This article is an excerpt from the Shortform book guide to "The Millionaire Real Estate Agent" by Gary Keller, Dave Jenks, and Jay Papasan. Shortform has the world's best summaries and analyses of books you should be reading.
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Are you a real estate agent trying to make it big? What’s Gary Keller’s secret to real estate success?
In The Millionaire Real Estate Agent, Gary Keller presents a strategic blueprint for transforming your real estate career into a lucrative business enterprise. Keller writes that instead of thinking like a hired salesperson, you need to think like a business owner—focus relentlessly on growing your enterprise, building your team, and implementing replicable systems that work.
Keep reading to learn Keller’s four essential steps to earn more through property listings.
Step 1: Find Your Prospects
Gary Keller’s real estate approach abandons the methods of the past. He argues that the traditional approach in real estate—where agents view themselves primarily as commission-based salespeople focused on individual transactions—limits agents’ growth potential. He advocates that agents shift their thinking so they’re no longer focused only on making one sale after another, but instead developing systematic approaches to every aspect of their practice—just as a CEO would.
By adopting this entrepreneurial perspective, writes Keller, you can break through income ceilings and create sustainable growth. You’ll also generate wealth more easily—you’ll be building a business instead of just working a job, which will allow you to produce revenue long after you’ve stepped back from handling every sale and transaction personally.
(Shortform note: The shift in thinking Keller recommends may require you to adopt a “growth mindset.” In Mindset, psychologist Carol Dweck defines a growth mindset as an optimistic and persevering mindset in the face of challenging tasks (like growing a real estate business). With this mindset, you choose to believe that you can develop new abilities through dedication and hard work. In contrast, with a fixed mindset, you believe that your abilities are innate and unchangeable. Dweck argues that adopting a growth mindset leads to greater resilience, motivation, and achievement, as you’re more willing to take on challenges and see failures as opportunities for growth.)
Step 2: List Your Properties
Keller recommends representing sellers rather than buyers, as obtaining property listings—that is, properties for sale—offers the greatest income potential in real estate. This is because property listings are effective marketing opportunities. You can advertise each listing to a wide pool of buyers across various platforms—online, in print media, and on a sign in front of the property, just to name a few. This not only promotes the specific property, but also your services as an agent. This visibility can attract potential buyers and even bring other sellers to you, thus acting as another form of prospect generation.
| Is It Still Profitable to Represent Sellers? Keller’s emphasis on the advantages of representing sellers over buyers has proven prescient in light of recent industry developments. Traditionally, sellers have been obligated to pay a 6% sales commission, which would be split between their agent and the buyer’s agent. However, a 2024 class action settlement against the National Association of Realtors eliminated this tradition. Under the new rules, sellers are no longer obligated to pay commissions to buyers’ agents. This potentially makes seller representation even more financially advantageous, since seller’s agents can negotiate for higher portions of the commission—while still offering sellers lower overall transaction costs by cutting the buyer’s agent out. However, this same development presents a challenge to Keller’s listing-focused approach. Some sellers now see an opportunity to bypass agents entirely, handling their own sales through platforms like Zillow or working directly with attorneys to manage the legal aspects. For them, the commission that would typically go to a seller’s agent represents potential savings they could keep from their home sale. For you to succeed as an agent in this evolving landscape, you must clearly articulate the tangible value you bring to sellers by emphasizing your ability to: 1. Maximize sale prices through strategic pricing, professional staging, and targeted marketing that reaches qualified buyers. 2. Navigate complex disclosure requirements that vary by state and municipalityIdentify and resolve potential deal-breakers before they derail a sale, from foundation issues to title problems. 3. Negotiate effectively with buyers who increasingly have access to market data. 4. Manage the coordination of inspections, appraisals, and closing details that can overwhelm sellers. By positioning yourself as a valuable partner who delivers measurable financial benefits beyond what sellers could achieve on their own, you can thrive with Keller’s listing-focused approach, even as the commission structure evolves. |
Step 3: Build Your Infrastructure to Expand
Eventually, writes Keller, your real estate business will grow to the point where you can’t manage all aspects of it by yourself. For example, it would be grueling and inefficient for you to give 50 listing presentations and manage 10 listings each quarter on your own. Now, clearly, this is a good problem to have, and a sign that you’ve made the right moves up to this point. But if you don’t manage this growth wisely, warns Keller, you’re at risk of stopping that growth in its tracks—or, worse yet, falling backward.
That’s why you need to build the infrastructure within your business that will enable you to expand. The two key pieces you’ll need are first-rate talent (admin staff, buyer specialists, listing specialists, a chief marketing officer, a finance manager, and a recruitment director) and reliable and effective processes.
Step 4: Manage Your Money
Keller argues that it’s crucial to build the database of prospects and property listings that will enable your real estate business to expand, as well as to implement the processes that will enable you to maintain your high standards and replicate your success. But none of that will matter if you can’t prudently manage your business’s money.
Keller encourages agents to prioritize income generation before expenses. The idea behind this approach is simple: Don’t spend money you haven’t made yet. This could mean initially relying more on low-cost lead generation methods like person-to-person networking or social media marketing until your business starts making consistent sales. By ensuring that expenses are always covered by real, existing income, you reduce your risk of falling into a financial hole where you’re constantly trying to catch up with bills or repay loans.
Another effective way to manage your business expenses is to sort them into two categories—those that generate a positive return on investment (ROI) and those that don’t. Keller emphasizes that the idea here isn’t about cutting costs or avoiding expenses altogether. Instead, it’s about being vigilant and making sure every dollar you spend in your business contributes to its growth and profitability.
Lastly, Keller stresses the importance of staying committed to your financial plan—no matter how your business evolves. This means that even as your overall expenses increase in line with business growth, the proportion of income you allocate to each expense should stay consistent. This approach helps you maintain financial discipline and prevent overspending in any one area—giving you a clear picture of where your money is going and ensuring that all aspects of your business are adequately funded.
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Like what you just read? Read the rest of the world's best book summary and analysis of Gary Keller, Dave Jenks, and Jay Papasan's "The Millionaire Real Estate Agent" at Shortform.
Here's what you'll find in our full The Millionaire Real Estate Agent summary:
- A blueprint for transforming your real estate career into a lucrative business enterprise
- Why you should think like a business owner rather than a salesperson
- Why quantity is more important than quality when it comes to sourcing prospects
