RAW TRANSCRIPT:

FLETCHER: The last thing I want to talk about today and this comes back to what I intro-d was this idea of Remax gaining incredible traction in terms of agent recruiting. It’s not so much that they are doing anything different from a recruiting standpoint. It really has to do with what I call or what I described as the perfect storm. I have a headline here, “I already mentioned the first one, “Remax Brings Battalion of New Recruits into Real Estate.”

Here is the second headline. Here is what is driving this, why it’s so negative on you right now and will be in the future and why I encourage you to get to a higher ground as fast as you possibly can. The headline reads, and this is from the Bureau of Labor Statistics record, “92,269,000 people are currently not in the labor force, participation rate matches 36 year low.”

If you listened to the news media, they’re saying, “The recession is over. The stock market is at all-time high, interest rates are still low, people are coming out, buyers are selling, sellers are selling. The economy is good.” And yet, the unemployment rate is dropping. Why? Most people cannot find a job so they just say, “Ugh, screw it” and drop out. They’re not even looking for a job anymore. So in the labor participation, in the labor force, you got 92 million people out there. 

The bigger question becomes is why did Remax go public last October-November?

They didn’t do it because they want to ride the wave. They did it because of two things. One, they knew that Obamacare is going to convert more full-time workers to part-time workers. You have 92 million people that are in the work force, they cannot find a job so they just quit, but more importantly, those people that are finding jobs are finding part time jobs, not full time jobs. You are seeing a drop in income levels. So not only are they working part time, they have more free time. What industry do you thing that they are going to get into to make more money?

What industry have they always gotten into part time to make more money? What industry can you get into with this little 60-90 hours of studying for less than $1,000? What industry can you work part time and make $5,000, $10,000, $3,000, or $15,000 depending on your market and what your price points are in a single transaction? How many hours do you have to work at a minimum wage job? Or even a $15 an hour to make the kind of money with the margins in real estate as a $5,000 or a $10,000 commission? This is what Remax saw.

In the New York Times they said, “Oh, we just want to ride the wave. The housing market is hot.” No. They are the best analysts in the world. You know what they are telling their Wall Street investors. You know they’re telling share holders, “Listen. Obama Care is going to convert everybody to part time workers because business owners now they have to pay for insurance, and if they are a full time employee, then they also have to pay and it is more expensive.” And the business owner says, “I cannot do it! I can’t. I don’t have the margins. I don’t have the numbers.” So what happens? You no longer work full time. You work part time. 

More and more of these people are being converted from full time to part time.

The worst part about all of this, and it’s been delayed a little bit, because of the mandate, Obama goes, “Oh God, this 2016 elections are coming up, I do not want to hurt the Democrats chance, so I am going to hold off.” All the employer mandates, many of them have been held off until this coming year after the ’16 elections. 

When that happens though, it’s going to be ugly and ReMax is the one who’s going to capitalize, very happy share holders. More agents mean more desk fees, which means more profits, but more agents means more competition, so all of the ‘for sale by owners, all of the [expired 0:28:23], they’re all going to be using the same scripts, they’re all going to be using the same dialogues. Get ready. A bunch of Glen Garry, Glenn Ross is out there and the person who, shall we say it, is the most Wolf of Wall Street will win. And if you are not, well you’re going to be hated just like the rest of them.

SLOPER: As if we needed more part time real estate agents in the market, right? So not only will they be coming to the real estate market, they’ll continue working their other job because they have to. They’re not going to treat being a real estate agent as anything other than another part time job. It’s not a business. They do not consider themselves entrepreneurs. They are already set up to fail. They just don’t know it yet. They are going to pay all their fees to NAR and to their local State and County Associations, they’ll pay MLS dues, they’ll pay money for websites, they’ll buy .realtor domain, we’ll do all these things. 

I was reading the book Choose Yourself by James Altucher. He says that the new norm where we’re heading is at 40 percent unemployment. He makes the point that society as a whole, most people are very bad at their jobs. There is a slim amount of people in the work force that actually do a great job.

For the most part, people are too busy playing on Twitter, Facebook, watching YouTube videos, going in to Starbucks, sitting around just gazing at stars, doing whatever they are doing, but they are sitting in their seats behind the office not really working.
So he actually made the point that we are moving towards the age where robots and computers are taking over human’s jobs because they are more efficient. That is going to become more of the norm. He made the point that he thought that one of the greatest ideas he has is to move down employment to 40-50 percent.

Basically incentivize companies to replace all humans with robots and basically the excess profits that you have there from firing all those people, only gets tax at half the rate and you basically would give subsidies back to basically support these people for two to three years, they can figure out how to be an entrepreneur, because that’s the only way they’re going to make it, right? If you’re not able to change your way of thinking and your mentality, it’s going to be very difficult to survive the next 10 or 20 years.

FLETCHER: Mark my words, in the next 24-36 months with Obama Care, with the conversion of full time workers to part time workers, with income dropping, people needing more income, you’re going to see a flood 300-500 thousand new agents into the market, fish bows expires, record level calls from agents, all prospecting, all saying the same thing, all promising to have a buyer and it’s going to get ugly.

Going back to James Altucher, everybody should be listening to his podcasts. He does have one called The James Altucher Show. The one thing he talks about and he sits on the board of a billion dollar staffing companies, so he sees the economic numbers because of their affiliation before even they report it to the public. This is the company that’s gone from $100 million of revenues if I remember correctly to over $1 billion in revenues.

People are outsourcing their employees, they’re no longer having full time employees, they’re doing part time, by hire, by hourly, by contract, it’s going to put a lot of people in the situation where they’re going to be looking for money, the housing market is good, their friends are making money, where do you think they’re going to end up?

Anyhow, get to a higher ground folks… Improve your skills. Your positioning. Stop selling. Become a storyteller and have a Message that inspires and moves people.

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