"Should I Take Equity Instead of Fees?"

0:00Hello, sir. >> Um, so we're we're kind of like a hybrid. We're an agency and coaching company helping real estate brokerages to recruit more agents. >> All right. >> Uh, so we're like about 100,000 real estate brokerages out there. Uh, 80% of them have like seven or less agents, very fragmented. Um, on average day with our help bring about [snorts] four to five agents a month. >> Awesome. >> So, uh, we have some clients that reach out to us and want to partner with us like kind of like a do like an equity type of a play.

0:26>> Yeah. >> Um, that's not our business right now. So, I was just wondering, you know, what would be the structure of that type of a partnership and kind of like ultimately what is the the exit strategy would look like. >> Man. >> So, how many agents are you bringing a month right now? >> So, so right now we have 117 clients uh age brokerages and uh on average they bring about four to five. >> So, you're bringing like 500 agents a month in?

0:52>> exactly. >> Man. >> What's your average net? >> So, we started about 14 months ago. 13 months ago we're about 82,000 a month right now. >> Beyond >> scope of right now, but um, goldmine. Absolute goldmine. Um, yeah, I mean what are you charging? >> 5,000 up front and 497 a month.

1:19>> Man. >> [laughter] >> Yeah, there's um, >> or a bad >> Oh, man. I mean, you're sitting on a goldmine. Um, yeah, there's a lot of better ways to do this business. I mean, like one of my closest friends is um, is Sharran Srivatsaa. Do you know who he is? >> Yeah. >> Yeah, I mean, there's so many ways to make this make more money. Like you have to go over to the you have to go to the businesses that have the most enterprise value, who get the most from this. If you can say I can get you 6,000 agencies a year signed up, like I think Real has 20,000 agents.

1:58>> 20,000 agents. >> Right, and they're like one of the top three I mean they're the fastest growing real estate firm. >> Yep. >> So, you have a scenario like they have a billion dollar market cap. >> Yep. >> And so if you're saying you can add a third of that and you're making a million dollars a year, I would say you're very poorly monetizing. So, the good news is >> You have opportunity. Got you. >> Yeah. Okay. >> All right. >> But I getting into the deal structure for like we'd be here for another like 30 minutes um on how to organize it. But fundamentally you need a piece of the back end you need something that's going [clears throat] to give you upside.

2:32>> Got it. >> There's a hundred ways to organize that. But the good news is you have something that's very viable. >> Okay. Appreciate that. >> Yeah. >> If you're a business owner and you're not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information and if you want us to actually help you de-constrain the business and you're trying to scale, we'd love to help you out. On the thank you page you can just book a call with my team and we will look at the business, see if we can help and if we can we'll invite you out to Vegas and we'll do this in person live.