Building a team is simple; building a profitable team takes thought, strategy and the ability to follow a proven system that will ultimately result in a better lifestyle for both the rainmaker and the team members.
There are many different types and structures of teams. Teams can be as small as a rainmaker and a licensed assistant. When you add your mortgage partner, title partner and other people critical to delivering exceptional service, we all pretty much run teams of some type and size.
As a coach to many of the top teams in the country, I have learned that bigger is not always better. However, if you structure your team correctly, you can improve the service you provide to your clients and enjoy a higher level of income while increasing your free time with your family. For me, the ultimate goal is to create a business rather than a job.
The first hire on any team is almost always the client-care coordinator. This position handles everything before, during and after the transaction and their job description includes any and all tasks that allow the rainmaker to focus on their three most important activities: prospecting, showing/listing homes and negotiating contracts. Everything else should be done by the client-care coordinator. Compensation for this position can be per transaction or hourly, depending on the number of transactions. A good client-care coordinator can handle around 100 transaction sides a year before a second admin position is needed.
I love my buyers agents. When hiring team members, rainmakers often look for people who can take over working with buyers. This is a critical position on the team because it begins to free up time and allow the rainmaker to focus on other money-making activities. The challenge with buyers agents is that team leaders often over-compensate them, and while sales might increase, profitability decreases. On our teams, we provide great training for buyers agents through our BAM (Buyers Agent Mastery) program. Buyers agents must follow specific scripts and dialogues, track all leads and conversations, and participate in daily huddles. As a result of this structure, a good buyers agent can and should be doing three to five transactions per month. While compensation varies, we hold strong to the model that teams should run on a minimum of 50 percent net profit. After paying buyers agents, lead generation, and administrative expenses, there’s 50 percent or more left in profitability. That means we generally follow this proven compensation model: 40/60 on the first two transactions per month, 45/55 on the second three and 50/50 on five plus transactions. This resets each month and our buyers agents are required to produce three to five transactions per month.
The keys to a successful team are as follows:
- Begin with the end in mind. Start with a detailed business plan.
- Follow a proven compensation model.
- Utilize the best systems for everything.
- Provide best-in-class training.
- Hire the right people using the right system.
- Don’t go it alone. Hire a coach that can take you through the process step by step and help you eliminate your excuses for failure.
Verl Workman is the founder and CEO of Workman Success Systems, an international speaking, consulting and coaching company that specializes in performance coaching and building successful power agents and teams.
For more information, visit www.verlworkman.com.