A Book Review
Written by: Nick Krautter
Reviewed by: Jim “Gymbeaux” Brown January 26, 2019
I have written a lot of book reviews and I typically ask and answer 4 Questions at the end of each review. I believe it is important to ask and answer the first of these four questions BEFORE I review the book.
Who should read this book? This one is easy to answer and it is difficult to answer. As per the sub-title the book is written with real estate agents in mind yet as I read the book, I could see a great many businesses that the principles laid out in the book could and would apply to. For example, independent insurance agents, doctors, dentists, just about anyone in sales could benefit from this book. Therefore let me answer the question again for just real estate agents.
Who should read this book? EVERY LICENSED REAL ESTATE AGENT AND ANYONE THININK OF BECOMING LICENSED – PERIOD! No exceptions. The book was written looking more towards the experienced successful agents who want to leave the business for any reason and those experienced successful agents that would benefit both agents by accepting the departing agent’s business and sill receive referrals. Still as I read this book and based upon my 33 years in the real estate business most as a Broker/Team Leader/Teacher I was struck at how valuable this book would be for the brand new licensed agent. In book The E-Myth Revisited by Michael E. Gerber, Gerber asks the question “what will your business look like when it is finished?” That is a great question and for brand new real estate agents I would suggest you read The E-Myth Revisited and more importantly as you read The Golden Handoff you hopefully will understand Rule #1. You begin from Day One to set up your business with the end in mind – The Golden Handoff. If you wait until you are ready to leave the business and you have not done due diligence in maintaining records and your database, it will be almost impossible to reconstruct your years in the business sufficiently to demonstrate to an agent considering picking up your business that it has value. So my advice would be START WITH THE END IN MIND BY READING AND TAKING ACTION TO PROPERLY SET UP YOUR BUSINESS RECORDS NOW TO TAKE FULL ADVANGE OF THE GOLDEN HANDOFF!
This is a very interesting book. A real estate agent’s business “should” have value and if the agent can prove that it has value there is no reason that the agent could not give that business to another agent to work and then receive referral income for years to come. Krautter provides you with a plan to make that happen. It is a wonderful and thoughtful book that every real estate agent should read; no exceptions. There is no reason to just walk away from the business you have created over the years and benefitted from. Still, if you are going to “handoff” your business to another agent who you hand select, you need to make sure the business you are “handingoff” is well organized and documented so that you both WIN!
SPECIFIC NOTES ON THE BOOK:
· CONTRACT LANGUAGE: In the “contract” you and the receiving agent sign and you refer to “commissions” it should read “net commissions after any broker/agent split” to avoid any misconceptions about on what number the referral fee is calculated.
· VERIFICATION: I would recommend establishing an email procedure whereby you send to the retiring/departing agent an email stating that you have closed or are about to close a sale and that you need confirmation that they remain in compliance with their home state’s real estate commission’s policy about receiving real estate referral commissions. Most states require the agent have an active real estate license. This will provide you with written verification in the event it becomes a legal issue.
· TRANSPARENCY: Recommend that you get permission from the parties to a real estate transaction that you represent that you intend to pay the retiring/departing agent a referral fee. Transparency is always a good thing.
· 100% COMMISSION: Recommend selecting an agent to handoff your business to who is on a 100% commission plan. If you do the math you will quickly appreciate that you will significantly benefit by higher referral dollar amounts. While this could be financially important, it is still MORE important to handoff your business to someone who shares your beliefs and values and who will do what they say they are going to do as per the contract you both sign.
· DATABASE vs WEALTH BUILDERS: Words mean things. You can refer to your list of probable buyers and sellers as a “database” like everyone does. Mentally when you refer to your database as your “Wealth Builders” you are providing your conscious and more importantly your subconscious mind with the probability that a great many people on your Wealth Builder List will eventually provide you and the agent you are handing your business off to with future incomes.
· KELLER WILLIAMS AGENTS: This book should definitely be required reading as already stated. Keller Williams’ agents have the luxury and privilege of participating in the company’s Profit Sharing System. Therefore it would be my recommendation that when you are looking for an agent to hand your business off to that you use the opportunity to also recruit a top/good producing agent to your Market Center and then that agent would be part of your profit sharing down line. Why is this important? Not only will you receive referrals from your handoff agent, you will also participate in the Market Center’s future profit sharing income. You win TWICE! Plus Profit Sharing goes on for years and years whereas your referrals will eventually lesson or even stop. That means I would hesitate in finding an agent to accept your business who is already with Keller Williams Realty. If you can convince a producing agent to join your Keller Williams Realty Market Center your Market Center wins, you win, and the new agent wins primarily because now you also know the new Keller Williams agent will be on a 100% commission plan meaning more money for you through the referrals you receive.
Would I recommend it to a friend? ABSOLUTELY!
Will I read it again? I am oftentimes called by agents to discuss leaving the business and what would I do if it were me. I would now suggest that they follow the principles in The Golden Handoff. I would certainly use the book as guide in any counseling I provide to agents wanting to leave the business for any reason, not just retiring.
Would I buy it as a gift? ABSOLUTELY and probably will!