Have you reached a plateau as a solo agent? Here are four essential steps to building a successful real estate team.
Step one is evaluating your systems and processes and writing things down to be emulated. For solo agents, everything you need is in your head, but when you run a team, that no longer works. The same goes for scripts. You may know exactly what to say and when to say it, but how about your agents? Evaluate your tech as well. Will it work for a team? Can it transfer leads and manage sales? It’s also essential to hire a transaction coordinator and a marketing assistant. Hand over the tasks that don’t make you money so that you can focus your team on those that do.
Step two involves creating and understanding your value proposition. Show potential agents why they should join your team and agree to pay you a split. By creating a solid foundation in step one, you’ll have a fair value exchange to justify the team split. While you handle the training, support, expenses, branding, marketing and lead generation, your team can focus on working with clients. They may be giving up 50% of the commission but only handle 30% of the work. That’s fair.
Step three is deciding team structure. There are two main team structures: the mentorship model and the leads model. In the mentorship model, you personally train and coach your agents. Agents are drawn to your success and want to emulate you. While rewarding, this model can become a revolving door. Just when the agents start making you money, they decide they’re ready to fly solo.
A second approach is the leads model, which is employed by many top teams across the country. In this model, agents are attracted to you because you’re giving them leads. The benefits of this model include immediate gratification to you and your agents. You’re providing them leads, so they begin closing business quickly. Unlike the revolving door of the first model, your agents become addicted to your leads. It’s harder for them to leave because they don’t have the ability or money needed to generate the leads for themselves. The drawback in this model is the cost.
Step four is deciding on compensation. Splits matter. One of the biggest mistakes I see teams make is not charging a high enough split. With an 80/20 split, your team has to close five sales for the same income you’d earn closing just one sale as a solo agent. With a 50/50 split, agents keep their 50% share while you have 50% to pay for operating costs and have a little left for yourself.
Be patient when hiring. If you’re doing it right, you’ll interview 10 agents for each one you hire. Build a culture that rewards agents for hard work, celebrates their successes and supports them through losses. Create a sense of family. Doing these things will allow you to build a team and a business where everyone wants to show up every day and work their hardest.
Josh Harley is the founder and chairman of Fathom Holdings Inc. (Nasdaq: FTHM). Harley is a Marine Corps Veteran and an advocate for servant leadership and placing others first. For more information, visit www.fathomcareers.com.
Thank you Josh. I ran a team and this is very well said.
Simple and precise.