According to a recent NAR survey, 26% of agents are on teams. In a down real estate market, as agents feel their business squeezed, one of two things happens: they get out of the business, or they join a team that can help train and provide leads to sustain their income through tough times. So, what is the best team model to consider?
Unfortunately, there’s no easy answer. Success means something different for everyone, and it comes down to what brings you the greatest satisfaction. There are four team models, and the best choice depends on which matches your goals and you’re why.
The partnership model is where two agents work together as a team. The advantages are the encouragement, camaraderie, and accountability to help your business thrive. The downside is when one partner generates far more business, but both share the income equally. This often results in the partnership dissolution as the partner bringing in the lion’s share of the income begins to feel resentment. Partnerships that sustain for the long term usually consist of two agents where one’s strength may complement the weakness of the other. An example is when one agent is strong in sales and relationship building while the other brings operational expertise.
The fellowship model is built around a sense of community. Members often share an office, socialize, and motivate each other. However, the fellowship model typically results in lower splits for the team leader and higher turnover when team members question the value exchange for the splits they are paying.
Mentorship is built around a successful team leader who trains, coaches, and supports new or seasoned agents, and receives great satisfaction from teaching others. The downside of this model can be high turnover over time. If the value proposition is training, then once the agent feels they’ve learned enough to be successful on their own, they move on, thereby diminishing the return on investment of the team leader’s time.
Lead Generation Model
Recruiting agents to this model is easier, and the leader can charge significantly higher team splits. This is the most profitable model when run properly, and agents tend to stay longer. The downside is the significant upfront cost for leads that can take months to convert and the stress when agents are not pulling through the business.
Every team model has its pros and cons, and no one model is right for everyone. Identifying the team model that best fits you while meeting your goals will be the greatest contributor to your success in building and growing a successful team.
Are you thinking of building a team and struggling to figure out how to start and what to do first? We can help! Take our 10-question team readiness assessment to determine if you are ready to start a team. Download the assessment HERE.