Many real estate agents struggle with starting a team. The first decision you will face is if starting a real estate team is a good idea for your business – often times agents start a team prematurely and are overly optimistic while others may wait too long and are always playing catch up. Get started on the right track using the tips and techniques below for starting a successful real estate team.
Let’s first start with the most important question – why do you want to lead a team? Are you struggling to find time to call all of your leads back? Are you spending too much time on administrative work and not enough time prospecting? Or were you just approached by someone in your office who needs extra money and you thought it could make sense to bring on some help in an effort to help you do more business? If you are starting a team for any other reason than you are generating more leads than you can handle, you are most likely not ready to start a team.
The Number One Mistake When Starting a Team
Agents generally think about starting a team so they can spend more time on listings and less time showing homes. This often leads to the inclination of hiring buyer agents or showing assistants in an effort to save more time and make things easier – this couldn’t be further from the truth. Buyer’s agents require time, training, and management and if the Team Leader does not have a solid administrative foundation in place there will not be adequate time left in the day to properly train a team of buyer’s agent let alone one.
Hiring Your First Team Member
The first hire is the most important and should be designed to serve and handle the administrative portion of your team function. Hiring a transaction coordinator or TC would be the prudent first step, which can be paid on a per transaction basis ($350-$450 per closed transaction). The ROI would be tremendous as they will handle the majority of your transaction management.
If you are selling more than 35-40 homes per year your production will eventually max out unless you find a way to leverage your time through an assistant or team member.
Your Foundation Hire
Once you have a solid TC in place and you are still finding yourself handling a lot of administrative tasks you may be ready to hire your Administrative Assistant. A common mistake when hiring an administrative assistant is hiring an agent who is not very busy, or someone in your office who needs the extra money (this happens all the time). The problem is in order for this team member to be effective, the administrative assistant should possess specific personality traits. This includes organizational skills, communication, task oriented, a being diligent. We commonly use the DISC test to find out who may be best suited for each position, and you can read our DISC guide here to learn more. Once you have a solid admin assistant in place, they may either take over your TC work or become your second team member.
Growing Your Team
Now that you have your administrative foundation built, and your systems are operating comfortably it may now be time to hire your next team member. As your business grows and your team grows your emphasis should shift to obtaining more listings, and leveraging your time with buyers through buyer agents. You can use our team hierarchy system here which also includes the ideal DISC for each position.
Leveraging your time effectively can take your business levels previously not possible. The Pareto Principle, also known as the 80-20 rule states that 80% of your income comes from 20% of your daily activity. By leveraging your time, money, and resources through quality team members you enable yourself to focus more time on the 20% of your daily activities that make you money, and less time on the 80% that cost you money.