIVISION

Buyer Consultation 712  (75% ratio)

Buyer Agency Signed 534  (75% ratio)

Buyers Sold 400

Average Sales Price $300,000

Buyer Sold Volume $120,000,000

Commission 2.75%

Gross Revenue $3,300,000

To give you an idea, the average conversion rate on listing appointments to listings taken is 75%. Similarly, the conversion rate  from listings taken to listings sold is also 75%. That makes it a little easier to remember.  

If your conversion rate on listing appointments to listings taken is higher than 75%, great, but we still want to make sure you’re going on enough listing appointments – even if your conversion rate is at 90%.

Don’t make the rookie mistake of losing momentum once you’re ahead of your goal.  Keep going out on all your appointments, maintain your original schedule and let your superior conversion rate grow your business. Superstars don’t fumble the ball in the third quarter just because they’re ahead. You can always be taking more listings overall – no matter what.

Similarly, if you have a higher than 75% listings taken to listings sold ratio – congratulations, you’re ahead of the curve! Ride that wave as long as is humanly possible and be that master surfer. But remember, even master surfers need to stay on top of their market trends and market data to guarantee their preparedness for any unforeseen shift in that arena. 

If you have a conversion rate lower than 75% on listing appointments to listings taken, you’ll need to up your appointments accordingly to make your goal. Numbers don’t lie.  

If you’re selling less than 75% of the listings taken, you might want to dive deep on pricing strategies, presentation, seller communication and price reducing. Maps coaches are always there to help with that.  

No matter where you stand, be proactive and get both those numbers to at least 75%. Follow this model to the letter and the numbers will work for you.

O.K. Now it gets fun. If we base the model on the very ambitious goal of selling 1000 homes per year and we know that the average split is 60% of sales from listings and 40% from the buyers it goes as follows. 

It’s time to break out the calculators. Using the 75% conversion ratio, in order to have 600 listings sold we would need to have 800 listings taken.  You’ll find that number by taking the 600 listings sold and dividing it by 0.75.  That will give you 800 based on the 75% conversion ratio of listings taken to listings sold.  

The same thing applies to converting listing appointments to listings taken. So if we continue to work backwards from the 600 sold goal, you take the 800 listings and divide by 0.75. That will give 1066 listing appointments. 1066 listing appointments for 800 listings. 1066 – the year of William the Conquerer for all of you English history buffs.

Back to numbers. For the sake of this model, let’s work with the rough average national sales price of $300,000 per unit sold. Therefor, for a sold volume of 600 units from listings alone the earnings would be $180,000,000. Not too shabby.  About the same take as a blockbuster weekend opening. 

 If we assume a commission rate of 2.75%, we get a gross revenue (remember that’s the GROSS) of $4,950,000 solely from the listings. 

180,000,000 X .0275 = 4,950,000

 Let’s look at the buyers side of the coin now.  So if you recall the 60/40 split between listings and buyer sides, then 40% of 1000 would be 400 buyer sides sold. The 75% applies on both conversion ratios here as well.  This means that in order to close 400 buyer sides annually, we would want to get buyers agencies signed by 534 people. 

Same math different day.  400 divided by 0.75 gives you 534.  In order to get 534 buyer agencies signed we’d need to hold 712 buyer consultations. Again, divide 534 by 0.75 to get to 712. Easy. Ready for the next step?

The average national sales price of $300,000 x 400 sold would yield $120,000,000.  And since the average commission rate of 2.75 also applies to buyer sides, you’d end up with a gross revenue of $3,300,000. 

120,000,000 x .0275 = 3,300,000. 

Add the listings commission ($4,950,000) to the buyer sides commission ($3,300,000) and you get a total GROSS of $8,250,000 annually from 1000 sales. Not a bad take for a small business.

4,950,000 + 3,300,000 = 8,250,000

 I hope this is a clear, simple and straightforward example of the basic elements of the economic model.  

Focus on the Numbers You Must Hit

Listing Division Goals:

• Leads to achieve: 6,000

• Leads identified each week: 116

• Listing Appointments each week: 21

• Listings Taken each week: 16

Buyer Division Goals:

• Leads to Achieve: 4,000

• Leads identified each week: 77

• Buyer Consultations each week: 14

• Buyer Agency Signed: 11

As mentioned earlier, you want to focus on the numbers you “must” hit  for 1000 sales per year. 

Here are the numbers just for the listing division. The annual listing leads goal is 6000. We know this because we’ve been tracking it and we know the average percentage which is 10% of your leads closed. So can we all agree that we “must” take 6000 leads for 600 sales on the leads side. 6000, 600, 60% – you don’t need to be Einstein to keep track of those numbers. 

If your operating within the highly recommended concept of a 10-month year – you’d need to identify 116 listing leads per week. This translates to 21 listing appointments taken each week to lock 14 listings.  

On the buyer’s side it becomes 4000 leads for 400 sales which is 40% of your goal. To reach that goal you’d need 16 appointments taken each week. Each week the buyer division must have 77 leads and from those would likely get 16 consultations each week and sign 11 each week using the 75%,75% law of averages.

The next step in the economic model would be deducting your cost of sales and expenses from your gross to determine your net for 1000 sales.

$8,250,000 – $4,785,000 (58%) = $3,465,000 (42%)

 How did we get those numbers? The average cost of sales is 29% plus your average expenses which also run at 29%.  For those with a GCI of over $1,200,000 we recommend using 29% for cost of sales and 29% for expenses – a total of 58%. These figures change as earnings change and we’ll go over those soon. 

So that was the economic model for 1000 sales per year. By the way, there are teams out there that meet or exceed this goal every year. In addition to following the economic model they clearly have great leadership and are doing many things right, but it’s attainable.  It’s not as pie in the sky as you might think. 

Goal = 125 Homes Sold in 2020

LISTING DIVISION

Listing Appointments 134  (75% ratio)

Listings Taken 100 (75% ratio)

Listings Sold 75

Average Sales Price $300,000

Seller Sold Volume $22,500,000

Commission 2.75%

Gross Revenue $618,750

BUYER DIVISION

Buyer Consultation 89  (75% ratio)

Buyer Agency Signed 67  (75% ratio)

Buyers Sold 50

Average Sales Price $300,000

Buyer Sold Volume $15,000,000

Commission 2.75%

Gross Revenue $412,500

Are you ready to revisit this model one more time? Great. This time, let’s plug in a new goal of 125 homes sold per year. I chose this number because many of my clients are shooting for between 100 and 150 and many of you might relate to that goal as well. 

Let’s look at the listings sold first. In a listings driven business such as ours it’s a good practice to re-examine the percentage of listings that make up the total number of homes sold.  

For example, Level 3 or level 4 teams looking to increase efficiency and profitability might strive for 70% listings sold and only 30% buyer sides. Working with a showing assistant rather than a buyer’s agent could help tip the scale in that direction.  So with that in mind, you might want to mix it up a bit and play around with a 70/30 split. Your choice.

In the name of consistency, we’re going to stick with the traditional 60% listing 40% buyer split on the 125 unit annual goal. So 75/50 sold will be our goal numbers. Fair enough?  

Focus on the Numbers You Must Hit

Listing Division Goals:

• Leads to achieve: 750

• Leads identified each week: 17

• Listing Appointments each week: 4

• Listings Taken each week: 3

• Assumes 44 weeks

Buyer Division Goals:

• Leads to achieve: 500

• Leads identified each week: 12

• Buyer Consultations each week: 2

• Buyer Agency each week: 1.5

So we start with the very nice round number of 100 listings taken to reach our 75 listings sold goal. 100 x 0.75  gives you 134 listing appointments.  When in doubt, round up. We want to ensure success by rounding up to 134 listing appointments to take 100 listings.  

Working with the average sales price of $300,000 will give us a listings sold volume of $22,500,000.  At the average commission of rate 2.75% your gross annual listing revenue will be  $618,750. 

     75 x 300,000 = 22,500,000              22,500,000 x .0275 = 618,750 

As you know by now the same 75%/75% formula will apply to the buyers. You’ll want 67 buyer agencies signed in order to have 50 buyer sides sold.  Therefore, you’ll want 89 buyer consultations to lock those  67 buyer agencies.  

On side note: It’s understood that not everyone uses buyer agencies.  Perhaps someone on your team represents your buyer division. If so, will you impart some of your leadership skills and guide them on how they can improve their numbers to meet your goals on the buyer sides?

Are they writing the offers that effectively hone in on property selection? Do they have the right showing skills?  Are they able to close? Are they having any trouble getting offers signed?  Do people want to work with them?  Are they getting offers accepted? Do they drop the ball at a higher than 10% fallout rate? You get the idea.

It would be difficult to lead, guide and train your team member without the ability to diagnose where the issues might be.  Once those problems, obstacles and issues are identified, you’ll want to go over your expectations before attempting a productive buyer contract conversation. 

That said, no matter how you get there, your goal will be 50 buyers sales. 50 at the average sales price of $300,000 will give us a volume of $15,000,000. With a commission of 2.75, your gross revenue will be  $412,000.  

$412,000 + $618,750 = a total annual gross of $1,030,000 for 125 units sold.

Next, let’s break down how to get there. In order to achieve a goal 75 listings sold, you “must” get 750 identifiable listing leads.  Assuming a 44 week work year, we take 750 and divide that by 44. That translates to 17 listing appointments each week and 4 listings taken each week.

This same formula applies to the buyer sides.  500 identified leads divided by 44 is 12 consultations per week.

Next we take our gross of $1,030,000 from the 125 sales and deduct expenses. Remember our deductions are cost of sale plus expenses.  But those percentages have changed from 29%/29% to 31%/30%. I’ll explain.

The latest percentage formula for this goal of 125 units sold is 31% cost of sale and 30% for expenses. Why is it higher? Generally speaking, lower production has a higher deduction percentage because there are many fixed expenses that do not necessarily increase as your production increases – say to 1000 units sold. KW has calculated these subtle variations for this model. 

As you begin building your team, you might hire an administrator for the first time, create training programs for new hires as well as a number of other start up expenses resulting in an increase in the percentage of your deductions.

So accepting those percentages as accurate: Your gross of $1,030,000 minus cost of sales $319,300 + expenses $309,000 would come to a total deduction of $628,300 leaving a net annual income of $401,700.

$1,030,000 – $628,300 = $401,700

In closing, I believe the clarity of this model can help you break your ruts and get you off of any type of roller coaster related to real estate that you might be on. 

I want to thank you guys for joining me and I hope you feel that it was worth your time. I think this information would be great for your executive administrators as well as anyone on your team who you regularly rely on.

So, what do think about the economic model?  Does it speak to you? Does it apply to you? Are you motivated to wisely increase your volume and lower your deduction percentage? What do you think of the listing buyer split and would you change that ratio?  Are you a single agent who after exploring this model is considering becoming a rainmaker running a level 3 or level 4 business? Are you thinking of new ways to streamline your expenses? How does this fit in to your 3 year and 5 year plans?

I’d love to answer all those questions and more. Feel free to contact me anytime. Thank you so much.

INTRO

I’m Bridget Ann Stuart with MAPS Coaching and I’ve been in real estate full-time since November 1998. Much of the reason I’ve reached my goals and known success as a coach, an agent, a team leader, and a part owner is because I’ve had a my own coach from the beginning. This symbiotic relationship has made more of a difference in my life than I ever imagined.

EVEN COACHES NEED COACHES

Taking on a coach for me was like having a business partner right beside me 24/7.  My coaches have all been seasoned mentors who have faced all markets, all kinds of challenges and who have built their own businesses from the ground up. They have helped me project my profitability, up my professionalism and as a result have maximized my overall customer service these past 20 years.  Having a coach has been the best investment I ever made in myself and in my business.

Having a coach these many years has changed not just the trajectory of my career, it has actually impacted everyone in my life. My family, close relationships, it’s even changed the relationship I have with myself.

A coach is an investment in myself, in my growth as a professional, a business owner, and a real estate agent.  It has been the best choice for my career.

I can’t imagine taking on what we face in the real estate industry alone.

I understand we have our brokers and our colleagues at our office, but even so, at the end of the day we are the ones who have to hustle for that closing. Being an agent can feel like a very solitary career – but it doesn’t have to.

Just knowing that I always have someone on my team who’s been down this road, facing the same challenges and overcoming them. A business partner who has made my journey far more profitable with less bumps and more joy. I can’t imagine selling real estate without my coach. The ROI is incalculable. 

MINDSET

In my experience, there are three mindsets that are going to have the biggest impact on your success as a real estate agent:

Wake up hungry.

Wake up ready.

Wake up grateful. 

90% of our job is mindset and how we meet the day.  Energy, enthusiasm and a positive approach is vital. Everyday is an opportunity to go out there and make a difference in people’s lives. In our own lives.

When agents get into real estate they often feel like it’s a skill dominated business.  Sooner or later most of us learn that attitude has a huge impact on our success.

I would even go so far as to say that attitude and energy beats skill 

most days of the week. 

Here’s an example. I’m guessing some of you might be in your market center right now scratching your heads and wondering why some young upstart is outselling you. You might wonder how a two year rookie is getting more listings than a fifteen year plus veteran like yourself. How the heck’s that possible?

I’ll tell you how.  It’s not just experience. It’s not simply market share. It’s not only skill. It’s the attitude you bring to your office every day. That attitude is critical.

It’s tied in with mindset and it is 100% a predictor of success.  Attitude plays a huge role.  Even if you’ve got the skill, the market record, the track record your future success still hinges on your mindset.  

Your coach will help you develop your attitude and make sure that you continue to take on more listings than the next eager rookie waiting in the wings.

WHY DO I NEED A COACH?

Sometimes when real estate agents are thinking about hiring their first coach they don’t really know what to expect.

When you hire a Maps coach like myself, you can expect a seasoned real estate professional who has consistently held their annual sales above 75 units.

There’s also great value in having a business partner beside you that will help you accelerate your business – an asset that cannot be overestimated.

You can also expect a direct assessment of your business, your skills, and your overall growth plan expressed with a candor your peers would never attempt.

You’ll get direct feedback if I see you getting in the way of your own success. And trust me, we’re all guilty of that.

You’ll be accountable for delivering the absolute best customer service to your clients.

If you don’t have a coach who is keeping you accountableevery week, keeping you on pace towards your goal and making adjustments, odds are you won’t reach the level of success you’re looking for.

Going rogue is a pretty big gamble to take when the chances are slim you’ll ever exceed or even meet your goals on your own.

Why not have a business partner beside you who will guide you towards achieving your goals?

It’s the job of your coach to help you execute that goal with joy and happiness every day of the year. You have the power to impact the lives of your clients, co-workers, friends and family as you move towards your personal success goals.

Many people ask me if it’s possible to be fulfilled by your real estate career and I’m here to tell you that through coaching not only is it possible, it’s inevitable.

There’s no reason why you can’t go into the office everyday enthused to be there.  When you have meaning behind your actions, you will actually be excited to get up every morning,  get out your house and get into the office. You’re going to have a sense of purpose.

And for those of you who are looking to increase your average sales price or looking to break into luxury real estate – I can help you succeed there as well.

Running a successful real estate business means different things to different people. 

Some agents are looking to build a legacy business that they can hand off to their children. A legacy that might even impact the lives of their grandchildren and the generations beyond. 

Others are looking to maximize the amount of profit that they make while also delivering great customer service. They’re all about the people. 

A large number of agents might want to leverage their knowledge in the industry by investing in their own real estate. Investing in flip properties and residential resale business is a profitable and satisfying marriage that I’ve seen work time and time again.

My definition of success is having a business plan that is supported by everything from your big why – to your mission – to your schedule.  

A RISING TIDE LIFTS ALL THE BOATS 

My coach used to say to me, I’m coaching a whole person.

As a coach myself, I’ve come to realize the same thing. I may be helping you develop your business and your real estate skills, but I’m also going to impact your life and you’re going to see growth in areas that may be unexpected.

It’s incredibly fulfilling as a coach to work with you and beside you.

Knowing that every day I get the opportunity and privilege to work with people like you. That satisfaction gets me up out of bed every day.

I can’t wait for the opportunity to get into my office and get started working with you.

TRUST AND TRANSPARENCY 

A core element of a coaching relationship is trust. I’ve developed trust with my clients by being very direct.

Here’s the paradox: If you’re a good enough real estate agent and that you’re hiring me to be your coach, you’re already a good salesperson and are able to sell your story.

I’ve developed a story detector over the years. I’m not going buy-in to your shtick, sorry.  We’re going to get down to the root of what’s interfering with you building your business. I refuse to let you get in your own way.  So the trust that’s involved there is critical.

I’ll need you to trust that I’m here beside you to help you reach your goals.

You can tell me anything. You can share anything.  We can face anything  together and overcome any obstacle – as long as doing so propels your business and your profitability forward. 

It’s only through trust and transparency that we can get your overall wealth to levels that you may have thought impossible.

GRATITUDE

One thing that I love to share with my clients is that we need to have  gratitude for every day above ground. 

I wake up every morning, usually before the alarm goes off, and my first thought is thank you.

My next thought is let’s have some fun and make things happen.

I approach each day full of joy and I cannot wait to get out there and see what I’m going to do and whose lives I’m going to touch.

I was having a meeting with another coach the other day and the topic came up: Which is more fun the journey or the destination?

We really had a great conversation about that and we decided that both are fun. That’s the beauty of working with a real estate coach is that we’re going to start having fun while we’re doing the work. 

It might sound counterintuitive, but when we work together, you’re actually going to enjoy doing the heavy lifting, building your skills, and vigilantly getting your business where you want it. 

What does life look like when you’ve accomplished everything that we’re working on?  

I can tell you that the people who have achieved their goals and dreams are not only the ones who are having the most fun when they reach that destination, they’re also the ones who enjoyed the journey the most.

Why would anyone want to put that off?

THE CLOCK IS TICKING

Since we’re not going to live 900 years, we only have a finite time to make our dreams a reality. So how do we do this?

Take advantage of every year and work solidly towards the vision you have for your life – whether it be one, five, even ten years from now.

If you focus on what are you going to accomplish this year, you will soon find yourself moving closer to the life of your dreams. Don’t forget to enjoy it while you’re in it so that you’re living your dream while you’re building that future.

It’s important to realize that every year matters.  Real estate agents often get caught in a trap of “well, I didn’t do it this year so I’m going to go ahead and wait until next year to start.” 

My response, “Time’s not coming back. Put in the work now or you’ll likely start the same dead end cycle year after year. Let’s start the vision that you have for your life five years from now, today. Let’s commit now to make sure this year is the first year towards that reality.

YOUR BIG WHY

Even if you have a solid business plan, just looking at numbers alone is not enough.

What fuels you? Why are you doing what you do every day? What really matters to you at the end of the day?

Only you know the answer.  Whatever that answer may be is your big why.

The reality is many people struggle to connect with their big why in a meaningful way. 

One of the biggest values that I offer as a coach is connecting you to your own big why.  It’s different for everybody and there’s no right or wrong. 

I’ll help you peel away the layers and get to the heart of your big why.  Once we make that connection, there’s nothing you can’t do.

You might even find yourself leaping out of bed in the morning. Every day you’re going to know that you’re taking steps towards the life of your dreams.

WHO NEEDS A COACH?

Who exactly does coaching benefit? The short answer is anyone who is serious about running a business.

Often times people will say they don’t know if they’re ready for a coach. They might ask me if they have the right kind of business where they would need a coach.

Sometimes people even suggest that although coaching works for others, it might not work for them.

Most of us go through a similar thought process in the beginning. As business owners we all want to feel secure in our investment. 

It’s been proven time and time again that the ROI from having a coach and investing in yourself is off the charts. 

If you are someone who is looking to build a real estate career, one that actually has legs. You need a coach. 

If you’re in real estate and you’d like to run a profitable, growth based business with excellent customer service and repeat referral business –

you need a coach.

If you’ve been in the business many years and you’re looking for that next level of challenge growth and profitability-  you need a coach.

If you want to take your business to the seventh level – you need a coach.

Some of you may have left real estate and now you’re coming back really excited and passionate about the new industry – you need a coach.

If your feeling burn out and you need swift motivational shove so you can continue to grow your business and not become stagnant – you need a coach.

For all of you out there who are new to real estate and you’re developing your systems skills and your platform – you need a coach.

If you’re looking to build a legacy business where one day your children could work you alongside you – you need a coach.

 If you’re a real estate hobbyist who just sells to friends or doesn’t care at all about profit or sustainability – you probably don’t need a coach.

But if you’re in this as your chosen vocation and plan to build a profitable business that is going to create wealth and financial stability for you and your family,  you absolutely should invest in yourself .

With a coach you will shorten the learning curve and go straight to reaping the benefits of this career.

ONE OF MANY SUCCESS STORIES

I would love to share a true story about one of my clients from Atlanta Georgia.

When she came to me, she had been in real estate for about 14 years and she had been selling pretty well.

She sold between 35 and 40 homes per year. But she could not get over that 40 mark. Why?

She was not running her business like a business. She was not looking at profitability.

So even though she had been selling a respectable amount of homes, building on her skills and impacting others, she had no savings. She fell into that age old agent trap of getting her commission check and then spending it all. A fit to fill lifestyle.

Having nothing to show for 14 years of hard work would burn anyone out. But it’s always darkest before the dawn.

Once she reached out and trusted in herself enough to sign up for coaching, we started working together. I mean really working.

We got strategic on increasing her average sales price . We increased her  average sales price by 93% .  Think about that for a minute.

Let it sink in.

At the same time we increase the number of homes that she sold.  She is now selling over 60 homes per year.

Now, for the first time in her adult life, she’s come up with a system of saving money from every closing. She now has a retirement plan. She’s moved into a new home and she’s even able to pay college tuition for her daughter’s,

Talk about a turnaround in life. She has learned the discipline of becoming a wealth builder and a saver.

She is a perfect example of how trusting her gut instinct to get that coach and investing in herself quickly paid off.

SPECIALTY COACHING

I’ve developed specialties in luxury homes, horse properties, water front properties and some commercial.  

In addition to those, I love working with families and couples as they develop their businesses and create future legacies. These business partnerships present challenges unique from what you might expect with a single agent or team.

When working with couples and families you need to make sure that they’re protecting their business as well as their households. We work together to build a solid foundation while nurturing the family relationships. There are nuances and subtleties in maintaining that balance.

Also I’ve coached parent and child teams and even a multi-generational teams. I’ve developed programs that focus on the needs of each generation within the family unit.

I’ve have really enjoyed those areas of coaching.