Oh Aimee, this couldn't be further from the truth. Having done this three times now, I can promise you that if all you have to sell is your "names" you aren't going to get much.

If you want to actually make money from your hard work in this business when you are done, you will need to change your mind on this topic, again, speaking from real life experience.

So, what is it they are buying? Because, if it's systems, they can get that from Mike Ferry or Craig Proctor or you (is that what you sell?). People buy built practices. Built practices, means clients!

You are not going to sell your business to somebody that doesn't already have their own pre-existing and successful business model (I'd hope not). To have that, they must already have their own systems in place or referral base.

I have one cousin who sold his law firm (the clients and their files), another cousin who bought two dental practices (the clients and their files). How the new people run a pre-existing business is their business. Hopefully, they won't run it into the ground.

Do you know of anyone that has ever sold their real estate practice for any significant amount of money?

Brian:

Can you please answer the question of what EXACTLY one buys when they purchase a pre-existing, highly-profitable real estate practice? Also, perhaps define the traits of the person to whom this practice would be sold?Only then, will I know how and why I need to change my thinking.

I don't have much time now, but I will summarize................

First, ask around and see if you can find one example in your market of an agent getting out of the business and selling it to another agent for any significant amount of money. I think you will be hard pressed.

We are not talking about selling a company, we are talking about selling a personal real estate business.

So many agents believe the asset in their business is their database and for many, that may very well be, if they want to be in this business for the rest of their lives and just "close it down" when they are done.

Let me ask you this question:

If you were buying my business which of these two items would be more important?

1. A client database of 3,000 names with absolutely no guarantee that ANY of these people will ever do business with me in the future. (This is what most agents think is the asset in their business)


2. A well documented strategy or set of strategies that are proven to produce X amount of dollars in "new business" over the past X amount of years and are not dependent upon your ability to "chat".

When it comes time to write a check for say, 1 million dollars for another agent's business, are you going to do it based on a list of names or are you going to do it based on well documented, proven results. Any person that is writing a check for a million dollars or more is smart enough to know that the chances of another agent's clients doing business or referring business to you in the future is slim and none. Most of those clients know 20 other Realtors. Any business that comes from past clients in a real estate business acquisition is just icing on the cake.

The only way to sell your real estate business for any significant amount of money is to provide the new buyer with documented strategies and, here is the key, guarantee they Will achieve at least a percentage of those results or you will refund their money.

There, that is the simplified version of how you make a lot of money when selling your business, right here on the free forum.

Almost forgot, You mentioned you can get systems from Ferry, Proctor or me.

First, I do not sell systems that can be duplicated by the masses such as the other two names mentioned above. I encourage our clients to use our ideas, but tweak them and make them proprietary to their own business which then becomes a salable asset in the future.

There are many great systems such as these, etc. out there that can provide "now" gratification if used properly

The problem with relying on Proctor, Ferry etc. is that again, you are not building salable assets. If you rely on say Proctor to build all of the lead generation systems in your business, is someone going to pay you a million dollars, when they can get the exact system for $800 or something?

Proprietary, proven and documented systems and strategies is what will enable you to:

1. Become a lead source and a referral agent in any market you choose to live when you don't feel like working hard anymore

2. Sell your business for a large profit.

Yeah, they made X amount of dollars over the past X years b/c they have CLIENTS. And, when you are gone and your former clients and their referrals call your office, and get the new guy on the line, the new guy better earn back that million dollars and turn your clients into his clients, because those calls are what he paid for.

How did they get those clients? Various prospecting and marketing activites and referrals from friends/family/and past clients. Just like everybody else. The purpose in purchasing a pre-existing business is to short cut the time to get those clients. If not, why bother. You can start just like everybody else, prospect your butt off, establish a system, off you go!

Any quick research on purchasing a pre-existing business will reveal that "exisiting clientele" "customer/client base" tops the list of reasons why to purchase a pre-existing business.

And, I never said that my success will by based solely on my ability to "chat." I really don't like the way you mince my words.

I personally think that having 3000 names of people with whom you've done business is an asset. Unless, of course, you pissed every single one of them off and they and their friends would never work with you again.

Any person that has a million dollars to write a check with, will have had their own systems in place. Otherwise, where'd the million dollars come from. And, I sincerely hope you wouldn't sell your business to an inexperienced agent/broker.

And, I think the reason you would be hard-pressed to find a real estate agent who sold their business for any significant amount of money, is b/c a smart person would invest the million dollars in themselves. It's a people business. You can't buy somebody else's personality. Systems, you can buy. Talent, you can hire. Referrals, priceless. If you can make them your own.

One reason, to buy a pre-existing real estate business, is perhaps, if transferable, to get the licensing agreement with the franschise.

You cannot guarantee anybody's success. You can show them how you did it, but they can do whatever they want.

Umm, Yes, you can and in fact I did, 3 times, and made millions of dollars myself and made millions of dollars for those who purchased the business.

Good luck to you Aimee.

I beg to differ. You can lead a horse to water, but it's up to them to drink. Far too many variables to honor a guarantee like that.

And, was a big-name franchise attached to these multi-million dollar real estate practices? An exclusive license for that area?

Frankly, I don't think you are being completely honest. Nobody would spend a million dollars for a "tweaked version" of somebody else's marketing system. They could do their own tweaking for a lot less.

"Good luck to you Brian." How fortunate to have profitted from the sales of documented tweaks. You managed to sell for millions what you offer to mere pedestrians for about $32/mo. Surely, it wasn't the attendant clients and/or license, and/or goodwill . . . .

Aimee,
You really need to open your mind a liitle more to the voice of experience. Brian has that experience and has done in practice what you are thinking about in theory.

Why is it brokers buy franchises? They do it because of name and the company already has systems in place so they do not need to reinvent the wheel.

Spending money on a proven in place marketing system with verifiable numbers on new and repeat business that is already producing and continues to fill the pipeline with new business. Buying domain names and websites that are already in place and are high ranking in the search engines. An in place customer follow-up system stocked with a large database that is already use to getting your mailings and e-mails.

How many deals do you think you would lose while you attempt to tweak your own system. How long is it gonna take to get your websites producing leads and get them placing high in the search engines?

Realtors for too long have not given serious thought to the concept of selling their business. Their business is far more than a list of names.

Ok, Aimee.

Paul!

That's exactly what I am saying. People are buying the franchise for the name/goodwill/systems! I am not arguing that.

I just want to know if Brian sold/transfered his franchise name and not merely his own system. Because, if it's not the franchise name, I believe it's the client base. You don't need to buy a random person's business to get the systems. As you said, you can get a license to a big name franchise and get their systems/name/goodwill. If you aren't buying the client base, you'd be purchasing a license agreement.

Way to avoid the assertion Brian. Did you have a franchise name attached to any of your three multi-million dollar real estate business sales?

I would answer your question, but I am done speaking with you on this forum and in any future correspondence.

Paul knows me as do most successful agents on this forum and in the industry and they know the answer to this question but because of the way you have chosen to speak to me, you will have to find out the answer on your own.

By the way, before you question someone's integrity you should get your facts straight, you haven't even sold one piece of real estate yet in your career and you want to argue about what it takes to sell a real estate business, give me a break.

Again, good luck to you Aimee, I am done responding to your nonsense.

Having been in this business long enough to know that being friendly and chatty is not going to make me successful, I would give Brian a million dollars if I had it! Aimee I don't want to start an argument with you but to benefit all who read this forum, I would not shut Brian up. He is giving you priceless information.