The Secret “Compounding Effect” in Airbnb Management

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What's up guys, it's James here and in today's video, I'm going to talk to you about something that honestly, I'm really, really excited to share with you guys, it's going to be a little bit different from our normal video, it's gonna be a little bit less specifically Airbnb focused. But I am going to be sharing with you an incredible and incredible secret that I've learned when it comes to running your own business. Now to talk to you about the secret compounding effect that applies to specifically Airbnb businesses exceptionally strongly, it really works in your favor. But honestly, this can be cross transfer and applied to all sorts of different businesses.

So I'm going to jump into that and go into full detail on in this video, so that you can set yourself and your business up for maximum success. Now, before we dive into all of that, I just want to let you know that down in the description down below, there's a link to a free training that will walk you through step by step by step exactly how you can earn a full time income managing other people's properties on Airbnb. And in that training, I'm going to show you how to get started without investing any of your own money into buying, renting or furnishing any property so that you can get started with no money at all, you don't have to actually invest money into getting this business off the ground.

So I'm going to walk you through all that, I'm also going to show you how I was able to build this business to six figures. In just under 12 months, when I first got started, I'm going to show you all the different strategies. So you can use what I'm about to show you here today and actually have the tools and the specific tactics to be able to go and apply it to build your business successfully. So again, if you haven't already checked out that free training, and just click the link in the description down below, and get yourself registered for a spot. Like I said, the train is completely free, but we're running it for a limited time and those spots do fill up.

So just make sure you click the link in the description down below to grab a spot before it's too late. Now, with all that being said, let's get started. Let's talk about this secret compounding effect of Airbnb management businesses. Now, the compounding rule is I'm sure one that a lot of you have already heard of. It's this idea that over time, if you do things that compound like for example, one common example is interest. If you invest in something with compound interest, then you tend to get slow and steady growth up until a certain point where suddenly you haven't really take off and you see that hockey stick growth curve.

And there is examples of that all throughout the world, you can look at that. For example, with your skill development. As you get better and better you put the time into building up a skill, you suddenly reach a point where your skill starts to really skyrocket because you've got that foundation built. And now your skill really takes off once you can actually build on effectively, you can also look at that with your earning potential, your earning potential tends to take off astronomically after you reach a certain level of skill. Once you get so good that you're so much better than the average person that something then you suddenly have a lot more earning potential with it.

And the same is also true and can be applied to running your business. I'll show you what I mean, the efforts that you put into your business early on are going to yield results. But they're not going to yield nearly as much results as the efforts that you put in later on. If you're smart enough to take advantage of this compounding effect. If you take advantage and really harness the power of the compounding effect in your business, then you can put in the same activity in month three that you put in in month one, but get three, four and five times the results from it. It's really, really incredible. I'll explain exactly how that works.

So one really clear and easy example I can give is with client attraction client conversion. Imagine you're wanting to grow your business and add new properties to your portfolio, imagine that your goal is in 12 months, you want to have 12 properties, that would be about $10,000 per month in recurring monthly income that you'd have coming in. So it's a really great goal to have. So in order to do that, most people think well, if I want to have 12 properties in 12 months time, then I need to bring on one property per month. And though if you average it out over 12 months, that technically is true, the math obviously adds right up, it's very simple.

It's not necessarily how it's going to play out in practice, chances are, if you aim to do that, you're actually going to end up a lot higher. And that's why I consistently have students that aim for that and put in the work to be able to do that and achieve that goal that consistently outperform that and end up with 20 properties at the end of those 12 months. I'll explain exactly why. The reason is pretty simple. Imagine if you're reaching out to clients, you're reaching out to prospective clients in that first month, you know, your first ever month of starting your business, if you're reaching out to enough people to generate one client, you got to imagine you're reaching out to maybe 510 15 people 20 people setting up a couple of meetings, and then your brain on that one client.

So that's pretty straightforward. You reach out to enough people and you're going to get your first client as long as you have the right tactics and the right strategies to be able to do so again, if you want to learn more about the exact specifics on what to say to these people where to find these people how to get a meeting with these people how to go about that meeting so you can bring them on under management. All that is outlined in full detail in the free training LinkedIn description. Down below. But if you go and you put in that effort, then that's month one, and you've got your first client.

Now think about month two, well, you probably think, okay, I'll just go and do the exact same thing, I'll get the exact same result. And at face value, that seems pretty logical, however, the reality tends to be quite different. Because what you have to account for is the compound interest that you're going to earn on the activities you put in in month one. And month. Number one, the first time you're ever getting started, you don't have access to any of that this is the first time you're reaching out to people. So naturally, the only people that can possibly respond to you are the people that you're reaching out to in month one.

In month two, however, you are going to have people that are reaching out and following up with you and you're setting up appointments with them, who you've just recently messaged in month two. But what you're also going to get is some lagging results from month one, you have that person that you messaged that was on vacation, and now they get back from vacation, they check their email, they check their messages, and they see your offer and they go well, I want to set up an appointment with you. Well, that's a lagging result from month one.

The other thing you have to take into account is that you might at this point, get a referral from your very first client, or you might have someone else that has now heard of you that refers you to their friend and says, Hey, you should go and contact this person, they might be able to help you. Now in month two, there's not a whole lot of that, because again, you're still only one month into it, you've only got the lagging results happening from one single month. So maybe you get an extra meeting, maybe you only end up with one client still at the end when it's all said and done.

So by the end of month two, you've now got to client, well, month three, you're going to get the same thing. But you're going to get double the long term results, because you're going to have people that maybe you're following up with you and reaching back out to you for a month one, maybe one of those people that you met with in month one and you presented your offer. They said Well, I want to get started with you. But now's not a great time, I want to wait a couple months before I get started and have you start managing the property. Maybe now they actually follow up with you.

Maybe you've got some deal for month two who are now again, just seeing your message now and then following up with you. So now in month three, let's think okay, well, maybe you bring on two properties in month three. So now suddenly, by the end of month three, you're up to four properties, it again doesn't seem that crazy, you're only one property ahead of your original goal. Now let's look and zoom out to month four. Now, by month four, you have four whole months, three whole months prior that are starting to generate some longer term results, you've also got three different clients.

And each one of those three different clients has the potential to send you one or two referrals to other people they know, you've got that one property that's been working with you for three months now. So they've actually got a taste, they're more comfortable with you, they trust you. So they'll probably be a lot more comfortable referring you to other friends of theirs who own properties and will be a good fit for you to work with. So now in month four, you're probably going to pick up one property from the outreach that you do in month four, safe to say you'll pick up one more property from a referral, and save to save to pick up one more property from just the lagging results from months one, two, and three.

So now in month four, suddenly, in that fourth month, you bring on three more properties. So now that puts you up to seven. So now suddenly, by four months in, you're more than halfway to your 12 month goal, pretty crazy. And you can imagine that now by month five and month six and month seven, you keep on getting that stacking and compounding effect, where suddenly you're picking up three properties, four properties, five properties, even sometimes up to six or seven or 10 properties in a single month. It's not uncommon for me to reach out to students who I've been working with for over a year now who also say to me, James, you know, I've now got 20 properties under management.

And I've got four more than I'm onboarding right now, literally four more properties that I'm onboarding right now, that means they brought them on within a couple of weeks, and they're onboarding them now. Now, that's pretty crazy when you think about when you're just getting started to bring on four properties $4,000 in monthly recurring income coming in from just two weeks worth of effort. Well, yeah, that seems crazy right now. And it would be crazy to do that in your first two weeks in the program or your first two weeks and start with your business.

But it's not crazy at all to be able to produce those kinds of results further down the road once you're getting the compound interest off of your initial efforts. This is a secret that so few people realize, so many people get caught in the trap of looking at the results from month one, and they get discouraged because they put in this effort and all they came out with one with was one property. Now granted, one property is still $12,000 a year in recurring income.

So it's not too bad for one month's work, but a lot of you will have really big ambition and they get discouraged when they see that the results are taking a little longer than they expected. However, what you have to remember is this compounding effect that is applied to your business Because if you keep consistent with your inputs, then you're going to get an asymmetric reward, you're going to get that compounding effect in terms of the actual outputs, the the results that it generates for you and your business.

So I would highly encourage anyone who's getting started with any business, especially a business like Airbnb management, where there's so much refer ability, you get a lot of customers coming in from referrals from other clients, there's so much in lag results from people following up with you, you really want to have a long term outlook on your business. And just remember to stay consistent. The number one piece of advice that I always give to new people, I start working with new students I start coaching is stay consistent. Consistency is the one single secret the one single key to success in this business, and just about any business if we're being honest.

So if you're getting started, you want to make sure that you remain consistent. And as long as you do that, and you're putting those efforts in the right direction, that's the other piece, then you're going to be successful. If you stay consistent, doing the wrong thing over and over again, it doesn't matter how consistent you are, you're not going to get the results, you can take steps every single day to the west and you're still not going to get any closer to seeing the sunrise, you're only going to be going further in the wrong direction. So you want to make sure that you have the right strategies and tactics to apply that consistent effort to the right things.

So again, that's why I recommend checking out the free training that's linked down below in the description, because that is what's going to give you access to actually getting the results that you deserve. From these efforts you're putting into your business. You want to make sure you have all the right tools and all the right tactics, in addition to your work ethic and your consistency. So again, just check out the link in description down below to get access to that training completely free. I unveil the curtain on absolutely everything that you'll need to be successful and to build a business that can earn you a full time income managing properties on Airbnb.

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