More agents are jumping on the bandwagon every day, but aren’t sure where to begin. Many hire team members only to have them leave and become their competition, or they aren’t sure how to properly compensate their team members and themselves for a healthy business model. There is a way to do it right, as we see very successful mega teams everywhere. So what do they do differently?
Here are a few key concepts I learned early on that helped me create a team of top producers who have remained with me for many years.
1. Don’t “buy” your agents.
50/50 splits don’t work. If you are "buying" your team members using splits, you will inevitably discover that the costs far outweigh the benefits and the team concept will eventually begin to fail for you. You will have no money left over to grow the business.
There is a profitable way to compensate team members which ultimately nets them more money and is also very lucrative for the team leader. A profitable compensation structure incorporates many factors including how many deals you do per year, your average sales price, your team’s monthly expenses and much more. It’s a proven & profitable concept we teach to team leaders that helps ensure healthy growth for your team. A great team leader provides his partners/agents a better platform on which to run their business than what traditional real estate offers.
2. Create a franchise concept.
Agents on a team want to be treated as partners. They want to feel that they are in control of their success and their business. By allowing team members to build their business inside of yours, you not only help them become successful, your success is a natural byproduct. This also helps you build valuable retention tools such as incentives and bonuses based on past client referrals and more.
Remember anyone can open a coffee shop, but the top people open a Tim Horton’s or a Starbucks. They still have their own business, but they have a strong connection to the company name and systems. By “franchising” your name and the rights to all the standards of service that you represent, you create an ideal environment for success, loyalty and growth.
“Most real estate agents were attracted to the industry because they didn’t want to be employees. This is the real estate dream. If you take away the real estate dream, your team members will not stay long. Help them build their own business inside of yours and you will keep them forever.”
3. Hire the right people at the right time.
Recruiting the wrong people can be one of the most expensive, demoralizing and frustrating mistakes a team leader can make. The problem often occurs when we hire from a gut feeling or because the recruit is a friend or family member. You need to use a system that exposes the best candidates quickly and easily so you spend time and resources with only the best talent available.
It’s also important to ensure you have a steady stream of quality leads coming in the door before you hire or recruit a new team member. Hiring a team member first and expecting them to generate the leads or bring business with them will result in disappointment and ultimately failure.
4. Provide superior systems & training.
Whether you have a team of 2 or 20 or more, if you don’t have a proven system in place, it won’t work. It is important that your team members deliver the same quality and level of service that your clients expect of you. This requires training and nurturing and the quality of both can often determine if your team members will stay long term.
The success of your team relies on your experience and the strength of your systems.
These are just a few of the concepts we use on a daily basis with our own team, allowing us to outsell our next closest competitor by more than double. It was the success of my team that ultimately gave birth to Dan Plowman Team Systems, the first coaching company to specialize
in team training and development and the only coaching company led by a realtor who has run a very successful team for more than 10 years. Many claim to be coaches and trainers but very few have actually run a successful team. Before choosing your coaching company be sure they have run a successful team year after year and continue to do so as our industry changes very quickly.
Dan Plowman Team Systems provides proven turn-key systems customized to your specific needs to help you build a team of loyal, highly productive agents that will take your business to new heights and deliver optimum results.
DPTS is sponsoring their 7th
Annual Team Summit on October 26 & 27 at the Westin Trillium Hotel in beautiful Blue Mountain, which offers 2 days of intensive training, motivation and networking with other top teams across North America, and features keynote speaker David Chilton, former Dragon on Dragon’s Den, and best-selling author of The Wealthy Barber & The Wealthy Barber Returns.
Visit their website at http://www.dpts.ca
for more information on their systems and upcoming events.
As an early proponent of real estate teams, I am thrilled to see how teams have taken off in our industry. It means the concept works and it works well (especially when done properly).