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Hi guys, it’s me again, Alex Pardo. Today, we’re gonna talk about something I’ve learned that is incredibly important when it comes to building a strong team full of key players.
I’m talkin’ about incentives.
For today’s, lesson I’m going to cover how to build team incentives and why doing so can mean the difference between making money and not making money. While it might seem counter-intuitive that by giving away money so that you’ll make more money, I’m about to tell you how implementing this strategy can be a real game changer.
But first, for those of you who may be new here at Mogul and not familiar with me, feel free to check out my awesome previous lessons to learn more about me and my background. As for the rest of you, let’s keep movin’…
So, why have incentives? Well, it can be extremely beneficial if you currently have a team that you would like to get more results out of (and this should always be the case since you always want to raise the bar)… or if you ever plan on building an extremely successful team in the future.
So, pretty much, all you guys should get something out of this lesson.
Human nature is that we're motivated by certain things. For most people, it's (of course), money. For other people, it could be other things. But, you gotta know what motivates the people on your team so you know what kind of carrot to dangle.
And, it’s also about knowing how to dangle that carrot.
I’ve had tremendous success by creating a bonus pool. Team members are rewarded if they reach numbers/monthly goals at the end of the month and then they get a portion of that revenue. Right now, we're taking 5% of our total monthly revenue and we're putting that into our bonus pool. And again, that's assuming we hit our monthly goal.
So, I'll give you an example:
Every single month we have a certain revenue dollar goal that we need to hit. (In some months, we might adjust that upward. In some months, we might keep it at our baseline.) So, let's say in the month of February we want to produce $30,000 in income. (And, that could be a combination of all the different types of deals that you might be doing in your market)…
So, your goal is $30,000. If as a team, you guys are able to achieve that goal and you are able to do it at a minimum $30,000 in revenue for that month, then a certain percentage of the total revenue dollars that was produced is going to get paid out to your team members based on what percentage of deals they were responsible for.
Let's say that, right now, we produced $40,000/month, right? So, we had our threshold to at least $30 grand. Let's say we had a $40,000 month. Again, right now, what we're doing is we're taking 5% of that $40,000, which is $2 grand, and we're putting that into a bonus pool. Now, that $2 grand is going to be divvied up based on position.
We have a pool of $800 that goes to all the virtual assistants who are involved in closing a deal. So if 8 VAs were involved in the deal, each one would get $100. And then, the acquisitions managers (who brought in a certain portion of those deals) get a payout.
So, let's say we have $40,000 in revenue that we produced. One acquisitions manager was responsible for $20 grand and another one was responsible for $20 grand. Our Excel spreadsheet calculates what percentage of that $20 grand they're going to get. Those acquisitions guys are the sales people and they would get the lion's share of that bonus pool based on how much they contributed to the company's bottom line.
But, in a nutshell, I just want to kind of plant the seed in your head to think of different ways to incentivize your team so that they're always striving for more and so that they're going above and beyond and always try to do more.
A lot of times, inevitably, people aren't going to care as much about your business as you do, right? And, that's fine. You need to understand and realize that. And, one of the ways that you can compensate for that is to incentivize people, and most people, again, are going to be incentivized by money.
Now, you could offer to buy them a flat screen. “This month… whomever produces X amount of dollars in revenue or if they bring in these amount of deals, we're giving away a 65-inch flat screen.”
And, like I said, this is something that could work even if you just have a virtual assistant. For every deal that your virtual assistant brings you or for every deal that a bird dog brings you, you pay them $100 bonus. Or, it could be based on a tiered schedule. So, for every third deal they bring you, you give them a $500 bonus.
It could be anything. Get creative. Have some fun with it. But, hopefully, you kind of realize the importance of having some sort of bonus program or bonus pool to incentivize your team to go out and strive for more.
Hopefully, that's what you guys are after.
(So corny, I know, but I had to do it!) All joking aside, what kind of creative incentive programs have you guys came up with? Share some of your experiences below!
Mogul Elite Members: Download an audio version of this lesson in the Power Pack tool in the side bar.
Discover what motivates your team.
Dangle that carrot.
Make more money – for everyone, really.
Enjoy more success.
Is there a topic you'd like to learn more about? Request a Lesson
has been investing in real estate for 9 years. Before he started working on his real estate investing business, he worked for GE Consumer Finance in their Financial Management Program. He quickly realized that staring at Microsoft Excel for 14 hours a day was the fast lane to the dreaded rat race, so he completed the 2-year program, and decided to backpack around Europe and Africa for 3 months, before diving into Real Estate full-time. Two months later, he closed his first deal and made $44,000. Almost as much as he made in 1 year at General Electric, and needless to say he hasn’t looked back. Fast forward to today, he has started several businesses and has learned as much from his failures as he has from his successes. To date his company has closed over 250 real estate transactions and has helped countless homeowners and investors in the process.
Module: Business Development
Expert: Alex Pardo
At RealEstateMogul.com, we’re committed to delivering the awesomest, most practical, actionable content to our members … and that a big part of that is getting YOU to tell us what you'd like to learn from us. Since our REI resources are basically endless, we’d love to tailor our upcoming training as much as possible to precisely match what you, our members, really need and want out of us.
Real Estate Mogul LLC
5023 W. 120th Ave, #102
Broomfield, CO 80020
This document describes Real Freedom Inc's Purchase Agreement. When you
complete a purchase from Real Freedom Inc, you agree to the terms of the
Purchase Agreement. Please read this document carefully.
This agreement is a contract. Under the terms of the contract, you receive
certain rights due to you from Real Freedom Inc, and you, in turn, give us
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the information, content, materials, products or services included on or made
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PO Box 48617
Tampa, FL 33646
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Real Estate Mogul LLC
5023 W. 120th Ave, #102
Broomfield, CO 80020
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Real Estate Mogul LLC
5023 W. 120th Ave, #102
Broomfield, CO 80020
FROM PRESTON ELY - MY PERSONAL DISCLAIMER TO YOU
Hi - we do everything in our power to run a good, clean business and help people succeed.
We've been in business for nearly a decade. Our mission is simple: help 1,000,000 people live lives of greater freedom. That's what gives us juice and passion.
Unfortunately, there are people and companies who do bad things and make products that don't work at all or don't work as advertised. That behavior hurts everyone.
The bottom line is there is no such thing as magic. There is no magic unicorn that will appear on your doorstep and start pooping gold bars or giving you free money.
Just because people in this program have made lots of money doesn't mean or imply the same will happen to you. In business, and in life, there are no guarantees.
Any one of the people who we happen to feature in this program have a BIG WHY - they want to make a difference and help themselves, their families, their employees and customers succeed. They want more and they apply themselves, they get outside of their comfort zones, acquire new skills, work like crazy, make mistakes, and fail, BUT THEY DON'T GIVE UP.
They implement. They don't quit. They serve. They didn't blame someone or something else for their mistakes or failures - instead, they do the HARD WORK that it takes to make a difference.
They use our tools, systems, psychology, mindset, training, community and events to succeed.
If you're the type of person that isn't willing to roll up your sleeves, learn, explore, grow and focus on helping other people succeed, our programs aren't for you.
If you're a blamer, whiner, malcontent, or just downright lazy, our programs aren't for you.
But if the content is this program and our videos resonate with you - and you can see the possibility and potential that this can work for you, then WELCOME HOME. You're in the presence of REAL PEOPLE who are helping REAL BUSINESSES succeed, thrive and survive.
It would be both mine and my team's pleasure and honor to serve and support you so you can EARN MORE, LIVE MORE and GIVE MORE.
Preston Ely, CEO
FULL EARNINGS DISCLOSURE:
RealEstateMogul LLC. (The Company) does not guarantee income or success, and examples shown at RealEstateMogul.com do not represent an indication of future success or earnings. The Company declares all information shared is true and accurate, and any claims made of actual earnings or examples of actual results can be verified upon request.
The earnings, revenue and profit results that a customer will generally achieve in circumstances similar to those depicted in the endorsements and testimonials on this site depend on many factors and conditions, including but not limited to, work ethic, learning ability, use of the products and services, business experience, daily practices, business opportunities, business connections, market conditions, availability of financing, and local competition, to name a few. Because of impediments due to any one or more of the foregoing and other factors, it is generally expected that no earnings, revenues or profits will be achieved with the use of any products or services advertised on this site in circumstances similar to those referenced in any endorsement or testimonial.
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