Rude Property Entrepreneurs Infuriate The Dragons | Dragons’ Den

Foreign [Music] Dragons my name is Richard Williams This is my colleague Gila strander Gila strander and I Have a company called realtor network Limited Um we offer 20 equity in exchange for an Investment of 50 000 pounds Estate agency in the UK today does not Work There is a solution Killer strander has built realtor Networks for 30 years in North America And for 15 years in Europe Gill The solution is simple and yet radical The Paradigm of Salaried employees in small High Street Locations simply must change The UK is the last major country in Europe to not adapt the real estate Industry to a straight commission model With an active sales force we will Establish a multiple listing system Where one realtor office could list a Property and another office could sell The property in return for this they Will join our Network and pay as a License fee Any questions are welcome Confident claims from Richard Williams And his experienced business partner Gill Ostrander in a bid to revolutionize The way we buy and sell property the duo

Need a 50 000 pound investment and are Prepared to offer a 20 stake Looked confused Richard Gill hi I'm Peter hello Peter I like the sail board Yeah because that's real tour is a That's right it's like our version of an Estate agent in the states exactly yes So if you've got All of your realtor agents and your Network and there is a house that all of Them are clearly trying to sell it's one House and I'm Peter Jones estate agents And I have a few spare deaths there and A few people from real tour Network and If somebody up wherever they are they Phone through to say Tom Hughes and say I've got a guide for you Tom So now I've got two of your agents That house is sold And I've charged one and a half percent Commission What is the first agent that found the The buyer get Half of the commission so he gets point Seven five percent exactly what does Tom Hughes get The other half of the commission right That's all the commissions Okay maximum half down to 15 percent So I could get 15 of one and a half no Of the 0.75 I mean that's hardly even going to pay For the paper to print the documents

[Music] The enigmatic entrepreneurs seem only to Have confounded the dragons can theoper Fetus make sense of the proposition Okay Richard Gill you've not thought This through P Jones owns the office right He's saying back in his office Wayne's Accounting the money and Tom Hughes says I made 1500 quid so I'm going to give You 15 of that and you have 225 quid Yeah you're absolutely correct right I'm Not finished yet okay no there was I but Go ahead well I was talking go ahead Continue please 225 quid He's running his website measured the House mentioned the house took Photographs photographs 225 quid My turn Yes 225 quid my turn You forgot to mention that Tom Hughes Paid him 800 pounds at the beginning of The month to cover his fair share of That rent and that sign and that Electricity The other thing is that you could have 30 guys doing this for you And 30 guys times 225 quid if they did It every day it starts to be an Interesting business model An uncomfortable exchange perhaps but Finally some light is shed on the

Business model on offer Duncan Valentine is next to interrogate The Duo Right The market is low at the moment the Market slower houses So it doesn't matter how you're selling It doesn't matter how good you are If there's nobody buy-in you won't sell I agree except for the fact that 650 000 People bought last year Well in the UK How many bought in America I don't know The American statistics why do we want To talk about that because you said this Is the way to do it in America this is How to sell in America and we're going To bring it to the UK and use this Method in the UK I don't understand your point do you Think that the American Real Estate Market has collapsed in the last two Years I don't really care that's not my Question it's not my point Right you can be reasonable and answer a Reasonable question it's entirely up to You but I tell you whatever you do I'm out [Music] An infuriated Duncan bannatyne refuses To do business with Gill and Richard and Walks away from the deal Will Hillary devay be able to bring some

Calm to proceedings Years and years and years and years many Too many years to mention I used to Recruit and run direct sales forces Today it is I would say Nyon impossible To recruit direct sales people to work On a commission only basis in the UK I've been hearing hearing those words For 30 years in every country yeah That's all I can tell you is 25 years Ago I did it and today I'd have a Problem in lending my name because Ultimately I know the scams they got up To to earn that commission you are Describing the real estate industry I Joined 40 years ago yeah it was an Industry of pirates what we did by Introducing some of the changes that We're talking about here codes of Ethics More effective training showing them how To make their money correct okay by Doing that we change that industry into A profession Okay and I was part of that I'm a Refugee Sorry God gave you one of these And two of these use them wisely Do you know what The Beast doesn't change and that Beast Is hungry it wants feeding and by God Somehow or other they'll find a scam to Get fed Oh my Discord over the business model and Discontent with the entrepreneur's

Manner results in the loss of a second Dragon Now will Deborah meeden agree with her Rival investors concerns Okay Um this model works in the states I Think the problem is the mindset is Different between the states and here And without the protections of licensed Agents I think there's going to be a Problem convincing people in the UK that This is a model they want to shift to if I'm wrong about that you're talking to The wrong person in me you should be Talking to some of the big operators but At the moment I'm not convinced that They will adopt it because the way we Sell properties is deeply embedded so For those Reasons I'm out thank you Richard Gill in America it is very Typical To charge for the sale of your house Between four and eight percent And the reason for that is because of This type of bottle because of the share Piece of commission here One and a half percent So there's not enough margin In the model I do see there's a potential for it if You start to self-regulate but I think It's about paying people proper money Because you're not 20 000 pound a year Sales people with respect

I'm going to say I'm out Two more dragons find fault with the Duo's plans now only Theo per fetus can Rescue their dreams of investment Richard What's your history I was involved in Multi-level marketing built a business With that and then I came across the Realtor method and got involved in Franchising that through one of the American well the world's largest Realtors now again I guess one Um when Belly Up And the model there was the realtor Method Okay if it failed so miserably last time Why do you think I'm going to give you 50 000 quid it's not the business model That failed it's people Business models businesses don't fail Airplanes don't crash Pilots crash Airplanes the people fail is that true Yes if a plane develops severe engine Problems It's the Pilot's fault and that takes Care of one percent of the airplane Accidents okay one percent of the time Maybe a business model fails because of Technology shifts or the market goes in A completely different direction but Most of the time it's the people who Failed This gentleman Is already shown to failed you're

Following Fool's Gold it won't work But for those reasons This fool will not be investing So I'm out A disappointing end for the duo they Stayed remarkably composed but Ultimately failed to convince the Dragons there was a future for their Business [Music]

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