Airbnb Tips for Airbnb Businesses (Make MORE MONEY)
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Are you looking to scale up your Airbnb management business? Check out my three tips on how you can earn even more managing Airbnb properties!
In this video, we will go through three tips:
- Offer interior design services
- Mastering pricing
- Being selective
For each of these tips, I will break them down into actionable steps that you can apply in your business. There are also links to our free training resources above that has more information.
The first tip we will go through is offering interior services to your clients and why that can help you to make a whole lot more money. Interior design is going to help to optimize a property.
So any property you manage, you want to offer to spruce it up a bit and improve the listing. It can be done very affordably but generate a strong return for your client. Spending just a couple hundred dollars on decor can lead to a couple thousand dollars of extra income throughout the year because the property is more desirable or more comfortable.
Offering this service makes sense because you can (a) charge additional for the service; and (b) earn more on your management fee as there are more bookings resulting from the new look.
You can either offer the service and then outsource it; or you can learn more about interior design specifically for Airbnb. I will leave a link to someone named Valerie who does a great job of teaching people just that. I recommend that if it’s something that you enjoy and have an interest in doing.
The second tip, which is honing in on and focusing on pricing optimization, is a way to improve your existing revenue streams. Obviously, pricing optimization is important because the more a property earns, the more you will earn. That’s the beautiful thing about this business model -our goals and motivation are closely tied with the property owner’s.
However, the number one advantage is that your clients are going to be a lot more happy because you are making them a lot more money. When they’re happy, two things will happen. One, they are going to see the value from working with you and hold on to you as long as possible. It will be great for client retention.
Secondly, they will be referring you to everyone they know that could benefit from your services. In this industry, property owners and real estate investors know each other and so they are happy to refer someone like us who is doing a great job for them. This is the number one way to grow your business organically.
The third tip is to be selective and that is where we are doing the most in terms of making sure we are earning as much per hour as possible. I encourage you to look at your business from that perspective. There is really no such thing as entirely passive income. However, there are examples of income that is really high dollar per hour.
The hourly wage you are earning for your business is an incredibly important metric. You want to make sure that your business’ resources are being used as effectively as possible. If there are properties in your portfolio that are not earning as much as others, or that you are spending a lot of time troubleshooting issues, then that will dramatically decrease your salary per hour.
The reality is that 80% of your income is typically going to come from 20% of your properties. Inversely, 80% of your problems are probably going to come from 20% of your properties. So if you can identify the 20% of your properties that are generating the most income and you can get more properties just like that, you’re going to have a really great business.
On the flip side, if you can eliminate those 20% of properties that are causing 80% of your problems, and do not bring any more properties on like that, then you will be spending a lot less time on your business and will increase the amount of income you are earning.
If you want to learn the strategies to determine which properties you want in your portfolio and how to implement these systems, check out the link to the training above.
What's up guys, my name is James and in today's video I'm going to talk about three tips for Airbnb businesses that are going to help you to make more money managing properties on Airbnb. So today's video I want to break down to three main tips.
One is to offer interior design services, I'm going to break that down in detail. A second is going to be to focus on mastering pricing and why that is crucial for your business's success and will make you a massive amount of money even more than you could possibly imagine. And three is I want to talk about being selective.
And so in this video, I really want to break down those three tips in detail. We believe use of actionable steps so that you can apply them to your own business or if you're just getting started in Airbnb management, or you want to get started in Airbnb management and you think that's an interesting opportunity. I'm going to leave links in the description down below to some free resources I'm going to give away to you guys that are going to help you to get started.
Now, as always, if you like this video, please give it a quick thumbs up please drop Like and if you want more of this content, then please subscribe to the channel, we post two new videos every single week.
So without further ado, let's go ahead and get started. The first thing I want to talk about is offering interior design services to your clients, and why that can help you to make a whole lot more money. So interior design is one of those things that's going to help to optimize a property.
And so naturally, with any property that we manage, we want to be offering an interior design service, it's going to help them just spruce up the property a little bit and give them a little bit more pizzazz to their listing, it's going to make their listing stand out, it's going to help them to make some additional income.
Now we can oftentimes do this really affordably and it can almost always generate a really strong ROI for the client. If they spent a couple hundred dollars on some furniture and decorations, it's likely gonna lead to a couple thousand dollars in additional income for them throughout the year because that property was more desirable or more comfortable for guests.
And so with that it makes it a real no brainer, because not only can you earn an additional No income for every single property you on board just by offering that service and charging a markup on that service. But you can also earn additional management fees because the property is going to bring in more income. And it's going to be a win for your client because they're going to earn more money as well.
So creates a huge win win win from every angle that you look at it. In terms of the practical steps for how to apply this to your business, well, there's two different routes you can go. One option is to offer the service and then outsource it to another company like Decker Rila. I'll leave a link for them in the description below as well.
And that way you don't have to actually have any interior design skills whatsoever in terms of filament you can then go in as just basically buy furniture or decorations from IKEA or online, set them up at the property and then just like that, you can earn a couple hundred or sometimes a couple thousand dollars, depending on the scope and the size of the project.
We've had property owners that we work with where you've literally made $5,000 in additional income. Right off the bat I'm talking profit They're spending 10 $20,000 fully outfitting a property, we're making a nice little markup on that. So that's really great. Now, the other option mentioned, there's two ways to go about this is to learn interior design.
And you can do so by learning from someone who's specialized in Airbnb interior design, that's what I highly recommend, because it is a little bit different from traditional interior design. I'm gonna leave a link below as well to a lady I know named Valerie, who does a really great job of teaching people exactly that.
And that way you can earn additional income from interior design and actually take that on and do it yourself. Now, I recommend that more if it's something that you're passionate about and you enjoy, if you really want to be involved in the interior design process and you enjoy that kind of thing, then that's a great way to bring it in house and again, earn additional income from that the same way that you would outsourcing it but you'll just earn a little bit more money because you're actually charging for your own services. So that's number one.
The first way I want to talk about the first tip I have to help you make more money from your Airbnb business. It adds a whole new stream of income to your business, which is really awesome. Now the second thing I want to talk about the second tip I have for you is a is basically improving your existing income streams your existing revenue streams by really focusing and honing in on pricing optimization.
Now, the reason the pricing optimization is so important is twofold. There's the obvious reason that you I'm sure comes to mind Well, if you helped optimize the property's performance, then that is going to make you more money. Because if you're using this percentage management fee model we talked about where you're collecting a 20% management fee for the property's performance, then if the property earns twice as much money, then you earn twice as much money in management fees.
That's the beautiful thing about this model is that the better the property does, the better that we do. So we're really closely tied in with the property owner in terms of our interest or motivation there. There really creates a win win. But the reason this is so important is not because it helps you to make more money in man Bees, that's nice, and it is a really big advantage.
But in my opinion that is secondary to really the number one advantage that I see, which is that you're going to make your clients a lot more happy, because you're going to make them a lot more money. Now what happens there is twofold when you make your clients a whole bunch more money, and they're even more thrilled to be working with you, and they're getting even more value from working with you, two things are gonna happen.
Number one, they're gonna hold on to you, like nothing you've ever seen, they're never gonna want to let you go. They're begging you to keep working with them. And they're gonna hold on to you for as long as possible. So your client retention is going to be longer, which is going to earn you a whole bunch more money long term. If you do a bad job of optimizing performance, then a property owner might stop working with you after six or 12 months.
But if you do a really great job working with them, and really optimizing their returns and helping them to make more money than they ever have before, and they're likely going to hold on to you for two five Even 10 years, they're gonna hold on to you for as long as possible. Now, the other advantage of that is that you can bet that they're gonna refer you to everyone that they know who could benefit from your services as well.
You know, we've seen this in our business dramatically, we've literally had clients that we brought on, who referred us to eight other clients. Imagine that having one client that turns into nine over a period of a couple of months, because they see the results that we can get, and they start giving us more of their own properties. And they start referring us over to their friends and their family members who have properties who could benefit from our services.
And that's a huge part of this industry, property owners, real estate investors, they tend to know other property owners and other real estate investors. And so they're happy to refer someone like us who's doing a really great job for them. So again, that means that you're going to be number one earning additional income because you're going to have higher management fees.
Number two, you're going to be earning additional income because you have higher longer customer attention and number three, You're going to be earning more money because you'll be having more clients come to you. How awesome is that? That is, in my opinion, the number one way to grow your business organically.
And to get to a place like a lot of the students we work with a lot of our clients in b2b mastery program get to a place in their business where they literally have a waitlist of clients waiting to work with them, and they can't even onboard the properties as fast as clients are coming to them. And that is really when you hit sort of b2b management Nirvana.
That's the greatest place that you can get to is when you have more clients than you can possibly handle and clients want to work with you more than you want to work with them. In terms of practical ways, you can implement this if you want to learn how to do this then I highly recommend checking out bnb mastery program and check out the free training that we've got linked down below on how to earn a full time income managing other people's properties on Airbnb, not training, not free training that we're giving to you.
We're going to dive into detail we're also going to give you a free profitably projection tool, you can Check that out in the link down below. And that's one of the many tools we have for pricing optimization that's going to help you to. And we're going to teach you this inside of that free training to help you to really perform better than 99% of other people on Airbnb using a couple of secret little tricks and tips that I've got different strategies to really optimized performance.
Now again, before moving on to tip number three, I just want to remind you, if you've gotten value from this video so far, if you've liked it, please just take a quick second, give it a quick thumbs up there, give it a like, I really appreciate it. It's helped support the channel tremendously. And if you're new here and you want more of this content, we do post two new videos every single week. So be sure to subscribe to the channel.
And again, if you have any questions about this or anything that I cover in any of my videos, as always, just comment down below with your questions. Let me know your thoughts, or just comment to say hi. Now, the third tip that I have is to be selective and this is probably where we really move the needle the most in terms of making sure that we're earning as much as as high of $1 per hour as possible.
And I really encourage people to look at their business from that perspective, not because we're earning an hourly wage Far from it, we want to move away from that as far as possible. But the reality is that no matter what you're doing and your entire life, there's no such thing as entirely passive income.
Think about the most passive income that you could possibly earn, it's probably investing into, you know, an index fund or a stock fund, you know, you're investing your money. But at the end of the day, you still have to go and actually put the money in the account use left to move it there, you have to probably do some research to figure out what stocks you want to buy or what index funds you want to buy.
You want to put the money in there, even at the highest highest level, you at the very least have to hire and pay for and then spend time selecting a financial adviser who's going to do that for you. So you're spending your money but you're also spending your time finding solutions. That person and that's at the highest level, there really is very, very much no such thing as entirely completely passive income.
There are however, examples of income that you can earn that is really, really high dollar per hour. If you're Warren Buffett and you have a financial advisor you're having you have your own your own firm, and you're not spending time on it. And then you're just having your finance invested.
Or if you're an ultra high net worth person, and you just have someone else managing your finances, they're gonna make you a really great return any maybe spend a day or so you know, figuring out and finding that person, maybe spend a couple weeks finding that person but it's going to pay you off massively long term. Now a bit of a segue, we bring it back here, I like to look at the hourly wage that we're earning for our businesses. It's a really important metric.
If you're spending even five hours a month managing your business once at that scale, once you have all your systems set up, let's say you're spending five minutes, five hours a month, just kind of going in and monitoring everything else. Looking over your finances, making sure everything's running smoothly. And that means that the money that you're earning, you can divide that by five and figure out an hourly wage.
And so naturally, you want to make sure that your business's resources are being used as effectively as possible. And that those five hours that you're putting into your business are making as much money as possible. Now, if there are properties in your portfolio that aren't earning as much money as others, or that you have to spend a bunch of time fixing problems on troubleshooting issues, they're causing a lot of problems for you.
And that's going to dramatically lower your dollars per hour. The reality is that 80% of your income is typically going to come from 20% of your properties. And on the column on the inverse side of that 80% of your problems are probably going to come from 20% of your properties.
And so if you can identify the 20% of your properties that are generating the most income, and you can get more properties just like that, and really be selective to only bring on board properties just like that, you're gonna have a really Great business.
And then again, if you can take the flip side and look for those 20% of properties that are causing you 80% of all your headaches, then eliminate those properties, get rid of them out of your portfolio and make sure you don't bring on any more properties like that, then you're going to be spending a whole lot less time on your business as well.
That's probably the best way to not only reduce the time you're spending on your business, but also increase the amount of income you're earning on your business. So you can really just scale things up in terms of the amount of money you're you're earning for the amount of time that you're putting into the business. And that really just comes to being selective, having the right tools to analyze that knowing what to look for. And then really just being selected with the properties that you allow into your portfolio.
And I want to encourage people as well to really think of their business from that perspective and try to aim to get to that level that's what you should be striving for is getting to a place where you get to choose the businesses or the sort of the properties that you bring on under management. You know, really quickly we want to get out of that. scarcity plays of just starting out the business and we can help you to get your first client and as little as 30 days and really help you to catapult your success and get to a place where now clients are coming to you.
So again if you want to learn exactly how to do that our exact strategies for you know honing in on a niche for selecting your first clients for getting started getting things off the ground, and check out the free training that I've got linked below that walks through the step by step of exactly how to build this business. Again, if you've liked this video, give it a thumbs up. If you're new here, click subscribe. And with that, I will say goodbye and I will see you in the next video.