4 Business Models To Grow and Thrive in Real Estate

Is there a blueprint that we can follow to grow our real estate business? Definitely! The book The Millionaire Real Estate Agent (MREA) outlines four models for growing your real estate business. I’ve personally used these models to build two top-selling teams in Utah, and now, I teach others to do the same.

My business partner, Boyd Brown, the operating principal of Keller Williams Market Centers in Salt Lake County, also applied these models to build his own real estate empire. Below, you’ll find the four business models and our insights into each one.

1. Economic model. This model gives you a formula to determine the number of daily activities you need to do to reach a goal. It highlights the importance of appointments and conversions and considers lead generation the most important activity in your business. It helps you figure out how many daily activities you need to do to reach your goals.

Some of the guiding questions under this model you need to consider are:

• How many contacts do you need to make each day?

• How many appointments do you need to set weekly or monthly?

• How many contracts do you need signed to meet your closing goals and income targets?

When you break down your businesses this way, hitting your daily, weekly, and monthly numbers becomes simple and less daunting. We help you get started with this during one-on-one business coaching at Keller Williams.

2. Lead generation model. This model focuses on prospecting, marketing, and maintaining a database so your business continues to grow. According to the MREA, lead generation is one of the three components of a successful real estate business: leads, listings, and leverage.

By creating a prospecting-based and marketing-enhanced lead generation system, you can build a model that’s both predictable and profitable. In contrast, relying solely on passive lead generation can be costly and unpredictable.

Once you’ve created a database filled with names and contact details of people you want to connect with, keep nurturing it. Remember: the size of your real estate business will be in direct proportion to the size and quality of your database. As we say at Keller Williams, Utah, “Your business is your database.”

3. The budget model. The keys to budgeting success are to implement it early, keep it simple, plan annually, review regularly, and stick to it.

Your business budget should be divided into two broad categories: cost of sales and operating expenses. Avoid a “miscellaneous” category; every expense should fit into one of these two. Check out the “Sample Profit and Loss Report” on pages 349-355 of the MREA book if you want some examples of how to do it.

Follow the Lead With Revenue principle where you should only spend what you earn. This can be challenging at first, but minimizing start-up costs and debt will help your business survive and thrive.

4. The organizational model. This model outlines the staffing positions you should consider adding as your business expands. Detailed in the MREA, it emphasizes the importance of hiring the right talent.

When your focus on leads and seller listings generates more business than you can manage alone, it’s time to seek assistance. However, be cautious because hiring the wrong person can hinder your growth instead of moving it forward.

There are two types of talent you could hire. First, the cul-de-sac talent, who do their job well but might not grow beyond it. Second, the capacity talent, who excel at their current tasks and are eager to take on more. These capacity talents are like Empire Builders, who are vital for your growth.

You need training and consulting to succeed in your business. Start by training your staff to understand their roles, then hold weekly meetings to review goals and progress. This approach builds accountability and maximizes your return on investment.

At Keller Williams, we help you hire and train capacity talent through our Career Visioning process and Maps Coaching platforms.

The four models mentioned above are only some of the “hows” to achieve your goals and direct your focus to strategies that can have an impact on your business. Successful agents have shared insights about the actions that led to their desired results, and the MREA compiles these valuable clues.

If you like the plan we’ve discussed, the next step is to attend one of our in-person training events, where we dive into the specifics of implementing these Millionaire Real Estate Agent models. You can also book a one-on-one call to personalize these models with daily action steps tailored to your needs and goals.

If you have a question you want me to answer, shoot me an email at headcoach@kwutahcoach.com or give me a call at (801) 252-5226. I’ll gladly set aside time to talk with you.