Why Kevo? Information About The Company And Frequently Asked Questions

Transcription

1 Why Kevo? Information About The Company And Frequently Asked Questions

2 CONTENT WHAT'S INSIDE Thought About Doing Real Estate? 03 Pros And Cons of Real Estate Profit Sharing 04 2

3 Thought About Doing Real Eastate? If you ve ever thought about doing real estate, here are typically a few objections that run through your mind: I know, like, 5 realtors myself, so, how am I going to make any money? I know these objections, because they were mine, but there s probably some other things that are running through your head. You can make a lot of money.it s true, and you can have a lot of freedom. My aunt/brother/cousin/ best friend s sister tried to do that, quit, and said it s too hard. I have zero time....or, I can t quit my salary job for something that s commission only. I know all about the safety of your salary job. You know, the one where you have health insurance, a guaranteed paycheck, and the distant hope of a promotion somewhere in the future. I also know about the politics involved. I know about the ever-present feeling of What if I get fired?, and I know about the commission plan restructuring that requires you to work twice as hard this year to make the same money as last year. The other thing I know about is your capability. That feeling of I should be getting paid more or I could make a lot more money somewhere else is absolutely correct. That s because I ve seen it manifest itself in the lives of so many people. The teacher who couldn t support her family anymore on $30,000 a year, the Dental office manager who felt like she could make more income, or the salesperson who was tired of the commission structure changing every time the company felt like he was making too much money. These are real stories of people who have doubled and tripled their annual income in real estate, and they all started part time. They started making some extra money alongside their full-time jobs, and made the transition when the time was right. There are countless other stories of teachers, firemen, police officers, nurses, and others who love their fulltime job, but just needed to make some extra money. This is what I love about Kevo. There s absolutely nothing to lose. The system is designed for people to get involved part time, and is built on the concept of changing lives. If you ve thought about it, now s the time to take action. 3

4 Pros and Cons of Real Estate Profit Sharing Profit sharing is not new to the real estate industry. It was brought into mainstream residential real estate by Keller Williams, but many real estate companies are doing it, and many with a lot of success. The problem is, there s a lot of mystery behind profit sharing and how it works. My plan is to break down three real estate companies profit sharing programs, and give you the pros and cons to each. 4

5 Keller Williams PROS AND CONS OF REAL ESTATE PROFIT SHARING So, profit sharing with Keller Williams is either very sophisticated or very confusing, however you decide to look at it. Basically, the profit share is calculated based on the profitability of the individual brokerage (or profit center). If that brokerage is deemed to be profitable, 50% of the profit goes to the owners, and the additional 50% is broken up and given to the individual agent s sponsor, the sponsor s sponsor, and so on You can watch the video here. You aren t really going to have an exact dollar amount you ll make if one of the agents you recruited sells something, but more often that not, you ll make something. PROS You re referring potential realtors to the largest real estate company in the world, so once you introduce them to the local KW recruiter, they re professionals, and they take it from there. Very little additional work needed. CONS It s going to take a lot of realtors to get significant and regular monthly income, since it really doesn t amount to very much money per transaction. Also, if you get a good realtor that caps or sells approximately 2 million in houses, the profit sharing stops for that calendar year. 5

6 Kevo Properties PROS AND CONS OF REAL ESTATE PROFIT SHARING Kevo wanted to do something different with profit sharing, so they went to a straight up override percentage. You refer 2 realtors, you get 10% override, if those 2 realtors refer two realtors, you can get 10% override on your existing realtors and 20% on new joins, and so on. You can review the override chart here. The big difference here is that Kevo expects you to play a part in training the new realtor you bring on to support their mentorship model, so you re going to have a substantial investment of time to get the larger override. PROS You know exactly what you re getting when one of your realtors sells a house. It also is an extremely large percentage if you re looking to build a substantial residual income from recruiting and training, and there are absolutely no monthly fees (which is the number 1 reason people leave the real estate industry) so you have a higher retention rate for your realtors. Kevo boasts 80% retention versus an industry standard 13%. Finally, the Kevo model allows you to build a residential brokerage inside their company. CONS Kevo is a new company, so it takes a little more convincing to get a new realtor to join. Some experienced realtors don t want the burden of training new realtors. Also, their profit sharing chart looks like a pyramid, so sometimes it can scare a new realtor away if they re not used to profit sharing in the residential real estate space. 6

7 EXP PROS AND CONS OF REAL ESTATE PROFIT SHARING EXP has become a pretty major player in just a few short years in the real estate space. As this article is getting written, EXP has somewhere between 2500 and 3000 realtors. They advertise themselves as a cloud based brokerage which means they operate almost exclusively online. Some EXP brokerages have a brick and mortar space, and some don t, but their primary focus is helping realtors get the training and support they need through an online classes and a campus where you create an avatar, and ask questions of other avatars who are in the same virtual space. PROS EXP is quickly growing, and their model is really easy to recruit to - high commission splits, ease of getting online training, etc. They seem to meet realtors where they aregiving them training they can watch from the comfort of their own home, and more of their commission. CONS The most you can make off an individual realtor if you bring them on to EXP is $2800, so again, you need to recruit a large number of realtors to have income that is consistent and substantial. Their training is exclusively online, so you don t get any field training (unless you join an EXP team and forfeit a portion of your commission split). Also, there s a hefty annual training fee of $420 that comes out of your first transaction, as well as monthly fees that differ based on location. 7

8 Brandon Baca 9005 Overlook Blvd., Brentwood, TN P. (615) E.