Property Management Growth with DoorGrow DGS 233: How to Compensate a Property Management Team
One of the biggest questions we get from property management business owners once they start building out their team is "How do I compensate and recognize my team members?"
In this episode, property management growth experts Jason and Sarah Hull discuss the different kinds of compensation structures for different personality types and roles on your team.
You'll Learn[02:15] The difference between you and your team
[07:56] The problem with giving out percentages
[12:13] How to set up commission structures
[21:23] Recognizing your team effectively
[25:44] Giving out raises and job titles
Tweetables"Business is a more effective vehicle than even a charity at creating lasting and impactful change."
"When you dangle the carrot in front of a great salesperson, they will jump off a freaking cliff to get it."
"Your discomfort in giving somebody a raise should be equal to their discomfort in asking for it."
"Recognition costs nothing."
Resources Transcript[00:00:00] Jason: They need to be invested in like committed to helping you grow this business and helping you move it forward, otherwise they are just dead weight and you're creating a bigger and bigger monster of dead weight as the business grows.
[00:00:14] Welcome DoorGrowers to the DoorGrowShow. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently then you are a DoorGrower.
[00:00:31] DoorGrower property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many real estate think you're crazy for doing it. You think they're crazy for not because you realize that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management, business owners. And their businesses, we want to transform the industry, eliminate the BS, build awareness, change perception, expand the market and help the best property management entrepreneurs win. We are your hosts, property management, growth experts, Jason Hull and Sarah Hull, owners of DoorGrow.
[00:01:11] That good? Now let's get into the show. All right. We were trying to change the intro right before we did it. And sometimes she's not on it. Sometimes she is. She's mostly on it now. So. Anyway, here we are. So our topic today, I'm getting a lot of questions, a lot of questions, and this has been going on for a long time, but we're getting a lot of questions about compensation.
[00:01:37] This just keeps coming up and we see a lot of mistakes when it comes to compensation. So the challenge with compensation is that entrepreneurs think differently than most people that they are paying, and so they make mistakes in how they compensate people because they think it's going to help them get more of what they want and they actually create the opposite.
[00:02:00] And so I want you to pay close attention to this today. If you watch this you should not ever ask if you should be giving out a commission or percent sign to somebody or whatever So let's talk about a couple of things here. So where should we start?
[00:02:15] Sarah: Well, I think the best place to start is probably from just for background.
[00:02:20] What is the difference between someone who has a sales mindset or entrepreneurial mindset versus someone that may not.
[00:02:30] Jason: Cool. Let's talk about that. The two types of team members that you're going to have. There's two types of people on the planet, those that like money and those that don't. And I know you're thinking, "man, no, everybody likes money."
[00:02:42] And you'd be surprised. And so if you had all of your team members take a DISC assessment, there's usually on a nice DISC assessment, a section called the values index. And one of those values is the economic or financial score. And so on the economic or financial score, what you will see is that the score is low, then they don't like money.
[00:03:04] And I know that sounds weird. They're not focused on money. They're not trying to get money. Money is not a big part of their psyche. It's just not. And I know entrepreneurs, you don't get this because you like money. Sarah and I do not hate money. We don't hate money. Okay,
[00:03:20] Sarah: I need that shirt. This is the one t shirt.
[00:03:22] I'll wear the capitalistic pig shirt
[00:03:24] Jason: Right and so we don't hate money. You probably don't hate money either. If you do hate money and you're an entrepreneur Then you are probably struggling to have money, right. Money is the ability to change lives, make a difference and have impact. This is why business is a more effective vehicle than even a charity at creating lasting and impactful change in my opinion.
[00:03:47] Okay? Because it has healthy motivators connected to it. Right. And money is the energy and currency of what everything moves through to happen. Right. So let's talk about this. So if the economic score is low, what does that mean? I'll tell you whose economic score is high. If your economic score is high, you are probably an entrepreneur or a sales person, right?
[00:04:11] Those are probably the only two personality types or people that you should be paying out more money or bonuses or commissions to incentivize better behavior. That means most people, you should not be paying bonuses, additional financial compensation to try and motivate or change behavior. Now, if you just want to be generous and it's Christmas, that's different.
[00:04:36] But if you're trying to consistently compensate somebody and motivate them, the motivators need to be connected to what your outcomes are and most people are doing it incorrectly. Now, if the economic score is low, this is what this means, they would rather what they most value is recognition. They would rather be recognized.
[00:04:55] And recognition costs nothing. It costs nothing. And if you don't give them recognition, but you give them bonuses, it's often the opposite, it has the opposite effect. There's another values index called the charitable score. If they have a high charitable score, which means they might want to volunteer to soup kitchen.
[00:05:14] They want to like donate money. They want to give money away, not get money. They want to give money away. And then they have a low end economic score. That means if you pay them more money than what is comfortable for them. You pay them more than that. They will start to become a worse team member. They will start to self sabotage because they feel guilty. And then they're going to project that and externalize it because they have to justify it. They're taking more money. They don't want to give up the more money, but they feel guilty. If Sarah was my boss, it'd be like, "Oh, Sarah's giving me more money. Well, all right. I have to be worth this. So I'm worth this more money. And you know what? I'm entitled now. And maybe I deserve even more because I'm developing this kind of cancerous blind spot of I deserve this money because I feel guilty. So I externalize it. And I blame that uncomfortable feeling on my boss. Oh, well, my boss is like terrible and doesn't do this stuff. So I deserve that more money to compensate for it." And so they start to find fault with the boss and they start to justify them taking this more money cause they feel bad so that they can feel somewhat okay about it. And then their behavior starts to show that and they start to perform worse.
[00:06:23] I know entrepreneurs, you're like, "that makes no sense." But that's how a lot of people think. Most people do not enjoy seeking money. This is not their goal.
[00:06:33] Sarah: There is a caveat team members, they have to have enough to be comfortable, right?
[00:06:38] Jason: If they're starving, broke or hurting, they're not comfortable.
[00:06:42] Sarah: In pain or like worried, like, "Oh my God, I might lose my house or I can't feed my kids."
[00:06:47] Like. Yeah. We're not saying, Hey, like give them no money, they'll work for free. That's not the case at all. Right. They have to have enough to feel comfortable to make sure that their needs are met and make sure that they're able to provide for themselves and anyone else or anything else that is important to them.
[00:07:02] Once they reach that level though, and I think studies have been done on this, which is really interesting to me I don't know if they just surveyed Americans. Don't know, but I think $75k was like that magic number or $65k. It was something like that somewhere in that ballpark is that's like where people feel like they have most people feel like they have enough.
[00:07:25] So once they feel like they have enough money to live and be okay and make sure their needs are met and bills are paid and things are taken care of and like Johnny can do soccer and whatever they, you know, they want to do, they don't then go, "well, now I want a hundred and now I want 200." They don't keep trying to climb that ladder.
[00:07:46] Once they feel comfortable and they have to make sure that their needs are met, then they're not interested. So if you take it from 75 to a hundred, they're like, "it's okay."
[00:07:55] Jason: Okay. So the other piece to this, another challenge that I see is that because business owners want people to have skin in the game and they want them to, they think everybody wants money, they hand out percent signs.
[00:08:08] This is one of the most dangerous things to hand out. We even made a silly video called, what's it called?
[00:08:13] Sarah: I think it's called Percentage Breaks the Property Manager for the Property Management Business.
[00:08:19] Jason: Yeah. So you can check that out on YouTube. But the idea we're playing this, these roles and I'm a business owner and I don't have money in the beginning, so I'm going to pay her a percentage of all the doors that I get in.
[00:08:29] We made it ridiculous, like 50%. Right? Which means if you're handing out a percent sign, and we see this all the time, say Sarah's my employee and I'm the boss, and I hand out 50% or whatever to a property manager.
[00:08:42] Sarah: Or even if you're like, "okay, here have 30," because like even 10, 30, 40, I still, I see the that a lot.
[00:08:48] Sometimes I see 20.
[00:08:50] Jason: It doesn't matter what the percentage is, right? The challenge is in a business, some property management companies don't even make 10 percent profit margin. And so handing out percent signs is really dangerous for businesses. So what they'll do is hand out a percent sign. So let's say I give her 50%.
[00:09:06] That means my 50%. My, the other half, all of the expenses have to come out of that. And usually if a business has 50 percent profit margin, that's pure expense. So then I'm broke. So what happens is she's making more and more money because she has all upside. It's pure profit. And I have all the expenses do not give a percentage to a broker.
[00:09:28] Pay them a flat fee of like five, 600 bucks. Do not pay a percentage of broker. If you don't have your broker's license, don't create relationships or situations where you are giving up a percentage to a property manager. "Hey, you get like 50 percent of each door that you get on when you get a 30 percent of each door," whatever, right?
[00:09:46] Because then what happens is these property managers, if they're the personality type of handling property management, instead of doing sales, they are not going to be focused on getting more business on. They're going to be focused on just helping run the business and you're giving them more and more money the more doors you get, which means you're making less and less money, right? They're making more and more money, the more doors that you get. And they will get more and more lazy and more and more comfortable because there's no incentive for them to go work harder or hunt or chase to get money. You need to make sure if you're handing out a percent sign in any capacity, that's like giving out ownership of the business and they need to be invested in like committed to helping you grow this business and helping you move it forward, otherwise they are just dead weight and you're creating a bigger and bigger monster of dead weight as the business grows. This is why a lot of people join a franchise and then regret it later on because they're paying out six to eight percent, which is a lot, of their gross revenue not of profit not of what's left over for you. And some business owners.
[00:10:56] That's their whole owner payout. Yeah, that's like top one. Some business owners, that's what they take out like you're giving away that to basically to a team member that's not really adding value. I could go on and on about franchises. You can check out my YouTube video about franchises.
[00:11:12] I'm obviously like not a fan of the franchise model because I believe it hurts the entire industry. There he said it. All right. So don't hand out percent signs. Do not get into a relationship with a business partner and give them a percent sign unless they are the type that wants to hustle and grow and make money.
[00:11:33] The challenge is I see a lot of business partnerships are like, "here's a percent sign" when they should have just said, "here's your salary. You can be the operator." So operator personality types, for example, systems, process, whatever, they don't usually want ownership. They're not often that entrepreneurial type.
[00:11:51] They just want to make sure they're getting paid enough and taking care of enough. Now there's exceptions to this, right? But you don't want to be handing out percent signs to somebody unless it's like super critical for growth. And I do not recommend. I recommend in any way possible, don't hand out any percent signs to anybody ever except to yourself and maybe a salesperson.
[00:12:13] Now, let's talk about commissions, right? Let's say somebody is money motivated and they can help you make more money. So if they're money motivated, then you need to be using them to help you make more money. If you're going to pay them a percent sign, but you're not going to pay them a percent sign residually.
[00:12:30] Because then you're motivating them to not do more work. What you want from a good salesperson or a BDM, a business development manager, or a BD business development person. What you want from them is what? You want results, which is more doors. You want them to add more money to the business. That's the result you want.
[00:12:49] So you're going to pay for them to get more business, not keeping the business because keeping the business is the rest of the team. And that's fulfillment. So don't pay them a percentage residual. You pay them a percentage of maybe the first month or the, like some sort of commission upfront.
[00:13:07] And it could be a percent, or it could just be a flat fee. Like, "Hey, we'll give you 200 bucks or 300 bucks or 500 bucks or per unit that you bring on." and give them an incentive. So that means they have an incentive every month. They stay to hunt and to chase. Now, another mistake people make with salespeople is like, "I want to get a salesperson, but I want to have zero downside and I want all the upsides.
[00:13:33] So they create another unfair structure where they're like, I will pay you pure commission. And if you don't hunt and kill, you starve. And if you hunt and kill, I make money and we both make money." so I need to address this. That only makes sense if you are giving the salesperson, all of the leads, they have a great follow up and nurture system, and all they do is show up to calls and close.
[00:13:56] Sarah: Now, can you clarify what giving them the leads means? Because you're like, "Oh here's the leads. Like, here's a list of 10, 000 people."
[00:14:04] Jason: Okay. That's not what I mean.
[00:14:05] Sarah: So yeah, exactly. So let's clarify that.
[00:14:09] Jason: Okay.
[00:14:09] Sarah: So 18, 000 people in my CRM. Here's your leads.
[00:14:13] Jason: If somebody is going to be paid pure commission, which means they're just paid for basically closing deals, they should not have to go find potential clients. They should not have to be hunting for potential clients. They shouldn't be spending any time doing any of that stuff. They should just be taking appointments, somebody else scheduled for them and closing deals.
[00:14:33] Then they're a closer. Everything that happens before that would be handled by a setter and the setter would be cold calling, following up, like all this stuff. Setting appointments. Setting appointments, rescheduling.
[00:14:46] Sarah: Making sure people show up. They don't show up. Right. Calling them again.
[00:14:49] Jason: Feeding the closer.
[00:14:51] Feeding the closer. Then the closer can be peer commissioned and the setter would be paid a base, mostly a base, plus a small percentage for each like appointment they set or some sort of results. So they're motivated to get more results and they should be a little bit money motivated, right? Now, most people are going to hire a BDM and expect them to do both.
[00:15:11] And if you're going to hire a BDM and expect them to do both, you need to pay them a base. I would recommend at least maybe 20 to 30 K, something like this of a base that covers their setting activities. And then they, the rest, they should be able to make somewhere annually about maybe six figures should be possible.
[00:15:30] So work it backwards, but there should be a commission structure that if they're adding 10 to 20 doors a month, they should be able to make. Some sort of six figure sort of salary would be the goal. So figure out a commission on top of that base. Because what you're doing, if you say it's pure commission, you're expecting a closer who lives or dies by whether they hunt or kill and create some money, you're expecting them to starve for at least two months, usually. Because usually three. Because it takes about 90 days to build up a sales pipeline. So they're going to have to do networking and prospecting and outreach and they're working for free and. If they're starving for 90 days, they're just going to quit.
[00:16:10] I've seen so many BDMs burn out and it sounds like this great model. "Well, I'll pay you basically nothing in the beginning." And you might get somebody to agree to do that, but they might be stupid if they're willing to do that. And then they're going to be like starving and not figuring it out. And then you don't give them a good system.
[00:16:26] If you plug them in to DoorGrow, we can get them making a lot of money. We have an amazing system. Like we had a client in just 10 to 15 hours. We go from zero to a hundred doors in six months. And he didn't spend any money on ads and he was a solopreneur. He was all by himself. This is absolutely possible.
[00:16:44] We can help BDMs crush it. We've helped some BDMs add two- three hundred dollars in a year. That's absolutely possible to do but they need to be able to dedicate their time to that and you are not going to get that kind of result if you just pay them a commission because they will only focus on the closing type of activities or the commission generating activities, and they won't do what the leading activities that actually generates the opportunities to close.
[00:17:12] And so you're putting too much attention on the wrong thing. They need more attention. Most of the attention should be on the leading activities. Phone calls, outreach, networking that leads to this and then deals will happen. They don't even have to be super amazing at closing if they're doing enough leading activities And so we want to make sure we give them a base and then we give them an incentive to move those things forward.
[00:17:35] Sarah: Okay. Now with the base, this is the big one. "Well, how much is the base supposed to be Jason? I don't know?"
[00:17:41] Jason: 20 or 30 K. Maybe
[00:17:42] Sarah: You need to find an amount that would be uncomfortable if that's all you made. It needs to be comfortable enough that if that's all they made, they're not going to be starving and eating out of a dumpster.
[00:17:58] And it needs to be uncomfortable enough that if that's all they made, they wouldn't be happy and they would be hungry for more.
[00:18:06] Jason: They need to be hungry. They got to be motivated. It's financial compensation is all about motivation, right?
[00:18:13] Sarah: With a salesperson, when you lay out their commission structure and you let them know like, "Hey, this is your base and I'm giving you this base because of these reasons. I don't want you to be starving. I want you to be motivated. The real money, it's over here. This other piece, I'm going to give it to you because there's things like phone calls and settings and appointments and you know, all the stupid crap that you don't want to do, but that you will do because it leads to deals."
[00:18:38] And they're like "yeah, I get that. But the real money is over here. So when you close deals, that's when you start to make money." And when you dangle the carrot in front of a great salesperson, they will jump off a freaking cliff to get it. The problem is if you just give them the carrot and you're like, here, have a 50, 000 base, have 100, 000 base, have a 200, 000 base.
[00:19:03] They're like "Yeah. I don't need to work that hard. I mean, if I do nothing, I still make 50k." We just at the boardroom event, we had a client whose BDM has a 50, 000 base.
[00:19:13] Jason: And then he was wondering why they weren't super motivated.
[00:19:16] Sarah: She doesn't really, she closed like two doors a month. And I'm like, well, yeah, cause she's comfortable.
[00:19:22] She's super comfortable there. So she's never going to be motivated to work harder and do more and stretch herself and go above and beyond. Because she doesn't have to, you gave it to her. I have to work for it. There's a difference. And the other thing is salespeople who they love the challenge. They don't want you to give it to them.
[00:19:43] They don't want it. Like they'll tell you like, "Oh, I'll take 500, 000 a year for doing nothing." But they wouldn't really be fulfilled by that. They'll probably take it because they love money. I mean, who doesn't, but they wouldn't be fulfilled by it. Yeah. If you give them 500, 000 for doing nothing versus if they make 500, 000 because of the work that they did and because of their efforts, there's a big difference.
[00:20:06] They're going to feel really proud of that and they're going to want that. So they're going to chase it. So you have to dangle the carrot and make it something that's interesting enough. You have to, you, and you have to set it up so that they have the ability to make at least six figures because that's what sales people want But don't just throw it to them.
[00:20:24] Jason: And to be clear No, bdm should be making five hundred thousand dollars.
[00:20:28] Sarah: That's not accurate at all.
[00:20:30] Jason: There's really great bdm. Maybe if they're helping do some acquisition deals If they're adding 500 a year, maybe all right So but if your bdm can live comfortably without adding 10 doors a month, your commission structure is wrong. They should be minimum adding about 10 doors a month as a full time BDM minimum.
[00:20:52] And they should need to do 10 doors a month in order to just reach comfort. And if they're really motivated, they'll do even more than that. They'll do even more than that because then it gets exciting, right? Then it's the game, right? It's the hunt. Okay. So we talked about compensation.
[00:21:08] Is there any other challenges or mistakes we see people make compensation wise?
[00:21:13] Sarah: I think those are the big ones. I think let's though, before we wrap up, let's talk a little bit more about the recognition piece and then we'll close it out. Okay. Because people are like what do you mean recognition?
[00:21:25] Like, "Hey, I see you."
[00:21:26] Jason: So recognition is a process of just helping the team members be seen, especially in front of other team members for doing good things or accomplishing things. So the way that we do that in DoorGrow and in our operating system, DoorGrow OS. Maybe you've heard of like EOS or traction or some of these things.
[00:21:43] DoorGrow OS is better. And what we do in DoorGrow OS to increase the amount of recognition is in every meeting we share wins. So if it's our weekly commitments meeting, we're sharing what wins did we have last week and everybody adds to the list. What did we do in our monthly goal setting?
[00:22:03] We share wins for everything we did the previous month. Same thing with the quarter and annually, and it's pretty awesome. Like, we're building these lists and everybody feels great. And then even in our daily huddle meeting, which is like a 15 minute, 20 minute meeting we do every morning, I guess we do ours in the afternoon, but we do with our team.
[00:22:21] We do Caught Being Awesome and we allow team members to share their wins or to highlight somebody else. And so our team are highly motivated because most of them are recognition motivated. So we're recognizing them. If we do give a bonus, like say for the holidays or something like that, we do it in a way that the focus is we wanted to recognize you because of what you've done for us this last year. So it's still about recognition and appreciation. And so that will get you team members that are incredibly loyal to you, that love being part of the team, that feel a sense of belonging, and that means a lot more to most of your team members than getting more dollars.
[00:23:04] Is that good?
[00:23:04] Sarah: They want to feel important and they want to feel valued and they want to know that you care about what they're doing and especially in an industry like property management because it's tough. Yeah. Everybody has those like really awful days because let's be honest, sometimes owners or tenants or vendors and sometimes life just happens, right?
[00:23:27] So it's tough and sometimes it's tough. All the time or it's tough for a while. This is not an easy industry. So when you've got this pressure all the time and this like annoyance, like, "Oh, that tenant's going to call me and yell at me again, or, Oh, like, Oh, I have to have this uncomfortable conversation and tell my client that we need a $15,000 sewer repair.
[00:23:50] I don't want to do this." The it's the little things that will keep your team going and make sure that they understand like, "Hey. I know it's not the most glorious thing. I know it's always not super exciting, and it's not always super easy. However, what you're doing really makes a difference. It really is important and this is like the bigger mission and vision of the business and you contribute directly to that vision and what you're doing matters."
[00:24:22] So that way it's like, Oh, you know, it's not this grind and this drain and we don't have a lot of churn on our own team and burnout and you know, bad team members that are like, "Oh, I hate my job." Right. Because that's super easy. It's easy and then you make it even harder. It's easy just by itself and then you make it harder because it's property management.
[00:24:43] So it's super easy in property management to have that. So let's combat that. And just by recognizing them and saying like, "Hey, I saw you took care of that thing. Like, hey, oh my god, you got all the leases done. And hey," like, and it could be the littlest things. It's things that they do. Anyway, it doesn't matter.
[00:25:00] They don't have to do anything that's like spectacular. "Oh my God. You like cleaned all the bathrooms today, Sally. Thank you. That was amazing. Like you didn't have to do that." It's little things and it's things that they're going to be doing anyway, but just let them know, "Hey, I see it. And I appreciate it."
[00:25:16] Jason: All right. So the other thing I'll say about recognition is you might be thinking, well, salespeople and entrepreneurs, do they like recognition? The answer is yes. They like it too. We still like it. They like it too. So if you're giving them recognition that adds more fuel to the fire, right? And so you need a system like DoorGrow OS in which everybody gets recognized for their accomplishments and everyone will perform and behave better because they feel seen by everyone.
[00:25:42] And that has value, right? Now one more point I want to make is you might get somebody, an assistant, you're like a VA, you're like they're amazing. I love them so much. They're so awesome. I don't want to lose them. And then you are like, because you're hardwired to be so money focused, you're like, I'm going to pay them a whole bunch more money.
[00:26:02] I see this happen so often. Be very careful about just giving out raises prematurely. Be very careful about this because what I've seen over and over again, I've been in masterminds, multimillion dollar business owners, we're hanging out together and they're like, "Hey I just got this assistant. She was super amazing. So I gave her this big raise 'cause she's so awesome. And now she's showing up late. She's not like getting things done. She seems like entitled." This is what happens when you compensate people financially, instead of giving them recognition and doing it based on how you think instead of what they want, you then sabotage their efforts or they start to sabotage their efforts.
[00:26:43] So don't start paying somebody more just because you like them, right? There needs to be a justifiable reason and they need to be able to justify that reason. And so they may need to come to you and be like, "Hey, here's why I deserve more compensation." And you're checking in with them regularly and saying, "Hey, how are things going?"
[00:27:01] And if you have an open communication with your team members, they're going to tell you when they feel like it's time that they deserve some more money. And it's going to be really uncomfortable for them to do it if they don't like money, it's going to be so uncomfortable to have that conversation, but it's also uncomfortable for you to spend more money.
[00:27:17] Team are the biggest expense. Your discomfort in giving somebody a raise should be equal to their discomfort in asking for it. It's my thought. And so they need to be reaching out. To some degree, and you may recognize somebody deserves more pay, you know, deep down they're being paid too little.
[00:27:36] So then you can give them a raise, but be careful about handing this out.
[00:27:40] Sarah: My other little tip with raises is I worked in corporate for a bit and it was like every year, you know, you're going to get a raise and how much of a raise you get depend, depend on all your stupid numbers and metrics and all, you know, call time and all that stuff.
[00:27:55] So you knew you were getting a raise though, like for sure, unless for some reason they're firing you, right? But other than that, you know, like, "Oh, my annual review is coming up. How much money am I going to make now?" And then they expect it. And then you don't really appreciate it because it's expected. And it's like normal now it's like, "Oh, well I'm getting a raise now.
[00:28:13] Now I'm going to raise." And then. What also happens is, "well, I'm getting a raise," and sometimes people go, "Oh, well I deserve like this much." And then they don't get that. They get less. And then they're like mad about it. They're mad because they're making more money. It's not as much money as they wanted or as I expected.
[00:28:30] So one of my big rules when it comes to raises is with raise comes responsibility. Don't just throw out more money. Like, "Hey, if you want to go from here to here, I'm happy to take you there. This is what that would look like. Are you in?
[00:28:44] Jason: Okay. One last thing. Titles. Titles are heavily connected to compensation.
[00:28:49] So I dealt with this week. I talked to a property manager. They had like 20 doors or something and they hired a director of operations. No. You can't afford a director of operations. So the thing is, yeah, I said, "tell them they are an operations assistant in ecrow." And said, I gave you this inflated title.
[00:29:06] You're an operations assistant. Maybe then eventually they could graduate operations manager. Maybe then be the, you know, maybe eventually. The director of operations, VP of operations, COO, but titles matter. So be very careful about handing out titles. Start everybody out as a something assistant or junior
[00:29:24] Sarah: property manager, junior assistant, property manager, or you can just have levels, property manager, one property manager, two property manager, three, like.
[00:29:32] There's a lot of different ways you can do it. Be careful about titles. Yeah, be super careful about
[00:29:36] Jason: titles. Because they'll go look it up on salary. com and they'll be like, "Oh I deserve this. I'm director of property management. I guess I should be getting 150k or whatever, right?"
[00:29:46] Sarah: And also, 20 doors, fun little caveat. Be careful when you're reviewing resumes with titles for the same reason. Because titles they sound really impressive sometimes and they mean they could be made up They mean nothing when I got hired at an insurance job. They were like, oh we have to make your business card And I said, "okay," and they said "well, what do you want your title to be?"
[00:30:05] And I said, "I pick my own title?" And they're like, "yeah, you can put whatever you want on there." And I said, "well, aren't I a sales rep?" And they're like, "yeah, but don't put sales rep." I'm like, "oh, okay. So what should I put?" They're like, "put like account manager or account executive or like something like that."
[00:30:24] So I don't remember what we came up with, but. Came up with something that sounded like I was like, "Ooh, I'm a big deal." I was a sales rep. That's it. I sell things. That's it. But the title sounded a lot more impressive. And sometimes that can go to people's head just a bit. And keep in mind, money is connected to the title.
[00:30:45] It always will be. So get on. And if you're like, "well, I don't know what to," Google will help you just get on. Well, I just had this conversation, I think two weeks ago with client. " Well, I don't want to hire like the COO of the company. I can't afford that." You're right. You can't. So.
[00:31:00] What are they doing? Maybe they're the team leader. Maybe they're the office manager. Maybe they're an operations assistant. Like get on, find some kind of title, get on Google and say, what are other job titles for this thing? And it will tell you and pick one of those and avoid things like manager, juror, and like VP president or like, Senior account executive, things like that.
[00:31:26] Because it. It will be startling if someone. Looks at their position and realizes. "Oh, I should be making 125 and I'm only paid 55. Huh? That's odd."
[00:31:38] Jason: All right, so wrap us up. Give us a call to action.
[00:31:41] Sarah: Just If you feel like you're struggling with any of this and I know there's so many of you that are like, "oh man. Yeah, that's me."
[00:31:48] I might have made some of these mistakes and that's okay because we all have we've done it to Go on doorgrow. com Book a call with us. We can help you with this stuff.
[00:31:56] Jason: This is what we do. Yeah, and if you made any of these mistakes, I guarantee there's a lot of others going on in the business you can't see right now.
[00:32:03] We can help you get this cleaned up and help you make a lot more money, help you grow a lot faster. All right. All right until next time, to our mutual growth. Bye everyone.
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