I recently did a deep dive into a variety of Business Models to help demonstrate that there are multiple ways to earn money out there – and more to the point – there are often multiple business models you can use to monetize one area of expertise or passion.
For example, let’s look at real estate. We talk a lot about real estate as one of the 7 sources of residual income, so let’s take a look at how several business models could help a Realtor expand their business beyond just helping other people with a real estate transaction.
The upside of being a Realtor is that you are earning a commission, usually 2.5 to 3% each from the buying and selling agents on the total sale price of a home. That can add up to a nice commission check. You get to know the market in your area extremely well and help buyers and sellers through what for many of them is the biggest sale or purchase they will ever make. You guide your client and advocate for them so they get the best price and conditions possible, walk them from agreement to settlement, and keep the paperwork in order along the way.
The downside is that, once the transaction is complete, you need new clients. You’ve got to keep showing houses, getting listing appointments, and convincing enough people that you are the agent that can best help them buy or sell their property. And there is always plenty of competition from other Realtors for those clients.
One business model that I would quickly add, if I were a Realtor, would be the purchase of a rental property. Realtors are highly networked individuals within the community. Since they look at houses all the time, they know the market intimately. They know good neighborhoods, bad neighborhoods, good schools, and bad schools. They can often use their network to discover properties before they even come on the market.
Owning rental properties gives you residual income, gives you a source of potential new buyers, and an asset to potentially sell, but in the meantime, you gain the cash flow and someone else is paying the mortgage down on that property.
A second monetization path might be thought leadership. You could write a book on how and why you built that rental portfolio and the positive financial impact it has had for you. A book and consistent social media presence are two ingredients needed to be seen as an expert on a subject matter. In becoming a thought leader, you can become a trusted resource for those looking to get started in building their own investment property portfolio. You could sell the book and get royalties, or maybe offer it as a thank you for the purchase of an online masterclass in rental property ownership. Building up your thought leadership entrenches you as the expert and many who consider purchasing such property will need a Realtor to represent them.
We have also spoken and written a lot about Airbnb as a potential for income as a Realtor. This is another way to build your network, and potentially acquire more expensive real estate that attracts higher net worth customers coming and going within your area.
A real estate investment group is another idea for monetizing real estate knowledge. You could facilitate a rental-focused group based on your expertise. You would bring like-minded people together to analyze the market and talk about financing options. This is another way you can provide added value to people who may potentially need the help of a Realtor in purchasing their own properties.
What are some other ways you could monetize your business or area of expertise? If you want to run through a list of ideas focused on you and your business, give us a call!. We would be happy to guide you through a brainstorming process as part of our planning agreement.
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