Congratulations if you’ve decided to take the next step in expanding your business! If you are considering starting a team or partnership, or wish to grow and develop your existing team into a mega team or group, it is critical that you take the time to plan the process of how you are going to start, build and grow your real estate business.
Starting a team for the wrong reasons is a huge mistake. It is important to know your motivation and purpose before you hire the wrong people or start building a team with non-producing agents (a common mistake)—or before you really start making financial commitments for marketing, lead generation and other support that require the funds of a high performing team.
Here are some of the big questions to consider, these can guide and help you to a better developed plan for creating a team at the right pace. It is important to know at what rate to add expenditures and agents, as well as how to manage the growth—all while remaining profitable yourself.
1. What are you trying to accomplish by adding team members?
Is it to scale and double or triple production with year-after-year growth and profits? Or do you just need some help to manage your time and make more money for yourself? Don’t just start a team because it seems like the trendy way to sell real estate, or partner with someone that’s not going to help you double or triple your individual production. You want real growth.
2. Where do you see yourself three years from now with a team?
You should have clear income and production goals for one, two and three years out. Know where you want to go and begin with the end in mind.
3. Do you have a business plan for starting and growing your team?
Know your reasons for starting a team and design a model first! It’s got to be a written, strategic business plan or you will shoot from the hip and make a lot of costly and time-wasting mistakes. Write it out and then make the action plan for achieving it.
4. Are you making a profit now?
Sales and high volume are impressive, but you need to make sure you are growing your brand and business while remaining profitable.
5. What type of team model works best for you?
– You are the primary rainmaker and you add buyer and listing agents to your team
– Mega Team or Group (usually over 15 or more agents on a team)
– 50/50 team partner arrangement
– Add admin to your business to help leverage time
6. Do you have enough listings to currently support a team?
You really need to ask yourself if you are currently at a production level that supports adding team members. Make sure you have a profitable business first for yourself, with a support staff before you start adding team members.
7. Do you have a coaching and training plan or program to help new and experienced agents list and sell more while they are on your team?
Creating an agent coaching, development and sales training system is key to increasing the sales skills and production of your team members, whether they are experienced or brand-new agents.
8. What is your compensation plan?
How do you want to incentivize agents based on performance? Do you pay different payouts for listings vs. buyer or self-generated vs. team lead? What expenses are tied to team leaders vs. team members?
9. Do you have a written team member agreement?
Create and sign a written agreement with terms of pay, referral fees and incentives, and an exit clause in the case of termination. This will make sure everyone is on the same page and in alignment before you enter this important business relationship.
It is important to take all these factors into account before jumping into growing your team. If you can answer all these questions confidently, you are ready to begin building your business! If you are not sure about some of the answers, you may need to take more time to think about what is best for your success.
For more information on strategies to start or grow an already successful real estate team, Sherri Johnson offers world-class, exclusive agent and teams coaching. To speak with Sherri Johnson about how your team can double or triple production quickly, or to learn about our custom and co-branded training platform, Sherri Johnson Academy, schedule a free strategy call.
For a free copy of Sherri’s Exclusive “GoldMine Pipeline™ Strategy” eBook to help coach your agents to double or triple their production and income, click here.
Sherri Johnson is CEO and founder of Sherri Johnson Coaching & Consulting. With 25 years of experience in real estate as an agent, broker and executive, Johnson now offers her proven methods through coaching, consulting and keynote speaking services nationwide. She is a national speaker for the Homes.com Secrets of Top Selling Agents tour and is the Official Real Estate Coach for McKissock Learning and Real Estate Express. Johnson has also been named a RISMedia Real Estate Newsmaker in 2020 and 2021 as an Industry Influencer and Thought Leader. Schedule a free 30-minute coaching strategy session or visit www.sherrijohnson.com for more information.