 People who have gone from employee to employer scaled and found critical mass. Is it at least the whitest real estate agent? When you work at a small company that makes a ton of money you get like the inside track on how anything is done. It depends on what you're trying to do, right? Like what's the goal? What are you? Are you mortgage? Are you real estate? What I try to do is help them understand reality which is we're trying to bring value. I'm trying to help you live a better quality life. I'm trying to give you a bigger nice or home with a better view. All I do is a weekly email on the same day the week forever for my entire day to pay. This is a good point about stories too because a lot of people think they can manipulate to having a larger real estate share. Do you think everybody sees your stuff? Nobody sees your stuff? What Josh is trying to say which is like can you succeed without the coach? And so now the new leads I got year one become warm leads but now I added new leads on top of that. So now I grew. Aspirational sense that I want to be this. I want to do this. Ladies and gentlemen make some noise for Ricky! We've added one additional person to the mix. Mr. Albert Presciato a man who needs no introductions but we'll give him one anyway. Host of million dollar coaching, 5k mastermind, driven event which is a national event in 2024 2025 rather is going to be in 13 cities across America. A dear friend of mine and then to Albert's left. Of course we're doing a second episode with Ricky Karuth which is just an amazing amazing real estate professional. A coach, a mentor to many and it sounds like a budding star in the EXP realty world. So appreciate you guys being here. Yeah man, absolutely. Thanks for doing this again. I think Albert should have Ricky on the driven stage. Should we negotiate that out? We should broker that out. Listen I don't think there's a speaking fee. I think he does it for him and it's vice versa. That's how isn't that how all your buddies do it? Patrick, but David and Grant Cardone and they're expensive. They're very expensive. So they charge you? Well the thing is that Patrick I hired him as a mentor. Okay. Like 10 years ago. Okay so now he does it for free. So he won't do it for free but he'll do it like for a lot less for me. I heard Ryan Pineda's free as long as you pay for his golf. He's got someone on his website that says golf with me. I don't know. I don't know Ryan Pineda. Well come with me in two weeks. We're gonna have lunch with Bradley and what we can do is we'll we'll stop by Ryan Pineda's office and we'll bring what he called Nerf Guns and we'll see if he wants to golf with us for free. But I think the reason why I wanted to have everyone here specifically is because you are at least in my opinion you have another nickname for yourself which is the Mexican George Clooney. No, no, no. That's a different one. The Mexican Prince of Bella. Yeah. In West Philadelphia. Nobody's gonna know what that is. We're so old. On a previous episode. I almost sung that on stage yesterday. I think people would have loved it because I think agents probably will identify. Because I was like how many of you guys are from LA born and raised? I was like you know I don't know how people know this but we got that in common. Like I'm from LA too. What? Yeah. So like I went through this whole thing and I was gonna sing the song a little bit. And I was like you guys don't believe me? Yeah. Right? I was like I got a picture. Boom. And the next slide was a picture of where I'm from, right? Lower Alabama. Oh dude. Okay. So Alabama meets Beverly Hills. Yeah. Beverly Hill Billy which is Ricky. There you go. Me, Beverly Hills. Absolutely. Let's go. The world's collide. The world's collide. So this is a guy and I can't wait. I think this is super funny. We're only gonna roll for a few minutes but I'm Jewish which means I don't like to spend money. I hate being wasteful. And I've built a career. Ricky was asking me like. So that's a thing. That's like that's a deal. Yeah. No that's real. Yeah absolutely. We're not cheap but there's a reason why. There's truth to every. What would you call that? Stereotype. Yeah thanks. Dynamite drop-in. Truth to every stereotype. So we haven't spoken but I founded Cardiff which is the nation's largest privately held commercial finance company. So in my 20 years our company has funded $8 billion worth of business loans. Large company. But I'm no longer involved in the day to day of the business and I have a podcast. And so this is kind of like therapy for me but it's also philanthropy because the mission of the Stern talk is to meet people who have gone from employee to employer scaled and found critical mass and that's really the interest that I have. I want to go all around the nation not necessarily the world because I don't like long flights. Very Larry David-ish if you watch Curb Your Enthusiasm we all turn into the same older Jews. I don't even like flying to Hawaii. You were telling me you flew with Tamawi with Bradley last year on a private jet. I'll fly United. It's cool when you have friends like that because it's not that expensive. Yeah. Because you just split it. Sure. He's taking his family. 60 grand a piece. And it's not that bad. Have you been on a private jet? Ricky. I haven't. Damn. Once or twice. But you just like the safety not of the 737 Max. It's not really a safe plane especially for sitting. I don't know. I mean like if you have two pilots I mean I think the stats are like it's safer than driving. Yeah. No I'm actually what I'm talking about is a private jet like a G550 or whatever it's called. Yeah. Versus a Boeing 747. I'd rather be on a 747. Wouldn't you? You just feel like you just because the size you just like if it crashes there's a lot of Dude 400 people are going to die. But you know what I mean? But like a lot of small planes. Yeah. But the Gulfstream is not like that small. Yeah. Well in any event. Another time another place. But again Beverly Hills meets Beverly Hillbillies. But both are real estate gurus. Both are real estate gurus. Both have been in real estate sounds like for the last 20 years. And both have built scale. Right. Well me I was a mortgage guy. Okay. And then my wife she was a real estate agent. Is it always the wife is a real estate agent? So she wanted to start a real estate brokerage so that's when we started our real estate brokerage. Ambience Realty. Okay. And then from there on we started getting more agents and then we started growing and then we opened the escrow company. But I was never really a realtor. Like I didn't like real estate because I didn't like open houses and I didn't like real estate marketing science and I was more of a numbers game. Numbers guy so I like working with realtors to provide the mortgages but I didn't like the real estate activities. My wife did. Really. As a man I feel like the transactional approach to real estate would irk me and would get on my nerves and I'd run out of patience. You could do open houses cold calling. I don't think so. You know I built I don't know who Fisher Investments is but one of the largest high net worth private client asset managers in the world. They managed like half a trillion dollars and it's owned by one guy. So I worked in the Bay Area for him right did very well. But when you work at a small company that makes a ton of money you get like the inside track on how everything is done. Does that make sense? And it's sort of a breeding ground for entrepreneurs. He was a big junkmailer. And I know in the real estate game junkmailer meaning direct mail. Yeah. Yeah. Yeah. If you're in the if you're in a business that's this was when 90s dude. Do I look at that fucking old? He just said the 90s. I mean 2004. Yeah. Early 2000s. I mean yeah. Early 2000s is when I worked there. I mean social media hit mid 2000s you know and really what didn't iPhone was 08. Right. Yeah. Yeah. So I mean you know. Yeah. Well that's where I got my background. Right. And this is not about me but I'm just saying like sales if you own a sales and marketing firm direct mail but insiders would call it junk mail. Right. Third class postage. Right. Is a big component. Right. Of the sales strategy. Is it still today. Mm hmm. Yeah. Yeah. You just have to be super strategic. Okay. Like Albert said you're sending out mailers. No. Almost all social media. Right. And is it similar for you Ricky because the idea is double dragons were going head to head. It depends on what you're trying to do. Right. Like what's the goal. What are you are you mortgage. Are you real estate. You know what what role are you playing and how about you specific to your example. Of what. Like for an agent. No. I mean you know like like me I'm on social. Yeah. Like I just do social like for my businesses. Yeah. Right. But but like when I'm talking to agents like agents you know I mean you can do a handwritten letter handwrite the envelope handwrite the return address. Right. They are going to open that and you've got their attention and that will make the phone ring. But you're going to get it you know two tenths of one percent as a response. No we have a good five to ten percent callback rate. Yeah. So I'm sending out I'm sending out a hundred letters I'm going to get five to ten people today. And how do I do that. Well say I have a twenty I could do this with anything luxury anything commercial whatever it is I'm going to I'm going to look at the listing and I'm going to pull up all the owners that own a lesser home around it. Right. Right. It's a five bedroom. Right. I'm calling all the three and four saying hey I see you've got a three do you need a four bed do you need a five bedroom. I've got a really nice one I'd love to show you. Now I'm not calling to take something the perception is is agents think that they're calling to convince somebody to do something and that's why they're scared to make calls because they're programmed and brainwashed with the nineteen eighty scripts that are still around when what I what I try to do is help them understand reality which is we're trying to bring value. I'm trying to help you live a better quality of life. I'm trying to give you a bigger nicer home with a better view. Are you are you thinking about doing that and now these are the most prime prospects because they're going to buy that and they're going to sell this now I just did two deals with one one motion because you sound like you want to help them. It doesn't sound like it it's what I'm it's what I'm doing. You know I'm not trying to sound like it. I am trying to help them live old scripts are more like do you want to sell do you want to sell not how can I help you exactly. So I built my entire business on just calling property owners and saying a house sold in your area call to see if there's something I could do to help now in 2014 1516 that worked great right because everybody's thinking about moving and their mortgage rates were the same as when they bought their house. Now everybody's sitting on four percent mortgage rates. Nobody wants to sell even if they wanted to they really can't because mortgage rates are seven and they're sitting on four. So that that whole what can I do to help you thing doesn't work like it did when I was coming up. You've got a call with intentions now right situations and urgency around either I've got a buyer for your place and actually have one or I have a really nice house if you're thinking about upgrading or I have this really great investment property that's cash flowing. You've got a call with something that you're offering some value of value now. Now Ricky. So you are the one getting the business. Do you have a team? You have a lot. I don't do. I'm out of production. I did it for 20 years. I was a number one team. I was a number one Remax agent in Alabama for a long time. Yeah. Yeah. I was number one in my MLS for a long time just single agent. No team. I was the listing agent buyer agent everything. And then when I stepped out my dad handles the day to day and it's just him and the assistant. He just does the day to day. I'm I do way better coaching, speaking, writing, you know, producing content. And you have a you have a large downline there with the XP. I do. I do. I'm at 850 agents. How much does that more or less like bring in a month? Like 50 60 K 50 60 K. Yeah. And that's passive, right? Totally passive. No expenses, no liability, no nothing. And I can take it to 5,000 10,000 agents. It doesn't. I mean the more speaking gigs it doesn't matter. I don't talk about exp on social. I don't do anything to build exp. Interesting. Everything is focused around Ricky and building my personal brand, right? And the coaching business. How long did it take you to get to 800 agents? Well, I got to a thousand actually by about two years. So it was about two years. I got to a thousand and then when the market shifted, you know, I got my ass kicked. Yeah. And it went down to about a about 250. But you don't change your lifestyle based on that cash flow, do you? Absolutely not. I don't change my life. I haven't changed my life. I mean you could give me $10 million. He's like a Jewish guy. My lifestyle wouldn't change at all. You probably make way more money coaching than speaking though, right? Yeah, I do. But it all plays together. Yeah. Right? It all plays together and it all plays apart and all boats are rowing in the same direction now. Yeah, I was a free coach. Totally free for seven years. It's a good story. Yeah. And I realized agents, the ones that are struggling, right? Yeah. And so I was like, well, let me go free and actually build a brand. Yeah. And then I'll build some businesses around that. Did it for seven years in December. I finally switched to paid and it's blown up. I mean, I switched to just free to $100 a month. Yeah. I already have 600 agents in just two months doing that. Yeah. And it's just two months in. I've just built such a big brand. And these 800 agents just to keep it simple, how many of those agents close? Is it close a deal a month? Let's say, do you think it's a 200-ish? Yeah. 200-ish. Yeah. Depending on the month, 200-ish. Yeah. And then obviously it's like sometimes it's higher than other months. They'll close more, you'll make more. Or is that the average time? Yeah, no, no. It actually goes because like I've got agents all over the country and in other countries. And so it actually kind of, it's pretty correlated to the national seasonality every year nationally. Right, yeah. And then closing starts picking up mid-February because of the pending's close. And so it kind of dips ebbs and flows with those national numbers. And every market is local and is different from the national, you know, data. But because I have agents all over the country, other countries and stuff, it's very correlated. So like, you know, December, January, February are kind of lower months than March, April, May, June. So you get more, bigger states because they have bigger deals? Never really broke it down to states. But the thing is, is you're capped. You make like, if they cap, which is 80,000 gross, they've paid the company 16, you don't make any more off them till the next year when the cap resets. You make out of that 16. So you don't make money on every deal. You make money until they get through capping. So you're capped too, basically. What? Your income is capped off of their cap. No, because I can bring on as many agents as I can. Yes. It's capped on them for the year. You have to keep bringing in new agents so that you always never run out of the cap. Can you make money on their down line? Yes. No, not. That's interesting. See, that's the thing. I've brought in 122. It's turned into 850. I like that. I like that. The others brought more. Well, and I helped them. Right, I helped them bring them in. You make less on the ones they bring in? No. I make more on the ones that the ones I bring in bring in. I make the most on the bottom, which is the 7th. So, you know, 7th level, that's a lot. I mean, after the 2nd or 3rd level, you don't even know who they are. Like, when you pull up my thing, I'm back office, there's deals. I have no idea who the agents are. Do you have their contact info? Yeah, have it all right there. Can you leverage that info to send them a cold email saying like, I'm Ricky. Who? They already know who Ricky is. Like, I send them emails constantly. I send my entire organization emails about my coaching calls. Like, I do all that. Do you have your 800 people under your coaching? Also, you coach them? Yeah, everybody in my organization has access to me 24-7. Is that free? It's free. That's the benefit. So, it really played into what I was doing because I was coaching for free. And then, I was like, I'm going to do my own brokerage. I was like, wait a minute, I can still have the capability of them. And now, I can expand in here want to for free all over the world. And I'm going to have equity. Okay, sign me up for this. And so, it played well because I was already coaching for free so I was already in that mode. So now, I can even use this to extend the free coaching even more. I'm more of a one-on-one basis versus before it was more of a group coaching. With this, I can actually coach them one-on-one for free, which I still do coaching to the general public of agents. When they join the brokerage, it's free. And they get one-on-one, which nobody gets one-on-one. I don't even do one-on-one. You can't even pay me to do one-on-one. I'm not going to do one-on-ones until I'm like, it's 100,000 for a session, which I'm not there yet. I tried to tell you last week and he was like, I don't know. And then, luckily you were about EXP, how it worked, but you broke it down for him pretty well. Listen, it's a polarizing part of the company that throw up EXP on people. You know, like, oh, you got to join. You got to look at this and whatever, and people kind of get irked by it or whatever. And so there's this polar, it's polarizing. You have to love it because you realize what it is or you hate it because either you're a broker donor and you're losing agents to them or you're an agent who's been approaching a million times and it just seems sleazy or whatever. Real quick, I don't want to interrupt, but help me to understand because we didn't talk about it. You know, backed by Softbank. What's the difference between Compass which seems like you can't like build an organization there unless it's like a traditional team. Okay. So it's like a remax. Yeah. Okay. Got it. Because it was hot for a moment in my area specifically in Southern California. Compass was taking over. They were buying agents. Yeah. They were paying for them. That's so interesting. I mean, it was, you would see a deluge of direct mail, their brand, and build their company. And now it's like how they're going to dig out of it. But I don't know that they actually built the company to be a profitable company or just something to drive investors to invest in to raise money. You know, Is Compass publicly traded? Oh, interesting. Yeah. It is. Okay. Well, what about that other company real? Have you heard about them? Oh, yeah. All about them. Are they very, it seems like they copied EXP and made it a little bit too, but they really screwed it up. They never hit you up? Like, did Ricky come join us? No. No. But they have, I mean, other agents and they'll offer these big stock incentives and stuff, but like They're public as well? Yeah. So These are like small cap stocks I've never heard of, right? These are like a billion dollar. Definitely real. It's the new thing. I mean, EXP's on the S&P 600, they copied them. So they basically said, hey, we're going to go in here and do a lower cap. 16 to the EXP. We'll do 12 here. And so they're like, oh, that'll be more attractive for agents. That's a lower cap. They're going to say 4,000 a year. But the rev share that you pay the agents that built the organizations comes out of the cap. Can you explain that to me? So like, when I go out and bring agents into the company, I'm making a cut off of their cap. Right. Over the 16,000. Right. So if you lower the cap, what does that lower? I see. It makes your down line lower as well. Yeah. I make a lot less on my down line. Yeah. Understand. It's 25% less. So with the EXP, it's 7 levels deep. With real, it's 5 levels. So you lose 2 levels. Now those bottom levels eventually will be your largest 2 by far. Right. We're talking about hundreds of thousands a month that you're losing not having those 2 if you build a massive organization. But even on the 5, right? The way that they have it set up. There's a lot of differences in the day. They admit it's where you can have 2 sponsors. I like that. Like, well, there's... I'd like to go to an event hear Ricky speak and be like, fuck it. I want that guy. I want that guy. We have to do it in the beginning. You can't choose it later. No, that's what I'm saying. That's fine. But for the sponsors, like now I'm getting half. So when you're building an organization, it kind of dilutes it. Right. So it's not good. It's good for you. Yeah. But it's not good for me as running the organization. Right? So it was already diluted from the cap being lower. Now you're diluting it even more by giving agents an option to choose to just give me half. I can see it from both sides. Right? Yeah. But anyway, we have to go on and on and on about it. And then the cap resets, right? Every 12 months? Every year, yeah. Because how many... What's the percentage of the realtors that actually hit the cap? Because to hit 16,000... You have to have 80,000 euros. Yeah. Yeah. Is that hard? In California, you sell one home. The average realtor makes that much. You're asking me? 50K. $300,000 a year maybe? 50K. Nationally, the average is like 50K. 52K. I would kill myself. I think in certain states, it's up to like... I think 90,000 is the biggest state. Yeah. Like average agent makes like 90K. Yeah. So go back to being a cocktail. So the top producers are going to hit the cap. But like most agents are going to hit the cap. Yeah. I mean like here's the thing with brokerages and owning these nationwide brokers and stuff. You can't just go get... You can't have like this massive company with tens of thousands of agents. With no money either. And have just top producers. Yeah. Like your model has to fit around being profitable around the average of the agents. Right? You know what I mean? It's just like when you figure out what you're going to do with the organization. Like it's got to be an average of the highest producers and the non-producers all figured in there. Right? And now you're working on the averages of law numbers versus, oh I'm just going to build a team of 100 agents who all do 200,000 a year. Does anyone ever try to like build an organization just like I'm only going to let you in my organization if you're a super agent? They don't have to because it doesn't call some dime to bring anybody into their organization. There's zero expenses. We're going to bring them in and we're going to try to help them become a superstar. Now 90% of agents fail. You know why is that? Well because not everybody has what it takes to actually go out there and do it. I can't make them do it. I can't do it for them. I can give them the blueprint. I can tell them exactly how to go make a million bucks a year because I did it. And I've helped a lot of agents do it. I can show them how to do it and it's real simple. I could explain it in five minutes. I want to hear. I mean it we've already talked about the whole premise is this. The whole thing is is talking to people in the market about what they want to do, why they want to do it and helping them do it. Now they don't want to do anything. Okay, great. I'd love to work with you later when you do. Is that okay to stay in touch? Cool, what's a good email? Now all I do is a weekly email on the same day of the week forever for my entire database. What day do you send it out? Wednesday. Why Wednesday? No reason. It doesn't matter because it's not the beginning and it's not the end. I don't know why I put Wednesday but it's like in the beginning of the week they're coming back from the weekend trying to get their thing going. At the end of the week they're excited about the weekend. In the middle it seems like that would be a good day. So that's why we have our trainings here Wednesdays because Monday is people are getting better from the weekend. Slow to move. Some of them are hungover. Yeah. I think basically the premise of it is when you're a new agent year one your whole business is the leads you met that year because you don't have any past stuff going on this is your first year. Sure. You do the weekly email now those new leads from year one become warm leads year two. They remember who you are. Now what is what would you say is the best way to stay relevant with people in your database? They have to see like constantly. How though? What's the platform? How do you what action does an agent take to make sure that they stay relevant with everyone they ever talk to forever? Social media? I'm asking the Beverly Hills. Well what I have my agents do is they go live. They go live on their social media and they do it. I'm going to change your life. Are you ready for this? I'm going to change your life. Like social media what's the organic reach on social media? Well you're limited by impressions. No, I'm just wondering like what is the organic reach of social media? Like the the amount of your followers that let's just say Instagram whatever 1% 2% 1% 2% Now social media can you take the people that you've talked to put them into CRM No, no we're talking about social media. You say you go live and that's how you make sure you're relevant with everyone. When you do 1% of people see it. So can you put your database into one of those people see you and you stay relevant with them forever on social media. How the fuck do you do that? Can't. That's its point. You can't. Listen if social media has a 1% organic reach let's say it's 5 or 10 right? Email has 90. 90% of the people in your database so when people come into your social media ecosystem right? And you guys know this because you do it you'll follow someone because you like the video they did so you'll see you'll see them for like a week or two but you didn't really engage with their content so then what happens? You stop seeing their content if somebody's not engaging with the content the feed's only this big I totally get it so the algorithm's gonna show you what you do engage with so now you've slowly forgotten about this person that you followed three weeks before This is a good point about stories too because a lot of people think they can manipulate to having a larger impression share by posting to them Here's the trap that agents run into really all business people they think that social media is the place where they stay relevant forever to people there's a core group of your followers that engage with you that do see your stuff probably forever but then there's this there's a bigger group of your following that doesn't see your stuff and you don't even know what you're posting you think everybody sees your stuff nobody sees your stuff and so the whole point is when somebody follows you you gotta get their data right then their email because now when you get that now you don't see emails when you go on your phone and look at social media what's the physical emotion that you do swipe yeah right when you check your email on your phone what's the physical emotion that you do same thing so what is it it's the same thing email is social media you're looking through a feed to see if something stands out to engage with it's the same thing the only difference is you own it and now 90% of those people are gonna see you every Wednesday no matter if they engage or not what email automation software do you use I don't use automation what no I write the emails I told you that no no no automation attention because one thing that helps automation is you create like a free I don't know if you've done this but you create a free I'm so confused you create a free webinar a free webinar for like coaching for emails or cell phones or names and then what I what I add is what is the top-line revenue because then then if somebody makes $10,000 they're probably not gonna buy a house they're not gonna buy a course I could care less what I'm putting every single person I've ever communicated with in this database to get my stuff and I still do that but when you have the top-line revenue now you know who actually is a qualified and then they and then right there is you trap him then you could email blast text blast don't use that word trap how often do you send emails out every day oh wow that's good every day to your whole database yeah what is it sometimes like two times or three times a day so these are potential clients that could buy or sell or coaching clients or yes but the thing is that for real estate or for mortgage we have escrow so there's different products and the driven event yeah the driven event it depends on the email campaign or whatever the campaign is but yeah there's just a lot of products that we offer it sounds like there's congruency between what you guys do well listen here's the thing you're getting into coaching and all this stuff like I do coaching like for my coaching agents I do emails every single day as well I'm talking about right so that's two different things I do emails every single day to my real estate agents I think you guys are in agreement he's talking about like different campaigns working at different times different cadences but I'm just trying to understand software wise like what software do you use to send I use constant contact to send out my email wow okay okay interesting which one do we use that's not an enterprise level software no it's not it's an email we use clavio yeah clavio is a new one attentive is another I don't even know which one we use these are like large enterprise level but still affordable mail chimps in the same boat as constant contact it is it's like the sherry's berries of email platforms yep but if it works it works if it works all I'm trying to do is send out an email there's nothing else I'm trying to do you don't have like you don't also fold in SMS marketing or anything like that in the United States I do it for my coaching business yeah right SMS is I mean you're talking about like you can only monetize eyeballs like 1% of your social following but with SMS because I never open my emails I don't read emails so like what's the percentage of emails being open versus text messages a lot higher a lot higher and this is why I push like when I speak to entrepreneurs about their business the first thing I ask them is do you have an app I think you know there's you're speaking very eloquently about a reality that most agents just aren't aware of they're like well I'll go on social media I'll monetize eyeballs that way I'll go live on YouTube live on Instagram live on Tiktok I'll show them lifestyle photos and videos and it's great and they need to be doing that but as the people come through they need to collect the data now their cell phone their email they need to collect that data when I do the lives and I get people that are interested in something I'm like hey DM me right now your cell phone and email and then boom the CRM just gets collects the data 98% text messages have an open rate of 98% emails 19.8% that's pretty dead on now you're talking about open rights right now impressions mean something when somebody hears that they say okay text message over no no no no 98% of people saw the email in their inbox they didn't all of them didn't open it that's an open rate so like how many eyeballs did you get see impressions that's the thing what agents are like post about their open house and they're like oh I got like 15 likes or whatever right no no no go in the view insights and see that 700 people saw it now that means something just because they didn't double tap doesn't mean that they don't see you double tap on it people don't they don't it's like they don't even value the impressions like the actual people that saw it they don't understand right the likes is like the only metric no no no same thing with emails right you know people are like oh well if somebody isn't opening the email how long do I let them stay on the list before I so for example not the accounts reached 2.5 million but the impressions 4.7 million what you're saying though Ricky is like so spot on speak on stage about this everything because the social media component is so important listen I come from I come from a background of like I said right junk mail and then now we're the largest advertiser of business loans on social media even on google and I can tell you that it really has to be a mosaic you were talking earlier in the episode previously about everybody rowing in the same direction with social media right you need to have a long form content youtube shorts tiktok go live instagram go live all of those things have to be working last 30 days so accounts reached 2.5 almost 2.6 million but the impressions are 4.7 which means those people saw like two posts or whatever but that's huge 2.5 million oh it's massive that's a big reach that's a big reach I normally get a million a million every 30 days but I think if you're an EXP guy right and you have a coaching platform that's what you're aiming for you're aiming to well if you have anything if you have any business even part of it well let's keep it specific to you guys just specific to real estate if you don't have impressions then you can't monetize eyeballs right okay it's not directly correlated I know guys that have 3 million impressions and don't make shit and I know people have the smallest followings and you're like what the hell they're doing a million month Rick Moranis is a good example does he have social media no he doesn't do social at all right and now he's into big commercial deals now this is 10 years ago when all that happened I didn't tell you guys the rest of the story like he was doing he did all that like that first month for sell-bounders and stuff which was like what the hell is going on he quickly he quickly transition into commercial deals and now does huge commercial deals all over the southeast but it still sounds like you need a email database a real estate agent I need social but most importantly I need an email I think you gotta do everything you do need to do everything but you need to have you need to know why you're doing the things stuff though like if you're just doing social and you're just like oh whatever comes comes and I don't even know why I'm doing this am I attracting buyers sellers what's the actual goal that's why I said it's like what is the goal behind it I need to know that first before you can reverse engineer what the steps need to be and this is why people need coaches that's why 90% of real estate agents like you said you know what's so funny about that though the people that are going to lose you could spend 24 hours a day with them they're still going to lose I do believe that and the people that are going to win you could spend zero time with them they're still going to win I've seen it over and over and over again can you enhance it yes can you help them get there quicker absolutely can you take some of the losers and a small percentage of them but I'm telling you I think they have to be coachable and they have to execute most people are not a coach you had Patrick by David and you have these other mentors and stuff Grant Cardone yeah I've interviewed all these people do you would you have succeeded without them I don't think at this level this fast sure but I would have won you would have won you would have won you're going to be a winner regardless can it enhance it yes absolutely that's why you need coaches how about you did you have a coach no when I when I when I could I be further along yeah probably no one is being critical of that I think what Josh is trying to say which is like can you succeed without the coach absolutely winners are going to win winners are going to win could they win bigger yeah right is the level of success but this is what goes back to my mom's a hairstylist and owns a hair salon my dad's a roofer right and one is aspirational the latter is more conservative right the dad yeah and so you have an entrepreneurial mindset already straight out of the gate at 10 years old which is what you said to me right I'm a good listener Jews we remember everything right 1940 to 1945 it's a it's a fucking thing don't worry he knows all it's PTSD no I know all the dates but in any event you had the seed planted in you at a very early age you said winners are going to win but I think what the coaching does and here I am talking about gold bar live is it gold bar live go bar live zero to diamond dot com right driven and your your coaching platform everyone doesn't have to achieve the same scale right in life but there needs to be an aspirational wish something that they want to achieve and they have to be able to identify with that coach whether or not they can ever achieve your level of success is irrelevant but they need someone to kind of paint the picture this is what you can become right it's the future conditional and that could that could be somebody they found on YouTube it can be but the problem with the coaching that is I feel like is not personalized to people's real estate you can find that yeah well as far as like the inspiration like dude you don't know how many agents were like I wasn't in real estate I saw one of your videos and I basically said if that guy can do it I can do it and now they make a million bucks a year I never talked to them they tell me this after they tell me this after the fact right after it happens they'll message me and say hey I saw you it made me want to get in real estate you made it seem possible I make a million dollars I followed your stuff step by step and that's the thing it's the step by step so one there needs to be some aspirational sense that I want to be this I want to do this but the foundational element right and this is kind of what you provide and this is what I'm understanding about your platform which is systems processes marketing like understanding that I'm going to email on Wednesday why there's no fucking reason and this is the rest of the story all that five-minute talk up and how to make a million bucks a year it's the retention of relationships if there's a process in place where these people never forget me regardless I know every single person I talk to is going to remember me three years later when they buy or sell something and so now the new leads I got year one become warm leads but now I added new leads on top of that so now I grew if I continue prospecting year three now I have two years of leads not depending on just social media right because they may forget they could forget about me there there's a possibility there's so much room for stuff to fall through the cracks right and so now I can like visualize my business growing like this every single year because the retention of the compounding relationships that build up over time now I can actually visualize getting to a million bucks a year going back to social media social media for me it's more to get new people that's the whole point get the new people get the data boom boom boom so for example like some video sometimes go viral and you have like a million non-followers that see it so then you collect the data and then that's your data now and what's cool about that is is now if you have a product or something you want to sell them you're on ads against the people that watch the video or follow you or whatever you're building now when you run ads when you finally come to the day where there's something you want to run ads against wow right you've collected all this data internally yeah I think you know without that level of coaching to explain to people that these are the building blocks of building a real business I think when people think about real estate they're like I'll just go out and show a home or I'll find someone to sell a home for them because they grew up in a W2 environment they grew up whether there's production or not they show up and they get a check yeah right and so they get into real estate and they're like I'll just show homes and I'll get a check yeah but they don't realize that it's an actual fucking business business and that they're an independent contractor now and you get paid on production right and that's why there's so much failure people are so used to W2 life yeah when they switch to 1099 right then it's like they can't they can't get their footing to get their bills taken care of right to continue to be successful the transition from W2 to 1099 is such a such a curve I mean it's a bumpy road right it is it's a steep learning curve but it's so attractive it's so attractive when you see the success of certain real estate agents and that's aspirationally what you want to achieve right I get an email every week and it says do you want to know what your home is worth this is the best one I don't know what software this is it's like your home price is increased I am going to open up that fucking email 100 times out of 100 times if you send me an email in the subject line it says your home's value has increased I'm opening it and then I open the email there's a pixel in the email it fires it sends a notification to the agent their understanding what their open rates are then I'm further clicking the button in the email the CTA call to action it's opening up a website my browser they're also pixelizing that I click the button and it shows me what my home is worth and the whole while this is a real estate agent that I've already worked with before they're monetizing my eyeballs I might not be in the market to sell but if you tell me that my home in my opinion is overvalued alright regardless of the interest rate I'll consider it right and so I think what's missing though in that automation is I open up that email every week and then I click the button and then I see my home value is increased maybe I'm lying maybe it's once a month because cadence is important too but what I don't see with their email automation software is that there's a follow up like I should get an email or a text message that says hey bud real estate's gone up in your area right we should talk I might have a property that's 10 bedrooms 20 bedrooms whatever the case may be right you keep popping out kids let's find you a bigger right so it's that email automation with text automation you know everything has to be kind of rowing in the same direction and that's a fucking business right and I think if a gal this is gonna come off misogynistic but if a gal is selling bottle service at a club wants to make the transition to real estate agent at 30 right probably because she's not hot enough anymore right to be a you know selling bottle service um or she's got kids I need some hot ones at 3 that's disgusting I'm out but anyway but in any event um no it's clickbait for YouTube it's fine but they need to understand that there's that like like Ricky said there's a transition going from W2 to 1099 but even more than that if you're actually trying to succeed foundational elements right that are within this business of being a real estate agent that you can't ignore social which is something you do but Ricky's touching upon email which is a huge component and he was making fun of me about the direct mail thing because it's from the 90s but no no no it wasn't at all I coached this oh you do direct mail I think it's valuable you just have for me unless you're doing these masterful expensive pieces that like Jordan Cohen does not like postcards right well postcards but like these big ones that are like very high production luxurious unless you're doing something like that it just kind of depends right um doing something I could take I could take Albert's Ferrari right now and get more leads than I would if I did a direct mail campaign oh absolutely well that's the Beverly Hills versus the Beverly Hills Billy's right but I think you know it just depends on what your model is I think for Albert nice drop in I think for Albert right the Ferrari is going to appeal to certain people that's why he parks it out front right yeah you're monetizing those eyeballs but the email can't be ignored the SMS can't be ignored it all plays together junk mail so everything that we're talking about I do and some yeah so I do SMS I do email I have a discord group now we're talking okay so now we're talking I have every little every little thing you can think of I've got a community on every every little platform yeah Telegram yeah discord yep bumble rumble I'm on there I haven't really done much with it yet bumble and we recommend this for all real estate agents it's like a YouTube you know is it newer okay so all agents should do this they should establish this what to be on every platform yeah I don't think so because you can't like I've been doing this for 20 years I did it in stages right so like when I started social I just focused on Facebook but if you're for a while then I did Instagram then I I stair stepped it and now everybody says oh my god you're everywhere you know how do you do all this stuff well like seven years of like slowly stacking something else as soon as I you know master this one it's not like I started posting on all platforms day one for Instagram and Facebook and do do you post do you make your post you type them up or how often do you post I do it every day at least once a day yeah but you you post it yourself and you type it up yeah that's wild he has bought himself a job I answer all the DMs I do all the stuff yeah you're gonna get to a point or maybe you already have you just won't acknowledge it well when it doesn't work mathematically if I can't get to all the DMs and stuff mathematically that's what it is how many platforms do you post on daily all of them like how many oh my god okay I mean you got Instagram Facebook Instagram, Facebook Discord TikTok the text message oh my god that's so much work LinkedIn LinkedIn I'm having a panic attack YouTube YouTube YouTube YouTube too do you do long form YouTube yeah because you have a podcast yeah and then who clips up your YouTube I do your machine we got it so I go through all the I go through all the I go through the videos and I'll pick the clips I want to make okay and you'll hand it over to someone time stamps make the clips no cheesy overlays dollar signs with like dollars following right well we we're still testing stuff like the algorithm is so like all over the place yeah so like stuff like that where like was cranking like a year ago right and now it's not working as good and so I'm like so when I do like when I do videos where I just like talk and it's like it took me 60 seconds to like film it and post it and everything yeah anything authentic authentic let me show you something really quick can you put that up please Anthony so my team they are the ones that cut clips and clip them together yeah so for example that one that one is at what 1.7 million views 1.6 something that one got 41,000 shares 3,000 almost 4,000 comments and you see 1.6 million non-followers saw that clip that that post that my team put together with the cover the music the trending song and all that got me about 20,000 new followers can I see what that clip looks like is there any way to see it that sounds way easier than open house getting eyeballs it's weird you know I love I think we're in an age Ricky you know because like you said right the algorithm is a living breathing it's an ocean right and it's ever moving and I think I always have to reinvent but I think the one thing that's really hitting well with people right now especially for the real estate content that I see because it used to be and Josh and I would always joke about this it was a picture of a husband and wife two kids and a dog and they're holding up a sold sign and it looks like they sold the children and it was the most awkward bullshit you would ever see real estate agents post that they had no they had no creativity or at least they didn't want to employ it what I see working right now is the authenticity I want to see a video of a real estate agent inside of an open house with nobody there I want to see that I want to understand what it feels like I want to understand what they did and what they should have done and I want them to talk about that and I would watch a video about that and that's what agents are scared they're scared to show that side right you know remember I don't know are you like almost 40 yeah 42 you're 42 okay so we're all roughly the same age although you said I was doing something in the 90s but it's fine I was doing stuff in the 90s yeah I was in middle school high school fuck I was painting I was painting homes he was laying a roof he was saying I was junk mailing people in the 90s or something with Ray Dalio or something it's fucking bullshit okay in any event but I think I see components important and I think my point that I was going to say which is it was the flashiness this is my rented Bentley in front of the home that I'm listening for sale and I'm going to wet the driveway with the hose with some nice lighting at like the blue hour or something but now I feel like it's more of do you remember the 1990s like MTV Cribs not Cribs because that was bullshit that was all lies but when they pivoted to the real world do you remember the real world the real world was like the whole premise of the show is like what happens when you put these people and they stop acting polite they start acting real I think we finally come full circle with these real estate agents where it's like we don't need to see the Bentley we don't need to see the bullshit show us the authenticity and I think that's how they'll monetize the eyeball this is my advice but what the fuck does it mean but I feel like this is what I'm seeing as the most pervasive I think the algorithm likes it what if you're authentic but you still have a Bentley listen some people like asking for a friend asking for a friend well I think it's different you know why because you have a real listen LDS people are definitely a close second yeah more shout out to all my Mormon homies but I think the truth of the matter is you have a sector right you have a vertical that I think subscribes to this aspirational content where they see it and they want to identify with that I think with Ricky as an example you know you've got you're a good old boy right you're from the south and you have conservative what seems to be right like a conservative upbringing and you're not flashy and I think for a lot of people that aren't raised in that sort of this environment where you know Ferraris are sort of what's on their mind right people can identify with your story right so there's something for everybody right but again without the without the aspirational content nobody's going to subscribe nobody's going to follow nobody's going to comment nobody's going to share so it's like you know Ricky's got to say that I you know in middle school and high school I was putting shingles on a roof with my dad and they just got to say but look where I am now are you happy with what you're doing because if you're not I can coach you right into being one of the most successful real estate agents in name your state I think that's what the EXP model probably provides for which is you don't have to have this brick and mortar right you can recruit people like you said worldwide that works you know social media is doing what it it does and everybody's going to leverage it how they leverage it well I think for Ricky what helped him a lot is that he also he built a powerful brand because that helps like a personal brand personal brand yeah because then that helps him he has more reach so now you send emails people recognize your face people recognize your style yeah and it makes it easier to recruit people I think without somebody told me this interesting story oh this is Dan Fleischman again he said can you name the CEO of United Airlines can you name the CEO of Southwest Airlines CEO of JetBlue American who's EroMegacle EroMegacle what about that other one the Virgin exactly you know him Sir Richard Branson yeah why do you know Sir Richard Branson and I put the surges to be polite he is knighted after all he built a personal brand right he built a personal brand once you knew him and all of his antics because they are antics but that's the personal brand component right well the richest the richest man on earth well on publicly he bought a a social media platform Sir Richard Branson did yeah absolutely but you're talking about Elon Elon just bought Twitter he went all the way yeah but I think you have to have a personal brand you have to have Elon is very relatable because yeah okay he's very relatable because he's kind of a dork but he also wants to act cool right Sir Richard Branson though right he's cool he's super cool right so in the any event I think we can kind of close up with this final thought which is concentrate on building your personal brand trying to build a corporate brand right if you want a real estate company in Tallahassee and you're like it's called you know reality yeah whatever right trying to build that no one's going to go to that page if I go to Red Bull's Instagram page right now there is nothing about Red Bull it is everything about extreme sports yeah that's how they're monetizing the eyeballs Red Bull's smart yeah so if I'm going to Ricky's Instagram or if I'm going to your Instagram I want to know what your life's about and like ESPN and some of these others right they're yes they're doing such a good job yeah of the content they're getting attention ESPN's content is like you know some gal in the you know in high school dunking on someone quick question before we wrap up so I want to get your opinions on on on Sillow mm-hmm so like Sillow Sillow I believe is the biggest real estate company right now right well they're more of a marketing company yeah they're you know they've got the most eyeballs let's just say because they have the data right yeah anybody can have the data it's from L.M.L.S. yeah but Sillow if you look them up their market cap is it's just their market cap yeah their market cap they're the biggest so what's going to happen with the realistics I know we have EXP downlines all that stuff what about these companies like Sillow can they put the realtors out of business no they'll have to hire them if they did that I mean you're still going to have to have somebody doing the job what if they just get a better deal there by just clicking them well then it comes down to service like if you look at the companies that try to do that like discount type services they don't have a lot of good reviews right people have bad experience and then it all comes back to traditional agents I'll give you my opinion could things get squeezed oh yeah like down in Australia and stuff like they do like 1-2% no buyer agent involved those agents would just end up paying Sillow to be on the platform they don't want to what if A.I. you know it's getting better and better and more intelligent what if A.I. guarantees you that you're going to get the best price best deal just click right here no commissions yeah I mean we'll see I still think you're going to want somebody overseeing that you know what what's not going to disappear what we talked about earlier if you build your personal brand yeah A.I. can't take over the brand you can pivot if you have a brand but yeah like if that happens in real estate it's going to happen in every industry right here's my like I'm not clairvoyant clairhuckstable you know if anybody can identify with the Cosby show I'm not clairvoyant I can't see the future but I I feel like there is going to be a model that's going to be tested eventually and maybe Zilla will do it maybe Redfin will do it maybe I'll try to build a software company to do it they've been trying to do it I think Zilla is going to correct that well I didn't tell you my idea is it's a very good idea maybe we can jump ahead of them yeah the idea is you post your home for sale you have a reserve bid and you just let people bid it up and whoever wins wins and that's how the house gets sold now there may still be agents right involved in the transaction but I like to let the market dictate right and in an algorithmic world where you have social media that can reach far and wide if I'm selling my home in the Hamptons right and there's a guy in Laguna Beach or a gal I don't want to be too misogynistic there's a guy anyways in Laguna Beach and he wants to buy my house in the Hamptons he's going to go to the website he's going to open the app he's going to see the home and listen you can sponsor the ad right you can pay more to be at the top kind of like auto trader right that type of thing and he's going to bid right and who knows maybe you go live and there's a question to answer right something like that maybe there's a walkthrough virtual walkthrough you can you know open windows and stuff like that absolutely right I see a future of that I don't it'll be interesting I think that up to this point I think the problem has been profitability you know the discount brokers have all lost money yeah and they hadn't been able to crack that code of being a profitable company doing representing buyers and sellers you know at a discount rate that code hasn't been cracked could it be in the future sure but most agents though are not the smartest no and AI is the smartest you can say it well the thing about they're mostly women I'm just kidding I'm joking good God well it's a joke it's my joke like even people I'm just going to keep it like that people they don't know how they don't know how to type a paragraph they don't know how to reply to people they don't know how to type up a condition chat gpt go chat gpt because chat gpt is smarter yeah well they're smarter than us too yeah yeah so so if AI is going to guarantee me that I'm going to get the best price for this house and I just click a button and they get like this what's a guaranteeing it on though it's a guarantee I think the historical data well that's how algorithms work today that's how algorithms work today if algorithms can become sentient then it's not based off of historical data right there there's you know there's AI underwriters now for banks what do you mean there's AI at our company so there's yeah but there's a bank they don't care they don't care about the income the credit like even if you don't qualify based on the the ratios that ratios isn't America AI yes AI approves the loan interesting and they get you they give you your options bam bam bam you fund and record and close in like five days or less there's a bank that we have that does that so going back to your your question what do you what do you see what do I see Zillow is going to come out with something yeah yeah that gets rid yeah of agents just like EXP and real came up came out with like an innovative campaign I think AI is going to is going to eventually I don't know when so you think agents could be in the same boat as travel agents that's what the Wall Street Journal article Wall Street Journal article said today you know all of these like used to be jobs are now replaced right so is the you know again this is not my opinion this is what the Wall Street Journal said but the lifetime value or the foreseeable value of a real estate agent diminishes right over time yeah just like what they can do what they can affect well Rick you're going to be fine because you have your personal brand yeah I'll be fine and another another agents that build a personal brand is it going to affect and you're going to have to pivot 100% and I think like I don't know if in the next 5 years 10 years I don't know how close we are to maybe you know better I mean we employ a lot of AI in what we do right so there was a time where we had you know what we do is business finance so we underwrite business loans and fund them there was a time where people were looking at certain KPIs of a business and trying to fit it into a matrix to understand if it like fit their right like credit box that doesn't happen anymore right as people are going through an application we're already qualifying someone so you've taken the role of an underwriter out of the equation right and automated you know underwriting for a business loan right I think if you can do that you could probably do that for a real estate agent are we there yet no how many years from there 5 I think I don't think it goes away I think the real estate agent just takes on a different type of responsibility I think I think that like some of the agents are going to be they're going to be very limited in the income they can make because they're going to do simple stuff that's kind of what I was getting at you know down in Australia it's like a 1% commission there's no buyer agent commission in that it's like 1%, 2% whatever right you know with the commission lawsuits is happening and the advancements in technology I truly think that's a place that we could end up you know where it's like a 1% fee right for the whole thing I think that that that's a reality at some point how long I don't know but I think that's the direction we're going in I don't think anyone for saw Redfin and Zillow I think that popped out of nowhere and disrupted the market and when things like that happen right kind of like Uber it's another example right it doesn't necessarily displace people they just have to find a new role where do you think Patrick but David's Menec goes have you heard about that mm-hmm so you know lawyers they don't charge by the minute so expensive lawyers let's say they charge $1,000 an hour and I think our attorneys charge in 15 minute increments okay so if you call them for 40 seconds they charge you 15 minutes mm-hmm okay great so Patrick created this app Menec where you could pay by the minute so Andrew Tates right there you got Patrick and you got he has a lot of celebrities lawyers you can access them so you could access them FaceTime text them call them and you get charged by the minute so it's like an Uber app where you just click boom and you schedule it and done so this and it's an app yeah there's another one out there do you feel well do you feel like this app can just take off and be like an Uber or something like that because now you have access to anybody and you pay by the minute I've seen these platforms one of them was just started by the guy who started Zillow well you could charge people by the minute how much is it to talk to this one is um I'll tell you right now misogynistic people can't charge that much I would imagine I'm sure it's like $100 that yeah maybe $100 a minute or something so watch this is like a commercial from it yeah well he's sponsored well I'm asking you your opinion so you could book see Patrick but David you could message him starting at $100 or you could book a call 15 minutes is 9000 bucks geez honestly I could see a future if what if what you're getting at is something that I'm sort of tracking I would pay to talk to an experienced real estate agent in my area is that you're going with this like an app where you're just charging I love it to get some advice on the contract I'd love it I'd say this is the zip code that I want to be in I don't want to meet you I don't want to go to your brick and mortar office I don't want to drive in your car I don't want to see a bunch of listings I want $500 for 30 minutes of your time this is what I'm looking for find it for me because for me like if I want business advice I'm I'm going to skip everything and I'm just going to like call you for 15 minutes or I'm going to call Neil Patel for 15 minutes or whoever I need like if I'm buying a house in Alabama I don't I don't care about 1% commission I'm going to call Ricky and I'll be like hey Ricky I want to talk to you I don't want to talk to like your assistant or any other agent and I don't want to do AI I'll pay you your full commission I want to work with you because I know he's the best and because he's known I want to see it I want to get it from the best I can see a future for real estate agents where that is a real thing but in any event I think there's truth to it and I'm tracking what you're saying I would pay 500 bucks to talk to a real estate agent if they were of your caliber because I don't you wouldn't waste my time I'd book it in advance there'd be a bunch of questions like a form I have to go through what's the area you're looking for how many bedrooms view what direction do you want if Indian people for example they've got to have the house facing north I can say that legally because I don't want to talk to anybody in Ricky's downline I want to be like hey Ricky I'll pay you five grand for an hour let's just what would that cost if I want to talk to you for an hour or not an hour 15 minutes I don't know I'd have to think about it like what's the model what's the supply and demand how many people are trying to talk to me 500 bucks you know I'll give you I'll give you 2000 something like that driving it up I'll give it to you guys I'm Jewish I'll broker the deal well you got to think 15 minutes I mean there's a lot of value in there I mean well but you're not even an agent anymore to that extent right you're not like a a listing agent you're not doing stuff like that I just mean like an agent I still advise people on stuff alright fine you're for sale I get it I still advise people on stuff let's do it I could call Josh Altman right now it's not that hard Josh Altman yeah I like that guy you're going to be speaking with Josh Altman in two weeks yeah go to gobarlive.com go there get your tickets tickets still available in Times Square where the Heisman Trophy is presented yeah yeah Josh Altman Petalum Theater Petalum Theater you're going to call Josh Altman after we got to go okay we'll wrap this up dude such a pleasure to meet you you too man seriously thank you come on anytime when you're in LA cool that's a wrap guys we'll see you next time later