Big congrats to Koen for hitting the glorious 7-figure run rate.
We first started working together about 2.5 years ago and it's incredible to see how his agency has evolved and grown.
I know you'll learn a ton from this interview...
If you want results like these then joining my inner circle will help: APPLY HERE Some of my main takeaways from this conversation were:
ONE: Find the right deal structure/money model for your niche.
In this agency business, we have a few different monetisation structures at our fingertips.
For example... retainers, pay per lead, rev share, performance fee's, build & release etc
There's always debate on which of the above are better and the reality is they all work best when paired with the right niche and client avatar.
Some niches thrive with a pay per lead model, other niches you'd never consider it.
What this looked liked for my agency and same with Koen's is using paid in full deals. This is where we simply pitch a client a 6 or 12 month package and give them a slight discount for paying up front and. in full.
So a 6 month PIF might be $8K vs them paying $1,800 per month.
You close 4 PIF's you make $32K that month VS you close 4 retainers you make $7200.
In my niche real estate agents have "chunk flow" instead of "cash flow". Meaning they get paid in big lump sums not consistent recurring payments. So they prefer to pay their bills in the same way... (makes sense right).
TWO: Find your micro niche & specialise
Almost ALL the agency owners I know right now that are crushing it have discovered hyper-specific micro niches that allow them to increase client retention, charge more and acquire clients more easily.
It ends up naturally happening the longer you've been serving an industry. You just learn who is better to work with, who is easier to get results, what are the markers of people that are serious and would be a likely buyer.
In Koen's case he stopped selling to local real estate agents and started working with international real estate agents. The kind that sell off the plan new builds and projects to international investors and general buyers etc.
These agents have larger deal sizes, are more entrepreneurial and easier to get results for as buyers are easier to generate than sellers.
For me we worked out that working with real estate agency owners was way better than working with individual agents. The agency owners were real business owners VS the agents were just sales reps. Sales reps have less disposable cash flow and are highly volatile which makes their retention volatile.
THREE: Treating the business like a company VS a personal cash cow
Many people come into this space with a broken mindset and garbage expectations.
They take all the reasons of why this business model is so good and use it as an excuse to be lazy and half ass the execution.
This business model offers us time, location and financial freedom... it offers us the option for it to be a "Side hustle", because it is so flexible and nimble.
However, this comes with a downside. We don't take it seriously enough. We don't treat it with the respect and responsibility most business owners do to their business.
Think about the time, energy and risk it takes to open a cafe. A business that you'd be lucky to pull low 6 figures profit a year from.
You have to take on a commercial lease ($5K - $10K/m min)
You invest in coffee machines and equipment ($30K - $50K)
You take out commercial loans (In depth, paying interest)
You have full time staff on payroll from day 1
You are in the business every day open till close
Now take the average newbie agency owner...
You buy a domain, sign up to a free trial on go high level, watch some hormozi vids and call yourself an entrepreneur. You need to treat your business with the level of intensity and priority as if it were your sole mission & the stakes were high.
Koen demonstrates this in his interview by showing how he went back to the drawing board, restructured his team and got back on the phones to do cold calls. He then turned his business around within 6 months and is making more money than ever.
That's all for now!
Enjoy (: