Congratulations if you have decided to take the next step in expanding your business! If you are planning to create a team or partnership, or if you want to develop and grow your existing team into a mega team or group, it is essential that you take the time to plan the process of starting, building and developing your business. your real estate business.
Creating a team for the wrong reasons is a huge mistake. It’s important to know your motivation and purpose before hiring the wrong people or starting to build a team with non-producing agents (a common mistake) – or before you actually start making financial commitments for marketing, lead generation and other supports that require the funds of a successful team.
Here are some of the big questions to consider, they can guide you and help you craft a better plan to build a team at the right pace. Knowing how quickly to add expenses and agents, as well as how to manage growth, while remaining profitable yourself, is important.
1. What are you trying to accomplish by adding members to the team?
Is it to increase and double or triple production with year-over-year growth and profits? Or do you just need some help managing your time and making more money for yourself? Don’t just build a team because that seems like the fashionable way to sell real estate, or partner up with someone who won’t help you double or triple your individual production. You want real growth.
2. Where do you see yourself in three years with a team?
You should have clear income and production goals for one, two, and three years. Know where you want to go and start with the end thinking.
3. Do you have a business plan to start and grow your team?
Know your reasons for creating a team and design a model first! It has to be a written strategic business plan or you will pull out of the hips and make a lot of costly and time-consuming mistakes. Write it down and then develop the action plan to achieve it.
4. Are you making a profit now?
The sales and high volume are impressive, but you need to make sure you grow your brand and business while remaining profitable.
5. What type of team model is right for you?
– You are the main rainmaker and add buyers and listing agents to your team
– Mega Team or Group (usually more than 15 or more agents in a team)
– 50/50 team partnership arrangement
– Add an administrator to your company to save time
6. Do you have enough listings to currently support a team?
You really have to ask yourself if you are currently at a production level that supports adding team members. Make sure you have a profitable business on your own first, with 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 a system of agent sales coaching, development, and training is key to increasing the sales skills and production of your team members, whether they are experienced or new agents.
8. What is your compensation plan?
How do you want to incentivize agents based on their performance? Do you pay different payments for ads versus buyer versus team leader? What expenses are related to team leaders versus team members?
9. Do you have a written agreement between the team members?
Create and sign a written agreement with pay terms, referral fees and incentives, as well as an exit clause on termination. This will ensure that everyone is on the same page and aligned before entering into this important business relationship.
It’s important to take all of these factors into account before embarking on growing your team. If you can answer all of these questions with confidence, you are ready to start building your business! If you are unsure of certain 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 exclusive coaching for world-class agents and teams. To chat with Sherri Johnson about how your team can quickly double or triple production, or to learn more about our personalized and co-branded training platform, Sherri Johnson Academy, schedule a free strategic call.
To get a free copy of Sherri’s exclusive GoldMine Pipeline ™ Strategy eBook to help your agents double or triple their production and revenue, Click here.
Sherri johnson is CEO and Founder of Sherri Johnson Coaching & Consulting. With 25 years of real estate experience as an agent, broker and executive, Johnson now delivers his proven methods through nationwide coaching, consulting and speaking services. She is the 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 was also named 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.