Preface
Retirement from real estate often means moving on to other passions and finally enjoying downtime after years of hard work.
Retiring can bring challenges, like giving up income streams and client relationships.
There is a way to retire while maintaining income and ensuring clients are taken care of.
The book presents the "golden handoff" method, where a retiring agent transfers clients to an adopting agent.
Adopting agents grow their business, and retiring agents earn referral income while clients continue to be supported.
The method benefits all parties: the retiring agent, adopting agent, and clients.
This method emphasizes not just the transfer of data but the preservation of client relationships and trust.
Introduction
The author’s journey into real estate started unexpectedly after a career in music and band management.
The author learned key lessons from taking over client relationships: the importance of a solid plan and execution.
The author's experience adopting clients from retiring agents has led to growth for their real estate business.
The book is meant to guide those adopting clients or retiring from real estate on how to make the transition smooth.
Key takeaway: Both adopting and retiring agents can achieve success by following the outlined steps.
How to Use This Book
The book is organized into chapters, with most sections focused on adoption agents.
Certain chapters are dedicated specifically to retiring agents.
Each chapter includes tips and tricks, as well as milestones for tracking progress.
The book also includes examples of successful retirements and adoptions.
The author offers online resources and consulting through their website for further guidance.
Part One: The Relay Team
Forming a great team is essential to success in the "relay race" of client handoff.
The retiring agent must have a solid database and be willing to educate the adopting agent.
The adopting agent must have the resources and time to take care of both their existing clients and the adopted clients.
A successful transition ensures shared financial rewards, often greater than expected.
Chapter One: Choosing an Adopting Agent
This chapter is focused on retiring agents.
Key Insight: Choosing the right adoption agent is the most important step in the golden hand-off process.
Common Mistake: Agents often choose someone they like or want to help, which can lead to poor results. It's crucial to choose an agent based on qualifications, not personal preference.
Considerations for Choosing an Adopting Agent
Experience:
The agent must have solid experience, both in handling clients and running a business.
Review their marketing materials, testimonials, and contracts to ensure they align with your standards.
Consistency in handling clients is key to maintaining trust.
Relationship Building:
The adopting agent’s methods of client communication must align with the retiring agent’s style (e.g., phone calls, mailings vs. social media).
The goal is to ensure clients do not feel abandoned during the transition.
Resources:
The adopting agent must have the financial and staffing resources to manage your client base, especially if your business is large.
They need a database system to handle the clients and the time to regularly engage with them.
Ethics:
High ethical standards are essential to ensure clients are treated well and referral fees are handled properly.
The agent must prioritize the client's best interests over short-term gains.
Energy:
Energy refers to the adopting agent's enthusiasm, vibe, and willingness to invest time in understanding your clients.
The agent should demonstrate genuine passion and care for the client relationships they are taking over.
Who Not to Hire
Friends: Friends may take the relationship for granted and treat the business casually. Ensure professional boundaries are set if you consider a friend.
Assistants: While familiar with your business, assistants may lack the skills or comfort to manage clients and may struggle with the transition to a commission-based role.
New Agents: Inexperienced agents, while energetic, may lack the financial resources or business acumen to handle a large client base.
Agents Needing Extra Business: Avoid agents who are struggling, as they may not have the confidence or competence to manage your business effectively.
Tips and Tricks for Adoption and Retiring Agents
Adopting Agents:
Ensure you have the systems and resources to manage the retiring agent's clients.
Understand the retiring agent’s business practices and marketing strategies.
Be prepared with testimonials from clients and other retiring agents you’ve worked with.
Retiring Agents:
Create a shortlist of successful agents and interview them thoroughly.
Ask your clients what they value most and ensure the adopting agent can continue those practices.
Collect testimonials from the adopting agent’s clients and, if possible, from other retiring agents they’ve worked with.
Milestones for Retiring Agents
You have assessed the adopting agent's experience, relationship-building skills, resources, ethics, and energy before making your decision.
You are committed to selecting the right person, not just the first person who comes to mind.
Chapter Two: Finding Retiring Agents
This chapter is focused on adopting agents.
Key Insight: Finding retiring agents is much like finding clients—you need to network and be proactive.
Retiring Agent Types: Retiring agents fall into three categories, which affect how the golden handoff plays out:
Martha Overton: Totally done and ready to retire with no further involvement.
Renee Hawthorne: Transitioning to a consulting role, stepping back but still involved.
David Belmont: Delegating, focusing on another career while maintaining some involvement in real estate.
Methods for Finding Retiring Agents
Networking:
Networking is key to finding retiring agents, much like finding clients.
Agents retiring are not necessarily older agents; some might shift to new careers or passions (like David Belmont).
Engage with your team leader, HR, or broker to stay informed about potential retiring agents.
Build relationships at broker tours, realtor associations, and agent marketing groups.
Pay attention to signs like agents who have reduced marketing efforts or fewer listings, which may indicate they are winding down.
Production Analysis:
Analyze agent production trends, focusing on those with many years in the business and a drop in production.
Agents with fewer listings, ads, or marketing efforts may be candidates for retirement.
Use these indicators to build a list of potential retiring agents and contact them proactively.
Marketing to Retiring Agents:
Once you identify potential retiring agents, create a marketing strategy to stay in touch.
Add retiring agents to your CRM system and send them marketing materials about your adoption services.
Follow up with them periodically, just like you would with potential home sellers.
Building a Pipeline:
Use your network and community involvement to collect testimonials from other retiring agents you've worked with.
Create a pipeline of agents who may retire in the future and nurture those relationships.
Collect and share testimonials to build trust and reduce uncertainty for future retiring agents.
Tips and Tricks for the Adopting Agent
Be active in your brokerage and the realtor community.
Let agents know you are open to adopting their clients when they retire.
Develop a production analysis and marketing plan for finding retiring agents.
Stay consistent in your communications and build relationships through CRM.
Tips and Tricks for the Retiring Agent
Take note of agents who actively market their client adoption plans.
Let your brokerage team know when you're considering retirement and ask for referrals.
Look for adopting agents with a proven track record of success.
Milestones for Adopting Agents
You are engaged in the agent community and identify potential retiring agents.
You have a marketing plan and database for tracking possible retiring agents.
Chapter Three: The Database
Key Insight: A well-maintained database is the most valuable asset a retiring agent can hand off to an adopting agent.
Database Basics: Ideally, a database contains all the clients and relationships a retiring agent has built over their career. However, in reality, databases may be incomplete or scattered across different platforms (e.g., business cards, phone contacts, social media).
The Value of a Database
Data Equals Value:
The more clients and information in the database, the more valuable it becomes to the adopting agent.
A well-timed handoff ensures that clients remain loyal to the adopting agent, preserving the value of the database.
Loyalty:
Clients loyal to the retiring agent are likely to stay loyal if the handoff is done well. Positive endorsements from the retiring agent make the adopting agent’s job easier.
Example: David's clients stayed loyal and even connected with the adopting agent because of David’s strong recommendation.
Database Management and Transfer
Importing the Database:
Databases will usually need to be transferred into a new CRM system via Excel or other methods.
A simple, organized database is better than a complex, fragmented one. It might be worth hiring a professional to handle the transfer process.
No Database:
If the retiring agent doesn't have a database, information can still be compiled from email, social media, phone contacts, and past transaction records.
Client aggregator tools (like Nimble or Contextually) can help gather data from various sources into one database.
Bonding Over Data:
Both agents should go over the database together to discuss each client and categorize them properly.
It is important to label clients in the database based on where they came from (e.g., referrals, past clients) and which retiring agent they belong to for accurate tracking.
Client Categories:
Essential categories include: past buyers, past sellers, investors, vendors, and buyer or seller leads. Each category should have follow-up notes regarding their potential future transactions or preferences.
Tips and Tricks for the Adopting Agent
Confirm all contact information during initial communication with adopted clients.
Use a mailing or direct marketing service to send announcement letters and confirm updated addresses.
Spend time with the retiring agent to review the database, social networks, and client connections.
Tips and Tricks for the Retiring Agent
Export your phone address book and consolidate it into a single database.
Use a database aggregator system to combine information from email, social media, and phone contacts.
Mail or email clients asking for updated contact information before the handoff.
Milestones for the Database
The retiring agent's database is sorted into past clients, potential clients, and referral sources.
Both adopting and retiring agents have reviewed the client list together, added notes, and updated information.
In the next chapter, the book will explore the financial power of taking over an entire database of clients.
Chapter Four: The Money
Key Insight: Financial rewards are a natural outcome of doing good work, and the golden handoff offers a significant income opportunity for both adopting and retiring agents.
Growth Potential: The business from adopted clients can grow an agent’s business significantly, adding up to 30% growth or more per year. For example, the author projects an additional $250,000 in income from these relationships in one year.
Money Basics of the Golden Handoff
Direct Income:
The commission split in a typical golden handoff lasts three years:
Year 1: 70% to the adopting agent, 30% to the retiring agent.
Year 2: 80% to the adopting agent, 20% to the retiring agent.
Year 3: 90% to the adopting agent, 10% to the retiring agent.
Direct income comes from transactions with adopted clients, and this revenue is shared according to the above splits.
Ongoing Referrals:
Retiring agents may continue to receive referral commissions for new clients they refer to the adopting agent.
These transactions follow an 80/20 split as long as the retiring agent maintains the necessary license to receive referral fees.
Indirect Income:
Additional leads from listings, open houses, and marketing efforts can generate indirect income for the adopting agent. These are not part of the split with the retiring agent.
The indirect sales from these leads (e.g., from open houses) are 100% owned by the adopting agent.
Adopted Client Referrals:
Referrals from adopted clients can further grow the business. These referrals result in 100% of the income going to the adopting agent, as they are based on the adopting agent’s work and relationships.
Financial Projections
Example Calculation:
For a retiring agent with 200 clients, 75% are repeat and referral clients.
With an estimated 15 closings per year (based on the average number of years between moves), at $9,000 commission per closing:
The adopting agent earns $94,500 in Year 1, and the retiring agent earns $40,500.
Adding 200 clients in one move can significantly grow the adopting agent’s business, and adopting multiple agents can lead to substantial income.
Example of Ongoing Referral Income:
A retiring agent referred a client whose transactions resulted in $32,500 in commission.
The adopting agent received $26,000, and the retiring agent received $6,500 for just a few minutes of effort.
Compounding Growth Through Referrals
Indirect Income:
Each listing can generate new leads, which lead to additional sales.
Example: Seven listings at $9,000 commission each generate an additional $63,000 in indirect income.
Adopted Client Referrals:
Over 10 years, even half of the adopted clients could refer one person each, leading to significant additional income.
Example: 100 referrals from an adopted client list could lead to 50 additional closings, resulting in $45,000 in extra income per year.
Fairness in the Split
Retiring agents are not entitled to a share of indirect income or referrals because this income is based on the adopting agent’s work with new clients.
The division of income is designed to be fair while simplifying accounting.
Tips and Tricks for the Adopting Agent
Know your numbers to better predict potential income from direct, indirect, and referral sources.
Ask for referrals from adopted clients to maximize your business growth.
Tips and Tricks for the Retiring Agent
Know your numbers to estimate how much income you can expect each year.
Send as many direct referrals as possible to continue benefiting from the split.
Money Milestones
Both agents understand how direct, indirect, and referral income works and how it impacts their business and finances.
In the next section, the book will explore how the retiring agent’s level of involvement affects the handoff and what that means for the adoption strategy.
Chapter Five: Choosing a Level of Involvement
This chapter is for retiring agents.
Key Insight: Retiring agents need to choose their level of involvement in the handoff process. The level of involvement directly impacts the ease of the transition and potential income for both agents.
Three Levels of Involvement: Retiring agents can choose between being Totally Done, a Consultant, or a Delegator.
Three Levels of Involvement for Retiring Agents
Totally Done:
The retiring agent has the least involvement. Almost all responsibilities, including client interactions and marketing, are passed to the adopting agent.
The retiring agent only needs to:
Deliver a complete database.
Call top clients to inform them about the handoff.
Sign announcement letters.
This level is best for agents who want to fully step away from the business.
Consultant:
The retiring agent remains involved in a minimal advisory role, offering support and endorsing the adopting agent’s work.
The retiring agent’s duties include:
Delivering the database and informing top clients about the handoff.
Signing announcement letters.
Offering occasional advice or reassurances to clients when needed.
Staying alert for new opportunities or clients.
This level is ideal for agents with strong social ties to their clients who want to maintain light involvement.
Delegator:
The retiring agent maintains some lead generation systems (e.g., websites or content creation) and delegates clients to the adopting agent.
The agent vets new clients, sets expectations, and coordinates with the adopting agent.
Responsibilities include:
Maintaining lead generation tools.
Communicating with the adopting agent about marketing efforts.
Managing client relationships with some direct involvement (e.g., calling clients a few times per year).
This level works well for agents who want to stay somewhat involved but focus on generating new business rather than handling day-to-day tasks.
Key Considerations
Honesty is crucial: Retiring agents should be clear about their desired level of involvement from the start.
Coordination: The more involved the retiring agent, the more coordination is required to avoid miscommunication or redundant efforts.
Legal Requirements: Retiring agents need to ensure they meet state licensing requirements, particularly if they remain involved as a consultant or delegator.
Tips and Tricks for the Adopting Agent
Ensure both parties have a clear understanding of the retiring agent’s chosen level of involvement.
The more involved the retiring agent, the more coordination and communication will be necessary.
Tips and Tricks for the Retiring Agent
Be honest with yourself about how much involvement you want after the handoff.
Check your state’s regulations regarding licensing or credentials if you plan to remain involved.
Involvement Milestones
The retiring agent has chosen a level of involvement, and both agents are clear on expectations moving forward.
The next section will explore why staying connected as a retiring agent might be beneficial and how it can enhance the success of the golden handoff.
Chapter Six: Staying Connected
This chapter is for retiring agents.
Key Insight: While it may be tempting for retiring agents to disconnect completely, maintaining certain communication channels is crucial to ensure clients are cared for and to maximize income potential from the golden handoff.
The Double-Edged Sword of Connectivity:
Modern technology keeps us constantly connected, which can be overwhelming.
Retiring agents often look forward to reducing responsibilities and "pulling the plug."
Completely disconnecting can lead to missed opportunities and lost clients.
Don't Pull the Plug:
Retiring agents should keep essential communication channels active to prevent clients from falling through the cracks.
Email:
Maintain your email address; clients may still use it to contact you.
Set up automated responses to inform clients of your retirement and introduce the adopting agent.
Forward relevant emails to the adopting agent.
Phone:
Keep your phone number active or forward calls to the adopting agent.
Turning off your phone can result in missed connections and lost business.
Website:
Decide whether to keep your website active or redirect it to the adopting agent's site.
For delegators, maintaining an active website helps keep content fresh and clients engaged.
Financial Consideration:
The cost of maintaining these channels is minimal compared to the potential income from referrals.
Even one referral can yield significant commissions, benefiting both retiring and adopting agents.
Active Ways to Stay in Touch:
Old School Methods:
Phone Calls:
Make annual calls to clients to check in and maintain relationships.
Coordinate with the adopting agent to avoid duplication.
Newsletters:
Collaborate with the adopting agent to include personal updates in newsletters.
Share snippets of your retirement life to keep clients interested.
Meetings and Events:
Attend client appreciation events hosted by the adopting agent.
Continue social interactions with clients when possible.
Advertising:
Modify existing ads to include the adopting agent, ensuring clients make the connection.
Ensure marketing costs are covered by the adopting agent and outlined in the contract.
New School Methods:
Social Media:
Continue sharing updates to stay connected with clients organically.
Share or retweet valuable content from the adopting agent.
Monitor clients' posts for real estate needs and inform the adopting agent.
Video Messages:
Create simple videos to personally connect with clients.
Videos can be shared via newsletters or social media.
Pre-record messages for future use to maintain presence without ongoing effort.
Collaboration with the Adopting Agent:
Work together to plan how and when to communicate with clients.
Ensure efforts are coordinated to avoid overwhelming or confusing clients.
The adopting agent can assist with technical aspects to make staying connected easier.
Focus on Real Estate:
Keep communications relevant to real estate, as that is the common bond with clients.
Personal life updates are valuable but should tie back to maintaining professional relationships.
Tips and Tricks for the Adopting Agent:
Asset Management:
Discuss with the retiring agent how to handle email addresses, phone numbers, and websites.
Offer to manage or take over passive assets like websites to continue generating leads.
Facilitate Support:
Provide easy ways for the retiring agent to endorse you, such as preparing content they can share.
Handle technical tasks like video production to reduce the retiring agent's workload.
Coordination:
Ensure clear communication to avoid overlapping efforts when contacting clients.
Tips and Tricks for the Retiring Agent:
Decide on Communication Channels:
Determine which systems (email, phone, website) you will maintain and which will be transferred.
Forwarding Contacts:
Promptly forward any business inquiries to the adopting agent.
Set up automated responses where appropriate.
Stay Engaged:
Simple actions like annual calls or newsletter contributions can significantly impact business.
Leverage social media and video to maintain a personal connection with clients.
Collaborate for Ease:
Allow the adopting agent to assist with technical or time-consuming tasks to make staying connected effortless.
Staying Connected Milestones:
Communication Plan Established:
Both agents have listed all email addresses, websites, and phone numbers.
Responsibilities for maintenance and responding to inquiries are clearly assigned.
Assets Assigned or Transferred:
Decisions made on which assets to shut down, maintain, or redirect.
Ongoing Collaboration:
A coordinated plan is in place for client communication and marketing efforts.
Regular check-ins ensure both agents are aligned and clients are well-served.
Chapter Seven: Ongoing Referrals
This chapter focuses on ongoing referrals and how the retiring agent can continue to contribute even after stepping back from active real estate work.
Key Insight: Retiring agents are naturally tuned in to opportunities and can continue to refer potential clients to the adopting agent. This creates a continuous source of income for both parties.
Ongoing Referrals:
These are referrals the retiring agent generates outside of the adopted client database.
Even though the retiring agent is stepping back, they can still help grow the adopting agent’s business by staying aware of opportunities.
The partnership between the retiring and adopting agents is not just limited to the client database; ongoing referrals offer unlimited potential for new business.
Top-of-Mind Business:
Most real estate business comes from referrals, which requires staying top-of-mind with clients.
The Pareto Principle (80/20 rule) applies: 80% of referrals come from 20% of your clients.
Retiring agents become top advocates for the adopting agent, just like any well-connected client.
Treat retiring agents as "advocate clients" by keeping them on mailing lists, regularly checking in, and maintaining strong relationships.
The Role of Retiring Agents in Referrals:
Retiring agents should continue to refer leads and opportunities to the adopting agent, whether it's a neighbor thinking about selling or a large developer they have a connection with.
Examples:
Renée referred two neighbors who eventually sold homes valued at $600,000 and over $1 million.
David generates new leads through his website and forwards them to the adopting agent.
Different Levels of Involvement and Referrals:
Totally Done:
Retiring agents should inform the adopting agent about any real estate inquiries they receive.
They are not proactive, but still play a passive role in referring clients.
Consultant:
Retiring agents remain socially engaged and can help qualify potential clients before passing them on to the adopting agent.
They offer ongoing support and refer opportunities as they arise.
Delegator:
Retiring agents are still actively generating leads through blogs, columns, or websites.
They work with the adopting agent to manage new leads and inquiries, often passing on new clients regularly.
Coaching Retiring Agents:
Adopting agents should coach retiring agents on how to stay engaged and refer new opportunities based on their level of involvement.
Simple reminders and clear communication help foster ongoing referrals.
Tips and Tricks for the Adopting Agent:
Remind the retiring agent to stay alert to real estate opportunities and pass them on.
Treat the retiring agent as a top advocate client, keeping them in the loop with marketing efforts and encouraging them to refer more business.
Tips and Tricks for the Retiring Agent:
Keep your "antenna" up for real estate opportunities and let the adopting agent follow up on leads.
Advocate for the adopting agent in social settings and help keep adopted clients engaged with the business.
Ongoing Referrals Milestones:
The retiring agent understands the ease and value of ongoing referrals.
The adopting agent treats the retiring agent as a top advocate client, encouraging them to stay engaged and on the lookout for new business opportunities.
The next section will cover the contract between the retiring and adopting agents, outlining the mutual expectations and promises that will guide the handoff process.
Chapter Eight: The Contract
This chapter covers the importance of creating a clear and fair contract between the retiring and adopting agents. The contract outlines expectations, assets, responsibilities, and referral fees to ensure a smooth and profitable transition.
Real Estate Contract Basics:
A contract is a legal document that details the exchange of value and sets expectations for both the retiring and adopting agents.
It should cover soft assets like databases, websites, and emails, as well as hard assets like office equipment or lockboxes.
Wild card assets, such as office space or team members, may also need to be addressed in the contract depending on the situation.
Sample Contract Structure:
Referral fees for adopted clients:
Year 1: 30% referral to the retiring agent.
Year 2: 20% referral to the retiring agent.
Year 3: 10% referral to the retiring agent.
After Year 3: No further referral fees from the adopted clients.
New referrals from the retiring agent (clients not in the database): 20% referral fee for the first transaction for perpetuity as long as the retiring agent maintains a valid real estate license.
Assets: Agreement on what assets are transferred, such as websites, phone numbers, and marketing templates. Lockboxes and other equipment are sold at fair market value.
Exceptions:
Retiring agent returns to business: If the retiring agent returns to real estate, the database can revert to them with proper notice.
Marketing efforts: If the retiring agent maintains marketing activities like a website or column, costs and income are shared.
Personal connections: Special referral terms for clients with deep personal connections to the retiring agent.
Active business: If the retiring agent has active listings or buyers, referral fees for those specific transactions may be adjusted (e.g., 50% fee).
Ongoing Responsibilities:
Retiring agent:
Maintain a real estate license.
Communicate any inquiries or new leads to the adopting agent.
Endorse the adopting agent to all clients and leads.
Adopting agent:
Maintain high marketing and follow-up procedures.
Communicate with the retiring agent about new business and pending sales.
Cover all marketing costs and ensure the business is capable of supporting the adopted clients.
Rationale Behind Percentage Structure:
A three-year referral fee structure is fair and sustainable, providing both agents with an ongoing benefit while the retiring agent winds down their license and involvement.
Lump sum sales are discouraged due to the unpredictable nature of real estate and the value of client relationships. Percentage splits ensure both parties share in the success and risks fairly.
The Importance of Relationships:
The key asset being transferred is not just the client list, but the relationship and trust between the retiring agent and their clients. The contract must reflect this and help ensure a successful handoff.
Tips and Tricks for the Adopting Agent:
Review all assets to maximize value.
Ensure the contract covers any and all "what-ifs" to avoid complications later.
Tips and Tricks for the Retiring Agent:
Be aware of state licensing requirements and maintain your license if needed for referral income.
Make sure the agreement is sustainable for both parties over the duration of the deal.
Contract Milestones:
Both parties have discussed and agreed on all terms, signed the contract, and addressed all possible "what-ifs."
In the next section, Part Four: The Golden Hand-Off, the focus shifts from planning and contracts to action. Chapters 9 and 10 will cover how to prepare systems for contacting adopted clients, and Chapter 11 will guide you through making the big announcement to clients.
Chapter 9: Marketing
In this chapter, the author dives into how to effectively market in real estate, focusing on three main factors: Channel (how you contact), Message (what you say), and Frequency (how often you contact).
Start with Why
The chapter begins with a reference to Simon Sinek’s book Start with Why, explaining that successful businesses know not only what they do, but also why they do it. Understanding your “why” helps attract loyal clients who believe in your purpose. The retiring and adopting agents should discuss their whys to align their marketing strategies effectively.
Marketing Channels
The author explores a mix of traditional (old school) and modern (new school) methods of communication:
Mailing: Regular mailings, such as newsletters, help keep clients informed about the market and personal updates from the agent. The author sends quarterly mailings.
Calling: Phone calls are essential, especially for top clients, and should happen 4+ times a year.
In-Person Meetings: The most impactful but time-consuming way to connect. Events, lunches, or even stopping by a client's home can help build stronger relationships.
Advertising: Though not the author’s preferred method, advertising can provide “evidence of success” and reinforce the agent’s brand.
Email: Email is effective, but overused. Enhancing emails with videos or rich media like BombBomb can make them more engaging.
Social Media: Social media platforms like Facebook, Instagram, and LinkedIn offer opportunities for both personal and business-related engagement. Searching hashtags can lead to new leads and connections.
Text Messaging: Texts are personal and effective but should not be used as mass marketing. Personal, one-on-one texts work best.
Video: Video is powerful because it allows agents to communicate at scale while maintaining a personal touch. It’s also highly shareable, which can help expand reach organically.
Message
It’s crucial that your message aligns with the client’s needs. The “why” behind your business helps determine what to say. Messages need to be relevant and valuable, tailored to where your clients are in their journey (e.g., first-time buyers vs. investors). For instance, sending investment advice to a first-time homebuyer would not resonate.
Frequency
The frequency of contact is key. Gary Keller’s Millionaire Real Estate Agent suggests 33 touches per year, including calls, mailings, emails, and events. The author aims for around 21 contacts annually for top clients. Regular contact helps maintain relationships and avoid the “roller coaster” effect of inconsistent business.
Marketing Plan
It’s important for the adopting agent to review the retiring agent's marketing strategy, especially what worked in the past. This includes discussing the channel, message, and frequency of contact, making sure the new plan matches the clients' expectations.
Other Details
The chapter also touches on:
Client Categories: Understanding and differentiating between past clients, leads, and vendors, and giving appropriate attention to each.
Budget: Planning for both time and money in marketing efforts.
Accountability: Both the adopting and retiring agents need to ensure there’s accountability in the marketing plan, with consistent updates and communication about results.
Summary
Good marketing connects with clients at the right time, through the right channel, and with the right message. As the business grows, systems and tools become essential to ensure consistent contact. Accountability between both agents ensures that the transition of clients is smooth and that clients receive the same level of attention they’re used to.
Tips for the Adopting Agent
Ensure the marketing plan is written and accountability meetings are scheduled before starting.
Consider traditional marketing if it’s been effective for the retiring agent, like postcard campaigns.
Tips for the Retiring Agent
Share your marketing pieces and schedule with the adopting agent.
Be prepared to explain how you market to different client types and share your return on investment for each strategy.
Milestones
Both agents should now have a solid understanding of the marketing strategies and have implemented a new plan that is both effective and sustainable.
Chapter 10: Systems and Tools
This chapter focuses on the importance of systems and tools in managing a real estate business, especially during the handoff from a retiring agent to an adopting agent. A good system ensures consistent follow-up, marketing, and relationship management as the business scales.
Why Systems Matter
Systems are essential for managing client relationships and keeping up with follow-up tasks. As the adopting agent's business grows, systems prevent things from falling through the cracks and make sure every client gets consistent attention. Without good systems in place, it's easy to get overwhelmed, and that can lead to missed opportunities and a loss of trust with clients.
Key Components of a Good System
There are three main areas where systems are crucial:
Customer Relationship Management (CRM)
A CRM is essential for tracking client interactions, tasks, and transactions. It allows agents to organize their database into categories (past clients, leads, vendors) and schedule follow-ups based on those categories.
CRMs also help agents remember client details, which is important for personalized communication. Without a CRM, keeping track of hundreds or even thousands of clients would be impossible.
Marketing Automation
Marketing systems automate the process of sending newsletters, social media posts, and emails. They ensure regular, consistent contact with clients.
Tools like BombBomb or Mailchimp are useful for email automation, while platforms like Hootsuite or Buffer help manage social media.
The key to marketing automation is balancing consistency with personalization. Clients should feel like they’re being communicated with personally, even if the message is automated.
Transaction Management
Transaction management systems help agents track deals, deadlines, and paperwork. This ensures that every detail of the buying or selling process is properly managed.
These tools are particularly important when dealing with multiple transactions at once and help agents avoid mistakes or missed deadlines.
The Right Tools for the Job
The author discusses specific tools that can be used in each area of the business. Some examples include:
CRM Tools: Top Producer, BoomTown, Follow Up Boss
Marketing Automation: Mailchimp, BombBomb, Constant Contact
Transaction Management: Dotloop, DocuSign, Skyslope
These tools allow agents to scale their business, improve efficiency, and offer better service to clients. They also ensure that agents can handle the volume of work that comes with adopting another agent’s database.
Customization and Adaptability
While tools are important, it’s also essential that they are tailored to the needs of the agent and the business. Customizing CRM workflows, marketing templates, and transaction processes is critical to making the system work for you.
Agents should also be adaptable and open to new technology as their business grows. Staying up to date with the latest tools ensures that clients get the best possible service and that the business stays competitive in a rapidly evolving industry.
Transitioning Systems
When taking over from a retiring agent, it's crucial that the systems they used are reviewed and integrated with the adopting agent's existing processes. The goal is to create a seamless transition so clients don't notice any disruption in service. If the retiring agent used different tools, the adopting agent might need to switch or adapt their own systems.
Importance of Accountability
The author stresses the importance of having accountability measures in place for systems and tools. Both the retiring and adopting agents should regularly check in to ensure that the tools are being used correctly and that clients are being properly managed. This accountability ensures that the handoff is successful and that both agents can track the effectiveness of their marketing, follow-up, and transaction management.
Systems in Action
The chapter concludes by emphasizing that systems and tools are what allow agents to effectively scale their business. With good systems in place, agents can handle more clients, transactions, and marketing while maintaining the same level of service. In short, systems provide the foundation for long-term success.
Tips for the Adopting Agent
Make sure you have a CRM system in place to track client interactions and follow-ups.
Automate marketing to ensure regular communication, but keep it personal.
Use transaction management tools to track deadlines and paperwork.
Tips for the Retiring Agent
Provide the adopting agent with details about the systems you’ve used and how they helped manage your business.
Help the adopting agent integrate your systems into their existing processes to ensure a smooth transition.
Milestones
Both agents should have fully integrated their systems and tools, ensuring smooth operation and accountability for marketing, transactions, and client relationships.
Chapter 11: The Big Announcement
This chapter covers how to effectively announce the retirement of the retiring agent and the introduction of the adopting agent to the clients. This moment is critical because it sets the tone for the transition, helping ensure that clients feel reassured and confident in the new agent taking over their real estate needs.
The Importance of a Smooth Announcement
The announcement needs to be thoughtful and well-planned. The retiring agent has built long-standing relationships with clients, and the adopting agent must honor that relationship while gaining the trust of the clients. A smooth and transparent announcement increases the chances that clients will continue to work with the adopting agent without hesitation.
The Three-Part Announcement Strategy
The author outlines a three-part strategy for making the big announcement:
Personal Call from the Retiring Agent
The first step in the announcement is a personal phone call from the retiring agent to their top clients. This shows respect for the relationship and gives clients a chance to ask questions and express any concerns they may have.
This call helps clients feel valued and ensures they hear the news directly from the retiring agent rather than through less personal means.
The Announcement Letter
After the personal calls, the second step is to send a formal announcement letter. This letter should come from both the retiring and adopting agents and explain the transition in detail.
It should emphasize that the retiring agent has chosen the adopting agent because of their trust and confidence in their ability to provide excellent service. The letter should also outline the retiring agent's level of involvement moving forward and highlight the continuity of care that clients can expect.
Follow-Up by the Adopting Agent
The final step is for the adopting agent to follow up with each client after the announcement. This could be through a phone call, email, or personal meeting, depending on the client’s preference.
The goal is to introduce the adopting agent and begin establishing a personal connection. This follow-up is a critical moment for the adopting agent to start building their own relationships with the clients.
What the Announcement Should Include
The announcement needs to address the following key points to ensure clarity and trust:
Why the Transition is Happening: Clients need to understand why the retiring agent is stepping away and how the adopting agent was chosen. This includes the personal reasons for retirement and the assurance that the retiring agent has full confidence in the adopting agent.
Who the Adopting Agent Is: The announcement should introduce the adopting agent, including their experience, qualifications, and why they are a great fit to take over the retiring agent’s business. It should also highlight any overlap in values and approach to service.
What Clients Can Expect Going Forward: Clients need to know what the transition will look like and how their experience will remain consistent. If the retiring agent will still be involved at some level, this should be clarified, along with any changes clients can expect.
The Right Tone
The tone of the announcement is just as important as the content. It should be warm, personal, and reassuring. The goal is to make clients feel like they are still being taken care of and that the relationship will remain strong, even with a new agent. The retiring agent should emphasize their gratitude for the client’s loyalty and assure them that they are in good hands with the adopting agent.
Timing of the Announcement
Timing is crucial for the success of the announcement. The call, letter, and follow-up need to happen within a short timeframe to maintain momentum and ensure clients receive the message from multiple channels. This helps prevent confusion or clients feeling like they were left out of the loop.
Personal Calls: These should happen first, ideally in the weeks leading up to the official transition.
Announcement Letter: The letter should be sent immediately after the personal calls, ensuring clients have something formal in writing.
Follow-Up by the Adopting Agent: This should happen soon after the letter is sent, giving the adopting agent an opportunity to connect with clients while the announcement is still fresh.
Dealing with Client Reactions
Clients may react to the news in different ways. Some may be upset that the retiring agent is leaving, while others might be hesitant to trust a new agent. The chapter emphasizes the importance of being prepared for these reactions and addressing them with empathy and reassurance.
For Upset Clients: The retiring agent should listen to their concerns, express understanding, and reassure them that they will be well taken care of.
For Hesitant Clients: The adopting agent needs to be patient and work to build trust gradually. This is where regular follow-ups and personal attention become key.
How to Measure Success
The success of the big announcement can be measured by how many clients stay with the adopting agent and continue to work with them. If the transition is handled with care, most clients should feel comfortable staying with the new agent. The author suggests that a high retention rate is a good indicator that the handoff has been successful.
Tips for the Adopting Agent
Make sure you have all the client information and notes from the retiring agent to prepare for follow-ups.
Take the time to personally connect with clients during the follow-up stage. This will set the foundation for a strong relationship going forward.
Be prepared to address any concerns or hesitations that clients might have and offer reassurance that you will provide the same level of service they are used to.
Tips for the Retiring Agent
Make personal calls to your top clients to ensure they hear the news from you first.
Be clear in your endorsement of the adopting agent and emphasize why you trust them to take over your business.
Reassure clients that you will be involved (if applicable) and that the transition will be seamless.
Milestones
By the end of this chapter, the retiring agent has made personal calls to top clients, the announcement letter has been sent, and the adopting agent has followed up with each client. Both agents have measured client reactions and are moving forward with the transition.
Chapter 12: Letting Go
This chapter is directed toward the retiring agent as they transition out of the real estate business after the handoff is complete. The central theme is the importance of letting go and trusting the adopting agent to manage their former clients effectively. While adopting agents should still read this chapter to understand their partner's role at this stage, the advice is primarily for the retiring agents.
After all the logistics—letters, notices, and marketing—are handled, the final step is to let go of control. This can be challenging for many retiring agents who have run their business in a certain way for a long time and built rapport with clients. They may worry about small details, such as whether the adopting agent will recognize the importance of certain clients. However, the chapter reassures them that if they've carefully chosen the right agent and communicated clearly, the handoff will be successful.
Trusting the Process
The retiring agent must trust that the adopting agent will handle clients with care. Good endorsements from the retiring agent will set the tone for a positive relationship with the adopted clients. While it’s natural to believe that clients will still need to hear the retiring agent’s advice, most clients will be comfortable with the adopting agent’s guidance. There may be rare occasions where the retiring agent is asked to confirm or reinforce the advice, but these will be exceptions.
Embracing Retirement
The point of the process is for the retiring agent to be able to retire, enjoying their newfound freedom while still receiving commission checks. Although it's natural to have expectations about commission income based on past business, these should be communicated and adjusted as the market and other variables affect results.
A simple formula is provided for estimating commission expectations:
Multiply the total number of clients by the percentage of repeat and referral business.
Divide by 10 (reflecting the median number of years between moves) to estimate how many deals will happen annually.
Evaluating Results
The chapter emphasizes the importance of evaluating the results of the adoption. If results fall below expectations, the agents can analyze their methods and consider adjustments. However, it’s essential to remember that not all clients will return, and sometimes factors beyond either agent's control will affect outcomes. If the retiring agent hears positive feedback about the adopting agent, they should share it; likewise, they should also communicate any concerns to help the adopting agent improve.
The overall message is that the retiring agent can let go and enjoy their retirement once they’ve done the necessary work upfront.
Tips and Tricks for the Adopting Agent:
Share testimonials and positive feedback from adopted clients with the retiring agent.
Keep track of activities and results, providing regular updates to the retiring agent.
Be patient with retiring agents who need reassurance during the transition.
Tips and Tricks for the Retiring Agent:
Ask clients for feedback after they meet with the adopting agent.
Keep realistic expectations based on past business.
If you have helpful details about a client’s preferences, share them with the adopting agent when appropriate.
Letting Go Milestones:
The retiring agent has set clear expectations and allowed the adopting agent to take the lead.
The retiring agent tracks updates and production, based on the number of adopted clients and the adopting agent’s activities.
In conclusion, this chapter focuses on the emotional and logistical aspects of stepping away and trusting the adopting agent to carry the torch, while still enjoying the financial benefits of the business they've built.
Chapter 13 Summary: Hurdles
In Chapter 13, "Hurdles," the focus is on potential difficulties that might arise during the golden handoff process between retiring and adopting agents, and how to overcome them. The chapter emphasizes that while the process is generally smooth when both parties follow the recommended steps, there may still be challenges that require attention or, in rare cases, may lead to ending the partnership altogether.
Key Issues for Adopting Agents:
Database Challenges: Adopting agents may find the retiring agent’s database contains more leads or vendors than actual clients. If so, they should meet with the retiring agent to re-categorize the database and adjust their communication accordingly.
Endorsement: The retiring agent may not have fully endorsed the adopting agent to clients. If clients are surprised by the transition, the retiring agent needs to call, email, and use social media to reinforce the endorsement.
Communication Issues: If the retiring agent is still in contact with clients but not passing information along to the adopting agent, a meeting should be arranged to emphasize the importance of timely communication.
Key Issues for Retiring Agents:
Deviation from the Agreed Plan: If the adopting agent is not following the marketing plan or maintaining the agreed schedule, the retiring agent should address this and hold them accountable.
Low Deal Closings: If deals are not closing, the retiring agent should check whether the adopting agent needs coaching or if their approach needs improvement. The agent should also get client feedback to help diagnose the problem.
Communication: If the adopting agent is not providing regular updates, the retiring agent should ensure they have monthly check-ins to stay informed about activities and progress.
Conflict Resolution:
Both agents should try conflict resolution first. Open and honest communication about what is or isn’t working can help resolve issues before deciding to end the relationship. If no resolution is reached, then ending the agreement might be necessary.
Calling Off the Agreement:
If a resolution is not possible, the retiring agent may need to find a new adopting agent. The retiring agent should remove their clients from the original adopting agent’s database and personally call clients to explain the transition to a new agent. Adopting agents may also decide to call off the agreement if clients aren’t responding or the relationship isn’t working.
Final Tips:
Adopting Agents: Track activities and results, be honest about missed milestones, and fix issues promptly.
Retiring Agents: Stay involved in activities, make expectations clear, and attempt conflict resolution before terminating the agreement.
Hurdle Milestones: Before calling off the golden handoff, conflict resolution is attempted. If the agreement is terminated, it's done promptly and with good reason.
Chapter 14: Winning the Race - Summary
The final chapter of the book focuses on the culmination of the golden handoff process, celebrating both the retiring and adopting agents for their efforts and accomplishments. It highlights the importance of taking action and following through on the strategies outlined in the book.
The author emphasizes that the golden handoff provides a win-win-win scenario where:
The adopting agent benefits by gaining new clients and growing their business.
The retiring agent can retire earlier, with a continuous income stream, while maintaining the legacy of their client relationships.
The clients are handed off to a trusted new agent who will continue to meet their real estate needs.
Key points in this chapter include:
Encouragement to take action: The ideas in the book only work if agents implement them. The process brings a sense of fulfillment when it helps retiring agents achieve financial goals like buying property, paying for education, or enjoying retirement.
The power of the golden handoff: The author reflects on the growing recognition of the golden handoff method globally, with more agents looking for ways to integrate it into their business plans.
Simple but not easy: While the golden handoff is fundamentally simple, it requires planning, effort, and consistency, much like other paths to success in life.
Executing the handoff: The adoption and retiring agents must align their marketing strategies, coordinate communications, and ensure proper systems are in place to manage the transition. The handoff must be done with care to set expectations with clients and create a smooth transition.
Long-term impact: The golden handoff strengthens the real estate community by forging lasting connections between retiring agents and their successors. It encourages collaboration, mentorship, and a continuous income stream for the retiring agent.
The chapter closes by handing the baton to the reader, encouraging them to go out and apply the golden handoff model, with the promise of personal and professional growth.
This chapter serves as a motivational conclusion, bringing the journey full circle, and offering a clear reminder that success comes through deliberate action. The baton of the golden handoff is now in the reader’s hands, with the potential to "change their world" through this unique strategy.
