Weniger arbeiten bei gleicher Marge: Property Management

0:00Unternehmer/Gast I sell management services to board members of commercially zoned property owners associations. Think HOA except for your office. >> Okay. The company does 1.8 million in revenue. It pays me 625,000 a year. Requires me to work at it 90-ish minutes a week. Okay. I would love it if >> Look at this guy. It's like as a male model.

0:26Alex >> [laughter] >> Yes, it's a very tiring profession. >> me the rest of my time. Yeah. Um but I would love it if I could figure out how to keep my same margins and find a way to >> Cut the time in half. >> 3 million. No, yeah, cut the time. Yeah. Well, we're not. But >> Yeah. Like I've been at this since 2003 and I've tried so many different ways to find the prospect that we're looking for in the 90 minutes a week you're working? No, this was I used to

0:52>> I'm being real. I was like >> Yeah, no, no, no. I used to I used to do it a lot more. Okay. And one of the reasons why I work 90 minutes a week right now straight up is I kind of gave up. Okay. Because I just couldn't uh like it felt like brick wall here, turn right, oh, another brick wall, turn left, another brick wall. Yeah. And so right now it's essentially just like an annuity. It just keeps on paying. There's like on the risk side of things, there was like very, very little of that.

1:18>> Okay, how did you get the How many How many of these HOAs do you have? Uh 147. Okay, how did you get the 147 that you have? Word of mouth haphazardly from brokers, from developers sometimes, sometimes an owner within an association that we have. Okay. So, what did you do to like So, fundamentally for me this is like a COI center of influence type play. So, either if I'm having like a true brick wall issue with like gatekeeper type stuff, which happens a lot in like super high-level enterprise, happens in government uh contracts, things like that. I'm going to look for Well, government this doesn't apply, but for the the first thing, yes. Um like the brokers, right? So, it's like how do I become the brokers' favorite your brokers' favorite broker, right?

2:01Alex How do I get How do I get those guys to just love me and always send me stuff? And so, then the question is like, okay, of the brokers who sent you business in the past, how many of them continue to send you business? All of them that have in the past, which is not a massive number. Okay, that's fine. Yeah. And so, what I would look at is like, okay, what was the process that it took from this person finding about who I was to getting them to actually refer me business, number one. Number two, what communication cadence do I have in place for the existing brokers so that I can solicit them for new business or remind them that I exist so that I'm not just getting 10% of their business, I'm getting 100%. So, that's like the farming side. The hunting side is we have to look at the cost of acquiring a broker. I'm just assuming brokers like let's say the highest likelihood. If there's other ones, use that. But, if broker, let's say uh an activated broker is going to send me two buildings a year or three buildings a year, then I'll say, okay, how many broker How many average attempts do I need to get one broker? What does it take for the broker to get me that first referral? Um are there kickbacks that are allowed?

2:59Alex No, not for them when they're licensed. >> For them, they cannot take kickbacks. >> Yeah. So, you're just going to have to get really creative now. My bad. Okay. I just like I had like nine things in a row and I was like, can't say that, can't say that, can't say that. Okay. Um >> [laughter] >> He's a good-looking guy. All right. So, I was like, use what you got, man. Uh so, the cost of acquiring the broker, I would look at the basically I would want to reverse engineer the process that the people did. But, basically, what happened on accident with the original brokers we need to make happen on purpose. And so, we have to be [clears throat] deliberate in that customer experience and seeing them as the real customer. So, I think that you need to basically shift how you see your business. So, I'll give you the easiest analogy I have with the the first time I learned this was with Alan, the the software that we we I thought that brick-and-mortar business owners that we were working their leads and responding to them, they were our customers. That was not true. The people who are customers were the agency owners who brought these customers in, who white-labeled our product to serve the SMB. And so, once I realized I was like, "Oh, cuz I was spending the first part of me trying to grow Allen selling nail salon, what I you know, like in in in coming in the door and they would turn out or they'd have a They'd be like, "Oh, this is amazing. It works our leads. How do I get leads?"

4:18And I'm like, "This is not my job. Like, this is the software that works leads." And so, I thought, "Okay, what businesses always have leads?" And it's like, "Oh, businesses that have an agency that are running ads." And so, then I think, "Oh, well, why don't I But like, sometimes they leave agencies, but agencies don't leave agencies because they're agencies cuz they're themselves and they have to stay themselves." So, then I was like, "Okay, so I'll acquire agencies and see if I can just get them to bring all their customers on." And once that changed, I realized that the churn that would exist within, let's say, agency A has 10 clients, the 10 clients' logos would change, but agency A never left. And so, then when I chunked up how I thought about the business, my retention on agencies was amazing. Their retention on customers changed because SMBs are volatile and so, they're going to churn for whatever reasons. But I knew that that 10 guy was pretty much going to stay at 10. He would sell one, lose one, sell one, lose one. Every once in a while, one guy would grow and that'd be great and we'd have expansion revenue.

5:09Alex So, for you, chunking up is like your HOA dudes are not the customer. The brokers and your COIs are the customer. And that's the hallmark. All of your marketing is to them. And think about them as like, "What's their customer journey? What's their customer experience? What's the activation point? How do I re-engage those people um on a consistent basis? Do I run events for them? Like, what ways can I serve them so that they always feel reciprocity towards me?" That's what I would do as like my overarching strategy. And I think that if you have an entire week of hours available to you right now, you get super aggressive with it. Um and that would probably be like my like That's what I would do for 40 hours a week. Cool. Thank you.

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