Working with a ‘team’ is becoming more common for real estate agents in the USA, and there are some agents in the UK who believe that it now provides a real benefit for both agents and their clients in this country.
The National Association of Realtors conducted a 2018 survey and found that 26% of agents work in a partnership or with a team, with a view to sharing commission. The idea is that team members almost invariably pitch in for each other and work as a collective in order to generate more business.
To explain more about the ‘team concept’, and whether it is something that could appeal to you, Dominic Marcel, director of Lion Estates, powered by Keller Williams UK, who has built a team of several agents plus admin and sales progression support, has taken part in the following Q&A:
Q. What is the ‘team’ concept?
A team is a group of self-employed agents led by a ‘rainmaker’ agent who is a top performer and can provide additional value to the agents above what the brokerage provides. It’s the self-employed agent version of a high street branch team, but the agents decide what their personal goals are and the hours they want to work. Team agents earn considerably more than in a branch employed role”.
Q. What’s different about a Team role versus the self-employed model and versus the branch model?
The self-employed existence can be quite lonely even when you are part of a brokerage. Everything you do is very much up to you whereas as part of a team dynamic you have proven systems to follow and, importantly, are led by a top performing agent who is also selling homes. It’s a way of getting into production faster and is great for those who don’t necessarily have ambitions to earn millions but do want to provide a more personalised service to clients and earn a considerably higher income. It’s also good for new people entering the industry who need closer mentoring and guidance.
Versus the branch model – the agents aren’t employed and so they dictate the hours they want to work. The rainmaker creates a business plan with the agents and helps them to reach their own goals, not the rainmaker’s. It has all the camaraderie of a high street branch without the archaic management structure”.
Q. How do you build one?
You have to be a genuine top performer and be able to provide additional value to the agents in your team. It has to be easier to do business than joining a brokerage directly, otherwise what’s the point in joining the team in the first place? This can be from centralised systems such as lead generation or sales progression, and also leadership and mentoring.
Q. What do the metrics look like?
An agent in a team will typically receive 50% of the total commission. Production levels are much higher as Team agents benefit from plugging into proven existing systems and processes”. Brokerages also give lower ‘caps’ to Team agents as the Rainmaker delivers some of the value the brokerage usually would. This means for a team agent they get into production faster, do more business and cap quicker – a win/win/win scenario
Q. What’s the appeal to an agent?
They get all the benefits of being a self-employed agent such as higher earnings, smaller transaction numbers and more attentive service to their clients, without having to work out what works/doesn’t work. They get to plug into an already successful system, so they get into business much faster. They join part of an established business so benefit from existing awareness and relationships.
Q. Which type of agent does a team suit?
Those that don’t necessarily want the stress of running a business and having employees. It’s suits those that want to have the benefits of being self-employed; work own hours and earn substantially more, but want to be within a close team environment like an estate agency branch. It’s ideal for those who have the appetite to go down the self-employed model but have fears around money or getting into production.
Q. What are the benefits to the Team boss?
You have more agents growing awareness of your business/brand so you can reach a wider audience than if operating on your own. This means you get to help more clients with your superior service, and get to help other agents achieve their goals. You can bring any talented agent from anywhere in the UK into your team as the local brokerage can provide additional support. You earn a slice of passive income as you earn money from deals the team does, meaning you are growing a proper business. Those familiar with Robert Kiyosaki’s ‘cashflow quadrant’ will know the aim is to move from self-employed to business owner.
Q. What are the benefits to the individual agents?
They get into production faster, they earn more money, they are closely mentored by someone who has been successful being a self-employed agent and there’s close camaraderie. Plus, less risk versus just going it alone.
N.B. The ‘team model’ referred to in this story is in no way connected with ‘Team Association Ltd’ or its website ‘teamprop.co.uk’.
In a team environment, there will always be stronger and weaker performers . It is s a competitive environment and to suggest that it’s a better alternative to self-employed is misleading. Teams only work well when they work towards a common goal – this is a collection of agents with their own agendas.
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A common goal doesn’t need to be financial Chris. It’s not about how much I want the agents in the team to earn for me, or how much they want to earn themselves. The beauty of being self-employed is that you can finally work towards the financial goals that matter to you and your family. Our common goal is the standard of service we provide. I’d rather have an agent in my team who wants to sell a handful of properties a year but provides 5* service over someone who wants to earn £200,000 but is happy to put their needs before the customers. Everyone who knows me knows that we start with what’s best for the customer and work backwards from there. How much someone wants to earn isn’t a measure of their credibility. I have an amazing agent in my team who doesn’t need or want to work full-time. She sells about 10 homes a year and ironically still earns more than if she were working full-time in a traditional estate agency in our local market. But her clients adore her because she’s exactly the type of agent you would want looking after you during the home moving process. Unsurprisingly they aren’t bothered that she doesn’t want to sell 100’s of home a year as they only have one priority – their own move.
There are standards to be in the team that I hold them accountable to, but they’re service related, not financial.
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Q. Is it a pyramid scheme?
No……..
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Nonsense …….. Versus the branch model – the agents aren’t employed and so they dictate the hours they want to work. The rainmaker creates a business plan with the agents and helps them to reach their own goals, not the rainmaker’s. It has all the camaraderie of a high street branch without the archaic management structure”.
Let’s see what the people who believe this think in 12 months or less time when it goes pear shaped. This isn’t a new idea.
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