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Starting any new business is a big step. How do you go about setting up a business model for Airbnb? Find out where to start in planning your Airbnb business in this video. 


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If you’re just starting a business, one of the most common questions is about how to make a business plan or a business model. In fact, it is one of the first steps people are encouraged to take when planning on starting a business. So if you’re thinking about starting an Airbnb business, but don’t know where to start, I’m going to break down how to start a business plan so you’ll be able to know how to get your business off the ground.

Of course, the reason most small businesses fail is because the starting up process is the hardest. Once you’ve started out, it gets easier from there on out, and that is where the huge growth of revenue comes in. But to start off, it takes a lot of planning and research, and this is where you will be able to determine how to ensure your investment is getting the best return possible. 

In my opinion, for people looking at starting a very small business, a business model is not always necessary. Unless you’re planning on investing heavily in a business, a formal business plan isn’t going to be necessary. Of course, you’re going to want to do some sort of planning and forecasting, and setting realistic goals. For example, depending on the business you are planning on starting, making $20k a month isn’t going to be realistic to start. So you’re going to want to do some research and set some realistic goals for your business.

So for an Airbnb business, once you have a goal in mind, you’re going to want to figure out how many properties you’re going to need to manage in order to make that goal. And with that, you have to decide what model you’re going for. One option is rental arbitrage. If you’re deciding to go the rental arbitrage route, you need to invest in capital up front. So you want to calculate first and last months rent, damage deposit, furniture, decorations, etc. Try to be as detailed and realistic as possible, because the worst thing is to run out of money and not be able to start up your business because of that.

The other model, the Airbnb management model, has next to no investment up front. In this model, you manage someone else’s property and take a percentage of the properties you manage on Airbnb. So you don’t necessarily need to forecast your upfront costs as much, but what you’re going to want to forecast is your property owners. How you’re going to proposition them, what results you’re going to be able to give them. We have a free profitability tool in our training that helps you with these projections, and it’s helpful for both you and the property owner to see how you’re going to be able to deliver the results. If you’re interested in the free training, click on the link in the description for some free tools and step-by-step advice on how to get your Airbnb business started!

The last piece of advice here is to have a mentor. It is so helpful to have someone who has succeeded in the same type of business before because as beginners, we all are going to make mistakes. All of us made some poor decisions starting out, and have some regrets. So finding a mentor who has been through it all and can help you out and give you some direction is going to be priceless.


Hey everyone, its James here and in today's video I want to talk about the best business model for Airbnb. Now. In other videos on this channel you'll see that I've talked about all kinds of different ways that you can make money on Airbnb, whether that's listing your own spare space or your own property on Airbnb, whether that's using Airbnb experiences, whether that's Airbnb online experiences, whether that's managing other people's properties on Airbnb, whether that's renting properties and flipping them onto Airbnb, there are a ton of different ways that you can make money on Airbnb. And that is pretty obvious.

If you've been here if you're familiar with the channel at all, you'll know that and so in this video, I want to talk about my personal favorite The best way to make money on Airbnb the best possible business model for Airbnb. And I want to really break down why I feel it's such a great business model and why I and my students have had so much success with this business model in the past.

So again, I also want to mention that I've got a link down below in The description to a free training that I've recently put together that breaks down in detail step by step exactly how to start a business using this business model on Airbnb and earn a full time income very quickly. With all the right automation in place, you're not spending a whole bunch of time working in the business and earn a full time income managing other people's properties on Airbnb using this business model. So if you want to check that out, you want to learn how you can leverage this business model for yourself no matter where you're located, without any experience without any upfront expenses, no, no hard costs anything like that, then just check out the link down below to that free training.

I'm also going to give you some free tools when you register for that tank train that will help you out to figure out the best place to get started help get you started on the right foot. So if that's something you're interested in, just click the link down below in the description to check that out for more details. And so to dive right into it, the business model that I love the one that's my favorite lighting is the best for Airbnb is Drumroll, please. Airbnb property management.

And the reason for this is pretty simple. Now, for anyone who is not familiar with what that business model is, it's basically when you take someone else's property, and you help them to list it and manage it for them on Airbnb in exchange for a percentage of the overall revenue. So this is a business model that doesn't require you to own any properties doesn't require you to rent any properties. You don't have to furnish any properties. And you don't need to have any experience or incur any other hard costs when you're first starting up. Now, that's a huge reason why this is one of my favorite business models, but it's not the only reasons why this is my favorite business model for Airbnb, obviously, being able to start it so easily and being able to start without any experience, you know, without any hard costs up front.

Now that's really, really great. The other thing that's really great about this business model, though, is that when you're doing it this way, you have ultimate like unlimited scale. Because when you think about it, if you're scaling if you're trying to scale a business by buying more properties, you're always going to be limited by the amount of money you have for a down payment on skinny come challenging because you're really gonna stun your business's growth, you can only grow once you have 30 to 50 to $100,000 set aside for a down payment, it's gonna be really challenging.

If you're doing the scaling by renting properties and flipping them onto Airbnb, well, then, it's also going to be really challenging because you then have to spend five to $7,000 renting a place and then furnishing it and then putting it on Airbnb. And what's even worse about that business model is that you're not building any equity like you wouldn't be with buying a property because all your money is going into a rent which goes nowhere and furniture, which as we all know, depreciates very, very quickly. So that's probably my least favorite business model when it comes to Airbnb, unless you find a really, really great opportunity with any sort of unicorn properties I really recommend against that business model.

But Airbnb management on the other hand, we're getting a percentage of the overall revenue, it doesn't require any of that upfront expense. So scaling the business is just exponentially easier. Your only real limit on your growth is how many property owners you can get in touch with and get lined up to manage their properties for, you're never going to run out of money because you don't need to add, you know, you don't just spend money to add new properties, we typically using the systems that are detailed in the training down below, we typically earn anywhere from a couple hundred to a couple thousand dollars right up front at the very getgo before the first guest ever comes into the property. When we bring on a new property owner. Imagine that having a business model where you actually grow as you you know, you actually earn money as you grow the business you're actually making money for growing the business as opposed to having to invest into growing the business.

So that's obviously a really, really big upside there is that ultimate like unlimited scalability. Now the other thing I love about it is that it's virtually risk free, right with these other business models like rental arbitrage or buying properties, if things go belly up, you could be in some pretty hot water. With rental arbitrage, you can be losing thousands of dollars every month. If you're not meeting your monthly rent expense with the property investment, it's obviously less risky because you are building up some equity in the property and you can do different things with it, like switch it over to long term rental, but you are still carrying that risk of having that monthly debt of your mortgage payment. And so that can be a little bit stressful. And it is, like I said, it's a little more risky. With percentage management fee 20% of zero is still just zero, you can never really lose money with this model. As long as you have the right systems in place to make sure that you're not doing anything foolish like just overspending. And so again, all those systems we found and link in to this free training in the description down below.

If you want to learn more about that exactly what I mean by that like how to set up that proper business structure then you can check that out for more details. So that's really why I love this businesses because this business model in particular Airbnb property management, it's got a few great benefits, you know, number one, you can get started without any money upfront, you don't need to invest a bunch of money. And you don't need to have a bunch of experience. Because the other cool thing is that you can learn all the skills that are going to provide real value to your clients, they're going to keep them really, really, really happy and stay with you long term and have it be a win for them as well. And even learn them without a bunch of experience. You don't have to have five years experience some crazy degree in data analytics to be able to produce really great results for your clients.

So that is why you don't need to have experience when you're getting started. And that's another obviously big benefit is that you're really creating real value. That's why honestly that that right there is why I love this business more than anything else. So obviously, it's nice to be able to go and add value to your clients. And I'm not going to pretend like I'm some kind of Saint here that only cares about helping other people. I do care about other people and I firmly believe that in business you should be focusing on helping other people but from a selfish perspective as well. It means that my business is going to have longevity as long as I'm creating a real value for the people that I work with, they're not going to want to leave me if I'm doing something that only serves me and only gets me benefit, then no one's gonna want to do business with me long term, there's not going to be any longevity in that.

So maybe I'll make some money for six months or 12 months, but there's no way I'm going to be making money five years, 10 years down the road, if you want to build something that's actually gonna last, you need to be out there creating real value for your clients. And that's, again, why I love management the model. The other really big upside is that it can be scaled to the moon without any any real limitations on it, because you are earning money when you grow the business. The other thing that's really great is that there's no risk and there's not going to be capital intensive to grow and have you taken on a whole bunch of risk to try to grow the business and do it quickly and then you know, get yourself into hot water. So those are my reasons for selecting this business model as my personal favorite, the one that I most highly recommend for people who are just starting out and want to get into Airbnb management.

If you have a different opinion. If you have different thoughts, feel free to share them in In the comments down below, if you disagree with me, feel free to let me know in the comments down below. If you do agree with me and you think this is awesome, then I highly recommend you check out that free training that I've linked down below. It'll walk you through step by step exactly how to do this, how to get started, how to grow your own business and how to earn a full time income managing properties on Airbnb, that's all going to be walked through in detail in that brand new free trade down below.

So go ahead and check that out as well. Lastly, if you're new to the channel here, then just consider subscribing to the channel. If you want to know when we post new videos they happen twice every single week, we discuss all things deal with Airbnb and Airbnb management. So just check that out there. You can subscribe to the channel, just click the button down below if you liked this video if you got value from it, if you learned something from it, or if you just want to help me out and you just want to help the channel out I would very much appreciate that as well just click the little v like button just taking a half a second and clicking that like button giving this video a thumbs up helps him tremendously with the YouTube algorithm and shows me that this is something that was out valuable to you. So just take a quick second to give this video Like if you did enjoy the content. I hope you enjoyed it and I will see you in the next video.


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