Timeless Business Principles…Still Timeless

A short video to get you in the mood for this entry….

 

Timeless Business Principles…Still Timeless

 

When did we stop caring about profit in the real estate industry? Did we ever start? A better question might be, “Do you look at real estate as a business?” What is the most important business principle that you can learn in an economic downturn? Lead with revenue, not with expense. It sounds like a simple enough concept doesn’t it? Don’t spend money that you don’t have! The “if you build it they will come” mentality is what we have all been programmed to think. I was a victim to that mentality when I entered the real estate business at the tail end of the sellers market, a mistake I’m still literally paying for today.

 

I had the honor of seeing John G. Miller speak down in Austin, Texas in May 2007. After an overly adventurous flight, I arrived at my destination just as John took the stage. Now for those of us that have never heard of John G. Miller, he is a best selling author of “Flipping the Switch” and “QBQ! The Question Behind the Question”. John is a role model for personal accountability and his message is one that has stuck with me ever since. In business, our profit margins shrink because of a lack of personal accountability. We say things like “In order to do this, I have to have that!” whether that is more marketing materials, better tools, a new suit, technology upgrades, new cars, plush offices or more staff…..they are all expenses, increased overhead and a disease that plagues your profits. So what is the alternative?

 

The question, behind the question becomes, “How can I grow with what I have today?” That’s right, a cold, hard look in the mirror that will stretch you a bit. This is where we look at things that truly make a difference for us, the foundation of our business. Things like…

• Time Management – THINK “How good am I at that?” “What is Time Blocking?”
• Sales Ability – THINK “Are my conversations purposeful, passionate and intense?”
• Lead Generation – THINK “Am I trying to buy more business by marketing through an economic downturn or am I becoming purposeful in relationships?” “How many NEW people do you talk to every day about real estate?” “How is my follow up system?”
• Leverage – THINK “Who can do this for me?” “How could it be done at ZERO cost to me?”
• What is FREE – THINK “Have I mastered the phone?” “Do I maximize email?”

 

So how are you going to move closer to your potential in the above categories? Do you see how those categories are the key to unlocking your PROFIT? There is personal growth in asking the question behind the question, growth for the long term. The road I talk about is the road less traveled, the road without the promise of unicorns, fairies and silver bullets. Don’t spend money to make money, whoever said that is backwards and bankrupt. So can we ever add tools, technology, expense, etc…..?

 

Maximize your personal potential by taking the road less traveled and then set strategic targets out for improving your tools. If you are a $3,000,000 producer get to $5,000,000 this year with what you have today… once you get there award yourself with a technology upgrade. Now hold that expense accountable to take you to the next target you set. This is the “Red Light, Green Light” method of holding your expenses accountable to proportionate results. If you spend a $1.00 it should make you at least $2.00. Whether that $1.00 is spent on a person (staff), a tool(Top Producer8i), education (Camp 443), etc… it should always put $2.00 back in your pocket. You don’t add another expense until you figure out how to make that happen.

 

Leading with revenue is taking away excuses for mediocrity, causes us to stretch ourselves and in the end ensures our profit. Take a look at your expenses, have you held them accountable to results? Have you looked in the mirror lately and asked, “How can I improve myself?” Do you just tend to throw money at your business in hopes that there is an improvement? This all leads to the question of the day…..Regardless of what level you are producing at, how much profit do you have at the end of the year? Look in the mirror and watch your profits, they matter!

 

If you would like a no obligation consult on “Leading with Revenue” and “Personal Growth” simply give me a call or email me today.

 

Sincerely,

 

Brett Boettge

Team Leader | CEO

Keller Williams Realty – Madison Crossroads

608.661.7000

Leading with Value, Leading an Industry

Leading with Value, Leading an Industry

 

What a strange and fantastic journey it has been! It was just eighteen months ago that I had left my former real estate company to take the role of Team Leader for Keller Williams Realty. I actually intended on coming to Keller Williams for sales and was attracted by the phenomenal 70/30 split which caps to a pure 100% after roughly $2.6 Million in closed volume. Very cool isn’t it! Well, expecting everyone to join Keller Williams based on that alone was a HUGE mistake on my part, let me share with you why.

 

Value, plain and simple, if I compete on price alone I have reduced myself and my company to a commodity, a “license holder” not a place of business development for high achievers. Running a single agents business is very similar to running a real estate firm. Have you ever been on a listing presentation where you lead with the commission you will be charging? Has there ever been a time when you were asked to reduce your commission? If you don’t have any extra value to provide than the norm, how do you get that listing? That’s right you end up making a concession! Is that a good business practice? Now apply that to a real estate company…. What would be better, me decreasing you commission cap to $13,000 or showing you how to close just 4 more transactions per year? My way, the leading with value way NETS you, with an avg. commission of $5,000 an astonishing $11,000 MORE than reducing your overhead. Do you see how you can only reduce expense so far? So doesn’t the REAL opportunity in this industry, the opportunity for limitless growth and income potential come in developing your business?

 

This is why I struggled my first year as a team leader, I reduced my company to a commodity by leading with expense reduction. Now don’t get me wrong, my business model can probably save you thousands of dollars, even hundreds of thousands over the next few years…..but we are far more than just a place to reduce expense, we can change your life.

 

Sona Olson – CRS & GRI knows something about value. Tuesday, January 20^th Sona made the choice to partner with Keller Williams Realty, still practicing under the SonaVco name. Sona has many affiliations in and around our industry and most recently was recognized as the Ed Coburn Pride Award recipient for service to our association and serves as the chair of the education committee for WI CRS state chapter. Why would Sona after 12 years as an independent broker choose to partner with a company where she will have to share up to $22,000 of her commissions? Do you think she would make that choice if she didn’t see proportionate value in our company, our education, our systems tools and models? Sona is one of the most fantastic business minds in our market and made a great business decision. You see, it only takes 3-4 additional units at her average sales price to negate the commission paid to our company. Does your firm have a plan for you? If you wanted to triple your business this year would you broker be able to give you a specific plan to do so including the education, coaching and systems support? More importantly would they even ask what you want out of 2009? Vacations, boats, more time with family? If not, why do you think that is?

 

 

Don’t be fooled by “Cyber Plans” and companies that simply hold licenses to reach into your pocket. Join me in success. Find out why Sona Olson made the choice to join the fastest growing real estate company in North America and the soon to be THIRD LARGEST! You deserve to know why 80,000 other agents have made the choice to partner with us and stay with us!

 

Enjoy a sample of what makes us different! CLICK HERE

www.agentmountain.com

www.KellerWilliamsUniversity.com

www.leadershipmountain.com

www.MillionaireSystems.com

www.ProductivityWarriors.com

www.SevenFigureREO.com

 

Sincerely,

Brett Boettge

Hope is NOT a Solution at Keller Williams Realty

Hope is NOT a Solution

 

Here I am in Crown Point, Indiana at a Keller Williams Realty event learning more from some of the most talented individuals in the real estate industry. It is 1:07am as I write this and I cannot sleep, why do you think that is? I am feeding off some of the most positive, energetic and passionate people I have ever met anywhere. The mood can only be described as electric and the word of the day is “jazzed”! Let me be clear that it is not because of the 1.4% increase in home sales, shrinking absorption rates or any other signs of a recovering market. In fact, the market wasn’t even mentioned in my first two days here at the Crown Point Market Center. There is a focus on the greatest opportunity in real estate since the great depression and certainly the greatest opportunity to gain market share most will see in their lifetimes. Where do you see “jazzed” in the real estate industry today? Let me share with you specifically why we are “jazzed”.

 

Hope is NOT a solution is it? Are you hoping for the market to come back? Can you afford to wait until it does? You see, you have an opportunity until August 1^st 2009, this is a WAR in the real estate industry. The market share you lose in this “Shift” you will never get back, the market share you gain in this “Shift” you will never lose. So are you 100% committed to taking your unfair share of the market? Do you owe it to your family, even more so, do you owe it to yourself to do whatever it takes in 2009 to exploit the weakness of complacency in your competition? If I ask you “As your competition, what would I have to do to outperform you?” for some of you the answer may be “Get out of bed!”.

 

So why am I fired up? We have the tools, systems and models for you success at the highest level when faced with challenges of the shift. Tired of training administrative staff? Plug your administrator into our Fast Track Admin coaching! Looking to increase your sales? It is a numbers game and there is a formula for any goal. How many people are in your database? When was the last time you sat down with them in your office and showed them, not TOLD them what you do? Do you have a referral contract with your allied resources? Better yet, let’s figure out why you allowed yourself or your team to fall short of your goals? Mindset? No business plan? Was it the market? Frankly, the market has nothing to do with it, it is what you do! If by the 20^th of every month you have fallen short of buyer/seller appointments what is your “plan b” for “all hands on deck” to get back on track?

 

I don’t want to see you make the sacrifices you made in 2007 and 2008 again in 2009. You deserve better! What did you give up, postpone or ignore last year? Was it the vacation? I challenge you to book yours for 2009 and we’ll figure out your business plan to pay for it together. If you truly are 100% committed and willing to do whatever it takes to reach your goals you shouldn’t have a problem with that. Does this sound like an over promise staged perfectly for an under deliver? I can assure you it is not. We are not offering silver bullets, we offer a plan to reach your goals and the support to ensure results down to the number of daily contacts, how to effectively touch them 33 times per year, how to move your listings in 30 days and a multitude of consulting options. Take a look, we are world class from head to toe and completely transparent! Keller Williams Realty is debt free, open book and your listings are your listings meaning that there are no “golden handcuffs” those that are with us choose to be and 80,000 have made that choice one at a  time.

 

So what would hold you back from investigating this opportunity? A myth published (click here to bust the myth) by a broker looking to keep your commission? If you are high energy, driven talent looking to grow and develop your business to at least a 2.6 million dollar volume then you are probably, truly a 6+million dollar producer and just don’t know it yet. Don’t let others production, others rumors or any outside influence keep you from your date with destiny. Trust I am just as, if not more passionate about your success and your business! Don’t take my word for it, ask one of my top agents! Let’s start this journey today. Its time to take back control of your life isn’t it?

 

I have time blocked an additional 4 hours per week to help you explore our opportunity now through March 1^st. With the rising demand for a solution to the problems our industry faces today, I have to limit my confidential consultations to those agents currently making or are 100% committed to making at the very least $75,000 in 2009. Think without limits, eliminate excuses and all that remains are results.

 

CLICK HERE TO SAMPLE OUR WORLD CLASS EDUCATION

 

Sincerely,

 

Brett Boettge

Team Leader | CEO

Keller Williams Realty Madison Crossroads

CELL *Confidential 608.712.4328

Wednesday Evening Gratitude

Good evening-

What I am grateful for in or around my career. I am grateful for Darren Kittleson who saw far more potential in me than I did in myself. I am also grateful that Darren Kittleson trusts me to run his business without getting in my business. I am grateful to be surrounded by the brightest real estate minds in the industry. I am grateful to have a wonderful group of agents that support me and strive to be their best. I am grateful to an ALC that however small they are in numbers makes up for it in talent. I am grateful for Andy K. who is amazing, supportive and deals with the negative side of an overly positive & optimistic not to mention – Fly by the seat of his pants TL, without you our vision will never be realized. I am grateful for Laura Hartman, who takes any task and completes it in half the time of any normal human being, never overwhelmed and a Rock of culture and support in our market center. I am grateful for Dave Enge… an all around amazing guy who just happens to show up at the perfects moments in my life and is actually tall enough to be my guardian angel… if he hadn’t asked me to sit down with Jessica Fox I wouldn’t be here today. Which leads me to Jessica Fox….thanks for being a fabulous TL and giving me a high standard to shoot for… its a bit cold in your shadow though… I don’t intend on staying there : )

In closing, I am grateful for being part of an organization that is focused on developing its partners. This has been the most challenging career in my life and the most rewarding at the same time. The endless opportunity and clear vision is invigorating, exciting and powerful! I am grateful for all we have done and all that is ahead including the challenges as they have been the catalyst to my growth.

Live long in profit!

Sincerely,
Brett Boettge
Team Leader | CEO
Keller Williams Realty Madison Crossroads
608.661.7000

Tuesday’s Gratitude

Good Morning-

Today I am thankful for Hot Chocolate, Clean Laundry, fresh oil change, warm blankets, sunny days, HEAT, Hot Showers, the vacations I have taken, the ones I will take, Avacados, GPS, the look of snow, HEAT, Madison, great REALTORS, all of my Brown hair, all of my teeth.

Sincerely,

The Keller Williams Model – Myth #1

Mudslinging 101

 

What does a team leader do? Well my role is to train agents on how to overcome the challenges faced in any market. I also consult agents on specific roadblocks to unlocking their greatest potential for example call reluctance, time management or fears of rejection, success or failure (all of which I have to continually evaluate for myself daily). I also am responsible for the growth of our market center in agents, market share and most importantly profits.

 

In my appointments with potential candidates for KW Madison Crossroads, you can imagine I have heard every objection to joining our market center. Typically there are a few that continually resurface. Who do you believe supplies these objections to a KW candidate? Right… a fearful broker! Why do you believe that these objections are supplied…MONEY! Do you believe that a competing broker talks negatively about another company because they fear for YOUR career or because they fear for THEIR bottom line? The converse of that is, as a Team Leader responsible for growth and profits, do you believe it benefits my reputation to bring an agent on and have them be less productive at my firm? Would you say that I would be highly motivated to ensure that they maintain, if not drastically improve their production? So to review, you have a broker that is motivated by money to discourage you from talking with a team leader at KW motivated by helping you become more productive and profitable to meet YOUR goals….does that make sense? I’d like to address the first myth of KW, a myth that comes up quite often and even nationally.

 

Per agent productivity! Maybe at a sales meeting, maybe in a one on one, or maybe in passing you have heard this term. What does it mean? Well it means that you take the total units of an office and divide it by its total number of agents. Of the National real estate franchises, Keller Williams consistently has one of the lowest per agent productivities. I’m very honest and forthright so I’ll just throw that on the table for all to see… KW has one of THE LOWEST per agent productivities in real estate. That could be perceived as a very negative statistic if you didn’t understand that it is an integral piece of our business plan. For example, let’s say XYZ Real Estate has a per agent productivity of 12.3 units and KW has a per agent productivity of 5.9… a competing broker may say that if you join KW you will lose 50% of your production or “Clearly their education doesn’t work our agents close on average 6.4 more units each!” Let’s take a look at our business model to understand this once and for all.

 

Keller Williams has a capping commission structure, meaning that after you close (in our market) $2,400,000 in sales volume you move from a 70/30 split to 100% meaning the commissions you pay into our company has “capped”. This means that agent no longer provides revenue to the market center… do you see how this effects cash flow? Lets say that we had an office of 20 agents of which 20 were “cappers” with the seasonality of our market most of those 20 agents would “cap” by July or August… meaning we have no revenue to run our office in September through December because all of our agents are at 100%. What we then do is find 20 agents whose goals are $1,200,000 in closed volume or a “half capper” to feed those months, and finally 20 agents who do $600,000 or less in closed volume to supplement even further. I just describe our perfect and most profitable business model for a capping commission structure – 1/3 of agents Cappers +, 1/3 of agents ½ cappers and 1/3 of agents ¼ cappers. Does that mean that we are an office of low producers? Tell that to Guy Lofts who has been taking home 100% of his commissions since July of 2008 and will until February 1^st 2009. Tell that to Bill Baker who reached his cap in roughly 60 days and carrying a listing inventory nearing $50,000,000. Tell the Mullikin’s that they are not producers when their entire team capped after 5 months, leaving them at 100% commission for 7 months of the year! Explain to Judy Braund that because of per agent productivity, she is expected to under perform instead of receiving 100% commission checks until July 1^st 2009.

 

What about those that do only close a few transactions per year??? First of all they are in your company as well, I track production so you can’t tell me otherwise. Second, for most that is their goal.. they only want to do six transactions. I can’t put my high production goals on them can I? What I can do is let them know my expectation is that they can do 2 transactions or 200 in our firm and it doesn’t make a lick of difference to me. WHAT IS IMPORTANT is that when they handle the sale or purchase of the largest asset in their clients life, they are trained to a T. All of our agents regardless of production level are required to meet a minimum standard of 1 training course per week as of 08/01/2008. First of all I understand my agents goals and what they need to do to get there, second I support them in achieving them regardless of the number. It is that focus on THEIR goals that has created a loyalty, and community of trust as well as achievement. Have you ever let someone else’s goal determine yours? Probably not! So if you choose to do 100 transactions and Joe Agent chooses to do 4, how does that really effect you?

 

Our opportunity is world class, I can assure you of that. Our business model is unique, one that if run properly can reach profitability never before thought possible in a “Shifted” market. This year we are sharing roughly $38,000,000 in profits back with our agents. The more profit we create the more profit we share, because of that we all have a vested interest in your success. So you can listen to the rumors, buy into the myths, or you can stay in curiosity and profit from the truth. Learn why Keller Williams is the fasting growing real estate franchise in North America. Learn how I will serve you in reaching your goals today and for years to come.

 

Sincerely,

 

Brett Boettge

Team Leader | CEO

Keller Williams Realty-Madison Crossroads

608.661.7000

A few of my favorite things…

Good Morning-

Today I am grateful for…. Fantastic friends, beautiful scenery, being warm, my amazing girlfriend, a healthy Brooklynne, Quick breakfasts, not getting a cold yet this winter, having a job, having a few dollars in the bank account, growing up in a small town, light snowfall, Facebook, My Scarf, my youth, my Mississippi, having the best KW staff in the world, a vivid imagination, a significant support systems of friends, family and co-workers, a fun filled Monday schedule.

What are you grateful for?

Welcome Back to Unlocking Brett

Good evening all-

I just want all of you to know after a short break between my accountability blog and the world I will be starting to post again tomorrow morning at 6:30am with my very first gratitude entry. I’ve evaluated all aspects as the blog and believe I can make this even more of a dynamic real estate focused blog in 2009. My goals for the blog this year are to add a certain level of accountability to my days, be your number one resource for career improvement, gain clarity through writing and of course keep the blog entertaining for you, it’s readers.

Thank you for all of your support in since August 2008 with just under 100 comments, over 3,000 views and roughly 108 blog posts over that period I would call that a fantastic launch. Thanks again for your support.

Sincerely,

Brett Boettge