Villa Secrets Real Estate Network
Cape Town, South Africa
By Nick Ray Ball 24th September 2016
Welcome to the ‘Villa Secrets Real Estate Network.’
And a million reasons to join our group.
Villa Secrets.com is a luxury villas network, with a unique system for recruiting property sales and rental mandates.
Sometime it takes just one big idea to make the difference.
ZAR 1,000,000 ($70,000) in PR, marketing and web development for each suitable villa is that idea. An idea made stronger as at our heart ‘S-World Villa Secrets’ is not a villa rental or sales company, rather it is a web & software development company with a passion for PR and content marketing. Intent on creating and supporting a network of real estate related companies across the globe. ‘S-World Villa Secrets’ focuses on the marketing and development, whilst independent companies with a profit share agreement and licence to Villa Secrets branding focus on recruiting mandates, booking villas and making sales.
Rental and Sale Mandates
In return for our ZAR 1,000,000/$70,000 commitment (or higher for properties over $4million) we ask property owners for the rental mandate (no fixed duration) and the first sales mandate (for 3 to 6 months) when the property owner wishes to sell.
From the word go, ‘S-World Villa Secrets’ creates and markets a world class stand-alone website for the villa and we start to prepare the villa for sale. A process which over time will include a ‘Villa Sales Pack’ featuring a brochure of the villa, the Villa Secrets Magazine, articles in various Condé Nast and other luxury lifestyle magazines, plus various villa and architecture awards. In addition on disk we will provide quality videos of the property and luxury brand photo-shoots or TV ads filmed at the villa, plus links to online blog’s, news and other articles about the villa.
For overseas buyers and renters alike, such a pack will really impress, we would create about 250 such packs, saving at least 100 for the sale.
S-World Villa Secrets Network
Villa Secrets is building an international network of high end real estate related business. The objective to have a company that offers exception local knowledge, service and concierge in every location on the planet. A 6-star service-first alternative to ‘Airbnb,’ That’s sells as well as rents.
S-World Villa Secrets is a technology company which is creating custom software to power the network and deliver results for Clients, Villa Owners and Property Managers. We call this system the TFBMS: Total Marketing System & Total Financial & Bunnies System
In Cape Town and abroad, it is our strategy to create a dozen or so real estate related companies including rental agencies, estate agencies, architects & developers in each location. Many or even all of these companies will recruit mandates under the Villa Secrets banner and incentives. Some companies will only recruit mandates. In each location we have a soft target of 50 exclusive sale and rental mandates by 2019, however our ambition is to recruit a great deal more. The advantage of this system/network to real estate agents is considerable, as only the real estate agents can sell the properties recruited by the network. At any given time Villa Secrets estate agencies will receive new exclusive mandates via the strength and ingenuity of the other companies in their local network.
Recruiting in Cape Town
We are in the final throws of launching ‘Villa Secrets – Cape Town – Rentals’ and now we are preparing to launch ‘Villa Secrets – Cape Town – Sales,’ which will in phase 1 will operate three websites:
1. ‘Cape Luxury Villas.com’ will focus on rentals but also present sales options.
2. ‘Villa Secrets Cape Town Realty’ is sales options in Cape Town from the VillaSecrets.com website.
3. ‘Amazing Homes’ is a pan African sales first website, for which we need to purchase a domain.
In addition, in phase 2 we may create a dedicated SEO driven Cape Town specific Real Estate & Property websites.
Villa Secrets will initially partner with one of the big estate agencies, who will run the three websites adverting them at positions 1, 2 & 3 in all relevant Google Searches, contributing to advertorial and the web and software development. The Real Estate Agents will also run their own Villa Secrets rentals division, which due to affiliate income will generate more money from a mandate over two years than would be made from its sale.
In building this model and rolling it out, we build a model that can be easily recreated in hundreds of locations.
Recruiting in LA, New York, the Hampton’s, Hawaii, St Bart’s and Saint Jean cap Ferrat
In many cases, Real Estate agents don’t make great returns from vacation rentals, instead they usually focus their letting departments on long term rentals, which do not require hospitality or concierge. Villa Secrets provides the service & concierge experience & handbook, trade-craft, shared infrastructure, software and marketing to make a successful rentals division which secures both rental and sales mandates.
Their are many thousands of locations that Villa Secrets can operate from and over 100 super-prime locations, and within each super-prime location there are few, or even a handful of suitable realtors. in such locations such as LA, New York, The Hampton’s, Hawaii and St Bart’s the mandate marketing budget will run as high as $500,000 for the right property. And in Saint Jean cap Ferrat in France, where a property was recently sold for over a billion dollars, we would commit a great deal more.
Logistically the only difference between Cape Town and such locations is that in such locations we would need +/- 6 months set up time to recruit properties and connect to local PMS’s (Property Management Systems). For instance in Hawaii a connection to Vacation Roost would provide hundreds of quality villas.
However with houses costing 10 times more is such locations, and there being many more houses the size/value of the market is substantially greater. And here’s the thing.. In all US locations Google adverting is almost half the cost and there is substantially less competition in general.
As such in well considered theory, the US locations mentioned should generate over 20 times the gross profit of Cape Town, and create a investor return in excess of $10,000,000 a year by 2019, with substantial gains in following years.
It is not outside the realm of possibilities for Villa Secrets to create its first Real Estate network in the USA. This line of enquiry is being actively investigated.
Villa Secrets Network: Franchise or Group?
The Villa Secrets Network has some elements usually associated with a franchise, but others that are associated with a group, such as ‘The Virgin Group.’ And some that are unique and not common to either.
1. Like a franchise, once the business plan has been created (so long as the revenue is supportive) certain staffing and advertising activities are contracted into the agreement.
2. Unlike a franchise, which are often for a set period of time (such as 12 years), a Villa Secrets network company is for life.
3. Unlike a franchise the Villa Secret networks are not a part of S-World or Villa Secrets Ltd. UK, Instead, like the Virgin Group, each company is owned by the investors, with the rights to display the ‘S-World’ & ‘Villa Secrets’ brands, offer the Villa Secrets marking mandate incentive, use the web framework, the TFBMS and ‘M-Systems.’
4. Similar to a franchise; an operational, marketing and development contribution is required, being 25% of Gross Profit from each company. (+/-4.5% of Turnover)
This contribution pays for a chunk of the mandate budget, the software development, various websites created, database connections, content marketing, PR, SEO and SEM.
As a result of this investment the gross profit of each company will increase by more than they contribute, so making the levee… simple smart business… or in terms of technology ‘starting ahead and keeping ahead.’
5. Unlike a franchise there is no monthly franchise fee, Villa Secrets Ltd UK is in essence a NGO, a system that is non-profit created to improve the profitability of its group/members. (The legal change for this is underway.)
6. Unlike a franchise once a company is making significate income, (more in 1 year than their initial investment) some of the 25% GP contribution can be used for scientific, ecological or philanthropic projects.
7. Once this point (The POP Point) has been reached (where the investor makes more in 1 year than the initial investment) profit made above this figure is invested per ‘POP Method’ into another network (that will be owned by the investor). This could be buying into a local competitors business, investment into a similar company in a different location or a company in a different niche in the same location (which in both the last two cases increases ‘ϻ’ available market share.)
In addition to creating new companies are the Villa Secrets Resort Development opportunities. More on this soon… To see the original research from 2012 see S-World and look at the ‘American Butterfly’ books, specifically book 1 ‘The Theory of Every Business.’ A summary of this book is available in chapter 6 of ‘M-Systems.’
As for the investment desired/required, it’s important to know that this investment is an investment not a fee, every cent will be itemized and agreed upon before set up. Some will pay for developers, but most will be for direct marketing, to give the company an initial boost. If one company is willing to invest more in their own marketing than another, then all else being even the company with the highest commitment wins.
However there are other factors, in particularly in quality of the CEO, lead sales and lead networker provided. However, there are a number of other factors. Such as if a company wished to create networks in other locations where they have existing infrastructure. Or if a company with a strong existing vacation rentals division was willing to merge their existing rentals division into the new Villa Secrets network. Or if a company with a strong long term rentals division was willing to merge their existing rentals division.
In all cases an agreement on a three-year business strategy would be a part of the deal.
In most or all cases we desire that the company that purchases the Villa Secrets network licence makes 50% of share options available at the original purchase price to the key personal in the venture. Where after key staff can purchase such options with their salary/commissions/bonuses over the first three years. Unless the owners of the company that bough the licence work directly on the Villa Secrets network.