To grow a city you need infrastructure. To grow a Real Estate team you need the same thing.
I say this because my wife Donna and I tried to grow a team before we were ready. I see other Realtors do the same thing we did. They are successful right out of the gate so they want to duplicate that success with a team. The problem is that they do not have the systems and other key growth factors in place to make a “team” successful.
A team needs 4 key items in place before they will be able to grow successfully.
1) A team needs systems in place to handle leads, client care, and all the problems that are inevitable in Real Estate. Without systems the ball will get dropped a lot and everyone will get frustrated. One agent may do very well without systems because of their force of personality or their contact base but this is not something that is easily duplicated. To grow a team you need systems that will allow everyone to duplicate success if they just follow the system!
2) The team needs an adequate amount of leads to keep everyone busy. Without leads Realtors die on the vine. Again, they will get frustrated and begin to drift. Your team needs leads and/or the tools to acquire leads or they will become a group with a bad attitude and it is downhill from there.
3) A team needs a cheerleader. Celebrate all wins! Salespeople in general are motivated by money but they are also motivated by the endorphins released when they make a great sale!
4) A team needs a leader or leaders. They need someone who has paid the dues, learned the skills, knows the direction, and can instill confidence in the team that if they stay the course they will be rewarded!
I say all this because I think it is very common to have a successful Realtor who branches out too early. To grow a team I think you need to go through all the stages. The Realtor needs to grow his own business until he or she can’t handle it anymore and then bring on an assistant.
Together the Realtor and assistant can create systems that can be duplicated by other Realtors. At this point you may be able to bring on one Buyer’s Agent. Again, you will work through issues until you have a system in place that will allow you to grow further.
All the while -– I think you should not grow until you have a sustainable growth in lead sources that will allow your new agents to immediately be successful. Success causes more success and momentum!
With this model the team growth is natural and sustainable. Growing before you are ready is a deadly mistake that will kill your momentum in my opinion. I am not a guru on this subject but just sharing mine and my wife’s experiences, as we have grown our team of Realtors in Columbus GA, in hopes that everyone will learn on our dime.
Speaking of learning on someone else’s dime we have learned from others and sought their advice like Mitch Ribak, Cal Carter, and others who have blazed a trail before us. There is no need to re-invent the wheel. You may put your own spin on the wheel but starting from scratch is just not necessary!
This is a good model. It’s important for the team to define its roles early. The Real Estate environment is fluid, like any business, and each part needs to maintain its role. I’ve seen too many start ups go down in flames when they thought you could get by without a couple important elements.
May 13th, 2009 at 9:59 pm
Great information! I completely agree, our team grew very slowly in the beginning so that we could make sure that the growth was sustainable. Now, we can grow more quickly because the market is picking up, and we seem to have a great backoffice staff and system/flow going with policies in place.
May 14th, 2009 at 3:10 pm
Thanks for the great information. I am currently in a real estate team and I can see some need to make changes to improve our overall performance.
May 14th, 2009 at 10:05 pm
The real estate team also needs the right team players. A team is defined as a group of individual all working together striving to accomplish the same goal. If you don’t have the right players on the team, the team will never be successful.
May 16th, 2009 at 1:24 pm
I agree Wayne,
unless you have all those boxes ticked you will not be giving your clients the service they deserve and your business will drop because of that.
It is very imprtant not just to have a team but the RIGHT team. Good advise Wayne.
New Farm Real Estate
May 17th, 2009 at 10:45 pm
These are actually pretty good tips. I agree with cheerleader one…
May 19th, 2009 at 11:06 am
Thanks for all the comments! You are right the right team members are important. Everyone on the team should contribute something to the team.
May 30th, 2009 at 4:15 am
Who can help with splits between leader and team members? Who gets what, when? (on average) If team leaders lead, they get?? If team members lead, they get?? Looking for advice! Any advice you can provide would be greatly appreciated!! Thanks in advance!
May 15th, 2011 at 1:46 pm