case study 2 ron

Virtual Patient: Ron- Intervention Session 2 (PT)

Simulation Created on April 23, 2021

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"FlowChat has increased my revenue by 375% in the past 7 months!"

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FlowChat Case Study

Executive Summary:

Does running an agency or coaching business leave you feeling like you're chasing your tail?

You're not alone. Just ask Ron Medlin.

Ron is the quintessential entrepreneur, the kind who built his agency brick by brick, client by client. His hard work was undeniable, his commitment unshakeable. Yet, the reward for his perseverance was a seemingly unbreakable revenue ceiling of $8,000 per month.

Like clockwork, every month, the same number stared back at him from the books. He found himself trapped…

Trapped in the unending cycle of trading time for money. Without a sustainable business model, Ron's agency was stagnant. Predictable cash flow, the cornerstone of any thriving business, was a dream that seemed increasingly elusive.

Nights turned into restless marathons of frustration, the ticking clock a constant reminder of his struggle. The mental treadmill was grueling – Ron kept asking himself:

🤔 How do I break the cycle? How do I create a consistent income without selling more hours of my life?

Despite the success he had achieved, Ron was stuck, yearning for a way to create a reliable cash flow that wouldn't consume every waking hour.

As a result, Ron was constantly on the clock, trading hours for dollars, with no foreseeable end in sight.

His hard work seemed to perpetually plateau, and the goal of achieving scalable growth - the kind that doesn't require you to sacrifice every waking moment - felt more like a pipe dream than a feasible reality.

He knew there had to be a better way, a path to predictability and peace of mind. He just hadn't found it yet.

Then FlowChat entered his world and became a game-changer…

Enter FlowChat

Ron was able to quickly turn the tables on his business woes, transforming his agency into a powerhouse by white-labeling FlowChat.

The "stuck at 8k/month" narrative soon faded as he witnessed a whopping 375% increase in his revenue, consistently hitting the $30,000+ mark every month.

The best part? He started working less.

His newfound freedom meant more time for his family and the luxury to whisk off on exotic vacations (He recently got back from Antarctica!).

He sought time for personal joy. He aspired to a better lifestyle while still scaling his business.

But, how did he do it?

"FlowChat has increased my revenue by more than 375% in the past 7 months!"

Because of the tech, I’ve seen a MASSIVE boost in the results my clients are able to get for themselves. It’s was super easy to get things up and running (1st week) and Sean & Chris and the FlowChat team provided immense support in getting my first software clients!

Who Is Ron? What Does He Do?

Name: Ron Medlin

Company Name: GroupFuel

Size of Team before FlowChat: 1

Size of Team after FlowChat: 4

Industries Served: Coach, Consultant, Agency Owner or Course Creator

Super Powers: Crafting Irresistible Offers & Installing Automated Client Acquisition Systems

Company Revenue Before FlowChat: $96,000 / Year

Projected Company Revenue After FlowChat: $495,000 / Year

What His Clients Say About Him:

Now Your Business Can Get All The Leads You'll Ever Need. .

If you haven't had the chance to connect on a call with our team, then book a call by clicking here., testimonials.

The Problem

Ron was constantly on the clock, trading hours for dollars, with no foreseeable end in sight. His hard work seemed to perpetually plateau, and the goal of achieving scalable growth - the kind that doesn't require you to sacrifice every waking moment - felt more like a pipe dream than a feasible reality. He was stuck at $8,000 / month in business revenue.

His main method of acquisition? The 2-step post strategy…

Picture Ron's typical day before FlowChat entered the scene: he would craft a compelling post designed to draw interest, affectionately termed a "hand-raiser" post, and blast it out to Facebook Groups and his personal social media profiles. Then, he would wait, anticipating the interactions that would hopefully pour in.

Each engagement was an opportunity, a potential client. Manually, one by one, he would reach out to these engaged individuals via direct messages. He'd invite them to his Facebook group, nurture these relationships, book calls, and eventually close deals. It was a relentless, manual process that felt more like an uphill battle than a streamlined funnel.

Despite the thrill of potential new business, Ron soon realized he was hemorrhaging prospects. It was like trying to catch water with a sieve - there were simply too many conversations to manage effectively. This inefficient system was costing him dearly, to the tune of hundreds of thousands in lost revenue. Prospects were slipping through the cracks faster than he could catch them.

But the financial toll was just the tip of the iceberg. This relentless process left Ron feeling frustrated and disheartened. He was spinning his wheels, trading precious time for what seemed like dwindling returns. He couldn’t help but feel irritated that he hadn't figured out a more efficient method to manage this deluge of potential business, especially when he had a wanderlust itch begging to be scratched.

The Solution

Ron's salvation came wrapped in a chat with the FlowChat team . The conversation was a lightbulb moment for him, as he realized how white labeling the FlowChat software and integrating it with his services could be the game-changer he needed.

How did this transformation happen? Ron leveraged his existing Facebook Group strategy and supercharged it with FlowChat's innovative pipelines.

The aim? Swiftly converting cold prospects into satisfied clients.

The simple yet powerful '1-click' import feature of FlowChat was a revelation for Ron. No longer did he have to manually scour for engagers; a single click and voila, all engagers were within his grasp. This feature alone saved him around 10 precious hours each week.

But FlowChat had more to offer.

The Post Import feature allowed Ron to not just track, but truly comprehend the marketplace performance of his posts. With an automatic report set up, he could see at a glance the engagement on each of his 2-step posts. One click would open the post, another would import all new engagers.

Simple, efficient, and effective.

Taking it a step further, Ron could set up KPIs (key performance indicators) to visualize the performance of his FlowChat pipelines. This granular insight gave him the power to tweak his flows in real-time, adapting swiftly to the needs of the market.

As of now, no other software offers this level of hands-on, organic business growth monitoring.

The FlowChat team helped Ron understand two crucial points:

• How to use technology to refine his existing practices for smoother, more efficient operations.
• How to effectively market his white-labeled version - the GroupFuel Chat system - to his audience, enticing them to invest.

These insights sparked a massive explosion in Ron's business.

He saw a phenomenal growth of over 375% in monthly revenue, and his clients enjoyed a similar surge in their own businesses.

Now, Ron has orderly pipelines that keep everything manageable. He can effortlessly import participants from his LinkedIn events and continue to dominate with his 2-step strategy.

Thanks to this game-changing system, Ron has reclaimed more than 15 hours per week and banished the chronic headaches caused by the inefficiencies of his old methods. It's safe to say that FlowChat has revolutionized Ron's agency.

The Results

Method of Acquisition: Create a Post > Import Post & Engagers into FlowChat > DMs > Call > Sale.

This method never changed, it’s now been optimized. The results are a significant boost in revenue for Ron (and his clients who invest in his White Label solution) AND waaay more time off for Ron to pursue his true passions and what he built his business for in the beginning.

Transformation: 375% increase in personal revenue. 100% boost in client results who use his white labeled system. Created more than $25,000 / month of monthly recurring revenue for himself. Eliminated all the frustration.

So what’s next for Ron? Hyper growth for his own business.

A stronger brand offering for his clients (because of the white labeled FlowChat solution) …and more exotic vacations!

Ron is an esteemed member of FlowChat and part of our 6-figure club. We are continuing to work together to get him into our 7-figure club in the next 1-2 years.

So proud of Ron and looking forward to a long future as partners on his journey.

Perhaps you can connect with Ron’s story. Perhaps you are in a similar space with your business. Perhaps you are just doing research to see if FlowChat is really for you.

Whatever the case, know that we are here... ...and ready to support you.

As you can see, Ron is a mega success story. We have dozens more.

And while you've read through this case study I have to ask...

What's next for you?

I would say you have 2 options:

You can do nothing.

However, you're not gonna forget about this case story, and it'll probably keep you up at night.

Start your winning journey as our newest FlowChat Connector.

If you already know the software is for you and you want to get started, grab your membership right now ., connect with ron:.

We believe in Ron. We believe in what he does.

“If you live for the weekends and vacations, your sh*t is broken.”

Ron’s fav quote.

If you’re wanting to learn more about his services, Here’s the best way to reach him…

GroupFuel Website

gohighticketnow.com

[email protected] | tel: (404) 317-3925.

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• Logos and Trademark Rules Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms.
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• Highlights & News Get the latest top line research, news, and popular reports.
• Housing Statistics National, regional, and metro-market level housing statistics where data is available.
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• Federal Advocacy From its building located steps away from the U.S. Capitol, NAR advocates for you.
• REALTORS® Political Action Committee (RPAC) Promoting the election of pro-REALTOR® candidates across the United States.
• State & Local Advocacy Resources to foster and harness the grassroots strength of the REALTOR® Party.
• REALTOR® Party A powerful alliance working to protect and promote homeownership and property investment.
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Commercial Code of Ethics Case Studies

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Any of the following commercial case studies can be used to replace the case studies that currently appear in the regular training materials.

Case Study #1

Shortly after the death of his Uncle Dan, Grant received word that he inherited a vacant warehouse that previously housed his uncle's business.  This was quite a surprise to Grant, who had only met his uncle twice.  As a dentist, Grant had no use for the warehouse.  He decided it would be best to sell the building and put the money toward opening his own practice.  Grant contacted Bob, a REALTOR®, and asked him to look at the property and suggest a listing price.  Bob checked out the property and suggested $100,000.  This price seemed low to Grant given the commercial growth occurring around the warehouse, but he agreed to it.

Within two weeks Bob called Grant with an offer.  Bob stated he would be the buyer at the listed price, less his commission.  Grant became increasingly uneasy about the price.  He told Bob he intended to have the warehouse appraised before accepting the offer.  Bob got upset and said, "Listen, you can take my offer or not – that's up to you.  But it's a legitimate offer based on the price you agreed to.  So as far as I'm concerned, I've done my job and you owe me a commission."

Case Study Questions: (Correct answers marked with a *)

• Do you think Bob is in violation of the Code?
• No, he's right. It's a legitimate offer and Grant should sell to Bob or pay him the commission.
• Yes. The Code prohibits REALTORS® from buying property listed with them.
• Yes. Bob placed his interests above those of his client's.*
• No. Bob is not obligated to pay the appraised price even if it is higher than the original listing price.
• What was Bob's obligation to Grant?
• Bob's obligation was to protect and promote the interests of Grant, his client, and not put his own interests ahead of Grant's.*
• Bob's obligation was to serve his client, Grant, but Bob is allowed to make a reasonable profit in buying a client’s property.
• Bob had no obligation to Grant other than to get his property sold, which he tried to do.

Case Study #2

The small commercial building is reasonably priced, in good condition, and located on a high-traffic street in a quaint neighborhood of Chicago, so it is no surprise that two offers are made only after a few days on market.  John, the listing broker, presents both offers to the seller, Kathy.  One of the offers is from a client of John’s and the other is an offer from Buyer Broker Bob’s client.

“These offers are both full price, with no contingencies, and there seems to be no difference between them,” says Kathy to John.  “Can we make a counter-offer for more money?”, she asks.  John explains that countering a full-price offer could result in one or both buyers walking away from the table.

"Okay, I'll tell you what," says Kathy, "If you reduce your commission, I'll accept the offer you procured.  Although you will earn a little less than we agreed in the listing contract, you'll still get more than you would if you had to pay the other buyer's broker."  John agrees.

Buyer Broker Bob learns from his client, who contacted seller Kathy directly to find out why her full-price offer wasn’t accepted, that listing broker John had reduced his commission to make the offer that he procured more desirable.  Bob is very upset.

• Can John renegotiate his listing commission at the time he presents the two offers?
• No.  John is bound to the commission he agreed to in the listing contract.
• Yes, John may renegotiate the listing commission, but only before he presents the offers.
• Yes, John is permitted to renegotiate the listing commission at any time.*
• John may only raise the listing commission, not lower it.
• By reducing the listing commission, can John present both offers in an objective manner, as required by Standard of Practice 1-6?
• No.  John could not possibly be objective when presenting an offer from his own client.
• Yes.  Standard of Practice 1-6 requires only that offers be presented “quickly”.
• No.  By agreeing to reduce the commission, John indicates that Bob’s client’s offer is no good.
• Yes.  John’s reduction of the listing commission alone does not mean he cannot be objective in his presentation.  Agreeing to reduce the listing commission is simply part of the negotiation process.*
• Under Article 3, as established in Standard of Practice 3-4, is John obligated to inform Bob that he modified the listing commission prior to the offer being accepted?
• Yes.  By reducing the listing commission for the offer he procured, John created a “dual commission arrangement”, one that must be disclosed.
• No.  Even though John might have created a “dual commission arrangement”, disclosure of such to Bob is not “practical” given the situation.*
• No. Standard of Practice 3-4 does not require a listing broker to disclose a dual commission arrangement.
• No.  Reduction of the listing commission during negotiations does not create a dual or variable rate commission arrangement as defined in Standard of Practice 3-4.

Ron, a REALTOR®, listed a motel for sale and prepared a sales prospectus setting out figures reporting the operating experience of the owner in the preceding year.  The prospectus contained small type at the bottom of the page stating that the facts contained therein, while not guaranteed as to accuracy, were "accurate to the best of our knowledge and belief," and carried the name of Ron as the broker.

Buyer Jeff received the prospectus, inspected the property, discussed the operating figures in the prospectus and other features with Ron, and signed the contract.

Six months after taking possession, Jeff ran across some old records that showed discrepancies when compared with the figures in Ron's prospectus.  Jeff had not had as profitable an operating experience as had been indicated for the previous owner in the prospectus, and the difference could be substantially accounted for by these figures.  He filed a charge of misrepresentation against Ron.

At the hearing, Ron took responsibility for the prospectus, acknowledging that he had worked with the former owner in its preparation.  The former owner had built the motel and operated it for five years.  Ron explained that he had advised him that $10,000 in annual advertising expenses during these years could reasonably be considered promotional expenses in establishing the business, and need not be shown as annually recurring items.  Maid service, he also advised, need not be an expense item for a subsequent owner if the owner and his family did the work themselves.  Ron cited his disclaimer of a guarantee of accuracy.  Jeff testified that he had found maid service a necessity to maintain the motel, and it was apparent that the advertising was essential to successful operation.  He protested that the margin of net income alleged in the prospectus could not be attained as he had been led to believe by Ron.

• Do you think Ron is in violation of the Code?
• No. Ron disclosed all pertinent information about the financial operation of the motel in the prospectus.
• Yes. Ron withheld pertinent information about the financial operation of the motel in the prospectus.*
• No. The disclaimer stating the prospectus was "accurate to the best of our knowledge and belief" protects Ron from any omissions.
• Yes. Ron had an obligation to arrange a meeting between Jeff and the previous owner to review the motel's financial records.
• What was Ron's obligation to Jeff?
• To fully disclose financial information that he reasonably should have known to be relevant and significant.*
• To formulate an optimistic prospectus to encourage Jeff to purchase the property.
• To accurately convey information given to him by the seller.

Dr. Luis, who recently completed his medical residency, decides to return home to the neighborhood where he grew up to open a small medical practice.  He enlists the services of REALTOR® Sara to find him a suitable space for his clinic.  Sara emails Dr. Luis several properties that fit his requirements.   One property is a two-story building listed by REALTOR® Tom that shows in the remarks section, “Rental apartment upstairs.”

Dr. Luis calls Sara to tell her that something about Tom’s listing seems odd.  "That building is in the neighborhood I grew up in," says Dr. Luis, "and I remember there being a problem with the Building Department when the owners added a kitchen to the second floor so they could live above their business."

Sara assures Dr. Luis that she will make the necessary inquiries, then promptly get back to him.  A call to the Building Department confirms Dr. Luis' suspicion – that the building is zoned “commercial” and does not provide for a residential apartment.”

Feeling embarrassed and misled by an apparent misrepresentation of the property in the MLS, Sara contacts Listing Broker Tom who acknowledges the seller told him the rehab was “up to code,” but was completed without the necessary permits.  According to Tom, the apartment had never been rented. "I assumed the new owners could get a zoning change or variance from the Building Department," he said.

Sara contemplates filing an ethics complaint against Tom, charging a violation of Article 2 for publishing inaccurate information in the MLS.

• Did Tom violate Article 2?
• No.  Once he was contacted by Sara, Tom explains to her exactly why he thinks the future owners might be able to obtain a zoning change or variance from the Building Department.
• Yes.  Tom misrepresents the property information in the MLS.*
• No.  It is outside Tom’s expertise to know whether the property’s zoning provides for an apartment.
• Maybe, depending on whether the seller told Tom to list the property in the MLS that way.
• Should Tom have identified the building as having a revenue generating apartment?
• Yes.  As indicated by the seller, the apartment was built “to code”.
• No.  Tom knew that the building would need to have a zoning change or variance from the Building Department before it could legally be rentable.*
• Yes. The former owners did write-off the apartment on their taxes.
• Yes.  Tom made no representation that the apartment was legally built.

Lucy is a listing broker who published an offer of cooperation and compensation in MLS for one of her listings, prices of $100,000). The offer of compensation to MLS participants was for X percent. Sam saw the MLS listing, showed the property and wrote an offer on the property for Barney Buyer. When Sam delivered the offer to Lucy, she said “Oh, by the way, I had to reduce my commission the other day to keep the seller happy. I can only pay Y percent co-op fee now.” (Y is 1 percent less than X.)

• What Standard of Practice under Article 3 applies to this case?
• Standard of Practice 3-4 (dual or variable rate commissions).
• Standard of Practice 3-2 (changes in compensation offers).*
• Standard of Practice 3-1 (terms of compensation offers).
• Standard of Practice 3-3 (mutually agreed changes in compensation).
• Standard of Practice 3-8 (availability of listed property).
• Is Lucy in violation of the Code?
• Yes. She failed to timely communicate the change in cooperative compensation before Sam produced an offer to purchase.*
• No. Listing brokers establish the terms and conditions of offers to cooperate and Sam had the obligation to ascertain those terms.
• Yes. It is unethical for Lucy to change the cooperative compensation once it is established.
• No. Whatever the seller dictates to Lucy is what the cooperating broker must accept.
• If Sam files an arbitration claim against Lucy for the compensation offered through the MLS, should Sam prevail?
• No. A possible violation of the Code of Ethics is not a determining factor in an arbitration claim.
• No. Lucy is the "master of her offer" and can change it at any time before the closing.
• Yes. An arbitration panel would likely rule in Sam's favor if Sam can prove that he produced an offer that resulted in the sale before Lucy attempted to change her compensation offer.*
• No. Lucy is only obligated to split based on what the seller pays, regardless of what was originally published in the MLS.

The offer, contingent on the sale of the buyer's current office building, is accepted by Seller Sam.  But, Sam instructs Bill, the listing broker, to continue to market the property with the hope that a better offer or one without a contingency would be made.

One week later, Buyer Broker Steve contacts Bill to arrange a showing of the property to an out-of-town client.  “I think it’s the perfect building and location for my client’s business.  He’ll be here this weekend,” says Steve.  Bill sets up the showing for the weekend, but says nothing about the previously-accepted purchase offer.

After seeing the property with his client, Steve drafts a purchase offer and sends it to Bill’s office.  At Seller Sam’s instruction, Bill informs the original buyer of the second offer, and the buyer waives the contingency.

Bill informs Steve that Sam intends to close on a previously-accepted contract now that the “sales contingency” has been removed.  Steve is very upset that Bill did not tell him about the previously-accepted offer.  Bill says he continued to market the property and did not make other brokers aware it was under contract to promote his client’s best interest by continuing to attract buyers.

• Is Bill obligated to disclose the accepted offer to other cooperating brokers?
• Yes.  Standard of Practice 3-6 clearly establishes that Bill must disclose accepted offers.*
• No.  It could have affected Bill’s ability to obtain future offers.
• No, not if the seller instructed Bill to keep it confidential.
• No, not if the offer included unresolved contingencies.
• Does Bill’s obligation under Article 1 to protect and promote his seller client’s interests mean that he should not reveal the accepted offer?
• Yes.  Bill’s obligation to protect and promote the client’s interests controls and Bill should not be found in violation of the Code.
• Yes.  Because Article 1 is a higher priority than Article 3, Article 1 controls.
• No.  Article 1 also requires that Bill be honest with all parties.  This obligation of honesty, along with the requirement of Standard of Practice 3-6, requires Bill to make the disclosure of the accepted offer.*
• Yes.  Article 1 emphasizes fiduciary obligations and overrides any other obligation that potentially conflicts with it.

It was a listing that Leo, a REALTOR®, now wished he had never taken. Keith, Leo’s close friend, was selling his home and was adamant about having Leo list the property. Leo appreciated the gesture, but repeatedly told Keith that his experience was in commercial properties and not residential. In addition, Keith’s home was in an area of the city that Leo didn’t know much about. Leo strongly urged Keith to have the house appraised. Keith insisted he knew the area and that $166,000 was the home’s fair market value. This amount seemed low to Leo, but he listed the house at this price. It quickly sold to a young couple, Linda and Brian.

Five months later Leo received a call from Keith, who was upset. Keith told Leo that he met the buyers, Linda and Brian, at a party and found out the two were moving because Linda had been reassigned to another city by her company. The couple had received an offer on the house for $190,000, which they declined, feeling they could do better. Keith was upset at Leo for not giving him better advice concerning the $166,000 sale price.

• In addition to Article 11, which other Article might apply to this case?
• Article 10.
• Article 1.*
• Is Leo in violation of the Code?
• Yes. He failed to do a market analysis when listing the home. In addition, he should have provided Keith an appraisal at his cost.
• No. He had no obligation to Keith once Keith insisted on Leo listing the property.
• Yes. Even though he told Keith about residential sales being outside his field of expertise, he was also required to "engage the assistance" of a residential real estate broker.
• No. He fully disclosed to Keith that he was a commercial broker and that Keith's property was outside his area of expertise. He also recommended that Keith have the property appraised.*

Sean considers refinancing a twenty three unit apartment building he has owned for several years to unlock some of the equity.  The lending firm, ABC Mortgage, orders an appraisal for the property from REALTOR® Paul, who happens to be a licensed appraiser and a commercial real estate broker.  The appraisal report is complete with the property address, date prepared, value, purpose, and market data.  After receiving the appraisal, Sean is surprised to learn how much the building has appreciated and decides to sell the property instead of refinancing it.

Because Sean likes how thorough REALTOR® Paul was with the appraisal process and knowing that he is a commercial broker, Sean hires Paul to represent him as his listing broker.  Within one week, an offer is made on the property and accepted. 

During the loan application, the prospective purchaser informs the new lender that the property was recently appraised for ABC Mortgage.  The lender is surprised to learn that Paul is both the listing broker and the appraiser, and that no disclosure was made about his “contemplated interest” as established in Standard of Practice 11-1.

• As used in Standard of Practice 11-1, does Paul have a “present or contemplated interest” in the property when he does the appraisal?
• Yes, as a licensed commercial broker, there always is the chance that Paul could have listed the property in the future.
• No.  At the time of the appraisal, Sean had no interest in selling the property.*
• Yes, Paul was paid to conduct the appraisal.
• No, ABC Mortgage ordered the appraisal.
• Is Paul in Violation of Article 11?
• Yes. Paul should have disclosed in the appraisal that he is a licensed broker.
• No, Paul provided all of the appropriate information in his appraisal, and at that time, he had no intention of listing Sean’s property.*
• Yes, Paul is not qualified to conduct the appraisal.
• Yes, Paul is not qualified to list the property.

Tony operates a small accounting firm and owns the building that houses his offices. Given the recent growth of his firm, Tony purchased a larger office building and is planning to relocate. He enlisted the services of Sue, a REALTOR®, to sell his current office building and entered into a 90-day exclusive agreement.

Three months later and one week before Tony was to close on the new building, Tony’s previous building remained unsold.  Sue had shown the property only five times in the three months. “I think I should get another agent,” Tony said to Fred, his friend. Fred suggested that Tony talk to Laura, a REALTOR® who had helped Fred sell his office building. Fred told Tony, “I'll give Laura a call, tell her about your situation, and see if she can help.”

After Laura received Fred's call, she decided to call Sue to ask when her listing agreement with Tony expired. Laura had heard of Sue, but had never spoken to her. When Laura finally reached Sue after leaving a number of messages, Sue was abrupt, refusing to discuss her listing or disclose when it expired. Laura explained that under the circumstances she could go directly to the seller to get the information, thinking this might elicit a response from Sue. Instead, Sue hung up.

Laura then called Tony. He recognized Laura’s name from his conversation with Fred and was happy to hear from her. Laura explained her services and indicated she would be happy to list Tony's office building after his exclusive listing agreement with Sue expired.

Two weeks later Sue's listing expired and Laura listed Tony's property. By the end of the month, it was sold.

Remember, if there is a conflict between state law and the Code, state law prevails.

Check your state law to be sure the actions in this case are permissible in your state.

• What Standard of Practice under Article 16 applies to this situation?
• Standard of Practice 16-6 (discussions with others' clients).
• Standard of Practice 16-4 (soliciting other's clients).*
• Standard of Practice 16-2 (general mailings).
• All of the above.
• Is Laura in violation of Article 16?
• Yes, Laura's call to Tony was an unethical solicitation.
• No, Article 16 doesn't apply.
• No, Laura followed the exact procedure specified by Standard of Practice 16-4.*
• Yes, Laura was required to get Sue's permission to deal with Sue's client Tony.
• What was Laura's obligation?
• Not to solicit Sue's listing unless Sue refused to tell Laura the nature and expiration date of the listing.*
• None. Listings are fair game for solicitation at any time.
• Not to solicit Sue's listing under any circumstances.
• Not to solicit Sue's listing unless Sue's client, Tony, called Laura directly without Laura directly or indirectly initiating the discussion.
• Is Sue in violation of Article 16?
• Yes, Sue is required to give Laura the nature and expiration date of the listing when Laura asks.
• No, Sue is not required to give Laura the requested information.*
• Sue is not in violation of Article 16, but she is in violation of Article 3 by refusing to cooperate with Laura.

REALTOR® Barbara has an exclusive listing on Sue’s property – a banquet hall that seats 2400 people.  An offer for the property is submitted by Buyer Broker Mike.  Barbara takes Mike with her to present the offer to Seller Sue later that evening.  Sue is interested, but wants time to think it over.  

The next day, Mike thinks about what an inept job Barbara did presenting his client’s offer -- it was as if she didn’t fully understand it.  There were several important considerations that Barbara did not explain to Sue.  Because he attended the presentation and was involved in the negotiations, Mike decides to contact Sue directly to ask if she has any questions and to explain some of the finer points of the offer.  Although the offer is less than the list price, Mike thinks it is fair and recommends that Sue accept it.  After a little more discussion, Sue agrees.  The contract is signed and a copy is faxed to Mike’s office.

When Mike calls Barbara to tell her about the sale, she becomes very upset because Mike worked directly with Sue, rather than her.

• Identify the Standard of Practice that applies to this situation?
• Is there an obligation on Mike’s part to work through Barbara?
• No, the fact that Barbara had introduced Mike to Sue opened the door for him to carry on the negotiations with Sue directly.
• It depends on whether Barbara had expressly precluded Mike from contacting Sue directly.
• No.  Mike has always been able to contact Sue directly.
• Yes.  Mike should have worked only through Barbara, Sue’s listing agent*

Case Study #72: Cleaning Up in Style: Ron Holt’s Exit of Two Maids and a Mop

Recurring Revenue

In the early 2000s an industry that looked broken to Ron was residential cleaning. He saw a fragmented landscape with lots of mom and pop operators and not a whole lot of efficiency. But he knew that if he could gain clients, he could latch onto a dream for many business owners, recurring revenue that over time can grow like compound interest. A $150 house cleaning in that frame isn’t one-off revenue, but one that can repeat twelve or in some cases 52 times a year.

Influenced by Seth Godin’s Purple Cow , which emphasized standing out among other businesses, Ron started with a business model that allowed people to pay based on how satisfied they were with the cleaning. As he told this story to potential customers, as well as his goal to spread this sort of satisfaction-based cleaning to other parts of the country, people listened and hired him. While some gamed the system, and Ron eventually transitioned to a standard pricing model, the “purple cow” method definitely helped him get traction early on.

Back in 2003, most people and businesses had no idea what SEO, Search Engine Optimization, was. It was possible to create content that was locally relevant and within days you would be ranking well within Google and other search engines. Since most businesses didn’t know about SEO, neither did cleaning companies, and this SEO strategy was key to getting Ron’s second and third stores up and running before he saw franchising as a way to grow the company, using areas with the least SEO presence as opportunities for the biggest land grabs.

While Ron wasn’t entirely thrilled with franchising, he did want to learn how to do it better, which landed him at a conference. He took a break during one of the sessions and met a man sitting outside who struck up a friendly conversation with him. Soon enough, he had introduced himself as Fred Deluca, whose Subway chain had 42,000 franchises at that time. Suffice it to say Fred learned more in that conversation than he did at the conference!

One of the lessons Fred shared with him later (they would go on to have more conversations in the months and years that followed) was the importance of balancing franchisee requests with company profitability. In essence, franchisees would often come with great ideas that would often help make their lives easier, but didn’t necessarily make them or the franchisor more money. Fred warned Ron against being bogged down in dealing with these ideas instead of the larger strategic work he could do running the company.

Thanks to Fred’s mentorship and hard work from his team, Two Maids and a Mop continued to grow, and by 2021 had 91 locations nationwide. Around this time Ron’s mother-in-law had a really negative experience with a moving company and as Ron searched around the Internet he found that her complaints correlated with those of many in different markets. As he googled around, he found that same excitement at the opportunity Two Maids and a Mop had offered him so long ago: a chance to make a difference (and a profit) in a broken industry. That original excitement for home cleaning had fallen into routine for him and he realized it was probably time to make an exit.

Around the same time he had taken a trip down to Key West and had seen a particularly beautiful yacht that had so interested him that he went down an Internet rabbit hole trying to find out its owner. It turned out to be owned by a company that bought businesses like Ron’s, those involved around home services. While he wanted to go hat in hand to try to offer Two Maids and a Mop as an acquisition to this company, his business broker (wisely) suggested he take it to market and allow other people a chance to buy it.

Home Franchise Concepts (the owner of the yacht) ended up being one of the three finalists looking to acquire Ron’s company and when one of the rivals for the bid gave Ron an amazing offer with a ticking clock, Ron went to Home Franchise Concepts and told them that he would rather sell to them, as they were more aligned with values and would likely treat the company the way he wanted it to be treated. Home Franchise Concepts did what they needed to in order to counter the offer and Ron ended up selling to them, not so he could rest on his laurels, but so that he could go on to found Pink Zebra Moving , paying homage to Seth Godin for the ideas he gave him so long ago.

Three key lessons Ron shared with us:

• Be willing to be a purple cow . Ron saw that there were many players in the home cleaning space and he wanted to differentiate himself. His unusual pricing strategy caught fire and allowed him to develop a customer base.
• Seek mentors . Ron’s attendance at a franchising conference allowed him to make a valuable connection that had a significant impact on how Two Maids and a Mop developed.
• Always take your business to market first . Even if you have a preferred buyer (and you end up selling to that preferred buyer), you’re never going to regret taking your business to market so that you can validate the value and create an atmosphere of demand and desirability.

Are you looking to create a purple cow effect in your own industry? We’d love to brainstorm with you on how to do that. Give us a call .

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• Judge Tosses X/Twitter Lawsuit Against Group That Produced Study On Proliferation Of Hate Speech On Platform

By Ted Johnson

Ted Johnson

Political Editor

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• Donald Trump’s New York Criminal Trial Scheduled To Start On April 15

Donald Trump Gets A Reprieve In Massive Bond Payment Needed To Appeal Civil Fraud Case

A federal judge tossed out a lawsuit brought by X/Twitter against a watching group that produced a study that examined the proliferation of hate speech on the platform.

U.S. District Judge Charles Breyer concluded that the platform, owned by Elon Musk , was attempting to chill the speech rights of the Center for Countering Digital Hate and other groups.

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Donald Trump's New York Criminal Trial Scheduled To Start On April 15

X/Twitter had sued the group, claiming that in doing their study, they unlawfully “scraped” the platform for its data that led to an exodus of advertisers.

“X disagrees with the court’s decision and plans to appeal,” the company said.

Read the judge’s decision in the X case .

Imran Ahmed, founder and CEO of the watchdog group, wrote, “This ruling sends a strong message to those who aim at intimidating and silencing independent research.”

In his ruling, the judge even suggested that X/Twitter’s litigation had chilled other types of research into disinformation online. He pointed to a recent survey of 167 academics and researchers that “found that over 100 studies about X Corp. have been diverted, stalled, or canceled, with over half of those interviewed citing a fear of being sued by X Corp. over their findings or data.” 

The judge also noted the similarities of this case to another one brought by X/Twitter against Media Matters for America , another watchdog group that published a study on the placement of ads on X next to inflammatory hate and racist posts.

Breyer wrote in a footnote, “If there is any question about the ‘punishing’ part, X Corp. filed a similar suit, not before this Court, in November of 2023 against Media Matters, another non-profit media watchdog, for ‘reporting on ads from major brands appearing next to neo-Nazi content.’ Prior to doing so, Musk threatened a ‘thermonuclear lawsuit’ against Media Matters…Musk’s post also claimed, remarkably, that the lawsuit was furthering X Corp. efforts ‘to protect free speech.'”

The judge also rejected X/Twitter’s claims of harm to users. “There is no allegation in the complaint, and X Corp. did not assert that it could add an allegation, that CCDH scraped anything other than public tweets that ten X platform users deliberately broadcast to the world. No private user information was involved—no social security numbers, no account balances, no account numbers, no passwords, not even ‘gender, relationship status, ad interests etc.'”

The judge added, “It is clear to the Court that if X Corp. was indeed motived to spend money in response to CCDH’s scraping in 2023, it was not because of the harm such scraping posed to the X platform, but because of the harm it posed to X Corp.’s image. CCDH’s data collection allowed it to claim knowledge of what was occurring on the X platform in a cumulative sense. According to CCDH, its scraping revealed that X Corp. was generating millions of dollars in advertising revenue from previously banned accounts.”

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Court allows trump to pay lower bond in civil fraud case; hush money trial to start in april, judge sets hush money trial’s jury selection for april 15.

Ben Kennedy , Washington Bureau Chief

Andrea Torres , Digital Journalist

WASHINGTON – Donald Trump’s legal challenges continue even as he stands as the Republican presumptive nominee, and the first of four trials is set to start in April.

There were two updates in civil court in New York on Monday.

An appeals court ruled Trump will be allowed to pay a $175 million bond instead of $464 million .

Judge Arthur Engoron ruled that Trump committed fraud when he exaggerated his wealth. The former president has denied wrongdoing.

Trump’s deadline to post bond was Monday. After the new appeals court ruling, he has 10 more days.

Judge Juan Merchan announced that the hush money trial is set to start with jury selection on April 15.

Trump attended a heated hearing and Merchan denied his motion to dismiss the case his attorneys claimed was tainted by prosecutorial misconduct.

“I would have no problem testifying,” Trump told ABC News during a news conference in the courthouse hallway after the hearing.

Trump added later, “I don’t know how you can have a trial in the middle of a presidential election.”

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About the Authors:

Ben kennedy.

Ben Kennedy is an Emmy Award-winning Washington Bureau Chief for Local 10 News.

Andrea Torres

The Emmy Award-winning journalist joined the Local 10 News team in 2013. She wrote for the Miami Herald for more than 9 years and won a Green Eyeshade Award.

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