2022 R.E.N. Sales and Marketing Playbook

Hiring an ISA Hiring an inside sales professional to help you convert leads and generate new opportunities has quickly become a must, not a “should” in our industry. Though having an ISA can present challenges, it can also become an invaluable asset to your team. Ad Placement You should try and run your ads on as many sites as you possibly can. We like Wizehire.com because they understand the industry and have a streamlined process to get maximum exposure to your ad. Job Description When you're putting your job description together, you need to use powerful headlines and the right words to attract a quality hire's attention. We provide samples in the resource section. You never want to use the words “telemarketing” or “cold calling” in your ads. You're looking for someone who can do those things, but what you're really looking for is someone who is a true professional who builds relationships with prospects, has great follow-up until they are ready to buy or sell. Attracting the Right Talent You will want to use words and phrases in the headline to attract prospects and catch their attention. ● The Headline is the most important because it appears in the body of the search engine ● Make the job title compelling but still relevant. Example: Business Development Specialist, Inside Sales Representative, Phone Sales Representative. ● Avoid inaccurate titles, postings question in your titles, and keyword stuffing, including the salary in the title, Capitalization of words, Mentioning “No Experience Required ● Be very careful taking the path of least resistance and hiring someone who is referred to you. They have to have the right personality traits. Personality Traits People ask me what type of personality I want to find in a good inside salesperson, and though the DISC Profile comes into play, you don’t want to focus solely on that. Conventional wisdom will tell you that a high D and I personality is the best fit for an inside sales rep, but that is not always the case. Inside Sales is a repetitive job, so someone who has “S” personality traits can be a great fit for the job. Finding someone who has a good amount of D and I and S is a good starting point. However, finding the right hire is much more than that, and there are several factors to consider. ● Attitude, work ethic, and culture fit are more important than anything else, and you should 250

never compromise any one of the three. If you notice, I did not bring up experience. While experience can help if they already have a proven track record of prospecting in the industry, it is not usually beneficial to have someone with experience. It can help, but it can also hurt if they have bad habits. ● It’s also essential that they sound good on the phone. If their voice is too light, too raspy, or just not desirable to trust on the phone, it is very hard to succeed because that’s all the people have to go on. ● Computer skills are very important because they will be interacting with your CRM, sending text messages, maybe even email and direct to voicemail campaigns to support their prospecting efforts. The last thing you need is someone unwilling to learn technology to do their job. ● This hire could also be someone you could lean on to manage your database. People often take this for granted, but how well you manage your pipeline ( lead generation, number of appointments set, 30, 60, 90, and so on, can determine a huge profit swing. Until your team gets big and you have an outstanding team leader, you don’t ever want to take your eye off your database. It is your lifeblood. SDR vs. ISA vs. OSA Within the inside sales world, you also have three different position types that will determine their skill level and what commission level you will need to give them. It’s important to consider personality traits when making this decision. ● SDR - A Sales Development Representative An SDR is someone who primarily focuses on data clean-up and qualification. They take a lead from the top of the funnel and pre-qualify it based on pain, motivation, decision-maker status, timeframe, and mortgage commitment. If the lead is under six months, they may set an appointment, and with some luck, they will get some appointments and move them to the middle of the funnel for your agents to start working. ○ A common misconception when someone hires an ISA or hires an ISA firm is that every appointment they get will be a “qualified” appointment. Most likely, these are opportunities at best and will require more follow-up. Most leads from the point of contact need six contacts or more between the ISA and the agents before converting into a contract. The fortune is the follow-up. ○ Do not hire an ISA firm if you expect them to give you only appointments at the bottom of the funnel who are ready to work with you. Your follow-up has to be on point. ○ The most significant value this type of system will bring is sifting through the “unqualified leads” and leads that are not ready to buy or list soon. ○ Hiring an outside firm can be the right choice if you're just looking for lead nurtures. You could also consider overseas options if all they do is the basic qualification. Circle prospecting and basic lead nurturing are good for this position. ● Inbound Sales Associate This type of ISA primarily prospects on leads from inbound marketing or a 3rd party lead generation platform. They are usually less aggressive than an Outbound Sales Associate and don’t need to be as skilled. If you hire someone for this position, they need to be very good with follow-up because they will be working with many leads that need follow-up. 251

These people are usually easier to find, and someone with some “call center experience” could be good at this position. ● Outbound Sales Associate The OSA position is the most challenging position to fill because it requires a high level of talent and the rare ability to be aggressive enough to call cold prospects and set up quality appointments. This position would most likely be calling Geo Farming leads, FSBOs, and Expireds leads. It usually takes someone more seasoned and more aggressive than the other positions. Just like your listing agents have different personality traits than buyer agents, it is the same way with the ISA position. You could also have your ISA start with Internet leads and then, as they get better, transition them to FSBO and expired leads. Time Blocking If you have an ISA playing a “dual role,” be sure to time block them on what activity they should be doing. It is easy to take the path of least resistance and not call the harder leads. Follow Up Follow-up is everything. Compensation You do not want to try and be “cheap” with your ISA compensation. Remember, you are looking for highly motivated and talented people like a top agent, but who like being on the phone more than in person. On-target earnings need to be $55k-$65k if they are good and $70k+ if they are great. It’s best to check www.salary.com in your area to see what range your ISA compensation plan falls in. Some markets might be more; some might be less. ● It’s highly recommended not to pay for getting appointments. This incentive produces a higher volume of unqualified appointments and a lower conversion. ● The only two commission-based incentives that should be considered are presentations made and closed transactions. ● A draw against the commission is highly recommended. This means that they don’t take any commission until they cover the base draw you provide. We use a forgivable draw that can move up or down based on performance and starts over once a quarter for review. ● You can also just do a base plus commission of 5% with a bonus for a volume of closings. You build the bonus around your profit margins and splits. ● The agents taking the appointments should take 10% less commission per deal, creating a budget for you to develop your ISA compensation plan. ● Example: Average transaction is worth $6,000. ISA get’s paid 10% commission = $600. Let’s say I am paying a base of $2500 a month. The ISA would not make a commission until the $600 amounted to more than $2500. This ensures the ISAs compensation is in line with the needs of the business. You then could pay a bonus of, let’s say, $500 if they bring in a certain amount of closings per month that you know would be profitable for you. ● Or you could pay them $2500 a month plus 5% commission and a bonus, but you will be putting more money out front. ● Know your state and local laws for compensation, and be sure to check with the labor 252

board and NAR rules in your area. ● Each market is different, but you don’t want their base to go over 40% of their On-target earnings to keep them going after the commissions. ● You also don’t want to pay too much of a base because Inside salespeople are in high demand now, and the good ones won’t stay around if you don’t find the right balance between a base draw and commission. (See compensation plan examples in resource section) Managing Your ISAs productivity It’s important that your expectations and the expectations of your ISA are crystal clear and documented in the compensation plan. While ISA productivity depends on the types of leads they call, you should have monthly quotas that need to be met, with a more in-depth evaluation every three months. The following productivity metrics are based on an ISA working an 8 hour day calling a mix of different types of leads. ● Manual Dialing Quota 80 call minimum ● 20-30 conversations ● 2-3 appointments a day ● 50% show-up rate ● 30% appointment to contact rate ● That means in one month; the ISA should have had around 2,000 phone calls, 400 conversations, 40 appointments, 20 presentations, and six contracts a month. You may allow for a three-month ramp-up, but if they are not pacing out at those numbers, they will not be as productive as they should be. Again these are benchmarks, assuming the ISA is calling all different types of leads. ○ Good ISAs will generate 4-6 closings a month. ○ Great ISAs will generate 7-10 closings a month because they may have more appointments or better quality. ○ Power Dialer and predictive dialer should be much higher. ○ If anyone falls below the minimum number, it will be hard for you to be profitable with this and an ISA. ○ If the dials fall below 80 a day, then you have a work ethic problem and or tools problem. ○ If the conversations are below 20 a day on average, you have data problems with too many wrong numbers. ○ If you have less than 2-3 appointments a day on average, you have a skills gap, and the ISA is being blown off the phone and needs to work on the seven key steps to conversion that we teach. (See Conversation Scorecard) 253

○ If you or your agents are not getting six contracts per 20 appointments, you need to work on the seven steps of the sales presentation and closing process. ○ The nice thing is that the numbers don’t lie, and if you track the numbers based on this productivity outline, you have a clear path to scale your transaction count and be profitable. ○ You also have a clear path to hiring multiple ISAs down the road. Increase Conversion Rates There are critical factors that go into maximizing your ISA and Agents' productivity and conversion rates. As a team leader/owner, you need to pay very close attention to these factors continuously. The Handoff When your ISA sets the agent's appointment, detailed notes must be made about the pain and motivation and the best way to approach the lead on the follow-up call. ● The ISA should send a follow-up text with the agent copied in on the message. The agent should then send a quick video text back, putting a name with the face. ● The ISA should do their best to set up a zoom call with them and have them in front of a computer if an appointment is over the phone. Visually build more trust, and it will increase the conversion rate dramatically. ● A calendar invite should go out to the lead and the agent, which is saved in the calendar. Qualification of Leads - Your organization needs clear expectations of what a qualified lead is and hold your team to that standard. ● Qualifications include ○ Decision Makers ○ Pain/motivation ○ Time frame under three months ○ Price Point ( What they are looking to get for the home or if they are a buyer what they are looking to purchase ○ The area they are looking to purchase ○ Are they qualified for a Mortgage yet If these questions are not asked, it’s not an opportunity; it’s just a lead to nurture. If the lead is more than three months out, the ISA should keep the lead and nurture it. Some teams will let six months slip through to the agent, but it’s not recommended. Call Recording Calls should be recorded and analyzed for best practices and appointment quality. 254

Agent Rotation Be very careful to whom you give the appointments. It’s natural to give the appointments equally to all agents, but the more people in the rotation, the lower the conversion rate. You should limit the rotation to 2-3 agents involved in the follow-up process and are willing to do a daily huddle meeting about ways to improve lead conversion and follow. Communication with the ISA is huge. Office Equipment, Technology, and Tools Having the right setup and equipment makes a big difference in your ISAs' productivity. It may cost more upfront to give but is worth it over time. ● CRM and Marketing Automation - Ensure that you have technology that allows you to prospect, send text messages, launch automated follow campaigns, video text, voice recording, and direct-to-voicemail from one system. If your ISA has to log into other systems to work their leads, you will kill lead conversion and productivity. ● If your ISA has to log into another CRM or Dialer, make sure it communicates with your Core CRM and notes are shared. If not, productivity will go down. ● Make sure all of your leads flow into one CRM. All your data sources included your lead generation, needs to flow into your CRM Virtual vs. In-office Something that will often come up is should your ISA work from home or go into the office. The answer is not black and white, but we strongly recommend working in an office setting. Because the job takes a lot of mental toughness, they must be in an environment that promotes high energy and accountability and celebrates success. Training and Coaching If you are not training and coaching your ISA, someone else needs to. They need to have somebody to interact with and help them improve. When your budget allows, you will see productivity increase if they have some competition, so consider hiring more ISAs down the road. ● Every new hire needs a close review after two weeks to see if they fit your attitude, work ethic, and culture. Skill can and should improve over time if they are coachable, and if they don’t have the skill level and are not coachable, this position may not be for them. On the other hand, if they have problems with attitude and work ethic and don’t seem to fit in with your culture, consider letting them go sooner than later. ● A 3-month probationary period is common after the first month of training. If you keep them longer than a month, you should know clearly that it’s worth it. Otherwise, cut your losses before they get worse. ● Group Training should happen every day. ● One-on-one coaching using the 7-steps document should happen once a week. ● Every month should be a formal written review. ● Every quarter should consist of a deeper dive into all aspects of the numbers and identify if the position is working and if it’s not what the course of action should be. 255

● As a part of our Sales and Marketing Academy, we offer lead conversion group coaching. We prospect and role play live on different leads, and we cover advanced lead conversion strategies using video text messages and other forms of prospecting. We also go over closing skills that the top 1% of agents use to convert an appointment to a signed contract. Corrective Action using the Sandwich Method When you need to coach an ISA, you must break down three things: 1. What they are doing well. 2. What they need to work on, including clear action steps to improve. 3. Reassurance that they will do very well if they continue working on their process. Simple Rule - Build them up twice the amount of time you tear them down. Recognition, Competition, and Culture You must provide recognition at least monthly. We give basic recognition weekly. We go over monthly productivity. And identify 1st, 2nd, and 3rd place ISAs, quarterly, to provide plaques and gift cards. You can also run weekly and monthly competitions to keep it fun. Summary Having an ISA or ISAs on your team can be a huge asset to your business and dramatically increase your transactions. But, like anything, the success or failure of the model is in the details. We are confident that if you execute this model with even 80% accuracy, you will find the results you get to be very exciting. 256

Recruiting My partners and I have recruited hundreds of agents over the years and documented what works and what does not along the way. Whether you want to create a small team of dynamic agents or grow a large team, recruiting is essential to master in your business. Your Unique Value Proposition and Recruiting Targets ● One of the most common mistakes when recruiting is not building Unique Value Propositions (UVP) into your recruiting process. This could mean the difference between hitting your targets and attracting the right agents, and struggling to scale your business. With all the competition out there, you need to bring unique value. ● Within your unique value, it’s crucial to lead with a “production-driven” UVP. Traditional approaches put an enormous focus on commission splits, support, and culture. These are good, but you should focus on how your unique value will drive more productivity. Ensure all your recruiting and marketing materials speak the language of higher productivity. ● Use a consultative approach by helping prospects think about their goals, and break goals down with them in the recruiting process. Find pain and motivation through a question-based recruiting process, then develop a plan to help them reach their goals. Don’t explain how great you are; show them step-by-step how you can help increase their production. ● Write down all the things that add value to agents on your team and create a language that speaks to increase productivity. “You will sell real estate through our system…” “You will sell more real estate because of the technology we provide.” “You will close more sales because of our daily online productivity coaching.” “Our administrative staff will free up your time so you can focus on generating more business.” “ Our lead generation systems will help you build your pipeline and sell more real estate while you work and grow your SOI.” 257

If you don’t have value, commission negotiation always comes into play, but successful agents will be willing to pay the splits to get the support they need if you present the right value. Remember that commissions are only a concern if they are not the right fit or offer enough value. Targeting the right agents looks different for everyone because your goals may differ, and all agents have positives and negatives. New Agents - Need a lot of training but are also full of energy and excitement, bring a new dynamic to your team Low-Producing Agents - Can be negative and complain but are easier to recruit because they most likely don’t blame themselves for their lack of productivity but their broker or team. If you are doing volume with your recruiting, this profile can help, but it can come with a lot of hassle. They are not recommended if you are building a high-performance team. Good-Performing Agents - These agents are the ones you want; they have had some success but still are somewhat open if the right opportunity presents itself. Top-Performing Agents - Mega agents and top agents take a lot of work and relationship building but can considerably impact the organization because of publicity and other agents watching their move. When you are recruiting, it’s also important to factor in their D.I.S.C. Profile. 258

Most teams make the mistake of looking for the perfect D.I.S.C profile or putting too much weight on it. The truth is that the D.I.S.C profile should be there to help you understand how to better communicate with the person you are working with or trying to attract to your organization. Desire, attitude, and culture fit will always be intangible factors you should look for over finding the right profile. Profiles can help create a plan for the agent. Example: D-I type personality types might be more likely to prospect and see going after new business they don’t know as a fun challenge, and rejections are just par for the course. S-C type personality types might be better to focus on building their SOI, Networking, and developing a marketing system that will be hard for them to hit their goals in the short term, but it could greatly benefit them in the long term. The ultimate goal is to have a system and structure that supports both and attracts agents that can help you in all aspects of your business. You need drivers and agents that want to cultivate relationships. The Recruiting Scoreboard For Teams and Brokerages looking to scale big, recruiting cannot be a side focus but the number one focus in your business. Therefore, you must set specific goals, measure those goals, achievable goals, relevant and time-bound. It’s essential to track: ● Calls, contacts, appointments set, first appointments, second appointments, recruits, and referrals from other agents on the team. ● Create a recruiting dashboard/spreadsheet to track results. ● Time block your schedule to factor in recruiting as a priority, make the calls, and do the marketing activities needed to hit the goals. If you focus your attention on recruiting and do the activities from 9-12 every day, you will be shocked at how quickly you scale your team. Setting a goal to make 20-40 contacts a day is what you should shoot for. ● The “if you build it, they will come” most likely will leave you missing your targets. ● Attitude, activity, and skill will determine whether or not you hit your goals. Recruiting with Technology Using technology is an important part of the recruiting process. You should always maintain a well-organized database of potential recruits. You can use tools like Terradatum’s “BrokerMetrics” 259

to get the exact data you need to track their productivity and help recruit them to your organization. ★ Build levels of agents in your database that breaks your leads down by productivity. ○ 0-5 ○ 6-15 ○ 16-20 ○ 21-40 ○ 41 + ○ Top 50 Agents ★ Leverage all the same tools we recommend for your other marketing automation and tools to attract agents. Develop a strategy that helps you attract agents and build a sales and marketing calendar that enables you to follow through on those activities. Leverage email, text, video, social media, agent testimonials, and webinars to attract agents. See our suggested recruiting calendar and marketing frequency to support your efforts, located at www.ultimatelistingmachine.com. ★ Leverage A.I. and targeted marketing ads to recruit and build your brand alongside a social media publishing plan. ● 7-10 emoji likes and reactions, 7-10 post comments, 7-10 post shares, or personal messages. ★ Build a best-practices sales and marketing calendar to recruit extraordinary agents. Recruiting Sources ● EveryDay Business - When you are doing business with someone, and you thought they did a great job, use this as an opportunity to engage in a recruiting conversation. We provide sample recruiting scripts in the recruiting scripts section of this playbook. ● Local Industry Events - Joining the Realtor association is worth it because their events provide some of the best ways to network with other agents. ● Networking Events- Organizations like the Young Professionals Network (YPN) have evolved from Realtors Magazine. While most members of YPN are under 40, there is no age restriction. 260

● Broker Opens & Caravans, Vendor Affiliate events, Educational events, Real Estate Schools, and Career Fairs are great opportunities to recruit agents. ● Incentives - Agents on your team know other agents, and referrals can become a powerful way to recruit agents if you create an incentive plan. *The quickest and most effective way to build a team is prospecting and marketing to agents you want to attract into your business and use the other opportunities to supplement. Setting Recruiting Appointments As mentioned above, contacting the agent you're trying to recruit by phone is the single most powerful way to recruit and set appointments. The goal is not to convince them to work with you on the initial phone call but to pique interest and set up a time to have a discovery conversation. So please don’t get caught up pitching all the details on the first call. You will look desperate, and they will not absorb what you're saying. The same seven-step prospecting methodology applies to recruiting. You must: 1. Build Rapport 2. Qualify 3. Add Value 4. Create Doubt that they don’t have the best 5. Close the Appointment 6. Handle any objections that may come your way After the call, you can meet them in person or virtually. Some like to meet virtually first because it does not take as much time; you can meet in person if they are good prospects. Our organization has recruited several people without even meeting them in person. Remember: Base the conversation around production and how you are helping agents increase productivity. In the scripting section, you will see several options to approach the initial call. You also need to make sure you have the top objections memorized; after all, you will hear them repeatedly. Just like real estate, follow-up is everything. You will get the majority of your recruits over time and consistent follow-up. Play the long game, and you will build a dynamic business. 261

Conducting Recruiting Appointments ➔ Appointment location varies depending on the model you use. If you work virtually, Zoom or some other meeting technology will work. But if you are meeting in person, try to meet at your office, if you have one, because it gives you the home-field advantage. They can see your environment and build rapport better than meeting in a different place. ➔ Plan on meeting for 30-45 minutes. It may go longer if there is interest, but your presentation/recruiting process must be to the point and show your benefits. Spend most of your time asking questions and then using that information to build a case for why you can help them increase their productivity. The recruiting process can be broken down into stages: Ask questions to find out needs - Like how a doctor diagnoses a patient, you're looking for needs that you can fill. You're looking for motivation to make a change. It’s important not to rush through this part because you must design your whole recruiting presentation around their goals. It’s vital to let them do most of the talking, and you do most of the listening. Step 1 Get them talking about their past - try to capture their journey from job to job. Look for opportunities to build rapport with commonalities. (Questions to ask will be in the script section) (What did you do before? How long did you do it for? What did you like about doing that? etc.) Step 2 Finding Opportunity - As you transition into presenting your value, it’s first important to ask them how well their business is doing and a scale of 1-10. Then ask them what would make it a 10? Take notes while they tell you. Be sure to try and draw out more by saying ”what else” or “anything else”? You need to try and get as much as possible. Be sure to reply and say, “ok, got it. That makes sense.” Step 3 Future Benefits - In this stage, it’s important to make sure they have a clear picture of what it would be like to make those changes. It would affect their personal life, family, travel, kids' education, toys they want, and other ventures they want to get into. Example: “So what happens when you make $300,000 a year?” 262

Step 4 Future Pain - In this section, you want to ask them what happens if they don’t make the changes and don’t get their business to the 9-10 marks. Show them the power of increased productivity and how it will increase their income. Also, show them how lower income will affect their goals. When you find it appropriate, ask permission to suggest what could be done. This is the beginning of the coaching relationship. Step 5 The Solution - The key is to directly connect the agent's needs and what you have to offer. For example, if they need to work their database, explain how you can help them do that. If they need more leads, explain how you can help them do that. If they need coaching, tell them about your coaching. Ensure you always go back and increase their income and prevent them from missing out on what increased income can bring. Step 6 Taking Action At this point, you need to help them realize the cost of action vs. inaction and paint a clear picture of what it would be like to work with your team. Example: “So what is important to you, risking not hitting that 10-mark, or putting yourself in a position to hit the goals you described”? You want to get “yes” on important topics and move the conversation towards enrollment. Use the different closes listed in the section to start your closing cycle. The rule of thumb is to try and go through the process you presented early in this playbook three times. The best recruiters will get through as many cycles as it takes. Step 7 Overcoming Objections - We will talk about closing details in the coming section. In this step, it’s important to identify exactly what is holding them back, isolate each objection, and continuously go back to their pain and motivation. Eventually, you will get good at knowing what to say and how to say it. It takes practice, but it is well worth it in the long run. Recruiting takes time, but these seven steps will help you shorten your time frames and increase your closing rates. Build your slides and presentation around this psychology, and you will do exceptionally well. Then, run your process by other agents on the team to hear what they think. Setting the Follow Up 263

● You must leave the first meeting with an exact follow-up time. “I will call you next week” is not an appointment but more like a blow-off and is an indication there is not much interest. Look at the follow-up scripts to help you with the language. ● Understanding that you might not close on the first appointment or event on the 2nd or 3rd, creating a mentoring/coaching relationship is important because you want to be there when deciding to move. Most agents move 3-5 times in their career, so the odds are they will be moving sooner than later. ● Providing them with great coaching materials and even a step-by-step marketing plan will help them commit to working with you. Then, when they start seeing that you have a system in place, they will see you are the real deal and different from most. You can buy them a copy of this playbook and explain how they can get access to all the great coaching that goes along with it when they join. ● Other ways to add value are to invite them to review a behavior assessment and explain how their personality type should help them understand the best strategy to approach business. Tony Robbins offers a free DISC assessment they can take, and you can walk them through it. You can also invite them to attend the training sessions you and your coaching team run. ● The key is to try and provide customized value. The scripts and dialogs are built to help you have a proven track and conversational guild to recruit more agents faster. Closing Recruits ● There are numerous closing scripts in the scripts section. The important thing is to learn to say the right thing at the right time and to pay attention to “signals.” If they start using language like “when” vs. “if,” they move, you know you're getting closer, and it becomes more about timing. ● Remember, it’s very easy to say no to someone else's agenda, but it’s tough to say no to your own goals. Often people are not aware they have fallen into traps along the way that makes them less productive, and we have the chance to help them fix that. It’s very rewarding and can be mutually beneficial as you decide to work together. ● The key to closing is to continually bring them back to what they told you they know they should be doing and how you will help them do that. ○ Follow the three steps of closing: ■ Epiphany ■ Response ■ Close ● In the scripting section, we cover almost every scenario you will run into and give you the language to overcome objections along the way. 264

Creating a Growth Environment for Recruiting You must create an environment for growth within your culture and team. IC&Co has worked hard to create an environment that promotes growth. If agents don’t feel they are getting support, learning, and networking with other great agents along the way, it can dramatically hurt your churn rate. ● Develop a 90-Day Fast start game plan to keep them on track and great success stories. This will also help you ensure they are onboarding correctly by walking them through your game plan step by step. This playbook can help you do that. Summary ● Recruiting is the single most crucial activity if you’re trying to build a team or brokerage. ● Develop unique values and constantly focus your efforts on recruiting. ● Leverage technology and database management to follow and run marketing campaigns for recruits. Show off your success in your marketing of other agents' productivity. ● Use the recruiting marketing calendar and scripts to help you keep on track with the activities. ● Create a recruiting scoreboard and track key metrics. ● Follow the 7-Step recruiting process to maximize your results. ● Understand the objections and provide unique value along the way by plugging them into your events and providing materials that will benefit their business. ● Focus on the different personality types and adjust to them as you develop relationships. ● Make sure you're continually going back to their pain and motivation. ● Always be enrolling them and stay convicted about helping them get to a “10” from their starting point. ● Create a growth environment that makes it easy for them to learn. ● Use the SWOT analysis and the scripts to improve your process along the way. 265

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Implementing Effective Training & Coaching System HOW WE LEARN A SKILL: THE JOURNEY FROM NOVICE TO MASTER Dustin Grinnell said it best in his blog post for Eureka: A Dose of Science. Grinnell wrote: It’s decided, this is the year. You will learn to play an instrument. You’ve always wanted to be the one with the guitar around the campfire–jamming out Stairway to Heaven in front of a crowd of wide-eyed campers. Or maybe you’ve always liked the idea of playing the piano and occasionally visualized yourself as that rambunctious cowboy or “cowperson” banging away at the keys in a smoky saloon. Whatever skill you hope to develop, learning something new takes practice, practice, and, yes, more practice. And whether it’s learning to play the guitar, the piano, or how to manage people, there are four stages one must journey through in skill development. The final stage is “The Master,” someone who’s unconsciously competent. That is, their craft comes naturally to them. They don’t have to think about it. Snap. It just happens. The Novice But, as we all know (and wish were not true sometimes), mastering a craft doesn’t happen overnight. Look at “overnight successes,” for example. Upon closer examination, there are typically years worth of hard work, mistakes, and failures lurking behind the scenes of their so-called “overnight” success. Indeed, before learning any skill, we start incompentent in it. This is called The Novice stage.. Having never been exposed to something before, he or she is “unconsciously incompetent.” Essentially, they don’t know what they don’t know. It is a stage of ignorance. With little or no knowledge of the skill and the awareness of the requirements for mastery, if you’re here, you’re not aware of what you’re required to do, and you don’t know how to do it. As a teacher or a trainer, these students can be spotted immediately. They are enthusiastic and eager to learn. The Apprentice As you’re exposed to new concepts and skills, you start to realize your personal limitations. Sure, you’ve picked a few things up, but you’re still all thumbs. You’re committed, though, and you stick with it, and in doing so, progress into The Apprentice stage. At this point, you’re starting to admit your own incompetence and are becoming “consciously incompetent.” Maybe now you’ve got a little more respect for Slash’s guitar solo in November Rain. On the graph, you can see that your consciousness is 267

increasing while your competence is still low. And while you still don’t quite know what you’re doing, you at least know what you don’t know. An experienced mentor may see the student frustrated at this stage, though. The student may wonder if they will ever ‘get it.’ Directed learning is paramount here. And flexible training plans are a must. Share tips, tricks, and success stories, and make one-on-one encouragement and emotional support abundant. The Journeyman It is in the stage of The Journeyman where the real work begins. In this stage: ‘Practice (most definitely) makes perfect.’ This stage is all about perspiration–the physical and mental struggle on the road to mastery. The profound concentration and focus will cause mental and physical exhaustion. So while it is a time of great practice, it requires great patience. Also known as “good days and bad days,” a cyclical pattern of ‘failure’ and ‘success’ may emerge. But progress is being made. And you are beginning to see the fruits of your labor. On the graph, one can see that both consciousness and competency are rising. From a teacher’s perspective, it’s best if learning sessions are fun in this stage. Build variety into your practice schedules. The Master With any skill, technique, or craft, the ultimate goal is to achieve a point where you are “unconsciously competent.” A natural. One could say a “genius.” In essence: it is the stage of the Master. You can spot the ‘Masters’ right away. They pick up the guitar, and it’s automatic. And not only is it effortless, often there’s no thought to it at all. As seen on the graph, this person is both high in consciousness and competence. They get it. Ask this person to play blindfolded; they can. Dare them to play on one foot; they will. When you’ve reached this stage in skill development, you’re a bona fide virtuoso. But it takes time. And while some skills in academic or business contexts can take a few months, or weeks even, pure mastery of a complex skill can take much longer. 10,000 Hours How long does it take to become a master or a genius at something? In his book “Outliers: The Story of Success,” author Malcolm Gladwell cites work from expert researchers on this matter and shows that there’s a consistent number every time. According to these researchers, whether it's non-fiction writing or wakeboarding, you need to have practiced for 10,000 hours, or roughly ten years, to become a genius at something. Gladwell writes that every great composer practiced for at least ten years before they wrote their masterwork. And he shows that while Mozart was composing at eleven years old, his work wasn’t all that good at that age. He didn’t produce anything truly ‘masterful’ until he was about 23-years-old–approximately ten years after beginning. 268

In many ways, this law of 10,000 hours is appealing. It means ‘success’ isn’t necessarily genetic, socioeconomic, or generational. Also, it’s not necessarily where you came from or who you know. But quite simply how many hours you’ve logged in your craft. It’s reminiscent of the story of a woman who approached a famous violinist after he had performed one of his many magnificent concerts. Upon making her way to the violinist, the woman said, “Sir, I would give my life to play like you play.” The violinist replied, “Ma’am. I did.” Van Gogh’s and Emerson’s As we’re all aware, there’s a difference between theory and direct experience. Reading a book on engines and working underneath a car's hood in your uncle’s garage for a week are different experiences. That’s why apprenticeships exist today. In fact, Vincent Van Gogh apprenticed with an art dealer before he became an artist. Plato was Socrates’ student. And Ralph Waldo Emerson took Thoreau under his wing early on. It’s highly likely that if you’ve mastered something, you’ve spent time with someone who has already done so. The Road to Mastery So if you’re a Master, are you one for life? Unfortunately, the answer is no. Once you’ve reached mastery, you’ve got to keep practicing to stay sharp. Without regular practice, the slip from Master to Journeyman is all too easy. Teachers would be wise to prevent slippage by providing refreshers. Fundamentally, it’s important to remember that we all learn by doing. A famous quote by Confucius says, “I hear, and I forget. I see, and I remember. I do, and I understand.” Research supports it and shows that we retain in memory “10% of what we read, 20% of what we hear, 30% of what we see, 50% of what we hear and see, 70% of what we say, 90% of what we say and do.” Importance of Training One of my mentors, Chet Holmes, researched training and found that 10% of the population has what’s called a “learning mindset.” These are people who seek out and enjoy learning. The other 90 percent of the population will not look to improve their skills unless they have to as part of their job requirements. I think that’s a huge reason why a lot of professions have mandatory continuous education. Imagine if a doctor was not required to stay abreast of the medical advances over the years. So here is how I view sales training: Woodcutter A cuts wood all day. Woodcutter B keeps stopping and sitting down. At the end of the day, woodcutter B has three times more wood than woodcutter A. Woodcutter A asks: “How could this happen? You were resting all day! Woodcutter B says: I wasn’t resting. I was sharpening my saw.” 269

This principle will be incredibly important if agents are transitioning from primarily working referrals to working with leads they don’t know. The grim reality is that without great training, most real estate agents will never be able to convert leads at their maximum potential. Higher Standard of Regular Training The most effective real estate teams create an environment that fosters great training and talented agents' ability to improve their skills. When people have a clear understanding of what they are about to hear and see, they will be mentally prepared and focused on the training. It is important to create a training environment conducive to learning, so we try to make it fun. Our training methods include: Our goal is to help shorten the learning curve of our new recruits with this system. If they follow the sales and marketing playbook, take action, and plug into training, success will most likely come their way, their productivity will go up, and you will all benefit from it. 270

Developing the Leadership Skills to Lead Your Team Transformational Leadership What Is Transformational Leadership? MindTools® does an excellent job defining transformational leadership and what it takes to inspire others. Here’s their take: Leadership expert James McGregor Burns introduced the concept of transformational leadership in his 1978 book, \"Leadership.\" He defined transformational leadership as a process where \"leaders and their followers raise one another to higher levels of morality and motivation.\" 271

Bernard M. Bass later developed the concept of transformational leadership further. According to his 1985 book, \"Leadership and Performance Beyond Expectations,\" this kind of leader: ● Is a model of integrity and fairness. ● Sets clear goals. ● Has high expectations. ● Encourages others. ● Provides support and recognition. ● Stirs the emotions of people. ● Gets people to look beyond their self-interest. ● Inspires people to reach for the improbable. More than 25 years after Bass' book, transformational leadership is often argued to be one of the most important business leadership ideas. How to Become a Transformational Leader We've distilled Bass' ideas into a process that you can use to become a transformational leader. This involves you: Note: As you can see, our process doesn't map directly to Bass' list. However, it does translate the traits that he set out into clear and actionable steps. Use these steps, along with the tools we outline below, to develop your transformational leadership skills. 272

Step 1: Create an Inspiring Vision People need a compelling reason to follow your lead, and this is why you need to create and communicate an inspiring vision of the future. Your vision sets out your team or organization's purpose – why you all get up in the morning to do what you do. You develop this partly by understanding the values of the people you lead, partly by understanding your organization's capabilities and resources, and partly by conducting an intelligent analysis of your environment and selecting the best way forward within it. This is the business unit strategy, and developing a coherent strategy takes a lot of hard work and careful thought. If you're developing a vision for your organization, use Mullins' Seven Domains Model to analyze your environment. Then, use tools such as Lafley and Martin's Five-Step Strategy Model to develop your strategy. This is usually then expressed in a business plan and summarized in a mission statement. If you're developing a vision for your team, start with the company's mission and vision, and explore how your team can contribute directly to it. Step 2: Motivate People to Buy Into and Deliver the Vision Now, starting with your mission statement, you need to appeal to your people's values and inspire them with where you're going to lead them and why. Use business storytelling as part of your call to action: this will help people appreciate your vision's positive impact on the people you're trying to help. (Hint: if the only person you're trying to help is yourself, you won't inspire anyone.) Then, talk about your vision often. Link it to people's goals and tasks to give it context, and help people see how they can contribute. Transformational leaders also know that nothing significant happens unless they encourage their people. So, make sure that you know about the different kinds of motivation, and use these to inspire your people to deliver their best. Step 3: Manage Delivery of the Vision A vision is no use on its own: it needs to become a reality. However, many leaders make the mistake of developing a vision but not putting in the challenging and often mundane work of delivering it. To manage your vision's delivery, you'll need to combine effective project management with sensitive change management. This will help you deliver the changes you need with the full support of your people. Communicate each person's roles and responsibilities clearly, and connect these to your plans. Everyone should fully understand what they're responsible for and know how you will measure their success. Next, set clear, SMART goals for everyone, including 273

short-term goals that will help people achieve quick wins and stay motivated. Use management by objectives to link short-term achievement to your longer-term goals. You may need to build your self-discipline and stamina so that you don't let yourself down. Set a good example to your people – especially if they're affected by delays or difficulties – by being a model of hard work and persistence. Also, stay visible by practicing management by walking around. This is an ideal technique for transformational leaders because it helps them stay connected with daily activities and answer questions as they arise. Tip: Clear communication is essential to transformational leadership. Take time to make sure that your communications are heard and understood, and give clear, regular feedback so that your people know what you want. Step 4: Build Ever-Stronger, Trust-Based Relationships With Your People As a transformational leader, you need to focus your attention on your people and work hard to help them achieve their goals and dreams. Use Dunham and Pierce's Leadership Process Model as your starting point. This tool outlines how important your people are to your success as a leader. It also underlines the fact that leadership is a long-term process and that, as a leader, you need to work continuously to build relationships, earn trust, and help your people grow as individuals. Meet your people individually to understand their developmental needs and help them to meet their career goals. What do they want to achieve in their role? Where do they see themselves five years from now? How can you help them reach this goal? You can build trust with your people by being open and honest in your interactions. Use the Johari Window to disclose safe personal information about yourself and to get a better understanding of \"what makes your people tick.\" Lastly, set aside time to coach your people. When you help them find their own solutions, you not only create a skilled team, but you also strengthen their self-confidence and their trust in you. 274

Key Points Transformational leaders inspire great loyalty and trust in their followers. They have high expectations, and they inspire their people to reach their goals. You can become a transformational leader by following these steps: Keep in mind that, to succeed as a transformational leader, you'll need to work on your own skills and set aside time and space for personal development. 275

Using Business to Create Wealth — needs banner Most agents don’t think about creating wealth. Still, we want to encourage you to continually review your wealth creation blueprint and have a financial scorecard that you update at least once a year. If you have made it to this section, you have worked hard, and you now owe it to yourself to think about your future and what you're doing to create generational wealth, which means freedom and peace of mind. You should seek the advice of a financial advisor, and in no way are we suggesting that you should do any of this with their help. The truth is, none of us has 100% control over the future. Various unknown factors can come about, and it’s important to be prepared for them to protect wealth and grow your wealth over time. ● What if you could no longer work because of injury or disability? ● What if you get a lawsuit, putting all your hard-earned money in jeopardy? ● What if you go through a divorce? ● What would happen to your wealth and legacy when you pass away? Leaders take action and are proactive, and that is what this section is all about, setting yourself up to build your financial kingdom. This section gives you a step-by-step checklist on getting started and setting yourself up for success over the long haul. Transferring and Protecting Your Wealth Develop a Will - If you become incapacitated without a will, you want to make sure your assets are in the right place through a will. Otherwise, the authorities will distribute everything you own, which never plays out well. Setting up a Trust- People assume that a Trust is for the wealthiest 1% or something you set up for your children if you die while they’re young. But, a Trust can be beneficial for anyone; it’s important that whatever wealth we build, large or small, our family and loved ones benefit the most possible out of it. The benefits of a Trust range from tax shelters, asset protection, generational wealth creation, and more. There are several types of Trusts, so be sure to do your research and meet with a financial advisor and attorneys specializing in setting these up. Life Insurance - If you have insurance on your phone, car, or other things and not on your life, I 276

would consider fixing this problem right away regardless of your age. Whether term, permanent, variable, whole life, disability, long-term care, or homeowners, insurance can be a potent tool for wealth creation. Leaving a Legacy- My personal goal is to make as much as I can, save as much as I can, give as much as I can, and have as much fun as possible doing it. The giving part is a very important and meaningful part of your legacy. Leaving the right assets to charity is an important part of your wealth creation plan and, depending on how wealthy you become, helps you mitigate tax liabilities. Flipping Properties - This is a great way to keep your cash moving to create more cash flow for other investments. The key to having success in this is patients. If you find the right house and buy it right, it’s very hard to go wrong. If you don’t buy it right, calculate the necessary expenses and holding-cost, you can bet a bit hard. There are several training programs on this topic, but I have found that it’s a combination of things that matter. 1) Training, 2) Having a mentor you count on, 3) getting advice from several people before purchasing. This can be very beneficial if you have the right people, a great process, and the best tools. You also have an advantage with having access to the MLS; use it! Rental Properties - Don’t let being a landlord turn you off from considering investing in rental properties. You can do it and leverage 95% of your time through other people. Steady investing in additional properties over time will be generational wealth. Apartment complexes are something you should consider as a long term investment Stock - A well-balanced portfolio that a fiduciary manages can create impressive returns over time Alternative Investments. Consider investment options like gold, silver, or cryptocurrency. Like anything, you must act with knowledge and without emotion when investing. Starting another business - Starting another business is a powerful way to create wealth. Still, do it with caution; unless it complements what you're currently doing, it most likely will require your time, which means you’ll need a very good team to run your current business. Before opening up another business too soon, measure the time and opportunity cost and potential downsides. Cash Flow - Your business should generate cash flow that can get invested back into your business and other investments that can create wealth over time. Your goal should be to divide your income into four core financial “buckets” and commit to your budgets. Without this discipline, you can very much damage your ability to create wealth. You don’t want to just be a “broker at a higher level,” causing unnecessary stress when something happens in your life or your business. 277

Whether it be a change in the marketing, your team leaving you, needing to move, health issues, legal issues, the odds are likely you will have something that could affect you and your family. This budget plan will keep you accountable and in check as you start creating more and more cash flow. The key is to make sure that you are always living within or slightly below your means, regardless of your income, so you can make this plan work. That does not mean you can have nice cars, houses, boats, and go on amazing adventures, but it all needs to be done at the right time and within a budget. ● Spending - This is everything you need to operate your business and pay for your expenses, including vacations. You should budget everything one year in advance ● Saving - This is money that you don’t touch or is easily accessible in case of emergencies. Ensure you have access to at least 3-6 months of cash for unforeseen expenses. ● Investing - This is money you leverage to create more cash flow and is primarily passive outside of your business, the primary source of income. Your goal is to create as many income streams as possible over time. ● Giving - This is money you have set aside to invest back into your community. Keeping Track of Your Net worth We spend most of our lives working, yet most professionals don’t keep score with how well they are doing. Like other metrics, tracking your network is extremely important to keep you on track to achieving your long-term goal. 278

Additional Resources and Business Building Assets Our goal is to develop and share a comprehensive library of downloadable materials and tools to help build every aspect of your business. Since we continuously update the resources and this playbook, we decided to make the list digital. This way, we can share the latest versions more easily. To access the additional resources, go to www.. Resources and Master Classes by Topic 279

Conclusion Congratulations for making this far. Like we said in the beginning, mastery comes through repetition and putting yourself around like-minded people. In closing, as we went over in the beginning, success in anything is not about doing a thousand different things, it’s about doing a handful of things thousands of times to reach mastery. Most people don’t stick with it long enough to become a master at anything, or they go through the motions and never get better. I hope that you now see the value and power in the systems we create so that you can make life-changing choices to create systems to run your business. Goals are awesome, but systems are what determine whether you hit your goals, and how quickly you hit them, and how much energy you put out to hit the goals. That’s why you see great teams who have nowhere near the talent outshine their competition in sports and other organizations because they have better systems. The Sales and Marketing PlayBook has been engineered to be the “process” part of the system that you need to become a dynamic rainmaker and, more importantly, teach others to do the same thing. Systems don’t just stop with the process, though. You can have a great process, but if the people on your team are not a fit, then you will probably never reach the goal. Likewise, if you have the wrong tools (technology and marketing), it becomes very hard to reach your full potential. SYSTEMS = People, Process, and Tools. 280

I designed the Sales and Marketing Academy to be used in conjunction with this playbook and the 12-month Growth Plan. To be sure you’re following best practices when executing any of the tasks outlined in this playbook, just refer to the related module in the master class. Go to www.ultimatelistingmachine.com and click on the education tab to access the course. Your Listings Domination and Business Growth Checklist This is the ultimate checklist that we have learned and implemented to grow several multi-million dollar companies and what has been proven to help thousands of agents achieve their first or next 100 annual listing goals.This playbook gives you the strategies and tactics to execute against this checklist. 281