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A Book Review
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!
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