Real Estate Broker Coaching - Learn as Brian Icenhower and Rick Fuller discuss the future model for profitable real estate teams and brokerages that incorporates multiple streams of income to dramatically increase profit margins.
This training on real estate broker coaching will take your team or brokerage to the next level.
As I wrap up this series on real estate team and brokerage leadership, we are diving into the future of the real estate industry. Today, I talk to one of our ICC coaches, Rick Fuller, who delves deeply into the concept of “ancillary services” and how to add them to your business model.
Rick is the Broker/Owner of the Rick Fuller Team. He has led his team to producing over $100 Million in Annual Sales, over 1,000 FIVE STAR reviews from satisfied customers, successfully established multiple locations throughout the San Francisco Bay Area and Sacramento County and has earned Zillow’s distinction as #1 Real Estate Team in the San Francisco Bay Area and Sacramento County for most recent sales.
VIDEO: Real Estate Broker Coaching – The Future of Teams & Brokerages
Real estate broker coaching: why add ancillary services?
Why would real estate teams and brokerages want to add ancillary services?
Let’s start the conversation with the idea that as you build out a real estate organization, your sales may increase. Your profit should increase. But, your profit margin will get smaller.
Think of Amazon. They are one of the most successful companies in the world. Do you think they are making 10% profit on all of the items they sell? No! They are making less than 1% commission on their products. Even still, they make billions of dollars. So, how do they do that? How can you do a similar thing with your real estate business?
Much like Amazon, you can add ancillary services to help increase your profit margin. This is a huge topic we cover in the real estate broker coaching and leadership coaching we provide to our clients at ICC. We can help you add these ancillary services to your existing business model.
The profit margin bow tie
This is a great analogy we use in our real estate broker coaching that helps you visualize the affect of adding ancillary services on your profit margin.
If you can picture a bow tie in your mind, as you build out your real estate organization, your sales might be increasing, but your profit margin is decreasing. By adding ancillary services, it’s an opportunity for you to begin to increase and add back margin to your agents. It’s a powerful way to do that.
So, looking at a bow tie, you see that as you move from left to right, the “profit margin” goes down until you get to the middle. Then, once you add ancillary services, you can see the bow tie slopes up (profit margin begins to increase again).
Add more legs to your stool with real estate broker coaching
Real estate organizations should be built on a three-legged stool. Usually, real estate organizations are just built on one leg – real estate sales. When markets fluctuate, as they do, sales also fluctuate. It’s very unhealthy. If you’ve ever tried to sit on a stool with only one leg, you have a really big problem.
Instead, you can add more legs to your stool that create a healthy, stable business that starts to replenish profit back to the business and provide better services and better experiences to your customer.
Once you have that first leg healthy and stable, how else can you provide services to your clients?
With the Brokerage / Corporate Real Estate Coaching Program, ICC will help firms set up the most effective and efficient systems for recruiting, agent onboarding, commission & fee structures, agent engagement & retention systems, recruiting, administrative work-flows, transaction management, staff hiring, agent onboarding, productivity training & accountability, financials & budgeting, marketing and much more!
Strengthen your stool with real estate broker coaching
So, if you’re looking to add another leg or two to your organization’s stool, real estate broker coaching can help you create an action plan.
The second leg that we tell our real estate broker coaching clients to focus on after establishing that first leg are ancillary services.
Remember, as a real estate professional, you are a pillar of your community. You are the center of the spider web. You are everyone’s personal rolodex to the best businesses and vendors in your community.
How do you build out a business in such a way so that you can receive some benefit from those big services that are a part of the real estate transaction?
As you extend the sales leg, you see profit margins reduce.
As you extend the ancillary services leg, you see profit margins rise.
This is the new business model. This is the big change in the real estate industry that is happening with top real estate organizations. The profit margin of your entire business will go up as you add ancillary services.
People often ask, “What is the future of real estate?” Without a doubt, this is it. Ancillary services.
Real estate broker coaching: the big 3 ancillary services
We found that if you can target these three businesses in your community and grow healthy relationships with them, you will begin to increase your profit margin again.
The “big 3” ancillary services to add
Remember, nobody wants to partner with an organization that doesn’t have good sales. That’s why it’s important to grow your sales leg of your business first before adding your ancillary services leg. Real estate broker coaching can help get you on the path to growth, and then help you chart your future into adding ancillary services.
Once you have this one leg of your business established, you can build from there. You will be attractive to the vendors you are forming relationships with because they will see your success.
Your clients will have an incredible experience if you can grow your business through ancillary services.
And, if they have an incredible experience, they are going to talk about it.
Executive Leadership Mastermind with Rick Fuller
Raise your leadership skills and create a magnetic company culture that attracts talent. Expand your business by design through proven expansion systems and grow the right way. Learn how to grow beyond real estate and add ancillary services.
Real estate broker coaching for growth and life balance
Better ancillary services means more business, which means a higher profit margin for your organization. This will also, in turn, allow your business to grow and add more leadership roles in your organization. This truly is a win for everyone in your organization.
You will also be able to get a better life balance from adding this second leg to your business stool. You can begin to add more leadership positions and spend more time with your family while compensating those who are running your business for you. The whole point of this is to increase your life balance.
You are creating an income stream for the future and for retirement, not just for yourself, but for your people, too.
If you want to learn more about how to dive in and begin to add ancillary services to your business model, consider enrolling in our Executive Leadership Mastermind.