For many real estate team leaders, the job and the money they make comes with a high level of stress which destroys their quality of life. What are some of the biggest mistake agents make when it comes to the business models they built? Why is it so dangerous to be heavily invested in buying online leads? Why is the service we provide so critical to our success? On this episode, Real Estate B School founder and Business Freedom Podcast host, Lars Hedenborg joins us to talk about how he helps real estate teams run on the right models.
A lot of teams aren’t set up on the right economic model or the right service model and most team leaders have to be in production because of those two things. -Lars Hedenborg
Three Things We Learned
The problem with real estate teams
Most real estate teams are held back by how they are built. They hire a collection of agents with no shared core values, they spend way too much money on marketing and they don’t focus on providing a good service.
A strong business isn’t just about leads, it’s also about service
It’s not just about putting down money for leads, it’s also about the service you provide on the back end. Most teams could probably break even on online leads for a while, if they were also pairing that up with a strong commitment to repeat and referral business.
Why it’s not wise to invest in mass advertising
Real estate agents got drunk on the leads they were getting from Zillow, but just like all mass advertising nowadays, you’re paying a premium to reach unqualified, undifferentiated people.
What business means to most real estate business owners is putting in a lot of hours, bringing tons of stress home to their families, and failing to increase their net worth. Unfortunately, running a business this way is unsustainable, especially if you’re heavily invested in online leads. To make a change, it might be necessary to reduce your transactions, start focusing on giving a high level of service, get marketing spend under 10% and work with agents who are willing to get a value-based commission.
Lars Hedenborg is the CEO of High Performance Real Estate Advisors and the Founder of Real Estate B-School. After leaving a corporate career behind him, Lars decided to join the real estate industry on the eve of the financial crisis. Despite starting his journey during such a volatile time, however, Lars became incredibly successful. His triumph led to his decision to help others in the industry, and today he is passionate about coaching agents and entrepreneurs.
To find out more about Lars and his coaching, head to: https://www.realestatebschool.com/.
Check out his podcast, The Business Freedom Podcast https://blog.realestatebschool.com/podcast.
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