8 Steps To Building a 7+ Figure Yearly Real Estate Business (Making Over $1Million GCI Per Year)

Summary

In this engaging real estate-focused podcast, host Joshua Smith shares his insights on scaling a real estate business to seven or eight-figure revenues. He candidly discusses his journey, including the two major mistakes he made that cost him millions, and how learning from these experiences has shaped his approach to business growth. Smith emphasizes the importance of mastering the hiring process and maintaining a cohesive ecosystem across all business ventures. He outlines a framework for scaling a business, which includes strategy, processes, systems, tracking, people, culture, and leadership. Smith stresses the significance of each component and how they interconnect to form a solid foundation for business expansion. He concludes with an offer for a free, no-pressure coaching call to help listeners map out their path to success in real estate, reflecting his commitment to empowering others in the industry.

Takeaways

• 🚀 **Scaling to Seven Figures**: The podcast focuses on strategies for scaling a real estate business beyond the million-dollar mark to seven or eight figures annually.
• 💡 **Mastering Skills**: Early in his career, the speaker emphasizes the importance of mastering lead generation, sales skills, and client acquisition.
• 📈 **Beyond Personal Effort**: To scale beyond a certain point, it's not just about personal effort; it requires building a team and creating systems that can grow without constant personal involvement.
• 🤝 **Building Partnerships**: The speaker discusses the power of strategic partnerships and joint ventures in ancillary services to increase revenue streams.
• 🏢 **Ecosystem Focus**: He shares his mistake of diversifying without an ecosystem focus, which led to the management of 13 separate businesses instead of creating a cohesive, mutually beneficial system.
• 📊 **Tracking KPIs**: Tracking key performance indicators (KPIs) is crucial for making informed decisions and ensuring that the business is scalable and sustainable.
• 🛠️ **Processes and Systems**: Having clear processes and systems in place allows for the consistent execution of strategies and the ability to scale the business effectively.
• 👥 **People and Hiring**: The importance of hiring the right people and mastering the hiring process is highlighted as a key to business growth and success.
• 🌟 **Leadership Development**: Leadership is seen as an internal game, where continuous self-improvement and growth are essential to lead the company to higher levels.
• 🤝 **Customer-Centric Approach**: Treating agents as customers and focusing on providing high levels of service can lead to better business outcomes and a stronger client base.
• 🔄 **Ancillary Services**: Expanding into ancillary services related to the core business can create additional revenue streams and increase the value provided to clients.

Q & A

What is the primary focus of Joshua Smith's podcast?

The primary focus of Joshua Smith's podcast is to provide real estate tips and strategies on how to scale a real estate business to seven or eight-figure revenues.

Why did Joshua Smith decide to share his experiences and mistakes in building his real estate business?

Joshua Smith shares his experiences and mistakes to help others avoid the same pitfalls he encountered, emphasizing the importance of learning from others' mistakes to prevent going through the same pain.

What are the two biggest mistakes Joshua Smith made in his real estate career?

The two biggest mistakes were spending too little time mastering the hiring process initially and having multiple businesses that were not within the same ecosystem, which led to a lack of synergy and inefficient use of time and resources.

How does Joshua Smith define the term 'ancillary services' in the context of a real estate business?

Ancillary services are additional businesses or services that complement the primary real estate business, such as mortgage, title, insurance, and property management services, which can increase revenue streams and profitability.

What is the significance of having a strong culture in a growing real estate business?

A strong culture is crucial for maintaining consistency, values, and a unified vision as the business scales. It helps in hiring the right people who align with the company's core values and ensures that the business operates efficiently even as it expands.

Why is mastering the hiring process important for scaling a real estate business?

Mastering the hiring process is important because it enables the business to identify and recruit top talent, which is essential for leveraging skills and taking the business to the next level of growth.

What is Joshua Smith's approach to client acquisition and sales skills in real estate?

Joshua Smith emphasizes the importance of mastering client acquisition and sales skills by dedicating significant time to hone these abilities, which are crucial for growing a real estate business.

How does Joshua Smith suggest using strategic partnerships to grow a real estate business?

He suggests forming strategic partnerships with companies in related industries, such as mortgage and title services, to create additional revenue streams and provide more value to clients.

What is the role of systems in ensuring the effective execution of strategies in a real estate business?

Systems are the frameworks within which processes live and are executed. They ensure that strategies are carried out consistently and efficiently, every single time, without being reliant on any single individual.

How does tracking KPIs contribute to the success of a real estate business?

Tracking Key Performance Indicators (KPIs) provides predictability and allows for informed decision-making. It helps business owners understand the lifetime value of customers, monitor productivity, and identify areas for improvement or potential risks.

What does Joshua Smith mean when he talks about 'having the right vehicle' for scaling a real estate business?

Having the 'right vehicle' refers to establishing a solid foundation and structure for the business that allows for easy scalability. This includes having a clear revenue model and a system for generating leads and sales that can be replicated and expanded.

Outlines

00:00

🚀 Scaling Real Estate Business to Seven-Figure Revenues

Joshua Smith introduces his podcast focused on scaling real estate businesses to seven figures and beyond. He emphasizes the importance for ambitious entrepreneurs to not just settle for a million-dollar revenue but to aim higher. Smith discusses his experience at a private Mastermind event and shares his insights on the challenges of scaling a business, the need to move beyond personal involvement, and the common models for scaling such as real estate teams, brokerages, and leveraging downline opportunities.

05:01

📈 Leveraging Ancillary Services for Business Growth

Smith delves into the concept of ancillary services as a means to increase revenue and profitability in real estate businesses. He uses the analogy of a movie theater to explain how additional products and services can boost the overall value and profit per customer. He outlines strategies for integrating ancillary businesses like mortgage, title, insurance, and property management into a real estate operation, and stresses the importance of strategic partnerships and focusing on growth in one key area to create a domino effect across the business ecosystem.

10:02

🧐 Avoiding Common Pitfalls in Business Expansion

The speaker reflects on his personal mistakes in business expansion, highlighting the pitfalls of spreading oneself too thin across multiple businesses without a unified ecosystem. He emphasizes the importance of mastering the hiring process and avoiding the trap of creating new jobs for oneself. Smith shares his journey of selling off businesses that did not align with his core ecosystem and focuses on the strategy of recruiting agents and encouraging them to use ancillary services to feed the rest of the business ecosystem.

15:03

📉 The Importance of Strategy and Process in Business Success

Smith discusses the critical role of strategy and process in the success of a business. He stresses the need to document strategies in a step-by-step process and to build systems that ensure these processes are executed consistently. He also touches on the importance of efficiency and effectiveness in business operations, using personal examples to illustrate how making small changes can significantly improve outcomes, such as increasing show rates for meetings with potential recruits.

20:04

📈 Systems and Tracking for Business Scalability

The paragraph emphasizes the importance of systems and tracking for a business's scalability. Smith explains that systems should not be seen as an add-on but rather a foundational element that supports the execution of strategies and processes. He also highlights the significance of tracking key performance indicators (KPIs) to understand the lifetime value of customers and make informed decisions that drive business growth and scalability.

25:05

🤝 Mastering the Art of Hiring and Building a Cohesive Team

Smith shares his experiences and strategies regarding hiring the right people and building a cohesive team. He admits to initially struggling with this aspect of business but later mastering it. The importance of having a clear understanding of one's core values and ensuring that all team members align with these values is discussed. Smith also stresses the need for effective onboarding and training processes to leverage the skills of new hires and integrate them successfully into the company culture.

30:05

🌟 The Role of Core Values in Defining Company Culture

The speaker discusses the concept of core values and their impact on company culture. He defines core values as the principles that are most important to him as a leader and that he expects all members of his organization to uphold. Smith outlines his personal core values and explains how they influence his behavior and decision-making. He also describes his hiring process, which includes a culture interview to ensure that potential hires are a good fit for the company's values.

35:06

🛠️ Leadership as an Internal Journey for Business Growth

In the final paragraph, Smith redefines leadership as an internal process rather than an external one. He argues that effective leadership comes from self-improvement and aligning oneself with core values. Smith stresses that leaders must continuously work on themselves to grow and develop, which in turn enables them to better guide their teams. He concludes by reiterating the importance of a comprehensive approach to business growth, one that addresses strategy, processes, systems, tracking, people, culture, and leadership simultaneously.

Keywords

💡Scaling

Scaling refers to the process of increasing the size, capacity, or scope of a business. In the context of the video, the speaker discusses scaling a real estate business to achieve seven or eight-figure revenues. The speaker emphasizes that scaling is not just about working harder, but about working smarter and creating systems that allow the business to grow beyond the individual's personal involvement.

💡Real Estate Business

A real estate business involves buying, selling, or managing properties, and can encompass various models such as a team, brokerage, or leveraging downline opportunities. The video focuses on strategies to grow such a business to a multi-million dollar revenue stream, highlighting the importance of mastering various aspects of the business to achieve significant growth.

💡Ancillary Services

Ancillary services are additional services that complement the primary business offering. In the script, the concept is used to describe how a real estate business can expand its revenue streams by offering related services such as mortgage, title, insurance, and property management. These services can increase the value per customer and profitability of the business.

💡Strategic Partnerships

Strategic partnerships are alliances between different companies to achieve common business objectives. The speaker talks about forming partnerships with mortgage companies, title companies, and insurance providers as a way to expand the real estate business's service offerings. These partnerships are crucial for scaling the business without creating additional work for the business owner.

💡Hiring Process

The hiring process involves recruiting, interviewing, and selecting new employees. The video emphasizes the importance of mastering the hiring process to identify and bring on top talent that can help scale the business. The speaker shares their personal mistake of initially neglecting this process, which hindered the growth of their real estate business.

💡Ecosystem

An ecosystem, in a business context, refers to the interconnected network of businesses or services that support and promote each other. The speaker advises that all business ventures should live within the same ecosystem, meaning they should be related and mutually beneficial. This approach allows for more efficient use of resources and a stronger, unified business model.

💡Client Acquisition

Client acquisition is the process of attracting and gaining new clients or customers for a business. The video discusses the importance of having a solid client acquisition strategy as part of the overall business growth plan. This includes understanding who needs the services most and tailoring the approach to reach those potential clients effectively.

💡Systems and Processes

Systems and processes are the established routines and protocols that businesses follow to ensure consistent and efficient operations. The speaker stresses the need to document strategies into step-by-step processes and then implement these processes within systems to achieve scalability. This approach ensures that the business can operate effectively without being overly reliant on the owner's personal involvement.

💡Tracking KPIs

KPIs, or key performance indicators, are metrics used to evaluate the success of a business or specific business activities. The video mentions the importance of tracking every essential KPI in the real estate business to create predictability and make smart strategic decisions. This includes monitoring revenue, expenses, lead sources, and agent productivity.

💡Leadership

Leadership involves guiding a group of people or an organization towards achieving its goals. The speaker redefines leadership as an internal game, emphasizing personal growth and the development of core values. They argue that to be an effective leader, one must continuously work on self-improvement and embody the principles they wish to instill in their team.

💡Culture

Company culture refers to the shared values, beliefs, and practices that characterize a business. In the script, the speaker discusses the importance of establishing a strong culture that aligns with the founder's core values. This culture should extend beyond words on a wall and should guide the hiring process, leadership behavior, and overall company operations.

Highlights

Joshua Smith discusses strategies to scale a real estate business to seven-plus figures.

Emphasizes the importance of moving beyond just client acquisition to truly build a business.

Shares personal experiences and mistakes made in scaling businesses, including the critical oversight of mastering the hiring process.

Advises on the pitfalls of managing multiple businesses outside of a shared ecosystem and the benefits of focusing on an interconnected business model.

Introduces the concept of ancillary services as a means to increase revenue and customer value within a real estate business.

Explains the framework for scaling a business, including strategy, processes, systems, tracking, people, culture, and leadership.

Details an eight-step process for scaling a business, from identifying the right vehicle to leadership development.

Provides a real-world analogy of a movie theater to illustrate the concept of upselling and increasing value per customer.

Discusses the role of strategic partnerships in building a real estate business and the importance of not creating new jobs for oneself.

Stresses the significance of tracking key performance indicators (KPIs) for making informed strategic decisions.

Talks about the importance of company culture and how it should reflect the founder's core values.

Describes a rigorous hiring process to ensure that new hires are a cultural fit and share the company's core values.

Joshua Smith offers a free coaching call for real estate professionals to help them map out a plan for business growth.

Encourages business owners to focus on personal development as a form of leadership and a key to business success.

Provides actionable insights and practical steps for real estate agents, team leaders, and brokerage owners to grow their businesses.

Highlights the importance of having a systematic approach to business operations to facilitate scalability and efficiency.

Smith shares his philosophy on why he views agents as customers and the benefits of providing high levels of service to them.

Transcripts

all right what's up my peeps Joshua

Smith here with another GSD mode podcast

real estate tip and tday I'm here to

talk to you about how to scale your real

estate business to seven plus figures so

for those of you Savages out there that

are looking to build a seven or an eight

plus figure yearly real estate business

this podcast is for you those of you

that are like me that enough is Never

Enough we want to go out there and

create something great create something

massive create something big I

understand that this isn't for everybody

but if you're looking to break beyond

that million dollar a year Revenue where

you're making a million dollars $5

million a year $10 million a year plus

this podcast today we're going to do a

deep dive and break this down I recently

was asked to speak at one of my good

friends private Mastermind events for uh

his his real estate coaching clients on

this exact topic and I thought I'd share

it with you here on the podcast of what

it is to go out there and scale because

look you can build you know you can get

up to seven figures by just you know

honing in your skill sets working your

ass off and going out there and pushing

hard but you want to take to that next

level like you can make a million

dollars a year just doing those things

like just nailing client acquisition and

working your ass off you know maybe

having a you know small team you know

couple admin or whatever there's a lot

of different models to go out there and

make that a reality but if you want to

get beyond that if you want to get

Beyond from having a job to creating and

having a true business that can continue

to grow in scale and eventually grow in

scale without your own personal

involvement where you can exit from

production exit from from operations

right again this podcast is going to be

for you now there's a lot of different

models that you can do to go out there

and create this look you can do this

through building a real estate team

could do this through building a real

estate brokerage you know for for if

you're with one of these real estate

companies like an exp or a real you know

that has a downline opportunities you

know through your building maybe you're

running and operating your own team plus

building a big huge downline you know I

have friends that are making millions

annually through downlines right so

there's different ways of going out

there and doing this but the framework

is the same and today I'm going to walk

you through the overall framework now

before I jump into the framework I want

to walk you through the two biggest

mistakes that I've made through my two

decades of going out there and building

my real estate business building real

estate businesses you know now today not

only do I have you know my real estate

team we've got a nationwide real estate

company got a software real estate you

know real estate software company a real

estate coaching and consulting company

I've had other companies outside of real

estate as well um so what I'm speaking

of here now is my you know two decades

of H entrepreneur experience these are

the two biggest mistakes that I've ever

made that have cost me millions of

dollars and I wish that I would have not

made these mistakes I mean they were

great learning lessons so I don't you

know I don't have regrets to it you know

knowing what I know now okay if I could

go over do it and again differently

would I but you know without these big

mistakes those were powerful learning

lessons now it's very powerful for us to

learn from our own mistakes but the most

powerful way to learn is from others

mistakes so we don't have to go through

that pain that they went through so

that's why I'm sharing with these with

you because I don't want you to go

through the same pain that I went

through okay mistake number one you know

I spent so much damn time in my real

estate career going out there and

mastering lead genin lead fault my

listing presentation my buyer

consultation mastering sales skills and

you know copywriting and all the things

to go out there and you know really grow

my sales in my real estate business but

then when it came down to me starting to

build out my real estate company I spent

zero time or very little to zero time

initially going out there and and

mastering the hiring process

and it took me years and years and years

to pull my own head out of my ass and be

like well dude I got to go Master this

in the same way that I mastered you know

all my my my client acquisition

strategies and the things that allow me

to be good at sales that I spent decades

going out there mastering I got to put

that same level of intensity and Mastery

to the overall hiring process because

you want to scale to that next level

it's going to take you having a high you

know a high skill set of being able to

identify top amazing talent to help you

that you can have as leverage inside

your business to take your business to

the next level so number one is it took

me years to pull my damn head out of my

ass to go out there Master the hiring

process mistake number two was not

having my businesses in the same

ecosystem at the peak I had third when I

say Peak Peak number of businesses I 13

different businesses some of these were

tied to the real estate business some

were tied to different you know

Industries Health Care a bunch of other

different Industries now the mistake

there was because they weren't the same

ecosystem all different avatars the

amount of time and energy and attention

that it took me I mean essentially I had

a bootstrap you know bootstrapping

growing 13 separate businesses that

didn't build off of each other and look

there's guys out there that can pull

that off like Elon Musk okay Tesla has

nothing to do with SpaceX that has

nothing to do with you know Twitter now

X those are three totally different

style companies but I had to come to the

realization that man I'm not Elon Musk

there's one Elon Musk and that is not me

you know um so so with that though um I

ended up selling off and exiting from

all the businesses that I had that

didn't live within the same ecosystem

outside of one of my other businesses

right now that's more of kind of a hobby

for me than a business but you know um

so then now and what I learned through

this mistake is making sure that

everything lives within the same

ecosystem right so what I mean by that

is you identify okay what's the one

Domino that I can go and push over that

then spills over all the other dominoes

like I'm able to grow this one thing and

by growing this one thing it's building

everything else so you can put all your

attention time and energy into

allocating growth in the one Domino that

then spills over all the other dominoes

now I'm going to speak very specific to

real estate and building a real estate

business because that's what this

podcast is all about here so when we

look at this you know okay when I'm

looking at when I'm coaching you know

Mega team leaders or Mega you know our

brokerage owners or large team leaders

to can they go into the next level you

know H how how the revenue is really

made and and what greatly expands

revenue is through what's called

ancillary services so thinking of your

real estate business like a movie

theater okay when you go to the movie

theater you got that you got you're

going there and you're buying your your

box office tickets like you're buying

the movie tickets right and I don't know

if this split is the movie theater you

know but I'm guessing that the margins

there are very thin when it comes to the

just like if they were trying to just be

profitable just off movie ticket sales

you know but okay they're making maybe

some money off that that could be a loss

leader I don't know but they're making

some money off of that you know right or

there there's some Revenue there but

then from there if we start breaking

down the movie theater concept you know

right same vertical so same same

physical location same staff same point

of sale Software System and now they're

so it's not costing them anymore for

that again they already have the space

they already have the people the staff

the the point of sales software so it's

not costing them any more money per se

but now what are they doing they're

upselling you popcorn soda food alcohol

whatever that may be so then boom it

massively increases value per customer

and that's where that profitability

comes in and if you look at every every

great business you know like okay look

at the airlines maybe Airlines aren't

great businesses you know you know

whatever but we just look at an airline

okay you go there you buy your ticket

then you get in there what are they

doing then you got to pay for luggage

okay then when you're inside there

buying at the airport whatever then

when you jump on the flight then maybe

you're paying for Wi-Fi maybe you're

paying for cocktails maybe you're paying

for you know whatever they're upselling

you different things right um but

they're they're but it's all within that

same ecosystem so when we look at real

estate so when I talking okay when I'm

coaching team leaders or brokerage

owners that are at a certain level

there's a certain time where it makes

sense to do this but we start adding on

ancillary businesses and this makes a

world of difference when it comes to

your business right so so we start

adding ancillary businesses so example

okay you got your company you know your

your commission splits what we call

company Dollar in the real estate world

so that might be your per transaction

fee or your overall split that you're

charging so we've got that fee right so

that's company dollar that's off of you

know commission dollars that you're

making right so that's one Revenue but I

want to get all of my team leaders and

brok owners up to five Revenue sources

at at a minimum as soon as possible so

we start stacking on ancillaries but

through strategic Partnerships so okay

you stack on maybe you do a joint

venture with mortgage you do a joint

venture with title you do a joint

venture with insurance maybe then you

stack on property management then maybe

you buy a building or you have a

building whether you're leasing or

buying it and then you're renting out

offices that not just pays for the

building but becomes a money maker you

know there's a lot of different

ancillary businesses that we can stack

on the list is really endless you know

um but with this there's two keys here

two important things I want you to take

away with this is okay like let's just

look at okay I have one of my agents

closing a deal and I'm receiving

whatever that split or whatever that fee

is that we're charging him as a team

leader or brokerage J right then from

there though I get that same agent to

also use my mortgage company well then

on that mortgage company Net maybe I'm

now making maybe I made I don't know

depending on what if brokerage you know

let's just say it's a brokerage and it's

I don't know $500 flat fee transaction

fee you know right per closing so maybe

you make your 500 bucks well then now

they use your mortgage company now maybe

make a net of 2000 bucks then maybe they

use your title company that you have a

joint venture on right and then now you

make another 600 bucks now they they're

pushing their clients to use your

insurance company with insurance you can

sell home owners insurance auto

insurance life insurance and that's

creating residual premium renewals you

right so you know you kind of get the

picture here right but then from there

here is the key is that you do these

strategic Partnerships with these so

okay let's just say you do a joint

venture with a mortgage company okay

your partners on the mortgage company

they're the ones handling all the you

know underwriting and the loan

originating and the processing of the

loan your job and your part of the

partnership even though you might be

50-50 Partners on this relationship this

joint venture your job is to grow your

agent count keep recruiting agents carry

the flag and encourage your agents to

use your ancillary Services because

you're partnering with amazing partners

that do an awesome amazing freaking job

for your agents and for their clients

you right that you also can dictate and

have control over the process because

now you're an owner in there so you can

make sure that that process is done

brilliantly but that you know you're

you're not you're not going out there

and creating another job for yourself

hopefully you can understand that you do

not the mistake that most make is when

they start adding on different

businesses and this is what I did was I

was creating new jobs for myself

essentially I was the CEO of 13

different businesses instead of being

the CEO of one and then having these

these ancillary joint ventures that

complemented each other that could feed

all into like I just had to recruit

agents and encourage my agents to use

these ancillary services and then it

feeds the rest of the ecosystem right so

hopefully that makes sense when it comes

to adding the overall an layers okay so

I'm going to do a deep dive in this I'm

going to go through my eight different

steps to scaling a seven plus figure

seven figure eight figure however we're

big they want to take this these are the

eight steps to go out there do this now

real quick before I do so if you are a

real estate agent team leader brokerage

owner and your business is not exactly

where you want it to be and you do not

know exactly what you must do to get

from where you're at to where it is that

you want to go if that is you I invite

you to schedule 100% free 100% zero

pressure Zoom coaching call with me

personally well we're going to do an

hour long Zoom Deep dive into your

business where your business is

currently at where your 12-month goals

are what your long-term Visions are what

you are currently doing what your

biggest bottlenecks and obstacles are

then from there I'm going to map out

exactly what I recommend that you do you

do as an individual or team or as a

brokerage to get from where you're at to

where you want to go in the quickest

most effective efficient profitable

manner possible I 100% got your back I

will get you dialed in I promise you

that we will get you rock and roll and

you will not leave this free Zoom

coaching call with not knowing exactly

what you must do to get from where

you're at to where it is that you want

to go now full disclosure going to spend

50 minutes doing all of that which is

more than enough time I promise you that

last 10 minutes yeah I'm going to spend

a couple minutes walking through some of

the different coaching options I have

and look if they're fit for you great if

not that's okay too everything I do zero

pressure I'm not going to beg you not

going to ask you to whip out a credit

card look if it's something you want to

move forth cool if not that's okay too

we can still be friends like I said

everything that I do is zero pressure I

can promise you this whether you ever

move forward my coaching or not I will

make sure that this is the if not the

one of the if not the most powerful

experiences of your life we are going to

make sure in this 50 minute time frame

that you know exactly what you got to do

to get from where you're at to where you

want to go so if this is something you

want to take advantage of go to

www.gdcjobs.com

coaching call call to action there um

which is making sure that you have the

right vehicle like you got to have the

right vehicle like there's got to be

enough ways to go out there and scale

you got to have the right vehicle so

this is going to take you again and

we'll just speak specifically to real

estate businesses and there's other ways

to go out there and do this and I've

done this in other ways too you know um

personally with this with you know

through adding on my own software even

though they're separate companies adding

my software company adding coaching in

Plus have my real estate company plus

you know franchising companies and so

for there's other ways to go out there

and and do this but the most common ways

in our industry um and and I'm just

using these as examples is you know just

like we talked about through building a

mega team you know building a mega

brokerage or maybe you build a big you

know uh downline if you're with like an

exp as an example you know um sort of

bilding Revenue off of that company

dollar off of that but then feeding and

having ancillary services that you can

then go sell you know um because I look

at this like okay am my real estate

company you know I don't look at my

agents as my business partners I know

some people do and you know I look at

them as my customers they are my clients

and the reason why I do so is okay we

typically treat customers and clients at

the highest Echelon of service and

support and you know Obsession of their

experience and so forth so it just

allows me to you know take that next

level care of them but then from there I

look at okay anybody that pays me money

is a customer and a client of mine so if

my agents are paying me money okay well

just like okay you go to the grocery

store what do they do you go out to

check out like you go there like how

often do you go to the grocery store to

buy your eight items and you come out

there with 24 items and then you think

you're done and then you go to the

checkout and then they you're seeing all

the other at the checkout and

they're still up trying to upsell your

products you know right um so all smart

businesses do this you know you go to

you go to McDonald's would you like to

Super siize I don't know what McDonald's

does anymore haven't been there forever

but you know what I'm saying right so

all smart businesses do this then we

stack in the ancillaries so you got to

make sure that you have the right

vehicle that has the right income

earning opportunity that allows you

again to flick over that one Domino that

flicks over the others so number one is

is making sure that you got the right

vehicle okay number two when it comes to

scaling framework is strategy so you got

to obsess over strategy when it comes to

strategy I know we are accustomed to in

real estate thinking of client

acquisition strategy and I know I talk

about that a lot on the podcast here but

this is beyond that client acquisition

strategy is how do we go out there and

get customers that's part of strategy

strategy is what is your overall most

effective plan for anything and

everything that you do in your business

anything that you do on a consistent

basis more than once you need to make

sure that you are obsessing over and

having the most effective efficient

strategy to go out there and deploy with

that thing so you got to be obsessed

with over strategy there and hone in on

breakdown reverse engineer and always

asking yourself you know is there a

better way to do this is there a more

effective and efficient way to do this

you know is is there you know when I say

effective and efficient efficiency just

means okay we can you know do more of it

more easily more quicker you know and of

more abundance Effectiveness means how

more effectively can we go out there and

do this thing you right so like an

example so it always got to be reverse

engineering and breaking down or

different you know everything that we

are doing and taking action on to see if

we can do this in a more effective

efficient way so like I I had um um you

know with with my overall agent

recruiting right so I had this you know

opt-in form that they would fill out to

go out there and and get them to you

know to book a meeting with me to go out

there and recruit them you know um but

then from there I was only having like

50% show rates so I'm like okay D I

really should get my show rates like

this is not good like my show ratees

should be 75% or greater which I know

that from you know but this was a new

this was a new strategy for me this was

a new you know um new funnel for me so

then I'm like okay well how can I

increase that you know um so I found but

okay then I added two micro commitments

that then just adding two micro

commitments to that same opt-in page to

them that that was required for them to

fill out shot me from like a 50% show

rate to an 83% show rate then I'm

obsessing over it even further I'm like

how can I can I take this further you

know so then I added one extra layer to

it that then shot me up to a 93% or 92

and some change just under 93% show rate

so okay I went from a 50% show rate to a

92% you know 93% if we Roundup show rate

right that's a 43% difference on the

amount of people that shows right so

that's something that's allowed me to be

more effective and efficient so got to

be obsessing over strategy so what's and

strategy just think of strategy is what

is my overall effective plan um um with

this thing that I'm doing so client

acquisition you know right you guys

often hear me refer to strategy as okay

who has who has the highest need for my

services in this market who has the

highest probability of needing my

services in this given Market this given

economic climate that we are in that's

why I'm shifting my client acquisition

strategy too you know right so that

that's just a way of making sure that we

always have the right strategy for the

right time when it comes to client

Acquisitions now when you're scaling a

whole business you got to look at this

for every layer you know right do we

have the most effective onboarding

strategy do we have the most effective

ongoing training strategy do we have the

most effect like each one of these you

know we got to break this down for each

chunk of our business okay so then step

number three is processes so when we

look at processes and the reason why I

have it in this order right from

strategy processes systems tracking

people which is I'm going to walk you

through and there's a couple after that

but the reason why I have in this order

is your strategy then predicates and

dictates what your overall processes are

going to be so processes are just a

documentation the step-by-step

documentation of our strategies so

here's step one here's step two here's

step three here's step four if you want

to scale your business man I'm telling

you got to be process driven you got to

take all that out of your head put

it into paper you know um like if you

look at okay like from me to grow my

agent account like I got to have you

know these are all of our internal

processes that inside this binder here

all of our Sops so every one of my

agents knows exactly what to do when to

do it where to do it how to do it so we

get everybody dial in everybody's

falling the same page so then that way

because I have such effective process

and systems whether I hire one agent or

a 100 agents it's the same amount of

work and effort for me so processes and

systems is going to allow you to scale

but it's also going to make sure that

your strategies are executed on the same

way each and every single time nothing

gets missed you know right so we got to

make sure that we are documenting every

step of our strategies that we're out

there deploying and then boom that then

becomes our processes then our processes

then dictate so now we move into step

number four here is systems so one of

the reasons why so many in our industry

absolutely freaking suck at systems is

they don't understand they're like oh

I'm missing system my business I need to

go out there and buy new systems get new

systems and they start hunting for the

right systems but what they actually

have is a strategy and process issue

because strategy is what dictates what

your processes are because processes are

just documentation of the strategy right

and then processes dictate your systems

because all systems are is a place for

your processes to live to ensure that

those processes are executed on the same

way each and every single time things

are not missed they're done in the most

effective efficient manner then as

Leaders inside of our organization

allows us to inspect what we expect so

I'm not managing people you know a

mistake of mental mindset mistake that a

lot of people make of of what prohibits

them from going large and big in their

real estate business they like oh I

don't want to grow a big business I

don't want to have all the management

headaches I'm like look dude it's a lot

less management headaches for me when I

have in a big company like the the most

management headaches I had was when I

was small you know right I don't have to

manage people I manage the systems that

manage the people and then hold the

people accountable you right um so

systems also allow us to inspect what we

expect but your systems and processes

are going to allow you again to execute

on your strategy and let everybody you

bring inside your organization execute

on those strategies one of the reasons

why what will what will dictate your

multiple if you decide to go exit from

your in you exit from your business you

want to go out there and sell your

business one of the things that was

going to impact your multiple obviously

Revenue you know is a big big you know

you know factor in that you know of how

much you're going to get you know

somebody's going to offer you but if you

want to go from like a 3X annual net

multiple to a 6X annual net multiple

comes down to like how system based you

are right because the the the the less

system and process based you are the

more Reliant it's going to be you to

guide and Lead that organization right

we want to make it where it's not

reliant on you it's not even reliant on

your people like your people can be

replac like think of this as the

McDonald's concept okay like the Fred

guy quits okay we can jump in and find

another Fred guy yeah right like any any

like right they have such a great

process and systems in place for those

process to be executed on so we need to

build out our businesses the same way

okay step number five is obsess

obsessing over tracking every essential

important kpi inside your real estate

business so as real estate company

owners there's a lot that we got to

track we got to track stuff on the front

end also the backend so our pnls or

expense reports revenue reports we got

know where you know like every single

Dollar in your organization needs to be

accountable you know held accountable

right so you got to know all of that now

on the front end right um we got to be

tracking you know the amount of effort

energy it takes to go out there and

recruit somebody into organization right

then we got to track okay once we hire

somebody so you know what are my lead

sources how many leads am I generating

how many dials conversations appointment

set appointment conductions equates to

how many agent recruits then from there

how long are they with me in the

onboarding status before they start

contributing to per agent average you

know productivity okay what's the

average agent production per month

what's the average company dollar per

month you know what's the average of

people you know opting in and utilizing

your ancillaries how long is somebody

with you before they leave allows you to

calculate your lifetime value of them

right so like okay example when you want

to start eventually like if you want to

go from s figures to eight figures

that's going to be you know you getting

your key leadership Personnel in place

right okay if I got to go out there and

start hiring you know sales managers and

you know hiring recruiters and key

leadership Personnel that you know take

my business the next level I can only

know how to effectively compensate them

if I understand and know the lifetime

value of every single customer inside my

organization right so got to make sure

that you are tracking every essential

important kpi tracking creates

predictability but also allows you to

business plan in the right way allows

you to make smart Shake decisions in

your business it is an impossibility to

go out there and make smart strategic

decisions in your business and it's

going to be very difficult to take your

business you you know to to that next

level if you not tracking your business

it's going to be an impossibility at

some point you're going to just this is

going to fold in um and and you're just

going to fail at some point you know and

when I say fail not saying fail out the

industry but fail to take your business

to the next level okay step number six

is people is I talked about my mistake

number one was not mastering my ability

to go hire the right people at the right

times and plug them in the right seats

inside my my organization you got to

master this now of course when we're

talking about real estate businesses you

got to have the the ability to go out

there and recruit talented staff you

also have the ability to go out there

and recruit agents you right and then

the ability to go out there and recruit

leadership Personnel to do those things

for you you right but you got to make

sure that you are plugged in the right

people now here's why processes and

systems and tracking is so important um

is because I don't care how great the

people are that you bring on if they

don't have great systems and processes

to plug into they're gonna have a very

difficult time showing you their

greatness you right um then from there

and you're going to bog yourself down

with training and onboarding like it's

just going to accelerate your expansion

growth and allow your you're going to

give your people the resources most

people because I talked to so many you

know quote unquote leaders or people

that think that they're leaders in this

industry and a common thing that I hear

is oh man so hard to find good talent

I'm like all you're telling me is you

have shitty processing systems you know

like it's not that people failing you

you're failing them because you haven't

developed the the infrastructure and you

haven't become the leader that's capable

of doing this to go out there and get

good talented people like it's not them

it's you you know right um um which I'll

get into when I talk about leadership

here in a minute but you got to have the

ability to go up there and hire the

right people at the right times put them

in the right seats right um and then

make sure that they're able to execute

Implement on those right strategies you

know to go out there and do that so you

got to master again that hiring process

that ability to onboard them that

ability to lead them all of those things

becomes essential okay step number seven

is culture now I know culture gets

thrown around all the time so I'm gonna

be very quick on culture here culture is

extremely important it it shouldn't be

just something that's thrown around it's

not just some words on a freaking wall

your job as a leader of your

organization because especially as your

company grows in scales you know like

okay I've got locations you know

businesses and locations that are

thousands of miles away from me so

they're like okay I'm not there day day

in and day out okay I have people that

work for me that I've never met I don't

even know their names so how do we keep

a culture alive as you continue to grow

and scale and expand when you're not you

know it's easy when you're around those

people all day and day out because you

can just build your culture through your

own leadership style you know um um you

know through proximity but then when you

lose that proximity if you want to grow

big and grow wide and you know you know

with all of this okay you're going to

lose that proximity so how do you still

keep the culture alive well step number

one is you got to identify your personal

core values and I'm not just talking

about business core values versus

personal core values like who are you as

a human being what are the core values

that are most important to you that you

want everybody inside your organization

to abide by what are those you know core

values that are most important to you

you know that that because your your

your culture is just an extension you I

can't remember who said the quote but

it's something like you know your your

your culture is just an over you know an

extension of the shadow of of you know

the founder the leader of the

organization right so then from there

okay like I know what my culture my core

values are so then that way we're able

to hire to those core values we're able

to you know make sure everything we do

as an organization especially me as a

leader and my leadership team right

because my leadership team's eyeballs on

me plus all my people's eyeballs are on

me those that you lead people don't do

what you say they mimic they watch what

you do I was just having a conversation

with this with one of my you amazing

brokerage owner clients and we were

talking about you know certain things

like even how you dress or you know

whatever inside the organization I'm

like look is the you got to exude the

the behaviors that you want to go out

there and and have your people following

you know right so if I expect my people

to be hardworking well I need to be

hardworking if I expect them to you know

um um take self-development serious and

and be self-developed you know right um

okay well then I need to be you know

extremely well self-developed if I

expect them to be respectful I've got to

be extremely respectful right so all

people don't do what you say they watch

what you do so what you do is you come

up with your core values and and

whatever the list is some people say you

know I'll come up with 4 to 12 what

whatever just don't have core

values that don't matter to you these

are the core values that are truly

matter to you at the core as a human

being that okay if you could become the

best version version of yourself okay

like you this would be you you right

this is like kind your becoming plan

right so okay what are those core values

and then that okay in a perfect world if

you could build an army of people that

also operated by these core values not

saying they may not have additional core

values that are important to them but

that did abide by in these core values

were important to them okay like you

know you're going to be able to go and

build a massive massive successful Army

through this but then as a leader okay

my job is to do everything I can to grow

into and operate at a level 10 of my

core values doesn't mean I'm perfect

doesn't mean I don't fall short with

that you know um but I'm gonna okay like

so here's an example one of my core

values have a very strict no

rule policy so very you know very strict

no I that's one of record values

no yeah right which I know it's

not fancy but I'm not a fancy guy right

so you with that I can't stand

we are here to uplift Never Tear Down

okay I got to make sure sure then that

I'm abiding by that at the highest

possible level and I understand I have

eyeballs on me here you know again I

have people that I haven't met that are

working for me maybe they're watching

the podcast maybe they're following me

on Facebook you so I've had death

threats on social media people saying

the most gnarly that you could

imagine you know right okay well how do

I how do I respond to them okay so again

if I have a core value that hey we never

tear down we uplift we do not tear down

we have a very strict no policy

there is no circumstance where where um

we are going to tear down others so how

I operate in our meetings and whatever

like they got to make sure I got to make

sure that you know like I can't stand

sarcas sarcasm so I can't see my agents

ever allowing me to watch from a place

of sarcasm gossiping tearing down others

it's just always uplifting always

uplifting always uplifting but then even

on things like social media when I get

negative comments okay I understand I

got eyeballs on me everywhere so I gotta

then abide by that so even on those

negative comments right it's uh you know

you know now I've had a mature over the

years you know maybe 10 years ago I get

back in a social online fight you know

but this is before you know I developed

into the leader that I am today so now

when I get that negative it's hey

appreciate you sharing your opinion I

hope you're doing okay there's anything

I can ever do to serve support and help

you please reach out feel free to email

me DM me you know maybe you're going

through a tough time I'm here to help

support you know whatever even when I

get them you know saying the no gnarly

at me but okay like either I'm

going to delete it or I'm going to

uplift Never Tear Down right so making

sure that as you establish those core

values because they need to be an

extension of you then from there when

we're Hiring Our People so you know I

talked about people earlier so I I go

through a four Rd hiring process right

so I I identify okay what is the role

what are the responsibilities what are

the requirements that they must have for

this role um what are the results that

they must be achieving once they're

fully onboarded you know on a daily

basis for them to know that they're

winning for me to know that they're

winning then what's the description of

that position that then allows me to to

get extreme Clarity where I build out

the Avatar of that perfect person in my

head that then allows me to go out there

and write my ads develop my tests you

know so I'll have like five Easter egg

tests in my ad like they don't even know

they're being tested but there's five

tests before we can get to the first

interview process so then that way I can

sift and sort through like usually only

like one out of 300 make it to in an

interview with me because I already like

they're not acting as the perfect person

would act in this you know because I

have such full clarity of the exact

perfect person that I want for this role

you right but then from there I put them

through two inter well actually three

it's a three interview process now now

that's once they pass through all the

tests so you you could count you know

count those as interview part of the

interview process too but then from

there step one number one I do a culture

interview um and the reason why I do a

culture interview is I'm making sure

that they are a core value fit so before

we even get in the skill set like I

don't give a what their skill set

like oh yeah they gonna have they gotta

have great skill set for the job that

they're doing that is an absolute must

absolute necessity but maybe they have

the skill set but they're not a core

value fit I don't want them I don't want

mercenaries I want Patriots I got a

people that are willing to fight for the

cause that I want to roll with that that

can grow with the organization so I have

17 different questions that I go through

that allow me to know okay are they are

they right core you know core value fit

for me so like an example hey what are

the three top books that you've read

over the last 12 months and of those

three books you know give give me you

know one major takeaway that you took

from those three books how did you

implement that takeaway into your life

and what impact has that takeaway made

on your overall life they're like well

chill I don't read books you know okay

cool not saying you're a bad human being

but you're not right for me you ask

things like okay how do you set goals

for yourself and what do you do

personally to hold yourself accountable

for those goals like well I don't set

goals I don't I don't hold myself

accountable I'm bad accountability okay

they're not for me I want

self-accountable people I only rooll

self-accountable people if I got to

babysit you if I got to micromanage you

if I got to be your damn parent telling

you to brush your teeth every single day

like we're not a fit for each other now

see you're a bad human being go find

success elsewhere this is not the place

for you yeah right like I do not babysit

so um so okay I'm going through the

culture interview then I'll go through a

skill set interview you know right and

at that level if they made it through

all the steps which you at this point

it's probably one out of 500 one out of

600 sometimes one out of thousand

depending on the position you know

before we get to this level then from

there then I always have a proficiency

like a final test of how can I go from a

high level of you know high level of

confidence to making 100% certain that

this is the right person you know right

but if I did wasn't clear on my core

values and what what how must people

abide by and operate by that come work

for me you know okay well then I

wouldn't be able to put them through

this interview process you know and and

go out there and H you know build that

right culture and have the right people

inside my organization I'm telling you

right now you guys you want Patriots you

do not want mercenaries mercenaries are

just here to collect a paycheck you need

Patriots there're gonna be times where

you hit storms in your business you

need people that are willing to fight

people that are you know like if things

start getting hard and you can always

tell them like mercenaries the second

gets hard they start bailing and

then go seek the next job opportunity

because they're just there for a

paycheck right again now I'm not saying

I'm gonna you know would expect people

to leave if I got to start cutting

salaries and so forth I mean know like

Hey we're here to fight we're here we're

here for the mission we're here for the

cause we're here to go out there and

build this if we got to go to war

together we're going to War

together now I'll go to war for them

right like as a business I can't tell

you how many times you know I know that

there's you know books out there like

profit first so pay yourself first no

matter what look and may that that

probably is a great philosophy but I

can't tell you personally of how many

times I've I've foreseen you know Tak

been able to take paychecks even

sometimes for six months period of time

to make sure all my people are play you

know paid when Co happened all the

lockdowns happened we didn't know how

this was going to shake out you know I

was like hey dude like my number one

mission was to make sure that we got

through this and make sure I didn't have

to lay off one staff and one employee

you know one one one person within our

organization like I was committed doing

whatever it took to go out there and

make that happen even if I had to work

which I did you know 20 hour days and

you know pulling all nighters and do

whatever it took you know like I'm going

to war for for my business I'm going to

war for my people I want people that are

with me that are willing to go to war

too and that is done by culture and then

hiring the right people right then the

last step here step number eight is

leadership now leadership is different

than what I used to think it was and I

think than different than a a lot of

people think that is leadership is not

external it is internal so leadership

comes from you always working on

yourself you always doing everything you

can to be a level 10 of your core values

you always work you know acquiring the

right skill sets so then that way you

can transfer that knowledge transfer

that information transfer those skill

sets to your overall people so

leadership is an internal game not an

external game so but you've got to

develop into that next best step of your

version of yourself as a leader right

because your your goals like you can

never hit goals at a higher level than

than you know you become as a leader

right so another way of thinking of this

is you know it's like okay like one of

my mentors early on in business you know

if I ever ask them to review my business

plan they'd like nope I'm not going to

review your business plan until you show

me your becoming plan first and by the

becoming plan what they meant by that is

what is your plan to become the person

that is capable of making these goals a

reality because he's like look you you

don't you don't achieve your goals you

you become the person capable of making

these goals a reality you got to become

the person first first before those

before the results will actually

manifest in reality so that you're

always asking yourself and you're always

assessing okay what do I need to do to

grow into the next best version of

myself to take my company to that next

level so again leadership is an internal

process not an external process but you

gotta work tremendously hard on always

leveling up your leadership dude if your

if your growth your personal growth is

leader of your organization stifles the

company's going to stifle right just how

it goes so step number eight is making

sure that your leaders ship game is

dialed in so to recap these number one

making sure that you got the right

vehicle building out the an business

like we talked about having that one

Domino flips to the other domos Dominoes

number two is strategy step number three

is processes step number four is systems

step number five is tracking step number

six is people step number seven is

culture step number eight is leadership

now all of these this isn't like a oh do

step one then go step two like all of

these matter like we got to be working

simultaneous on all of these you know

things it's in like a hierarchy of these

all of these are essential like I talked

about okay culture dictates you know who

I'm the people that I'm hiring right so

all of these are essential must come

together if you want to continue grow

and scale an epic badass company you

know um and just if you're that kind of

person enough is enough you want to keep

growing and scaling and get to the point

where you're making a million or 10

million plus on a you know annual

revenue and Beyond th this is the

framework um um at least that I've

discovered um to go out there and do

that and again I'm going to end the

podcast with this look if you do not

know exactly what you must do to get

your your business to where you want it

to be you still have a lot of confusion

still have guess work maybe your

business is kicking ass maybe it's

stagnant maybe it's declining can be at

any different of those levels but you're

just not exactly where you want need it

to be you know you're operating down

here but you know your potential is way

up here just do not know exactly what to

do to get from where you're at to where

you want to go if that is you I invite

you again to schedule a 100% free 100%

zero pressure Zoom coaching call with me

personally we are going to do an hourong

Deep dive into your real estate business

where business at where 12 month goals

are long-term goals are what you're

currently doing what your obstacles are

and I'm going to map out exactly what

you must do to get from where you're at

to where you want to go in the quickest

most effective efficient profitable

manner possible and you have my word you

will not leave this free Zoom coaching

call not knowing exactly what you must

do to get from where you're at to where

you want to go and again the quickest

most effective efficient profile manner

as I mentioned earlier yes I'm going to

spend a few minutes at the very end of

this call walking through some coaching

program options that I have and if

they're F you cool if not that's okay

too we can still be friends like I don't

I have very strict no pressure PA I'm

not going to ask you to whip out a

credit card not going to make you feel

guilty make you feel pressure dude if

it's for you cool you can let me know if

it's for you if you want to move forward

if it's not for you like I don't even

sell you I don't even like hey here it

is any questions okay cool what been

great talk with you let me know if you

that's about the the most hardcore my

sales pitch is and the reason why I'm

stressing this is I don't want you to

think that hey man I would love to do

this strategy call a Josh but I'm not in

a point where I can afford coaching or

may maybe you don't just don't want it

maybe you don't need it but you still

want to jump on this hourong Zoom coach

coaching call to help your business get

dialed in look that's cool it's cool

with me whether you move forward or not

like I'm here to dive into you and help

you during this experience and make sure

you know exactly what to do to get from

where you're at to where you want to go

so you got nothing to lose everything to

gain so if you want to take advantage of

this I can't do this forever you know

something I've been doing now for

several months you know plan on doing it

for another several but it can't be

something it's not sustainable for me to

do these forever so if you want to take

advantage of you usually I charge just

so you guys know usually I charge $1,000

an hour for Consulting so usually this

would be $1,000 an hour I just know that

there's so many that struggling right

now and and you know struggling at

different levels um so I'm doing this

right now to give back to you know all

you amazing GSD M peeps that have always

supported me over the years you know

with this podcast so if you want to take

advantage of this www.gdcjobs.com