Everyone talks about rockstar agents, but is that your best-case scenario? In the first episode of our Team Building Podcast, Jeff Cohn shares the 3 types of real estate teams and why you should strive to be a CEO, not a rockstar.
I don’t know many agents who’ve been able to retire by following the rockstar model. -Jeff Cohn
Using the CEO model you can build a system that nets you $1 million/yr and requires less than 3 hours a week
We all share the same amount of time – To expand oneself and the activities you’re doing is called leverage
The hardest part of transitioning from rockstar to CEO is spending your own money to generate leads for your agents
Resources & Links:
Expansion– Learn how you can partner with Elite Real Estate Systems – build your career, start your own satellite team and remove yourself from actively working with clients – all without leaving your current broker.
Team Building Workshop – Spend the day observing these systems in person, including board meetings, Monday Team Meeting, agent one-on-one meetings. Also includes hours of private consulting to create your own custom roadmap to build and exit your real estate team.
Tools & Services – See all the tools, professional services and companies Jeff uses and recommends to help build your real estate team.
First we covered Jeff’s background, the team structure and sales volume. Jeff explained that most agents hit a point of diminishing returns. The point where we’re so busy we can’t take on and service additional clients. The key to breaking through this plateau is leverage. Jeff pointed out, “We all share the same amount of time. To expand oneself and the activities you’re doing is called leverage. Leverage can be either people or technology.”
Next we covered the 3 team models:
Community Model – Two or more agents partner, share some expenses and maybe some staff, possibly branding themselves together to give the appearance of a team. No added value, not saleable because there’s no increased value in the market.
Rainmaker Model – One rockstar agent surrounded by support staff and possibly buyer agents. Business isn’t profitable outside of the rockstar’s personal commission. No saleable business and the rockstar can never step out of production.
CEO Model – Scalable business where the CEO focuses on recruiting and training, helping other agents be successful. Maximum value to the market, allows the CEO to step out of production, resulting in a saleable business.
So why don’t we hear more about the CEO model? Jeff explained his perspective, “I’ve had top coaches across the country say it’s impossible to make a million dollars a year net and spend 3 hours a week on your business, but I’m doing it.” Jeff went on to point out, “The coaches who are telling everybody about the rockstar model have never been rockstars and are not rockstars today. They’re a coach doing the coaching model…Quit going to coaching, spending the money month after month on something that’s not changing your life.”
But what about rockstar agents that are promoted on stage around the country? Jeff explained that he never wanted to be a rockstar, “I wanted to build a business that runs on its own so I could focus on bigger things….Everyone talks about the rockstar agent. Rockstars on stage at 70 years old don’t look very good.”
Finally, we cover the obstacles to transitioning from Rainmaker to CEO. Jeff pointed out, “I think the hardest thing for someone is spending their own money.” The process of finding out what works to generate leads takes money, which rainmakers are reluctant to do. This also manifests itself in recruiting and hiring staff to expand, to which Jeff advised, “I really just say GO. Aim, Fire. Take action, move forward.”
So if you want to step out of production, either to retire or sell your business, or even just cut back and enjoy more time with your family, the CEO model is the answer. “You don’t have to do it all anymore,” Jeff explained, “You can build a system for success that nets you over a million a year and work less than 3 hours a week.”