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  "documentTitle": "Goosehead Insurance, Inc. (GSHD)",
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  "presentationDate": "2023-02-16 00:00:00",
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      "text": "This reliance on referral tied to home sales is a problem for GSHD because demand for mortgages has fallen off a cliff, declining by 67% YoY.",
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      "text": "US Pending Home Sales (YoY%)",
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      "text": "As a practical matter, this means that GSHD's existing referral partners are generating fewer leads.",
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      "text": "GSHD's secret sauce is real estate referral partners. Every former employee we spoke to about the company's business model stressed that the company's strategy was to build relationships and get leads from referral partners for new home insurance policies.",
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      "text": "This reliance on referral tied to home sales is a problem for GSHD because demand for mortgages has fallen off a cliff, declining by 67% YoY. Pending home sales have fallen by 38% YoY, falling below the level reached at the height of the Covid-19 panic:",
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      "text": "Interviewer: How much of your business ... comes from referrals? Account Executive: ... I would say, realistically, 95% of my leads came from the relationships I built: Interviewer: ... How much of that was from the housing market? Account Executive: It is all based on housing.",
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      "kind": "title",
      "text": "GSHD's Growth Story Is Deteriorating Because the Slowing Housing Market Is Drying Up Referrals and Driving Franchisees Out of Business",
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