1. Module 1 Leveraged Business Model & Passionately Target Market Overview 1

2. Getting Started 1.Choosing what you make 2.Target Model, Market to fund your lifestyle 3.Marketing Plan To Get You Paid Your Worth 4.Raising your fees & Automation 5.Lab / Action Sequence 2

3. Choosing what to make Who’s choosing Where most agents are now = commodity, paid the same as others, no control, no freedom, broke, not leveraged, chasing to repeat that one big month With this four module process, we’ll show you where you can end up = Automatic leads, Steady income, Rejection free selling, Proven conversion system, Family can be proud of you and cheer you on

4. Why am I in Business ? You are not in business to be in business - You are in it to gain freedom in your life… Financially and freedom to do what you like with your time. The key is to create a business that supports your lifestyle. You owe it to yourself and family and clients to give the best service and provide powerful marketing to ensure you are compensated at the highest level

5. Brian Tracy Brian Tracy … wow – “95% of business owners earn less than $50k per year and worry about money most of the time.“ “More than 70% of business failure could have been prevented if the business owner had sought advice from experts”

6. Old school real estate versus the new way Choice A: Old-school agents with closed minds. Old school trainers with no new ideas. the real estate establishment-"there are no new ideas" Choice B: Entrepreneur, Thinks outside the box as a business owner, creative, viral and open to leading edge ideas

7. ‘Jack’ of All Trades Traditional Real estate it is a dysfunctional model because = how can an agent be great at marketing/sales/transaction coordination/websites/scripts etc. 06/01/09

8. Either I affect the transaction or not Affect it = how do I bring the most value to the market. Don't affect it = how can I do it cheaper? (Have a very short lifespan)

9. 2x, 3x, 4x… Income Are you choosing your income or is someone else? Do you believe you could be twice as effective if you knew exactly what to do and did it precisely right each time? 06/01/09

10. “Accidental Real Estate Agent” I am a commission salesperson … not first and foremost in customer service trying not to impact the sale like a title company …I cringe when agents believe they in the customer service game. Some old school dinosaur just popped a blood vessel and heard me say not to serve my customers … hear what you want. 06/01/09

11. Remember why you got into real estate Unlimited income… Financial freedom, be your own boss, and time freedom. Real estate sales is a broken system and since most agents struggle so bad at the beginning they have to give up their dream of having any of those just to survive.

12. Doing Anything to get a deal Those that do make it are so focused on doing anything to get a deal that they start to cut their fees and that becomes their new normal. It's time to go after your dream again you deserve it. 06/01/09

13. It's not about just trying harder. That's like asking someone with poor eyesight to remove the glasses and just try to see better. It doesn't work. Let me share an example… In college my buddy and I thought it would be cool to take a golf class. There wasn't much teaching going on. Before I would go play out hit a bucket of balls… I was all over the place… The more frustrated I got the harder I hit it… In the further off line and the ball went. So what did I do?

14. As a good real estate agent in training - I went and got a bigger bucket and hit it even harder… All that did was give me poor muscle memory, and made my game go from bad to worse. Many times we are taught to do this same thing… Not setting appointments? Just call more people! In fact call them until your jaw hurts and your ear bleeds. No wonder why so many agents resign themselves to mediocrity and give up on their dreams.

15. Things that used to work no longer do Why real estate is the most lucrative career in the world – We don’t have to buy the homes like in a normal store No matter what you want to do – someone else has done it … just seek them out and model. 06/01/09

16. RE Business Niche 70% of clients say they would buy with a realtor again but only 11% do-why? Look at the top of the Forbes richest people-most are business people who own their own business… Very few if any are salespeople who work for big corporations… Business owners make money 24 even when they sleep… Agents only make money when working. 06/01/09

17. Brian Tracy "most people start at minimum wage because that is what they are worth“ -80% of self-made millionaires started and built their own business… 10% joined those new businesses early… That 90%… 95% of business owners make less than $50,000 and worry about money most of the time” 06/01/09

18. Alternatives ? USA Today just reported that out of 100 people age sixty five, 95% of them could not write a check for $600 if needed. Most people working today are pegging their full retirement at about age 80! 06/01/09

19. Adversity or Opportunity From Napoleon Hill author of think and grow Rich, "in every adversity lies the seeds of equal or greater opportunity.“ Overall, Arizona lost more than one-tenth of its non-farm jobs – even more than Michigan. 06/01/09

20. Arizona Snapshot An estimated 275,000 Arizona jobs were lost in the recession. About one tenth of its jobs! It is the biggest job loss in Arizona history. The median home price fell to about $119,000, compared with a peak of $267,500 in September 2006. Foreclosures hit 49,808 in Phoenix in 2010.

21. Local Change An estimated 275,000 Arizona jobs were lost in the recession. About one tenth of its jobs! It is the biggest job loss in Arizona history. The median home price fell to about $119,000, compared with a peak of $267,500 in September 2006. Foreclosures hit 49,808 in Phoenix in 2010.

22. Arizona Pressure Estimated 40,000 to 60,000 empty houses on the market. About 30,000 AZ residents had bankruptcies finalized last year. Arizona now has the nation's second-worst poverty rate behind Mississippi – 21%. 06/01/09

23. Median Sale Price

33. New Economy The state also is seeing the population drop for the first time in at least 50 years. Arizona lost 45,000 people in 2010. We live in a new economy – whether your market crashes or not – the only way to insulate yourself and family is to choose your path

34. How did you decide to charge what you do now? What would you charge a buyer or seller if you are 100% sure it would close in the with zero risk to you? Then price this way! Why take all the risk? How much would you charge if you only accepted one client a year? One a month? One a week? There is some scarcity there

35. Built In or Not ? What if your commission wasn’t “built in” to the sale? What if your commission wasn't tied to the price? What would Buyers pay you? ….Sellers? What split would your team pay you?

36. Who’s Teaching Whom? I couldn't learn what was needed at the local Association… 10 sales with the local Association It doesn't take skill to cut your fee If price was the only reason anybody bought anything, we would need salespeople

37. IT’S NOT YOUR FAULT! The reason so many agents are struggling and failing has almost NOTHING to do with the agent. It has everything to do with how the entire REAL ESTATE PROFESSION has ‘set you up’ for failure.

38. Think about it: What classes did you take in real estate school to prepare you how to run a business? Where was the instructor who taught you precisely how to get new clients? Broker? Mentor?

39. Massive Profit Class ? How about teaching you the real way to run your business with a massive profit?

40. The Answer There wasn’t one. The state didn't care, and neither did your local board who just wanted your dues and send you on your way to survive, but not thrive... because if you did that would mean less agents and less money for them. 06/01/09

41. Sheeple You were sent out like a lone sheep in the real world business, which if you don’t have a road map, is filled with dead ends, wolves and predators waiting to take advantage of real estate agents who have no clue about positioning, marketing and/or advertising. If you’ve been ripped off by an “Ad Agency”, broker, coach, solution in a box or guru or anything like that…you know what I mean. It’s sad, and it happens all the time. I got bit many times and it is not fun. You know what I mean.

42. Bottom-line If you’ve struggled in the past… It’s NOT YOUR FAULT! And I’ll show you the road map you should’ve been given. PLUS, move you in the direction of finding your very own “Sweet Spot”, whatever yours may be. At least, you’ll have the tools, thought process, and systems all in one. This is the missing link.

43. Real estate agents are among the top 10 most stressful jobs. We handle the fourth most feared experience in a person's life-number 3 ='s death, number 2 = public speaking

44. Options Many real estate models – commission – hourly – unbundled – charge per item Small elephant in string example-it's the industry's fault When agents are new they discount because they have no value and then tricked into believing agents are commodities. Rarely does an agent really get to build the value muscle. Real estate was not designed for agents to have agents selling at a high level.

45. Agents get in for: Freedom of time, No Boss, Unlimited income potential History of real estate - how did we get to 6%? What does it say in govt. documents about 6%

46. Attorneys in Arizona charge anywhere from 25 – 50% depending on the type of case and it’s complexity. They get paid whether the client is innocent or. The same way you pay to see the doctor whether you are sick or not!

47. Sherman Anti-Trust Laws "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” Any attempt to price fix on any trade in the United States is illegal.

48. “Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court."

49. Any person involved in price fixing will be charged with a felony and fines. "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court." Every person that has sufficient control over a particular service shall be charged with a felony.

50. Who Set’s Commissions ? Commissions are set by….. No reason why the buyer can’t pay commissions. Cost will only be an issue in the absence of value.

51. A seller could go sell their own home – they are trading their money for someone else doing what they needed done … if we understand that … that we free up time and effort for them to not have to take on this second job … then we understand we bring value – just a matter of how much.

52. Target model and market to fund your lifestyle How mush money do you want to make (charge more, sell higher $ price points, sell more often, lower costs)

53. INCOME = White Board with CJ

54. Single Agent …or Business Owner Business or Hobby? Is real estate a hobby = sometime income You're a business owner = consistent predictable passive income

55. "if there were no limitations or consequences, what would your perfect average day look like?" What would your perfect life be like? Buyer? Seller?

56. Three Days with Michael Gerber – “No such thing as a successful small business” … lead or hire someone to lead and make your Team a business.

57. Dreaming Room As I was developing the positioning for profits system I spent three intensive days training with some of the top real estate agents in the world led by the best of the best-Michael Gerber who was dubbed by Inc. Magazine as the world's leading small business guru and author of the E- Myth.

58. Dreaming Room $10,000 For several days he heard our best ideas of how we plan to transform our businesses, and also the real estate industry as a whole. I shared my idea about systemizing agent production, automating the process am I plan to carry it out. After listening to all the agent at the conference, and evaluating them, he asked me to stand and gave out some kind words.

59. He said that out of all the agents there, and a great idea shared-that I had really hit on something. He was floored at how every agent he ever came across wanted to get out of the business and spend their time doing something other than real estate, loved my passion interrupt a bomb on me. He said it was the "most entrepreneurial idea he had heard" and asked everyone in the room to give me a standing ovation.

60. This is from someone who has heard every idea known to man and he said… "I got it. I understand. I see your vision. You're going to fill hotels and conference rooms in order to have enough room for all the people that are going to want to hear your message."

61. Micheal Gerber You owe it to yourself (any everyone else) to be profitable. “There is no such thing as a successful small business.”

62. Are you irrelevant, do you matter and if so how much? What is possible? You need to make a decision either you're going to do everything yourself or your best systemize it and have a business. Either a job or a business.

63. If you figured out how to build a great house … would you train and build a crew to do just one, or leverage and lower your costs on each one? Problem you face when it's a job is that as you get run down in any area of your life your ability to continue to prospect is reduced substantially massively affecting your real estate business in most cases putting you out of business altogether.

64. Prospecting or marketing or a combination of both-that is a choice you need to make leveraged business model makes for happier work environment and remove some of the uncertainty and pressure of having to daily prospect during the ups and downs of the market

65. Your prospect database is your asset… Continually building this gives you incredible power, confidence and ability to weather any changes in the market because there's always more fish in the sea

66. Fishing for a certain type of fish or just waiting for something to bump into your hook … selling by chance and having the market choose for you vs. you selecting and controlling your present and future 06/01/09

67. Target market and price point Most agents have been tricked into working backwards – because the advertisers know it's easier to sell us that way. They start off and want to “go get leads”... “EVERYONE should want to work with me since I have a big R pin...

68. Then they try to EXPAND THE BUSINESS after a sale or two... since they don't know where their next sale is coming from. Bad move. EVERYONE does NOT want your product or service. No matter how good you are – not everyone is a candidate to buy or sell with you.

69. We’re just after the people who are most targeted Who is the most successful Realtor you can find? Who are they selling to? How are they set up? Are they making the type of money I want to make and are they living the life I want to live? What can I do that they can't?

70. if you want to sell a lot of homes you need to see where the homes are selling and then go there and get it. The majority of agents who struggle you know the ones that actually do stuff-struggle because they keep marketing to people that don't have a want or need. All leads and targets are not the same.

71. It's all about the selection of your target market: Are the insanely or irrationally passionate Are they great in number Are the easy to reach Another who you want to hang out with

72. Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust. -Zig Ziglar

73. who is my audience: the people that are hungriest for my business are…

74. Dream of: fear: need: Google: follow: despise: pay good money for:

75. what would my audience love me for The results they are trying to get are: The obstacles they face are: The steps they would need to take are: The way my stuff will be different is:

76. what are your customers choices what problems are they being told they have: what solutions are they already being offered: what format are those solutions delivered in: how are they being sold/what's the sales flow: what benefits are they told they'll get: what other experts are being referenced: what bonuses are they being offered:

77. Target PFP Client wants "I simply want enough cheap leads coming to me that want to buy or sell without me chasing them, I could decide to take them or not… And have someone, or something convert them to WANT to work with me, get a big check with minimal effort, and without having to learn a bunch of new stuff … my wife and family would be happy and I'd be thrilled to have that lifestyle!!!"

78. Target Client: Name: Kevin male…41 years old… 5 foot 11… 25 pounds overweight… Realtor look… Wears polo shirts and tan khaki pants… Happy and optimistic, but frustrated getting real estate going.…Full-time realtor… Left the traditional workforce three years ago… Wants to make family proud… Has three girls… Marriage is struggling because of bills… Wife thinks he's an idiot for messing around with real estate, and spending his day on the computer… Loves real estate, but not sure it can work like he thought when he got in.… Doesn't want to go bankrupt… Bought investment home before… Mixed success as an investor… Has dabbled in the stock market trading… Struggling to keep the home he owns now… Lives in a city with about 275,000 people… Needs to make $4000 a month… Making about $2500 a month now… Expenses are rising… Almost out of credit… Bought real estate training programs in the past, but couldn't get enough traction… Has never hired a real estate coach before… Really wants to, and is tinkering with building a team or automating it but doesn't know the next step.… Believes there's an answer, but still looking for where to start, because he gets information overload with so many different promotions and real estate gurus.

79. Selling can be broken down into – selling / selling home / selling luxury home / selling home in gilbert / selling home with pool / selling golf course home / selling luxury golf course home

80. Pick what is already working the best – Remember to WELCOME COMPETITION. It’s a great sign that there is A LOT of success to be had there. The real trick to this ENTIRE PROCESS of making money in real estate - is targeting within the niche. WATCH DETAILS IN THE LAB

81. Marketing plan to get you paid what you’re worth In our court system – if everyone was either guilty or innocent off the bat and the outcome was already decided … there would be no need for a judge or prosecutors or defenders. Same in our world … if every home is going to sell at the same price and in the same manner – we are not needed and you need to find a new career … or if every buyer was going to buy the home with the click of a mouse – with or without you … you are not needed

82. Price Swing As you do more you can charge more. Are you paid only by time / by results or combination of both? Do not trade your for money. You need to be paid no matter what. At the top of the pyramid there are only a few ways to achieve ultimate success.

83. Unlimited Number of Reasons why someone may pay a premium You pay a premium for an experience. You pay a lot more For a hamburger at a game. You are paying for the environment, service and presentation.

84. Why don’t we get paid if we don’t sell the house? If someone had to pay an hourly fee for your services would they value your time? Why? If I was an employee in a sales company, and the guideline was that my company charged for a cup of coffee, how would I feel? What if they charged $ ?

85. What is the most I should be paid per hour? What is the most that anyone should be paid? Should everyone be paid the same in real estate? What is the most per hour I’ve ever been paid anywhere? How much money do I need to make to make a profit? Is there a reasonable amount of profit that it’s OK to make?

86. Things that are different and more expensive automatically create a desire for consumers to acquire How to get paid more or repackage/create your marketing plan Repackage into a different format Need to create a high perceived value What things affect price?

87. Add quantity purchased – buy multiple homes / double side / Revenue streams = Starbucks/added another season since most coffee drinkers don't buy as much in the summer when they added iced coffee Motel 6 in Vegas-what if every hotel or motel had to charge the same whether you're in Dubuque or Vegas whether you are highly desirable area or you have water fountains like the Bellagio.

88. Speed – Concorde airplane fast food

89. scarcity / demand hotels charge a different amount based on what conventions are in town based on demand-agent should based on how many current listings and how a client or handling as well based on the seasonal trends you can plan for it as well …

90. Convenience maybe you’ll go to their house to do the appointment Customer service-delivery like a restaurant Social proof –fame-endorsements

91. location maybe you got a great office location Yankees in New York City… The Marlins in an empty stadium in the middle of summer location of seats courtside versus nosebleeds

92. Namebrand Trump hotel – point is: what is your brand, what do people think of when they see your name your team’s name, what premium does he add to everything in his hotel just because his name- go through the hotel and find stuff with his name you must brand your listing and marketing plan and your team

93. physical condition Guarantees-warranties Individuality-you can choose the color

94. Coolness factor-Bragg ability – and how it makes you feel-emotions-memories it brings back timing = how much more do people pay for opening day baseball versus spring training versus the World Series Opening night of a big movie versus the dollar theater versus Blockbuster rental… Same movie

95. Feel goodness-environmental, green, helping the poor, feel good about yourself, feeling like you’re improving yourself in the future is brighter like buying a book

96. An ink pen/free/in the store / ink used for signature at memorabilia shop in Vegas –point is it’s not about the ink it’s about what emotions the purchaser feels and remembers and associates to the ink the paper the picture

97. There is no limit to what a market will pay for goods or services if they are properly presented in the right way to the right market and you deliver the right value

98. what it does and the problem it solves or fixes. $10 water versus the water faucet – scarcity, delivery, location, name brand Cost of McDonald’s at the casino versus Mesa versus the middle of the desert Phone in the hotel versus phone in a cruise ship vs free cell-service in my wife’s phone

99. Starbucks

100. Motel 6 vs Bellago – both have beds, both have bathrooms-one has a fountain that has dancing water-with the Bellagio didn’t market the dancing water or the atrium or the absolute coolness of it… Affect many agents that have incredible experience in one area real estate or another have done hundreds of deals say their clients hundreds of thousands if not millions of dollars and then marketing charge the same as a Motel 6

101. Or if the Bellagio didn’t market that they have Cirque du Soleil-that in itself is pretty wild they took something that was pretty beat up in hundreds of years old in the circus and said how can we charge ridiculous amount of money what would that need to look like and they did it

102. The bail bondsman gets calls during the day as to inquire how much his services are. However, things change once it gets to be 2AM. The bondsman starts receiving calls that say, “Get me the heck out of here!!!” He can set his price depending on his position.

103. Cost of eggs at a store versus a nice restaurant made an omelette show the cost of coffee beans at a grocery store-1 pound for about for five dollars-then show at Starbucks for for five dollars for a cup Show Supercuts for 15 bucks versus haircutting place at the Biltmore-not because the haircut is any different but because the feeling you get from the experience means something to you and therefore valuable.

104. Really cheap watch versus a Rolex = which one tells the time better Difference between a local circus, and Cirque du Soleil difference between Annie at a local junior high and on Broadway

105. DVP USP – DVP = is the reason people call not the reason people do business with you! Problem statement = “the reason that sucks is” = then find why something is a problem and solve it

106. “Why should I choose you as my agent versus any and all other choices, including doing nothing at all”

107. create a DVP is to address what customers don’t like · Dress well · Part time · No pressure · Lazy · Don’t earn their money Realtors make it confusing – need it simple

108. No marketing Just open doors Don’t hold open houses / only hold open houses No web marketing Don’t return calls fast

109. Aren’t knowledgeable about the area Generalist – (maybe specialize in working niche / athletes / golfers / certain size home) Don’t understand financing

110. Massive differences in marketing plans – being able to articulate value and differences / buyer sales plan and folder / seller sales plan and folder

111. Quote – DK “One hour of effective, hard, and precise thinking is worth a month of hard work” for every 1 min. of planning, you save 10 min of execution – here I am convinced for every 1 minute of planning and thought it will save you 1,000 minutes of execution! "When you follow the herd, it's almost impossible to position your product as being any more valuable than the norm." Frank Kern

112. Big idea – after you decide if you want to be a lone ranger or run a business … then you decide on the market … then you create and form your value and marketing plans to reach them - What type of marketing plan do you need to reach that? "little hinges swing big doors" – get the marketing plan right and you are more likely to prospect and market better etc

113. Big idea – after you decide if you want to be a lone ranger or run a business … then you decide on the market … then you create and form your value and marketing plans to reach them - What type of marketing plan do you need to reach that? "little hinges swing big doors" – get the marketing plan right and you are more likely to prospect and market better etc

114. Big idea number 2 = it's not about what you can deliver right now in your marketing plan … It's about what you could deliver if you received the start up money, full fees you are asking for. If they don't want to pay your fee you can drop items out removing your risk.(ie: home cleaner, stager, gardener, pool guy, painter, handyman etc)

115. Big companies do this with just in time production… Dell Computer wouldn't build your computer industry with this idea and great efficiency Make your product the star – it will make you the star List out the components of your business (listing plan/buyer plan)

116. search homes negotiate home market home what do you do differently than everyone else/why should you be pay more work with pool of investors = MLS

117. Go after the seller to pay the title policy which can be up to 1% of the price of the home as a value add Raising your fees & automation Raise commissions T&C fees Fear doing business with anyone without a fee.

118. Paid regardless of outcome Like taking a cab to a casino – losing $ and then asking the cab company for a refund or canceling cc charge since you didn’t like the outcome … flying to Florida for vacation – raining – asking for refund since it was not as fun as you thought – going to restaurant ordering – testing it – deciding you don’t like it and keep sending it back – why do we not get paid if buyer gets new rims and -

119. Can’t qulify or breaks up with boyfriend … seller decides to stay there after all after we market home for months and bring a willing buyer? There is a commitment from clients that comes with a fee. Type fees into your paperwork.

120. T & C Fees “Right here we have the $144 ‘transaction and compliance fee’ that is part of your closing costs.” Pre-type this fee. If you assign a specific fee people believe it has a reason. Drop Close: To start at a higher fee and work your way down.

121. Introducing the new fee should be simple and to the point. The simpler the better. You must give your fee a name to be successful and pitch it as extremely low pressure. “And here we have the $544 transaction and compliance fee which is part of your closing costs.”

122. You can use this fee as an incentive if you choose to do so. You must first have confidence in yourself and the fee to be able to negotiate. One thing you might say is, “If you would refer me 6 clients, I would take a hundred dollars off the closing fees.”

123. It’s great that this is not easy – if it were easy everyone would be doing it. Remember to close the sale at the appointment - 95% of all seminar sales take place at the event. Most everyone that says they will get involved later doesn’t!

124. Intro to VA’s Worked at gas station and had to manually reset the pump with a tricky allen wrench in order for the next person to pump gas – when it was busy it got crazy – had to run money inside all the time and run credit card inside as well – now you would make fun of that gas station

125. Implementation this week Level One - $144, 244,344 …$ 944 Transaction & Compliance Fee – Paid at closing - obviously only if it closes - no close - no fee Credit back if you don’t perform if needed to comfort client 125

126. Implementation this week Seller: “right here we have $144.00 ‘transaction and compliance fee’ that is part of your closing costs.” Simpler, the better Must give ‘your fee’ a name 126

127. Introduce the ‘drop close’ Credit it back at closing, if they’re not totally thrilled with the service they receive 127

128. What we’ve just Covered 1.Choosing what you make 2.Target Model, Market to fund your lifestyle 3.Marketing Plan To Get You Paid Your Worth 4.Raising your fees & Automation 5.Lab / Action Sequence 128