The Real Brokerage Inc. (REAX) Earnings Call Transcript & Summary

All right. So we want to keep and make sure that our time is spent well. We have a very quick, short efficient demo for you. I think just watching this, I'm going to request that you do 2 things for us. Thing number one, have an open mind because it's going to change the way you actually utilize and talk to Real, which I'm super, super excited. And the coolest part about this is you don't need to do anything. You don't need to learn anything. You also actually have to unlearn the hard things that you have done before. As Pritesh would say, if we -- if this has to come with a training manual, we have failed, right? And that is the cool part here. So number one, I will tell you is, if it were a 9 year-old talking to Alexa, what would that 9-year-old ask? You almost have to go into 9-year-old personality and interact with Leo that way because let Leo do the heavy lifting for you. That's kind of number one. Number two, you have to promise me something. And all that you're going to promise me is this, for any agent that at Real that you talk to over the next 24 hours, I want you to ask this 1 question, "Hey, have you tried Leo yet?" That's all you have to do. People are going to log into the app and see this blue wavy bar and not know what it is, and we have to get people to try it and use it because as we try to use it, all our 24/7 concierge get better. So number one, suspend this belief and be a 9-year-old. Number two, you got to ask folks have you tried Leo, yet. So if those 2 ideas sound good for you, just give me a 2 in the chat. So I know that you and I are thinking and feeling good. Okay, fantastic. I appreciate you. We're going to do this.

So super cool to -- and excited to launch Leo yesterday and Pritesh is going to give us a demo today. Pritesh, I want to ask 1 question to kick all of this off. What is the big difference between Leo, any general ChatGPT engine that anybody in the world can get access to? Like what is that big difference? And why is Leo different?

This is a great question. I mean, this was like the biggest question that was being asked yesterday. The simplest way to answer this question is by -- with an example. So if you go to ChatGPT today and you say, what's my pending GCI? you have -- it will have no idea what you're talking about, right? It understands the concept of a GCI, probably something like learned off of some information from like a KW database that's open somewhere, right, and just make things up. right? So if you go to ChatGPT to then saying, what are my splits? It's not going to understand these things, right? So when it comes to us, what we have done at Real, is the underlying technology under ChatGPT, which is the brand, right, is something called GPT like pre-trained transformers, generative pre-trained transformers or people use large language models. But essentially, all it is, it's like it understands the meaning of the meaning of the sentence. This is the hardest part to kind of like cut through. But what is my MI cap right? Or how I capped or the same questions asked differently, right? But we're not training it question after question that would not scale, right? So essentially, that's the innovation when it comes to GPT. It's truly understanding the meaning and then doing something about it. So what we have done is we -- this is why we use the word AI loosely, and GPT and machine learning, these are all like inside of AI. And like today, when people say, AI they all mean ChatGPT, right, like this is what happens when something is so breakthrough. But really, AI is like a big umbrella. So what we have done at Real is like GPT is a part of our solution, right? So when you ask a question Real taps into the proprietary data that it has, like over the years, we've invested in building reZEN, which is soup to nuts, like we literally don't use anything else, right? Soup to nuts, everything is in the database. We've built Real Signature, right, in the last 4 months, and more such is coming. Real Academy, a great example, our Zendesk FAQs, a great example. They're very fine tuned to our information, whether it's standard for all agents, whether it's scoped by state or province, right, or whether it's scope to you, the agent, your information. So if I go and say, what is Sharran's GCI, it's not going to answer. You guys can all try. It's not going to work. And actually, people have tried it. I've been reading questions all day yesterday. Which is funny. But it's not going to -- it's your concierge. It's really guarded with your information, and it's technically impossible to actually tap into someone else's information, right? But that's what makes it different. It's like it's your information being catered to.

So I want everybody to understand this, right? This is super powerful. Anybody can go and get -- can pay the $10 a month and get the OpenAI ChatGPT app and you can say, "Hey, go write me a listing presentation or property description." Anybody can do that. Whatever it does there is generic. And every time it does it, it may tap into some data and create some results. But what we're trying to say is we're very fortunate because as we've built a bottom-up system over the years, reZEN knows who you are, reZEN knows where you live, reZEN knows who your broker is. reZEN knows what transactions you completed? reZEN knows everything about your cap status. reZEN knows that. So when I, Sharran ask a question, reZEN is be able to package that information and say, "All right, AI go use Sharran's information and have a contextual answer to that." The power of that is insane and the reZEN and for someone else to build something like that is very difficult, because we're fortunate to have this data preexisting before from a timing-wise, when this AI technology came out, right? That's what's super cool. Now building on this gets very, very interesting. What I want to -- I want to get into a demo and share everybody -- share with everybody so that Pritesh you can show people live. But I want to share my screen for 10 seconds and draw you something pretty janky, and here's what I mean by that. So I wanted to talk to you about AI at Real and especially Leo. And I would love for you to think about 3 big ways in which you can use Leo, right? And my first big way, and you may -- I don't have a iPad today, but my first big way is information. How do you ask quick questions that you would normally call support or go to the app and look yourself or try to dig for it -- just what -- how do I, what is, where is that information is really good. The second component is learning. How do I do X? How do I do Y? What is this? So if you're not just looking for a quick answer, you're looking for a quick learning component, how to do something and you just need a little breakdown of it. And I will tell you the last component of it is the money component. Where is my money? Where are my transactions? What is my status, et cetera. So to start just to wrap your head around this kind of 9 year-old model. Think about the big pieces. These are all tied to you. These are all tied to like what is Sharran's information, what is Sharran need from learning, what is Sharran going to have for money. So what Pritesh is going to show us is how to activate Leo -- how to activate Leo right now and start to ask and work through these 3 big topics, which are information, learning and money. So Pritesh, I'd love for you to maybe share and show us how all of this works.

Awesome. Well, so Sharran, what I'm going to do is I'm going to use your account. And reminding, everybody, this is a test account. So I'll point out when the data doesn't make sense, and I'll explain why. But again, like when you log into reZEN, whether it's in your app, in your phone app or on your desktop app, what will happen is that you -- a little nudge will come up from the top, saying, "Hey, I'm Leo, ask me anything." And it gives you some example ideas like stuff like that. But all you have to do is click on this blue line and it will launch Leo for you. So again, simple. The blue line is always present, and we will make sure that it will always be present and it will always be available, no matter which screen you're on, right? And then this is it like on the phone, you can actually talk to it. On the desktop, people rarely talk to desktop. So we haven't like done the desktop part, but you can type in a question.

So Pritesh, let's kick it off from, let's get people warmed up. Let's talk about the information side. Stuff that people think -- stuff that our agents are constantly thinking about saying, oh, maybe like, hey, when does my license expire, or things that are seen mechanical that are annoying to go find.

Sure. Let's start with something very simple. When is my anniversary date, right. Again, I'm Sharran so kicks out. It's just a straight answer. It's not about it here, go here, go there. It just answers that question, right? The same thing is like when does my license expire. Actually, I don't even have to spellcheck this, most likely it will understand. Because again, it goes back to the meaning of the question, right? So it understands that even if I miss spell text, right, it knows. And this is the best part about it. So not only does it answer some relevant articles that we think are relevant to this thing. And again, like you -- I think you have a license in Washington in the state in this account. So it brings out the Washington part. The link that goes very specific to you, right? So this goes back to what we were talking about like this is very -- these are very specific answers for you, right? Some other examples would be. I recently saw one on workplace, which was very fascinating is like, what is my NAID number? And this, again, is going to come up with your answer for your state, you might have another state license here, which is a California license, so it's pulling up the NAID number for California. And again, remember, these numbers are different, right? What's the Real EIN number, same thing. You're going to get an EIN number for your state, right? Again, we're going to know you a little bit to get to thumbs down. And I want to talk about the thumbs down in a second. But let's forward through those questions, and I'll go to the thumbs up and thumbs down.

Yes. So just for everyone, while this starts off as you thinking that, oh, this seems really basic, imagine where you don't have to wait. Imagine where you're tired. Imagine where you've been doing 6 showings and your home at 9:00 p.m. and you're like, wait a minute, I wonder where I need that number to write the software, I need that number to put on the CDA. I need that number to get my IDX feed set up. Small things like that. Now what you're doing is I don't -- you're like, "I don't have time tomorrow to do this, I need this now, I can wait for support to get back to me tomorrow." You know it's there somewhere. But having a 24/7 concierge that is pretrained for you is the answer. All of us don't mind paying for talent. All of us don't mind paying for great people to support us. But the last thing all of us want to do is to train anybody, right? And we also know that training people is really, really difficult. By the time you get somebody ramped up at Real things change. And so as things change, we want to have a 24/7 concierge that is in your fingertips to do that. So these are -- while these seem basic, these are major time savers for you.

But here's a cool little question, right? Who's my broker? I mean this is like people are joining at such a fast pace, that like literally just knowing who your broker is might be like sometimes intimidating. It's there in the app, but now we just expect you to just ask Leo and you'll get the phone number, you'll get relevant information just to you based on your license. So again, you're licensed in California so the information for the broker from California and the phone number, everything shows up here, along with some more interesting things for you to read about.

Yes. Pritesh, let's go to like the next phase of this, which is I know I can get key pieces of information. But sometimes, we get questions where agents get stuck. And they know that it's not as quick as getting an NAID number or EIN. One of the questions, let's if we move to the learning phase of this is like, hey, one of the questions we get often is and when an agent joins is like, "Hey, so I remember Sharran talked about this hitting elite status, like what is Elite, how do I hit it." And we get that often in support.

Yes, this is great. Let's type it in. So what is elite. It will like walk you through the whole thing and it will tell you go here to learn more. And if I jump out, it's going to take me to like that exact article. I Just want to make sure you're seeing my screen. I get linked to Zendesk with the details on exactly how elite works, with a video and everything else.

Yes. So this is really cool just for everyone to notice, right? There's 2 components that are being served up here. One is a quick answer that gives you a quick summary. So people might think like, "Oh, yes, I forget whether hitting elite is like the 12,000 plus the 6,000 or is it 12,000 plus 7,000." Like you may have missed the number. So you know right away in this, what exactly that is? You also know, hey, not only do you get that, not only you get $16,000 in stock and you also get a post-cap transaction fee that is significantly reduced. You get the information right away. Pritesh another question that from an information perspective, that agents ask often is, "Hey, Sharran, like how do these stock awards work?"

Yes, that's a great question. Again, like a crowd favorite, right? So how do stock awards work? Same thing, it explains you a little bit. It tells you where to go, how to get information, and then it sends you off for more detail, right? And again, I want to point out something like we had all this information. We have a very extensive FAQ. That is maintained and like all that stuff, but like if you -- this is what I do, right? Like human behavior, what is human behavior. Everything that is not your primary goal is a distraction, right? Like it just feels like it's getting in your way. So -- and it happens to me all the time. So what's the easiest thing to do when I have a question like this. I should go to workplace, right? Because I can open the app and just type it in [ break room ] from saying, "Hey, someone tell me about stock awards." It's much harder to open the app, then go find the support section, go click on the FAQ, then go to the FAQ type in awards and like and maybe you get like 5 articles, replied back to you. And then you pick the one that makes sense. That exercise is, I don't know, like anywhere from like 8 minutes to 20 minutes, right, for an average agent. For me, maybe it's a little less. But here, what we're really hoping is that people abandon workplace when it comes to things like this and come to Leo. You've got a question you come here, you're most likely going to get the most accurate answers. That's the best part, getting the most accurate and relevant answer, right?

Pritesh was a good question in the chat about how do you get contract help. And let me frame that as a thought process for a second, right? As we launch and get Leo adopted across our ecosystem. As far as contract help goes, each of our brokers are the CEOs of their states. We all work for our brokers in our states is very important. Contract help is very different from state to state. So we got to make sure that's done right. What we want is as we -- there's different state-related materials on, hey, how do I do X in California? How do I do Y in Minnesota? How do I do Z in New Mexico. We will make sure that those articles get plugged in. But at the end of the day, I would tell you that when it comes to a state-specific contractual thing, please like let's do it right and lean on your broker for now, right, contractual stuff, I would lean on our broker. But as we build out a state-specific contract library, a lot of this stuff will show up, which would be really, really powerful. So that's....

That does bring up an important point, which is the first -- very first comment that Leo puts out. This is like our legal who's trying to protect us. Made us put this sentence in, right? Because the thing is, at the end of the day, this is a cutting-edge breakthrough technology. And we've worked really, really hard to make sure that it serves you accurate information. But there is a chance that it's -- if you say, how do I get a contract help and it starts answering, we've guarded these questions so that if it doesn't know, we would rather just not answer them, make things up. But this is the other thing about ChatGPT and all these GPT technologies out there. It will just start making things up. And we've gotten to a point where people just started believing it just because it sounds like English.

Pritesh, I want to -- 1 more topic about -- we talked about information and learning. Let's talk about learning for a second. A lot of times, folks when they joined Real -- even Real agents when I talked to them, they're like, "Oh, yes, I had no idea that, that Mastermind existed. I had no idea that this training existed." I'd love to maybe do something like, when is the next Mastermind? And like how do we -- is that integrated as well.

You have all of Real Academy and all of Zendesk is all integrated in here. So there is 2 beautiful things in this question, by the way. First of all, it realized that it didn't like actually give you a specific answer, but it gave you a choice of Mastermind in below, right? So there are 2 things happening here. You can obviously go here, it'll take you directly to the Real Academy Mastermind, but if you -- if there's a question once in a while, that Leo thinks that it couldn't help you, it will prompt a support ticket, right, option. And watch how beautiful this is, like I click this, it creates a support ticket in your behalf. It uploaded the whole trend, it uploaded this whole conversation in a support ticket, went to our support team and everything that the support person needs to know about this conversation is already sent over to them, in your behalf. So you will -- this is it, this is the act of creating the support ticket in the future. That's how we see it, right? So to answer your first question, Sharran, the Masterminds are right here, but like something else happened, which got me inside itself.

Well, no, I will tell you, I think people are missing [indiscernible] people are missing the point on this one. The creation -- the one-click creation of that support ticket is -- I'm sorry, I'm going to tell you, it's insane. You know why? I'll give you an example. I think I have a great relationship with almost all our agents that I know almost all of you personally. I love you. None of you want to write a support ticket. None of you want to contact support. You're actually irritated and frustrated because now you actually have to contact somebody for help. And then you're on your phone, you're getting ready for an appointment, you're like, "Man, I have to tell support everything that happened related to this that they can help me." And you start typing and then you get a text and you get distracted, then you start typing some more now you're frustrated. Then you're like, "Man, I have to give them a screenshot. I don't know how to upload it." and they're like, "Oh, I can't believe I have do this, I'll just call somebody later." Then you just frustrated. This -- I will tell you this. This happens all the time. By the way, if this has ever happened to you when you get irritated about creating a support ticket, can you give me a 0 in the chat? Can you give me a 0 in the chat. Hey, Leo, how do you mute somebody?

Leo walks out, comes out of the digital avatar becomes a human being run to their apartment, you got it.

Yes. So I think what Pritesh said here is a super powerful way. We would love for you to notice this is that it gets really -- and our support teams can't really help because do you know -- like here is the #1 issue with support. An agent e-mail support with a question, support does not have enough information to answer the question. It support e-mails back asking for clarification. Agent is on the road shoot some clarification that they're busy and it's incomplete, support shoots another message back, agent shoots another message back, agent frustrated, support frustrated, no one's happy. Like this happens all the time. And this is -- like if I didn't tell you this, we're not being honest with ourselves. What support needs is the ability to say, "Oh, I know exactly what Sharran was searching for. And so I can help Sharran right away." Now with this, what the team has done is Leo packages all of this up. The question that was asked, what was stock, how it was broken, sends all of it to support. You don't have to open a ticket, you don't have to create the question. You don't have to go a field by field. You don't have to say, can you help me? You don't have to take screenshots. You don't have to do all of that because now it allows our support team to get smarter and serve you better, right? Small things like this are super powerful, which is why it makes your life easier and also makes our life easier to serve you, which is super important.

Let me make this a little fun. Any Star Trek fans here? 3 for a Star Trek, let me do a Sharran. Type 3 for a Star Trek fan. Okay. So Borg there's this -- for people who don't know Star Trek. There's this mega villain Borg and it's like always learning and like it's spreading really fast. So when you give us 1 thumbs down, what you're really doing is your training Leo. So when Leo misses a question, the best thing you can do today, if you ask me, like Pritesh, what's the one thing you can do for us, thumbs down. When Leo does not answer something correctly, thumbs down. So today, in the last 24 hours, we're around 18% thumbs down, right, which is honestly exceeding our expectations because people don't thumbs up, people thumbs down, right? So when the answer is right, there is -- sometimes people will thumbs up, but most of the times they'll just move on, they take it for granted, which is exactly what we want to do. Thumbs down is very powerful for us. When you give us thumbs down, we realize something was not answered correctly, someone in our team looks at that question, fixes the question, whether it's a Zendesk article, whatever it is. And then it's the Borg. Everybody gets the answer next time. And this is the best part. In the next 2 months, we will probably be able to do 99% of the questions in Leo, right? And this is a reason to streamline support in here, right? So something very basic and something extremely complicated. So maybe we can go to some more complicated things. But I want to encourage people to think about Leo as like a true concierge. I know it's very hard to like say, "Oh, I don't know if I should ask this question." Ask the question. Ask the question. Like refrain from going to workplace, ask the question first to Leo. And soon Leo will, by the way, like just like start answering on workplace. That's another project of ours, like it's just going to answer questions in the workplace. But we don't want to do that. We want you to come to Leo, but listen, it's going to take time. Like people -- change is hard.

So this is really good. And as Pritesh as you bring up Leo and let's talk about -- so we talked about information which is really great. We talked about learning, which was awesome. I want to talk about money. And probably a significant portion of our inbound inquiries and support is related to money. And big a part when I say money, it's here's what you're thinking, but you don't want to say it. What you're thinking is, "Hey, where's my money?" That's what you're thinking. But instead, you're saying -- you're thinking, well, how should I ask this question without offending somebody. So what we are like -- like we just want you to ask the question, where is my money?

So let's say, I ask where is my money. Now this is where it truly becomes very smart. Like what is doing it understands what you're truly asking, then it looks at all your data in reZEN. And then it says, okay, based on what you're asking, there are a few transactions that are in the zone of where you could be expecting some money. Because remember, if you just put in a transaction, it's not going to -- it's not going to actually like answer that -- like it just started. There's no money to be owed, right? But if you are in a situation where a transaction is document -- commission document generated or like the -- close to the escrow date in Canada or whatever, like -- if it's -- if we know that you -- it's a possibility that you're expecting money for this, it will pop up that transaction. So here you go. It answers is like, I can't answer this question because I don't know which transaction you're talking about. So can you tell me which one? And this example, there's only one. So I picked the transaction and it gives me an option. So it's smart. And you will see this pattern a lot. When you pick -- it'll give you options, you pick it will suggest the next question to be asked, right? And it will get better. We have like insane plans on this thing. Before now it says like, what's the payment status on this transaction. So I just picked this and I tap this in, now what you've done is you told Leo, tell me what's up with this transaction, and we're going to clean this up and it tells you exactly what's going on. The transaction is not closed yet, and the agent hasn't uploaded any papers, right. So -- this is spot on like, this what's going on with the transaction. So if we -- if you are blocking us, you will know exactly what's blocking to get the payment. And if we are blocking you, you'll be able to create a support ticket from here, but you're most likely you will actually have a status, a response that will say the money was sent yesterday or something like that, right? So at least like this is much -- does everybody agree, this is much faster than sending a support ticket.

Yes. if you like this, can you find the dollar sign and like give me a little dollar sign action here, like I would really appreciate that.

Let's do one more fun question, right? You can say, what's my last transaction. You can do a lot of questions by the way. I just asked like top core transactions like top referral, whatever, right? So I'm just asking these, and these are some example last transactions. Here is something cool and you can do this for a lot of stuff. You've picked the transaction and it says, can you summarize this transaction or give me a complete description of this transaction? Okay. Ready, [ paste down ].

This is awesome. I have not seen this yet. This is so cool.

Can you on Sharran, can you just for the sake of everybody else, like let's read through this thing so that I can point -- like you can point out exactly how powerful this is.

Yes. So it says, this transaction is a property located on XYZ, Pacific Highway in San Diego. It was created on November 29 by [ Afiniti ] and has an estimated closing date of November 29. The acceptance date for this transaction is November 22. The commission payer for this transaction is DISC line. The transaction has an approved CDA, which was issued on this date and can be accessed through this CDA document, which I assume clicks right into the CDA that will -- this transaction was approved by the broker and was processed has a split check, so you know exactly what happened. The transaction is 12 participants. So you know all the pieces of the puzzle or the people that are involved. It talks about Collin, Catlin, Sharon, Jeanette, everybody in our fake transaction here. And it tells you the commission deposit amount, which was $3,240, and it was confirmed on X date.

That's great. This is a combination of, like, I think, 5 or 7 screens in reZEN, if you get to them.

By the way, here's an interesting part. If you had -- if our support team member had to somehow create this summary for you with a question, it would take that support team member maybe 30 to 40 minutes per deal per question that you asked for.

100% because they would be, here is the thing they could probably answer in 10 minutes, but they will spend 30 minutes making sure they're right. This is the hardest part about this business. They don't want to send you anything wrong because it could really trip everything. So they spend a lot of time verifying everything that they're writing down, right? So again, like I'll ask the same question again, and this time I'm going to summarize it. So instead of saying, give me a complete thing, give me a summarized thing for me. This is another fun thing we did, like it's a different variation of this. But again, like you might find these gimmicky, but I think it's like to a point where once you start talking to Leo, you'll feel that it intercepts and understand what you're trying to do, right? And it will offer up solutions that we think you're trying to do. Of course, you can keep asking questions and stuff like that, right? It will get better and better. But again, like...

But here's the interesting part. Let me give you all the use case on this. If, for example, you and I were chatting, right? Someone -- by the way, people will call me in a random way, and we're going to get to this in a second. People like, "Hey, Sharran, can you help me with my business?" and I'm like, "Bro, like you've got to give me a little context." Again, enough like where are you? And so if you ask me, "Hey, can you help me with my business?" You know what I would tell you, yes, share screen and pull up Leo. And then you'd be like, why? I go -- give me, I want you to write, give me a summary of my transactions because I want to see everything that you've done so far. I'm like, all right, you have 4 buyer deals, 3 seller deals and 1 lease. Awesome. I know what I would ask you, hey where did those 3 buyer deals come from? You were like, hey, that all 3 of those came from Pritesh as my referral source. "Hey, where did these reseller deals come from? They came from my geographic farm." I'm like awesome why are you running Facebook ads. Like do you see where I can -- like I can actually help coach you, right? Now when you're talking to your coach, it should be the same exact thing. When they ask you a question, you should literally pull up Leo and say, ask me whatever question, I can type it in and give you the summary of my business. You want to be able to use Leo to help you make decisions quickly so that whoever you're talking to is, can help you with that real-time decision. And this brings us to kind of like parts of what the future looks like.

What I did was, while you were doing this, Sharran? I asked that question, summarize my work at Real.

That's insane.

So again, this is a test to cancel a lot of zeros, but we see how it's like it has -- like everybody should try this, right, in their accounts and like see what happens, but it's like actually like summarizes it pretty well.

So here's -- and I not even talked to Pritesh about this, but the cool thing that we can work on, like I would go to Pritesh and be like, "Hey, Pritesh, I would like to create a executive summary report." And Pritesh will say, "Well, what does that mean?" I was like "Pritesh, I want 10 points related to an agent's transaction." And so when you were going into business planning season. I was like, "Pritesh, can we create an executive summary, so agents can take their deals and then build their business plan for next year." And instead of you looking back and figuring out everything that you did, you can go to Leo and say, "Hey, give me Sharran's executive summary." It will give you the 15 points, and then you take that and you build your plan for next year, right? So now we can create the right dashboard, and Pritesh, I work with you and Andrea on that because we have all the data. We just need to -- we need to create an executive summary, so people know exactly where they are. And that allows them to see a snapshot of their business as well, which is super powerful.

100%.

So I have 1 more question for you. We started getting in our alpha in our test group, we're seeing a lot of questions around, hey, in the last training Sharran talked about a deal of the week or in this we did a business plan thing. How do you -- can you talk a little bit about integrating future learning, coaching modules, et cetera, into Leo?

This is the best question. Like so again, we're talking about Leo and how -- what it's doing today. We work really, really hard. It doesn't excite me. It will do a lot of stuff. But what excites me is like what will happen to RISE or what will happen in December, right? Like so all these things that we can't talk about. But we fully expect Leo to be able to like write your plan for you. So imagine like a daily coach like you imagine this concept of a daily coach, right? So Sharran, you go and you teach people, so many things, right? Some -- and there's always this audience, like 100 people, right? 10 will take meticulous notes, run your plan and send you like updates, saying, "Oh my god, this work, this work, right?" 50% of the people think a great idea, I'm going to do it someday, forget. They're busy, better things to do. 40% will land in the middle of somewhere. That's my guess, right? So imagine a day, you wake up you put listing in reZEN, right? And again, we think it's going to be through Leo. So we think like you just going to say enter a new listing, this addresses, this price, this commission, it does it for you, right? So it's that step one. Now you move on because this is the hardest part about this technology. People don't know what to ask, right? You wake up the next day and it was like here is your listing plan, here's your day 1 strategy combined with like Sharran's playbook XYZ, right? Aced the Real Academy Mastermind for this and here is how you go get buyer. Day 2, here is your Instagram post for this. Day 3, here is your TikTok video for this. I don't know, I mean, like we can generate videos by the way, like some ridiculous ones, right? Like so this is like -- this is always going to be work in progress. And it's all in on this, right? This is the interface.

But here's something super powerful. What Pritesh is saying is we are asking for your help to not have boundaries on your questions. So if you said -- so there was a question about, "Hey, can I talk to Leo in my car?" Yes, right. You have your phone and you can talk to Leo on your car because it's -- your phone is voice-enabled. Now talking to Leo on your desktop is a little strange, but it will work, but talking to Leo on your car is way cleaner, right? But if you said, "Well, I've got this listing, how do I find a referral agent in Florida?" You should ask that because if that use case for some reason, we have not dialed in, we have the information be able to do that. We just got, I think, our team sent us like 25 or 30 questions related to, "Hey, what is Sharran's deal of the week?" And I was like, oh, everyone's interested in this. I'm going to build a Leo-specific module on the deal of the week next week so that now when someone asks a deal of the week question, it breaks it down quickly for everybody, and it's easy to access. So we would say, don't hold back on your imagination. What -- even if you think it feels lazy on your part, please do that. And when I say lazy is like, hey, can someone get me this listing, find me a buyer, get me a referral fee and send it to me while I'm in the Bahamas. Ask it, right? Even though that's aspirational, maybe we can do 2 out of 3 things. which is really, really powerful. Like I'll give you a very simple example. People don't realize the use case around this. When Pritesh and I were talking, like why would you build Real Signature? Well, this is why, right? If Andrew Dwayne in El Dorado Hills, California says, "I'm looking for an agent in Orlando, Florida and Leo pops up saying, 'Hey, you're looking for Christine Smith in Orlando, Florida."' And she's like, yes, I would like to send Christine a referral agreement for this listing. And literally, there could be a button that says, send referral agreement. We know both brokers. We have Real Signature. We know Andrew's information. We know everything. We could auto send everything. You know how complex and irritating it is to send a referral agreement. Many of you don't even send one because you're like, "Oh, I've got to get the broker information. I got to get EIN information, I got to get broker ID. This is within Real, it's messy. Can you imagine outside of it? Like it's really great. But now since we have the Signature platform integrated, it makes contractual management super easy, too, right? So now we can do everything in line free. So we'd love for you to push the boundaries because the sooner you can push boundaries for us, it's more powerful. And I will tell you this -- Pritesh, I'd love if you talk about this one thing. It is our job to envision and create the platform for the product, but you always talk about, hey, once the product is done, now it is your job as the agent to teach us how to use it.

Great. I think this is the best part. So if you want us to improve this, right, the best thing you can do is just ask these questions because we have a whole team now dedicated to looking at downvotes and questions that we missed, right? So the best thing you can do is downvote the question, right, aggressively. And because that is input for us, and that will give us ideas. So it's like 100 people today went and asked the same question, we know we have to prioritize that question. Like nobody has to like pitch the idea to us. We have the data, we know it's the same question, same category. We just need to fix it, right? So that and then be adventurous. Like I think asking questions to Leo, for example, there are a few people who have asked us, hey, how do I get a new listing? Or I have a new listing, how do I market it? I'll create a marketing -- 15-day marketing plan for listing XYX in California or write me a list of description for X. It can answer these questions. We just didn't talk about it because ChatGPT can do that, right? But you should use this, don't pay for ChatGPT. We're giving it to you, right? But ask these questions here because then we know what you're asking for, and we will make them special. What you don't -- what most people don't understand is how to use ChatGPT. That's the harder part too, is like there are courses after courses on what the right prompt is, right? Just do this, we will create the right prompt for you, right? We will do secretly some massaging on your question and make it better. But just use this instead of ChatGPT, right? I'm not going to tell you which model we use, but of course, we didn't build our own model. But we are expanding with very -- like many models. One of them is ChatGPT. But if you use this thing, we can see the -- we even look through the responses by the way. That's the other thing. So when a question -- interesting question comes up, we look to the response and see if this response was good or bad, right? And if it's good, then we know something is working, it's not good, then we work on that, right.

And I will also -- during this time, I'm going to encourage all of you to do one thing, which is we say aggregate markets are down roughly 21% year-over-year. Aggregate markets are down. Maybe in your market, you're down 3%. Maybe in your market, you're up 6%, whatever it may be aggregate market is down 21%. So if you are feeling a little bit of a pinch, if you're feeling a little bit about drying up in the pipeline, you should say that, hey, it feels like my business is down this year. I'd like new ideas and how I can reintegrate my business without spending any money. Like you should ask these questions, whatever is the inner feeling that you have that feels weird to call somebody and ask, you ask Leo because now we have the ability to know what is top of mind for you so that we can build things that can help you directly, right? So there's -- so super cool. So Pritesh, one, if you could bring us home on the future. There are -- between now and the reason you launch Leo now, between now and RISE there's going to be a bunch of learning. What can folks expect between now and RISE? And what is the best feedback taken? Is it utilizing Leo? Is it giving it thumbs up? Is it giving it thumbs down? What is the best way for all the agents to help make Leo better?

I'll give you 2. One is you've got a question, go to Leo first, right? Feel free to go to workplace and stuff like that, too. And 2 is aggressively downvote, right? And I know the stats are going to look really bad for us when you downvote. But that doesn't matter. Like what matters is did Leo work or not, right? So if it is like aggressively downvote, that's okay, let's downvote. So we can learn from it. And I'll say 1 thing about workplace. One of the things that we're excited about doing that. I don't know if I can promise this by RISE, but at least by December is we are training our own model out of all the information that's in the workplace. So I'll give you my favorite example. There was a post and it was like a very funny post, and I keep remembering it. There was a listing and it came with turtle in the backyard. It was like the turtle as a house, you can't move the turtle. So when you sell the house, the turtle stays. How do you deal with this? This is an amazing question because how frequently does that happen. But there are answers that other agents gave and thumbs up-ed on, other agents thumbs up their answers. That's in workplace. This is pure intelligence. This is pure -- like really valuable data that's in the workplace that Leo is going to start mining. So then at some point, Leo will be able to answer this question. Like how do I take care of the turtle in the back of the house? That answer is available. So my -- our goal is to like mine workplace for like really smart conversations and learn from that. That will be the true, true breakthrough for us, right?

Pritesh from a mechanical perspective, could you very quickly share your screen and show what the upvote is and what the downvote is just visually so people know exactly what that means?

Absolutely. So okay, so when you're asking questions, there's a little thumbs up and thumbs down right here. All you got to do is click that. So if you like summarize this transaction, you click thumbs up. And if we missed on something, for example, we didn't miss much. But anyway, if we missed something, you just do thumbs down here, right? And that's it, that's all. You want to copy the response you can copy it to, but like that's all, thumbs up, thumbs down.

That's what we mean by an upvote or downvote. So just so everyone is familiar with that. We -- question starts, we'll spend maybe a couple of minutes just taking some questions, thoughts from folks. If you have a question or a thought or you're like, "Hey, you like this." So let me guide your questions and thoughts for a second. Number one, if you are excited and you think this is fun and you think you're going to be utilizing Leo to do something, you say, "Hey, I think I'm going to utilize Leo to do X," please drop that in the chat. Or if you have a question or you're like, "Hey, can I do Y," please drop that in the chat. So either it's, I'm going to do X or can I do Y? So it will give us a little guidance around it. So just give us -- what do you think you might be using it for, which would be super helpful for us, or if you have a question or thought, drop that in as well. There was a couple of questions on how can we get this out from a promotional perspective. So a couple of quick things. I will -- please make sure you like at least follow me on some social platform or at least Real on some social platform because this week, Pritesh and I are posting various Leo promo videos to get it out there. And I will tell you our internal version of this, you may think that we're posting it so that the world knows about Leo, I will tell you our internal goal we are posting it so that all our agents know about Leo. We are trying to make sure that -- we're trying to get the word out by saying, "Hey, you may not check your Real e-mail, you may not check the app." We want to do whatever it takes like every single Real agent should open the app and say, here's Leo -- if you'd open the app, you should see my video pop up saying, hey, here's Leo's live. But if you could talk to people and say, Hey, have you tried Leo, yet?" I think it will be super helpful. Marlin says, we will use it for questions -- we'll use it for questions in scripts for video and post. Yes, super good. Probably we'll use it to begin with what is the status of transaction, where is the payment? Yes, super cool. Shared itself among the agent body, like listing presentations, buyer presentations, et cetera, more on that's coming, by the way, close to RISE. How do we try it, is a question. So FYI, when you log into your app, either on -- sorry, mobile or on desktop, you will see a blue wavy line. As soon as you click that, that's how it opens Leo. So you'll always see this blue wavy line. Charles says, Leo didn't understand a Real written like the logo, which I programmed on my phone. I have to remember to use like, yes, you kind of have to do that. I'm going to ask Leo questions, would I call my sponsor for? Exactly right. This is a great question is, hey, I feel like a dumbass for asking you this, but thank you so much for your honesty. You can tell Leo that to, if you like, but you don't have to just ask the question, especially if it's later at night, which is super cool. Dr. Fabian says, "Hey, we have a meeting with agenting on our team, so we'll make sure everyone knows about Leo." All we ask is this, download the app, click the blue wave, ask it a question so that you get in the workflow of asking and talking to Leo because the more you use it, the more it can serve you, right. Pritesh, Britt asked a good question. Can ChatGPT, you can tell the bot what you wanted to know. Will we be able to feed Leo information about us, our business, our market, et cetera.

Yes. So Leo is when we create that concierge instance for you, it's already pre-programmed with like a bunch of context in that instance. I saw his question before as well, and I want to talk about it. So I've seen instances where people are trying to teach Leo things, right? And we have guarded it so that the information doesn't leak from one place to another. Imagine like I've seen questions where can Pritesh dance? I mean, yes, I can. But -- let's say -- but if the answer is no, that's fake news, right? So like I don't want someone else to like train Leo. But what we are working towards is understanding the tonality of the agent yourself. So there will be a point in time where you can tell Leo something you want Leo to understand you better. So for example, your tone of writing your listing presentation, your tone of writing your marketing plan, your voice, how do you think? I'm funny on this on that. And we will take that as an input and train Leo voice a little bit towards yours. So when we are giving you marketing advice or listing advice, it will be toned for your voice, right? So that's something we're going to definitely do. But like agents training Leo is super dangerous if you open that up because it can creep in and could become pretty hostile very quick.

Got to [indiscernible]. Awesome. So, hey we appreciate you all so much. We'll spend another 10 seconds on this. So the 2 things, if you -- a lot of folks that are new to Real that have joined us, the 2 things that you must do are, number one, download the Real reZEN app from the App Store and just get set up once. So once you log in, it will just be there for you. It is the business in the palm of your hands. And by the way, you want the app because of the updates that we're excited to show you that's coming during RISE, it's going to blow your mind. So we're super excited for that. Number two, just get logged in on desktop. My request to you is to use Leo once today, and tell somebody about Leo tomorrow. That's it, just use Leo once today, tell somebody about Leo tomorrow. That's the cool part. And Rebecca said it really well. We just added an extra team member to our team without having to train them. That's the cool part here, right? We want to -- we don't want you to have to train folks like we want to make sure that we can keep feeding at information. And this is just the beginning of a bunch of cool things that could happen. Yes, we'll be able to create a CMA. Well, if you -- how about this, if you can do it, Leo should be able to do it. If you're going to go click a bunch of screens, enter a bunch of information, like Leo should be able to do it significantly faster or at least get you a draft that you can do super quick. So I'll give you a very simple example. A lot of times, people will talk about, oh, you need to send a CMA to everybody in your database in Q1, like I would tell you right now that is the dumbest idea. You know why? Because nobody -- it's going to take you hours to put together a CMA for each house or your each client and send it out. You may think that's great. But when somebody gets a packet [ of this thing ] they don't want to do anything with it. And by the way, this has been proven with -- we ran 2 geographic farms and nobody likes it, right? What you want to do instead is you want to send one little executive summary, which is a property update, property CMA. If Leo -- if once our APIs are plugged in, if you can say, hey, generate an executive summary for 123, Pineapple Street, and it pulls that out and you click PDF. That's it you're done. So now you can have your virtual assistant or your team member say, "Hey, here's a list of all my private clients. Here's a 50 homes that I've sold in the last 2 years, make a one-page market update on this one." They put in all the addresses and boom it spits it out. Now you can get that entire process done in 40 minutes as opposed to 5, 6, 7 weeks of this stuff, right? Small things like that are really important. So I would click out of the way of how the traditional quotes that tells you to pop by with a cup of coffee, tells you to do it, but more what can you do immediately that can supercharge your business.

Yes, and again, I will say that there's a very good chance that you -- the next 3 months might feel underwhelming. Like a lot of work went into this thing, but it might feel like creating marketing plan is not doing the perfect job, creating a listing plan, not doing the perfect job. Create me a -- at RISE, I would like to be in a situation where Sharran standing on the stage and he says, "Hey, Leo create a listing presentation for me." And it brings out this amazing existing presentation with like PDF, pictures, everything like done and all you did was give an address, right. It's not going to do it today, but that's where we want to go, right?

It's so cool. Everybody, I want to -- this is an awesome time. I would love if it's cool with you do me a favor and I'd love to congratulate, Pritesh, Andrea and the entire team for pulling this entire thing together to launch for you. So if you can just give me a 5 in the chat as a 5 hand wave that a really good job to our team for thinking ahead and building something awesome. It will be super, super cool. So thank you so much, Pritesh. Dude, super congrats to you in 2 years, we build something that is insane and super Kudos to your team for creating this for us.

Well, this is listen, this is fortuitous. It's like the timing was there. we had all the technology that we were investing in and building from ground up, right? And then GPT came along and it was like an automatic, right? But like I think we might -- we may be the only company that can do this in a meaningful way because you have to build everything else we build, right, first. So I think the quantum leap for Real is coming. It's just a matter of time.

So thank you all for being with us. Here's what you're going to do. In the next 5 minutes, I'm going to post a new Leo video on my social stream, Pritesh's social stream and Real social stream. What I'd love for you to do is share it, just click share because I really -- what we really want right now is we want all our agents to make sure they're aware of it, like I could care less about the entire world. I just want us to be able to utilize it because we built it for us. So watch my feeds in the like next 5 minutes. I'll make sure the post is up and please share it because that would mean a lot to us because I would love all our agents to know more about Leo. So that would be awesome. Hey, Pritesh I appreciate your time. Thank you, Pritesh to you and the team for building something great. More great updates coming your way. We appreciate you all, and we'll talk to you very, very soon.

Thank you, everyone.