Round and round we go.
I remember demonstrating our single entry platform, from leads to closings to Gary and his colleagues years ago. Today, our best in class agent and public apps and cloud system run client services from leads to closings and beyond. No “API integration” required…. Contact Jim for a quick look at 608 468 6013 or email@example.com
Keller Williams co-founder Gary Keller visited the Inman Connect San Francisco stage this morning to discuss with Inman founder and publisher Brad Inman how the real estate franchisor is pivoting to turn itself into a technology company.
But the tone of the conversation — intense, conflict-ridden, sometimes awkward, sometimes funny — is what really stole the show.
Keller began by describing the progression of technology over time and listing a slew of real estate tech companies that he labeled “agent-enabled tech,” including Redfin, Zillow, Trulia, Opendoor and Offerpad.
“Pretty much all the people that Inman News worships,” Keller said, prompting laughter from a packed ballroom of attendees.
“I love Brad,” Keller threw in.
“They’re really smart people,” Inman responded.
A few notable excepts:
- “If you don’t own your tech you will lose. Nobody can come between you and your customer.”
- “Our phone is the remote control of our life”, thus the KW kelle app. Compare kelle with our best in class agent and public apps.
- “I think the industry has changed and that is is that today. You can you can say the before technology and then after technology era prior to technology becoming an absolute [00:31:00] imperative for our industry”
- “I talked to a consultant yesterday and this whole business is to work with broker owners on integration”. [Some brokers, franchises and MLS’s offer clients and agents a pile, of 19 disparate systems.]
- “Why did Zillow want our data that they can’t use and they have to be audited twice a year to not use it is because they want to make their AVM better”.
Provide a superior experience without the privacy hassle: our auto-fill app and cloud documents.
Transcript (18MB mp3):
Ready to learn how to Pivot Like A Champion, please welcome Keller Williams founder Gary Keller to the stage.
We (going) remember sitting. All right. Are you want to be near here? Gary brought his flip chart. I did . It’s special. So ask our wonderful audience one word to describe Gary Keller and then uh time for you tonight to check by the way. Be sure my wife is getting in on that. Yeah. Well, you got plenty of fans here.
Um, thank you very much for doing this. You’re more than welcome the enthusiasm by our audience some love you some aren’t so sure and someone don’t if you don’t know you but uh, I feel I feel the same way. Yeah, let’s start with that [00:01:00] actually and then you’re going to kind of share your vision like Colea (sp?) did.
Yeah, and I think it’s going to be really interesting to the crowd. But who is Gary Keller? Just just give us a little no. Okay, uh, by the way, you’re a leader in Innovative in a Visionary according to unintelligible. Wow, how do you I don’t I don’t want to waste time talkin about that. What do you want to know about me?
But what’s one thing is it true? You’re going to put realtor on your gravestone. Yes. Wow, that’s pretty that’s well. Someone asked me something once mean professionally, right what I wanted to my legacy and I said, I want to die being a realtor. I want it to say on my headstone. I was a realtor. I have a degree in real estate right got out of college in the late 70s was one of the first people to have a degree on it was a broker at 21.
And um, I’ve never gotten out right new live and believe you love real estate, right? Yeah. Sold 6000 in my first month in a city. I’d only been in Once by the time I was 26, I was a vice president large real estate company in my market. I love this business. Yeah, the great business and what let’s [00:02:00] let’s now jump into layout.
I think my question to you in this one is layout where you think it’s going because we got to like competing theories on the future. That we’re gonna really Bear Down on the next couple days. And I think yours is important and we got you a couple magic markers. We got an eraser awesome and we got a film crew that’s going to zoom in on it so that they do this so you can see it and we’re gonna put a clock on you gang of 10 minutes, um, 15 10 10, okay, but you’re going to talk for 45.
It’s just 10 on this part. Yes, so you ask so the question you asked me was where’s the industry go? Yeah, exactly. So I thought about that and I kind of want to diagram it and then we can talk through that do it. So if you think about any business out there, right there’s there’s there’s three paths that can go it can go this way.
It can go this way and it can go that way right. So there’s three phases to [00:03:00] building a business in any industry. Um, there’s this phase there’s this phase and then there’s. One of those three knows that an individual business or the industry. This is this is a business in sign of an industry. Okay, gotcha.
So what happens is you have this period of what I would say, uh, trial and error. Yeah. So businesses start business go out of business go in the business, they try on all kind of things and at some point, um, the the people that have made it get to this point and then at that moment in history and it shows up for every business.
Uh, this is where the Innovation the real Innovation occurs. Where is where is a compass and exp? Are they in that first big circle?
Well, I don’t mean to throw you didn’t At All by the way, no one’s in the circle yet. No one’s in this had to think about that first. I’m not in this circle damn, but you can be in the syrup. Okay, um put bread. You’re in the uh know by the way, I know I I believe that every firm whether [00:04:00] they’ve been in business for a year five years.
Ten years 100 years. I think all of us are right there gotcha. So when I talk about and I’ve made the statement that in February I got on stage and said that uh in the next year, you won’t recognize the real estate industry. I wasn’t kidding and what’s interesting is the amount of change that we’re all feeling is real and palpable.
Yeah, and it’s. That that’s going to accelerate right there. So let me explain what I mean by the saying this stuff. We’re just in the first inning. It’s coming. Nothing’s happened. Yeah. Yeah Gaucho. Okay, go ahead. Nothing’s happened. I’m serious about that nothing’s happened, but it’s fixing to happen.
Yeah. Okay, let’s fix and happen. So let’s think let’s ask what causes that? Okay. So what causes that is, um, uh, we started out with in the world with hardware Hardware wasn’t. And at some point, um, you had software to run the hardware right? One of the most interesting decisions in the world.
Is that [00:05:00] IBM who created the hardware decided not to own the software and they gave they gave one of the greatest deals of all time to Bill Gates and Paul Allen to own the software, right? Yep. So then all sudden at some point you’re using your Hardware your phone and you’re using software and you get this, um, um offer to buy a data plan.
Because you were out of space right so someone came up with the idea of how about if and they call it the cloud how about if we just string computers together and we put all your data there so you can access it from any any technology. Okay. Well, here’s the interesting thing about that. That’s a commodity.
For about $1,000 or less I can buy a piece of Hardware. I can buy a piece of software or multiple softwares and I could buy data service and I’m in business, right? Yes. Okay, that’s a commodity what’s changing the world today? And it’s called the fourth Industrial [00:06:00] Revolution
and that is um when you put teacher or Professor up in there when we’re description. Is data powered by artificial intelligence. That’s it. So everything that we have anything has been invented by any of us, uh prior prior to what’s coming has all been the industries all been about this the latest gadget the latest idea the latest thing cool.
That’s great. That’s what that is. By the way but this right here big data that is that is being powered by artificial intelligence that. And by the way, it doesn’t matter what industry you’re in doesn’t matter. If you’re in real estate this applies to all industries, by the way, the medical profession the legal profession the architecture profession any profession you want to name is at this moment.
And the reason is because you know, you have two worlds that we live in the first one is the [00:07:00] physical world and the second one is the digital world. And what happens is everybody who’s physically based all their businesses they wake up in the Fatal question. They say is what’s the least I have to do in the digital world to protect.
What I currently have physically. Challenge is that the people who are in the digital space wake up every morning they say what’s the least I have to do physically to kick your physical. But yeah, right. Okay. So this is the battle the battle is over big data. Okay powered by artificial intelligence.
So let’s look at the real estate industry and you should sign that Gary because some people will pay me. Yeah, whatever what a capitalist. Okay. So let’s look at the real estate industry real quick and why we feel this change going on Brad, um industry starts out as real estate agent at some point.
We have uh, the tech, uh enabled real estate agent. Okay MLS being a good example of that technology enabling the real estate. [00:08:00] That make sense. Where does the MLS come in? I’m confused. It’s the it’s the technology that enables agents to do their job MLS is an example of where technology showed up to enable the agent and then the next thing is all of a sudden we have this thing and it’s called the agent enabled Tech got it that well.
Okay, and then by the way, the fourth would be the prediction that someday you just have. Well, the interesting thing is that will never happen and that ship has sailed right so you can literally take our industry and put it in a box like this and say you’re going to be one or two people you’re either going to be an agent who is enabled by Tech or you’re going to be the agent that is enabling the tech right now.
Here’s the center now, let’s talk about let me just bring it down a little bit tell me exactly what that mean difference. Well the agent is the fiduciary here. Right the and the tech is video there. [00:09:00] This is the battle over who’s going to be the fiduciary. So that might be who’s the rock star in the experience that might be smart contracts some of the all the tech taking care of that stuff will get to be the fiduciary.
We’ll get there in just a second. That’s right. So so let’s Now list these so out of time. That’s what I’m worried about. No, you’re not. No, no, we’re not. I love this guy. If you saw her email banners, she would just know we’re not because when you invited me, you said I could do it. I want it. No, you’re doing a good job. Good to say I love that you did. I have the email. Okay, you’re losing post it.
Yeah. I love you. You’re awesome. All right. So by the way realtor.com started that whole mess. Okay, and then we have Zillow you have Trillium, uh, we can throw Redfin into that. Uh, we can throw purple bricks into that. We can throw Open Door into [00:10:00] that we can through offer pad into that pretty much all the people that inman news worships.
I don’t know. I love Brad and I mean he knows I love him but we’re was a really smart people girl. Well, okay and they’re not. Okay. No never but um, you’re losing so hear me on this. Okay, hang on you’re saying all of these players in the right have agents. Well their agent enabling Tech they’re all driven driven companies.
Correct. I will tell you that every one of these companies have agents because they have to not because they want to got you. These are not agents Centric businesses if they could do it without if Glenn Kelmann could run Redfin agents he would do it in a heartbeat if he tells you otherwise he’s lying.
Okay. Well, he’ll be here in an hour to dip. I’ll be happy to stay but I’m just telling you that that he’s in that category. Okay, absolutely. Yeah, [00:11:00] love and he loves that category he liked but that’s who he is. Okay you with me. So what’s the reason why you and I get off to Rocky starts at times?
Yeah, that’s is because well because I’m over here. I’m over. I’m I’m over here. Yeah. I’m I’m I work for the real estate agent. I have my whole life. I’ll go to my grave on my gravestone saying that. Yep. Yeah, so well, I’m not going to get their two cents. So let’s yeah, right. So if you look over here when when Inman and I love what you do, by the way, I wouldn’t have come here if if I didn’t appreciate you I really wouldn’t have I did you said kiss my ass.
I’m not coming. Yeah, and I didn’t say that. Yeah. No, you didn’t know I did but but a while to persuade you, well it did because people that work with me are more important than people that don’t. Yeah, I mean I yeah I get I get paid to help certain people and we’re grateful you’re here and I’m here okay on with me so I can check.
Okay, hang [00:12:00] on hang on hang on. So here’s where here’s where the challenge comes in and that is when I’m not picking on you by the way, but but when because I read pretty much everything that’s written through your news service. So I want to respect that the reason why you and I get cross lines at times is because um you represent these guys is the disruptors over here. The articles are already three ways to have a better open house for what these are going to kick your ass and change the world five ways to list his bows. Right this this go back and check and you’ll see it but this is all this absolutely treats these individuals as if they’re not disruptive.
As if they they work for this group. Now, here’s the here’s another interesting fact about this group. Let’s put let’s put every one of these groups. Uh, I can put the aggregators over here and they want to reduce the agents in come by at least 30% or more. [00:13:00] Right? So if you want to do what reduce their income, so the real estate agent if they do business with these guys is going to opt they’re going to operate at about a two percent approximately.
Uh commission, but if they if they were charging home if they deliver volume of transactions, well, be careful for the difference. You need to be careful with that because you’re talkin to the guy who wrote the book on it. Yeah, but you got you got 1,000 agents. No, no. No, I’m gonna give you I’m gonna give you a number here 10% if you’re spending more than 10% of your gross income for leads.
Yeah, I wrote a book and I right. Yeah, okay. There isn’t anyone that understands the in the audience think Gary book applies as much today as it did when he wrote it say yes, and how many how many think it does in apply quite as much as he did when he wrote it. Just see what here’s the interesting thing about that.
So I so we said that’s for dr. slido. Okay, so we sat down a year ago to [00:14:00] write the MREA updated version. Right? Right. Here’s what we found out everything that’s in that book is 100% accurate today except for the actual numbers. Well, we want to ask the audience if they agree with you. Well the doctor slide are you on this how many think Gary’s book is as relevant today.
As it was when he wrote it and how many think it is one caveat. You have to put your income down by your answer. Okay, well because because because I will tell you that anybody that anybody who was say that it’s not relevant today or your least earning people. I audience has a higher income than your community Gary because they paid a lot to come here.
But anyway, okay. Okay. So here’s my point to you. My point is is that. I am absolutely the leading experts are gonna be friends when this is all over of course. I like their shoes. Hey, dr. Slide. Oh how we doing? Okay time out. Now you’re taking my time by I know some guys stop conversation.
Okay. So here’s the thing. [00:15:00] That’s the cost for lead. If you’re spending more than that. You better have good justification. You with me? Yep. That’s just what the research says and I spend all my time. This is what I do, by the way now you get into this group. These guys want that commission to be one to two percent as well.
Correct. Redfin Redfin. Okay. Yeah purple bricks wants it to be maybe 1% to 1 and 1/2 percent max Open Door will pay you 1 percent offer pad will pay you 1 percent. This is why you feel this is why you feel the way you feel about change is because all of that group wants Tech to be the rock star and once the agent to be the functionary. Let me just ask you one question Gary and it doesn’t have to be like that you spread this thing, which I think the industry has been good at which is fear, which is they wake up every morning maliciously trying to go after the real estate industry. [00:16:00] Well, and I don’t you you meet with it’s a cut deals with Zillow you’ve cut deals with realtor.com
I know for a fact you met with the disruptors you’ll cut a deal with anyone on their behalf. So. If they weren’t when I would have them into your office, right? I mean you have a deal with Zillow, correct? I presume you do I don’t think I do you have no deal with Zillow. What’s my deal to protect the listings from having?
No, they bought that agreement with dauntless. I didn’t sign a deal with you have no deal Zillow know why we don’t do business with any of these people. Why would I do business? What do I do with Zillow don’t have listings. I’ve heard through the grapevine. Obviously, we don’t publish it because no I have a I have an agreement with DOT Loop, but they can’t use our data right Zillow’s come back to us and they’re now asking.
That we give them their data. I just recently asked for that. And what was my answer your agents are sitting across the table from Redfin. They’re sitting there. They’re spending money on Zillow. These are smart people that are investing in things. They’re not that stupid. Are they Gary? You got to sit down.
I’m gonna get [00:17:00] come on just sit. I’m gonna do one more thing. Okay really quick. This is Barry Diller did this to me Barbara Corcoran? No, no. No, there are people that can take the stage. Away from Brad Inman. I’m not trying to do that. I’m very relaxed and come so so so the last thing I’ll say then is this and that is so that’s the challenge.
Yeah. So the real estate agent gets to vote with their feet. So by the way this group if this group doesn’t own its Tech it’s going to succumb to that group. Gotcha. That’s my point. Yeah, I gotcha. Yeah, if you put someone between you and the customer and you let technology get between you and the customer here’s an interesting number for you 1 billion dollars.
That’s the amount of money that we surveyed and we estimate that our own real estate agents spend on technology outside of Keller Williams a billion dollars Brad, but I don’t get paid a fraction of that but historically the industry’s paid 12 to 15 billion dollars for advertising whether they gave it to the Chicago Tribune or they gave it to Billboards, so they gave it [00:18:00] to.
To buy signs or where they gave it to Zillow that money so billion, I mean there’s spending they always spent billions marketing haven’t they in you always spend money in marketing? This is not marketing dollars. Yeah. These are operational dollars. I didn’t say I’ve said give give do it again. So I’m on software.
Oh and software. They’re spending 1 billion dollars in the reason why the software vendors don’t like me today is right. I’m literally taking that spin to zero. Yeah, my goal is to reclaim a billion dollars, but aren’t you gonna sell technology to your agent? Isn’t that part of your business model?
That’s 300 bucks a year what but that’s three hundred dollars a year times 150 thousand compared to sink that we charge the same amount to an agent anywhere from 18 to 100. I’ve got agents in the audience has been three hundred thousand dollars a year on technology alone. Yeah, by the way in about three months, they’ll be spending that much. $300.00
Bring her back come to down with me. So last thing here’s the issue. Can we talk about last thing you’re getting an education? That’s good for you.
[00:19:00] Well, here’s the thing is is when when I stood up and said that we were becoming a technology company man. I took a beating from from everybody thought that dumbass. Yeah. Well you said it and no one knew exactly what you were. I didn’t want him to know. Yeah, but it was quite a declaration. I’m spending a billion dollars in technology.
You would automatically okay. If I let someone build my technology for me. What do I say it again? Finally someone let me ask you a question. Does Amazon own their software or do they buy it from Fidelity? Uh, they own and I does Amazon on their software. Do they buy it from pick a cut on you tell me.
No, you know the answer. Well as soon as Amazon owns their software Facebook owns their software. Yes. Yeah Netflix owns their software right now. Okay. So, why would we tell the real estate agent? Don’t own your software or don’t let your company or in [00:20:00] partnership with why would we be tell them not to own it?
That’s a dumbass statement man. That is that is that you’re literally heading them to the slaughter. Not you because you don’t say that. But I’m saying anyone who says that is literally leading the real estate agent by the nose. Now, would you sit down with me? Is it gentlemen? I know you did but I haven’t finished.
Come on Gary sit down with me. No, no, no one more thing. So here’s what changes the world. So there’s a difference between software and platforms. Our industry doesn’t really understand this. Okay, and that is if you want to build an innovation engine Brad in order to. To build a platform that you can innovate on top of the technology.
The first thing is you have to build a cloud service. Now. This isn’t a cloud service like I was talkin about this is an industry-specific cloud service. How long does it take to build an industry-specific cloud service about two to three years? That’s what it as what Google tells me. That’s about how long it took us to do it, but two three years.
Okay, [00:21:00] second thing by the way, you have to have in order to make it significant. You have to have the data. So tomorrow morning. If he expense that they were going to build a cloud service you’d say. Well that’s good. But where’s the data? You don’t have any data? Okay, but if they had the data and they were gonna build a clown service it would take him three years if Compass today said we don’t have a cloud service, but we’re going to do it and they don’t have one by the way, but if they said they were going to do it.
It’s going to take them to three years. You with me? Okay, here’s the problem with that the problem with that two to three-year timeframe is it’s happening right now. If you don’t already have it, you’re in second place. Okay. Now here’s the other thing and that is you have to have artificial intelligence.
Why so here’s a good example. So let’s just think about this for a second. Let’s say that you have an agent software. And you have a real estate company software. So in the Real Estate Company software, we have all the data on production of everybody in the business, right? [00:22:00] So then we have the agent.
So tomorrow morning the agent goes out and they take they take a listing but because all the data on days on market price to sell ratios all of that all that’s down here the second the takes the listinug, artificial intelligence sends a ping to them and says for a home in that price range and this neighborhood you should you should use Smart Plan number 12 with these attributes.
Would you like us to execute it if the agent clicks? Yes, the whole plan is initiated in an instant over 12 week period. Okay, let’s throw out some questions to the audience. Can we use doctor? Uh. Slido that was his way of getting control. Yeah, it was great. No, I learned a lot. Yeah, dr. Slide.
Oh, uh, whatever we need to do for you all to submit questions and then we’ll get some of those questions up. I think they’ll pop up right here and we can answer what so here’s the challenge. I’m just I’m trying to educate you. Yeah. No I All-American. Well, the point is is that everything that we’re dealing with [00:23:00] today around software is bolt on technology.
I read the latest article you just wrote. Uh, you probably just heard and it said here’s the three rules for technology. Yeah, what did we say? Well, number one. You said it needs to talk to each other. Yeah, right. You have that good thing how you gonna if you don’t have that it’s not going to talk to each other.
So when I read that article, I went Jeepers you should have taken a poll by dr. Slidell or whatever and ask them how much whatever. The how much of their technology is going to actually talk to each other. It doesn’t talk we have I talked to a consultant yesterday and this whole business is to work with broker owners on integration.
No, no not just know there’s call me integration. But if you do that exactly integrate, I’m agreeing with you slow down and the fact that we even need an industry to help integration shows that we have a problem. So what do we asking? Uh any questions from the audience? Oh, here we go. What? Well you own here’s a KW agent.
Well, you all my data as a KW agent, in [00:24:00] other words. We we own his data. Yeah. Yeah. Yeah. Yeah well on them with them with them sure so they’re this whole confusion about data on a ship and it with him. Well, someone’s got to own it. Yeah, in other words, whoever owns that cloud service and that artificial intelligence is going to own that data.
Now, here’s a question. I have view for that person. Someone’s going to own. Would you rather the uh a real estate company that has a history of being the most agents centric on the planet? Right? Here’s another number for you billion dollars in profit sharing paid out now on anyone in this room who’s paid out a billion dollars to their people in a profit share program.
They’re doing that by the way, that’s core to your program, right? Yeah. Yeah and it still is that still driving your growth the same as it has I wouldn’t think. Now what is driving now Community Technology technology. They’re coming to you for technology. Yeah, here’s another number for you six billion dollars and that’s the amount of productive volume that joined Keller Williams in the first 90 days of 2018. Let me ask you this.
Do you feel like this has been going for 22 years. We’ve [00:25:00] been talkin about robots for 5 years or 10 years. We’ve been talkin about all the things you have up on that board. Why is it. It were you a little late to the game too. Uh, I’m not know there’s a difference between late in too late. Timely.
You were timing. Well, I actually I think we showed no I actually think we’re the only one on time. Yeah, and I think you’re gonna see that in the next couple of months. Now, you told me backstage you’re launching something later this year. Tell the crowd with that. Well, we don’t want things.
Okay. So again, I’m going to go back. I’m gonna get I’m gonna get back to this point right here. The challenge that you have is if you haven’t already built an innovation platform. Yeah your two to three years late and the battle is going to be over the consumer. Yeah. So once one last thing just think about this, so if we think about the consumer and we think about by the way, if you want to be if you want to be Netflix number one, you have to own your software number two, you have to build an end to end consumer experience, right?
That’s personalized as you use it, right if you go to your [00:26:00] Netflix account. Mine does not look like yours. If I go to my Amazon page, it doesn’t mine doesn’t look like yours, right? Okay, so that’s interesting to point that out because if you think about the consumer experience as voyeurism to search to consideration to close to ownership and we put those in buckets you realize that uh, voyeurism in search is the only thing that actually is out there today for the consumer.
I would agree with that. Yeah, we don’t have online transaction yet though. We will by the end of the year. And oh, by the way, we don’t have ownership which will have that so imagine an app just as an example. Just imagine an app for the consumer that in real time the second they use it it begins using artificial intelligence to just like Netflix or anything else to personalize the experience in real time.
Yeah, imagine that it says, um, uh after you at a closing table you say, um, uh Brad now that we’ve now that you’ve bought about a home, um, Uh, would you like to refinance if you can save [00:27:00] money? Yes. Okay, so I’m just going to click. Yes and you have to do anything. Uh, by the way, if rates change and you can save money you’re going to get an alert and it’s going to say would you like to refinance now because we own a mortgage company and we don’t charge you origination fees or closing costs.
The mortgage industry hates me, too bad. Okay, we don’t charge any of that. We don’t charge any we don’t charge you any of that free just click it and we’ll refinance your home. That’s what’s coming at what point and by the way, that’s the battle. You go. The battle is not over search yeah, that’s going to be a commodity here.
We got a question. At what point do you care about the consumer experience versus the agent experience? Well, leave that to the 8th I care about the agent I care about the agents consumer experience. And do you feel like your Technologies enabling? The agent to create a better consumer experience or do you actually yeah, that’s the whole point.
Are you ever gonna go direct to the well, here’s the thing about it. No, I want to do that. Okay. No, I don’t. I don’t have buyer’s or seller’s no think if you think about it this way [00:28:00] thing about this way the consumers the agents, but if the whole world is moving towards the phone being the remote control of their life.
Right, then the agent’s going to have to have that tool if the agent doesn’t have that tool to offer the end consumer experience. How how are they going to service? You are obsessed by the agent getting the tools to serve the consumer. That’s that’s really your vision. Well, let me ask you a question.
How long after you wake up in the morning. Do you go to your phone? Um really quick? Unfortunately. I wish I did know we all do yeah, we all do so, it’s the remote control. Isn’t it? Let me ask you a question, but. Yes, that’s where we are. Um, we are does EXP scare you does anyone scare you no. Yeah. No because no they don’t that was the wrong way to raise the question.
No think no think about this the when I started Keller Williams, I built an innovation engine. So here’s a good example you bring a great example, [00:29:00] by the way, Glenn speak. So highly of you he thinks you’re a genius love it great good for him. I appreciate it and that, I don’t care, right? Um, so think about so think about it this way when we created The Profit share program.
This is where everyone missed we created a Leadership Council. We assign the decision-making of the firm to that Council. So we profit share today. If our agents want to change that to something else they can write they can vote and change it. Here’s an interesting tidbit of information. So they forget on a regular we first started sharing money.
We didn’t profit. We actually shared the money off the top you sell a house. We wrote a check that has problems that attic that formula, 3 years into doing that it started showing real problems. And so we ultimately voted and changed it to profit sharing. So you’re saying that’s what eXP does now and that’s going to they’re going to run into problems what I’m saying, is there same with.
Same [00:30:00] with all the other copycats that at the end of the day, they’re going to they think they’ve reinvented something that’s broken. But here’s the interesting thing remember, that’s flattery when people copy it. Listen. I have no problem with that and when people disagree with me, it just means that I’m ahead.
Yeah, I don’t worry about that. Honestly. I don’t worry about that. What about that agent count at eXP, that’s got you guys have been sitting there wringing your hands a little bit. Why are we talkin about them? Well, they’re just part of the scene and we got a question from the audience. Not really.
Well, not really. I mean at the at the at the end of the No No it no. We’re Captain’s of our own. Let’s move on. Let me ask you this leadership. You are generally you are known as a leader in the industry. How has think about in your 30 years has the role of the leader changed like is house leadership change from say 30 exactly.
I think the industry has changed and that is is that today. You can you can say the before technology and then after technology era prior to technology becoming an absolute [00:31:00] imperative for our industry training, coaching consulting .That was the that was the value proposition that we provided real estate agents.
And that’s how you make your money. Right? Well, we became the number one training company the world we built the number one coaching company inside the real estate industry, dude, we right. Okay, we did that. Here’s the problem is is that that used to be 100% of the conversation and we woke up about three years ago and went we’re not going to stop doing that.
That’s no longer. What will protect our people. Technology and only that technology and putting technology that works in their hands is the only thing that we’re focused on doesn’t but that doesn’t mean the agents still need it but you’ll be giving it to them in a different way. Like I presume your training is going more and using technology and not one-on-one.
Correct? Yeah, that’s right. Yeah. Yeah, that’s exactly right go back. Let me go back to Clea’ s Theory. She said. She compared to Wall Street, and she said the digital transaction for part of the deals, but one comment and we won’t talk [00:32:00] about this again about exp know that’s what I found fascinating member.
I didn’t bring it back there. No, no. No they did but that’s okay. No, I just want to point out one thing and that is I went back and looked and and there’s a group of leaders there that used to be with Keller Williams went back and look when we paid those leaders over a million dollars last year.
So I was wondering publicly since they think we’re broke and if they would just renounce that money. There you go. By the way In fairness Glenn will be on this stage to explain his business model. Um, let’s go back to the Clea because I’m curious if and I got this a different Vision a different way of looking at it, but she says digital transaction for part of the the deals meaning much like E-Trade the middle would be Charles Schwab people and agents, but an agent with a different role and the third will be more relationship-driven.
She’s kind of saying five years out you can put Redfin. You can put purple bricks in the middle. You can put at the low end. We don’t have it maybe instant offer. Do you is that sound bullshit? Is that going to happen? Sure. It is the [00:33:00] I want again. I want you to understand something kind of like when you’re up there now.
I’ve kind of come to be a while. They get comfortable with it as you can all tell here’s my here’s the point. I’m trying to make that right there the ability to innovate in real time. Yeah, that’s that changes everything. Yeah, the ability to build a platform that talks to each other where everything is integrated integrated is everything the problem in our industry today is none of the companies that you would put on that side over there and we can go from realogy.
I mean when Berkshire Hathaway calls us up and wants to rent our cloud service. That sounds that for that. How do you go ahead? Yeah realogy yeah, whatever. I can’t you see I called you Bob once yeah, I know you called me a lot of things in March. I was in Australia, so I didn’t hear it. But uh that was good people were (mad ) and he texted me like crazy.
I said often worried. You know why I do that is because it’s because a lot of the articles you produce or one-sided they don’t tell the other [00:34:00] story right? I got pissed because you put my name in an article in the head or no one asked me for my opinion. Well, that’s because we get a lot of readers and we put your name there.
There’s always two sides to the story. And if you’re not going to give me equal time in the article, then I have no choice but to stand up and attack that right you leave me no choice. If you’ll call me every time you mention me and let me talk. Yeah, then I’ll be nicer. Well, we like, you know people love to read about you and we try to cover you as fairly as you can our journalists wake every morning trying to do that, but they do a great job.
We make mistakes. Yeah. Let me go back to leadership is how running a real estate. Today different than it was there’s exactly this. It’s all about technology. Yeah, because you’ve always been kind of facilitator educator, which is the new management style more collaborators that true with your I’ve always been a collaborator.
Yeah. Yeah and with your best agents, I always love the fact Kenny’s and Sue Adler’s these people. I admire are part of your brain trust and they seem to me to be real good [00:35:00] people. They’re great people by the way, and I I spend probably. Uh, 20 to 30 hours a week working with our top people.
That’s what I do for a living. That’s why I know. So I make a confession. I was out of the industry for many years and other Industries doing things I came back. And the first thing I had heard was uh, Keller Williams is on fire and I had the impression that a lot of people had called Texas Christian all these tag words for Gary Keller and Keller Williams, and I was inherently suspicious as a journalist.
And I went down and I wanted to understand the phenomenon and the one thing that really struck me when you invited me to I think family reunions and one of those was the community you created and it’s something we’re very proud of and we have a lot of overlap. There are people here that love you and hopefully some folks from your community that respect us and I think we’ve all learned that building community and real estate is very powerful.
It is we don’t agree on everything but I [00:36:00] congratulate you on that. Well, and I also truly believe that you see the future better than a lot of us and I really appreciate you being here. Well that and uh, really good. What do you want to know? My what do you want to know, what are you dying to know? Well, we want to know tell these people one thing that’s going to help them. We’re seeing there’s a you just say. Go. Change Is upon us. What do they need to do when I when I wrote the book The million in real estate and I said it very crystal clear.
And that is your database is your business your personal relationship with your database is your frontline defense, offense and defense against anything else that can happen. That’s it. Lead generate, touch your people right build build relationship with your database is in business hasn’t changed. So the principles are the same but the difference now is the database.
But that was always the case I guess right. Yeah, keep in touch with your customers. You said that over and over? Well, the truth of the matter is is that the entire real [00:37:00] estate experience is going to come online. That’s all that’s all there is to it. Why did Zillow want our data that they can’t use and they have to be audited twice a year to not use it is because they want to make their AVM better.
Now, is that good for us? Yes or no, okay. Okay, then the answer is no it’s not it actually isn’t good for us as an industry. Yeah, great. Thank you for coming all the way welcome here the best your vet. Thank you.
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