When it comes to expansion and teams, people want too much too fast. What mistakes are they making in their expectations of profitability? Why do we have to measure the profits of rockstar teams differently? What really determines how valuable a business is? On this episode of the Team Building Podcast, Pat Hiban shares the trends he’s observed in teams and his insights on value propositions for expansion.
The only way to get 70% profitability is to be very referral based so your lead gen costs are low or you have to be willing not to expand. - Matt Johnson
Takeaways + Tactics
Eliminate the team leader's personal sales when you’re looking at the true profit margin of a business.
Businesses that are valued the highest don’t require the leadership at the top.
Any team that wants to grow must have a scalable lead gen system - leveraging your sphere of influence will have diminishing returns.
Resources & Links:
Expansion– Learn how you can partner with Elite Real Estate Systems – get lead generation, coaching, support, training and access to a culture of success - all without leaving your current broker.
Team Building Workshop – Spend the day observing these systems in person, including board meetings, Monday Team Meeting, agent one-on-one meetings. Also includes hours of private consulting to create your own custom roadmap to build and exit your real estate team.
Tools & Services – See all the tools, professional services and companies we use and recommends to help build your real estate team.
At the start of the show, Pat shared his real estate experience and the models and strategies that have caught his eye in the business. He shared on the power of building a team and ancillary services, and we talked about true measure of value when it comes to companies and leadership. We shared on the mistakes people make in measuring their profits and towards the end of the show, we shared on the flat-rate expansion model.
Pat also shared insights on:
The difference between CEO teams and rockstar teams
Why people have unrealistic goals in expansion
Why leveraging your sphere of influence is unsustainable
How to deal with ego in real estate
70% profit teams are unrealistic and unsustainable in today’s real estate climate, unless teams offer ancillary services on the side and think of multiple ways to draw money in. Alternatively, they can become control freaks in customer service by building a very referral-based business. When it comes to real estate, the thing that’s missing among broker brands is the training and intellectual property that helps agents go to the next level. This provides an opportunity for companies and leaders who are willing to provide this to the industry.
Pat Hiban Interviews Real Estate Rockstars is a top-ranked, 3-day a week real estate podcast, hosted by billion dollar agent Pat Hiban, interviewing the best of the best in and around the real estate industry. After building a team of over 50 members and making millions in the real estate sales world, Pat realized he had spent over two decades being led by mentors while growing very few mentees. It was at this point that he wrote his New York Times Best Selling Book -“6 Steps to 7 Figures, A Real Estate Professional’s Guide Building Wealth and Creating your Destiny.” Not too long after , Pat Hiban Interviews Real Estate Rockstars was born. Here you’ll find the best voices in the Real Estate Industry including everyone from the world’s top agents to the world’s newest top producing rookies. You’ll hear from the industries top coaches and the one’s who have made millions and even billions investing in the Real Estate game. Go to HiBanDigital.com for more information and buy his book on Amazon.