Das Farmteam-Prinzip für den Teamaufbau

0:00six million >> around on page two six and a halfish this year. Um we did four last yearish. Um we're a a team model. So we are lead generation for our agents, right? So we we generate leads for our agents and then um we're a Zillow Flex team. So it's a big chunk of our business and they they take a a big 40% referral fee off the top. >> Y >> So our main focus has been we're going to your VAM days. Our big focus has just been basically in-house deal flow that does not have a referral fee attached to it.

0:32>> Okay. >> Um the question I was asking um for for you specifically, Alex, was more of a strategy question on um should we add on like the traditional brokerage of services outside of just our team model >> uh which is more like the real model, if you will. >> What do you mean? What what do you mean by traditional brokerage services? >> Yeah. So we run the traditional team model and then like if a if if somebody's basically not a fit for the team and just wants to be a part of a brokerage, right? Would we want to do that?

1:04>> Yeah. Why would Yeah. Yeah. So if you have the infrastructure, >> if you have the infrastructure already, then you allow for that. So I'll tell you how to think about it. You want to think about it as a minor league major league model. So the minor league major league model essentially is like hey if I Chiron am doing well in the minor leagues you promote me up to the majors and for some reason if it doesn't work in the majors with your team model where you get all the lead flow etc then you get me back to the minors and when I'm in the minors I still get all the other services but then I see the guys in the majors doing well it gives me an aspirational frame to do better so the minor league major league model does really well in this process as you grow what you want to add is also a JV model so you get the new agents coming on board so if you can get a new agent development program. Then you have a JV model, a minor league model, and a major league model. And you have a clean ascension among all three.

1:52>> Got it. That makes sense. And you would use the team as keep the team as the major obviously. >> Oh yeah, absolutely. To be with real. >> Absolutely. No, no, whatever brokerage is fine. But however, I would tell you this. Um, you want to get your Zillow portion to a third or under of your business and keep it there because that 40% referral fee is not going down anytime soon. That is a that is 40% off your gross margin immediately. And so now you're taking 40% off. So $100 take 40% off of the $60. Even if you do a 50/50 split, that's $30 each. And then they have taxes. So the average agent's making $15 on $100 commission, which gets not fun very quickly.

2:30>> Yep. I mean, that's that's our entire focus like from the van days. That's that's all we're doing. >> Yeah. And and a very easy way in your minor league model, you can cap them out, too. You can just say, "Hey, once you pay $15,000 to the brokerage, that way you know that you can expect $15,000 or whatever from a cap person, always contributing to a brokerage for the same amount of flat fix." >> Become super sticky. >> Yeah. >> Mhm. Mhm. For sure. >> Rock and roll. >> And then uh Yeah, for sure. I was going to ask on on geographic expansion. We're we're looking to branch out of our adjacent market from Orange County to Riverside.

2:59>> Yeah. >> Um what should I what should I be looking out for knowing this is the first uh first expansion? For for context, we have 72 agents. Yeah, >> the move for grown two in two years here in Orange County. >> That's awesome, by the way. >> That's awesome. That's awesome. The key part of expansions, why expansions break is that they don't have the ability to duplicate your current model in the new expansion market. So, you have to preund a little leadership in the expansion market. Otherwise, you're not going to you're going to say, "Wait, how do I not have a homebased expansion? Why why am I not getting the same results?" So, if you if you just think that the mothership's going to serve the expansion, it's going to be difficult because geographically that market's not as tight. So if you can get a local market leader that can then train up and duplicate your model then it will work.

3:41Otherwise it gets very hard to duplicate the model that you built in a new market. You think you can but there are market specific dynamics that are super difficult to do. So if you can get a leader there and that leader can duplicate in that can duplicate your model then it works better. So I would do top down in that market not bottom up. >> That's exactly what we're doing. >> Okay good. Awesome man. Congrats bud. Thank you so much for the donation. >> Awesome. Thank you guys. Appreciate you, man. And thank you for for on behalf of the entrepreneurs who are getting the books. So, thank you, man.

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