Learn the real estate sales manager salary and compensation plan options that top team owners use to attract and retain talented leaders to manage and grow real estate teams.
How do you come up with a real estate sales manager salary and compensation plan that will attract (and retain) talented leaders?
Today we will dive in on the salary and compensation plan that we have seen work time and time again on high-performing real estate teams across the nation.
VIDEO: Real Estate Sales Manager Salary & Compensation Plan
Real estate sales manager salary: replacing yourself
A popular solution for team leaders who want to retire, move out of production, or shift their focus to other ventures is the idea of replacing yourself. We coach many of the highest producing agents in the country, and many of them are focused on stepping out of production to varying degrees.
You might step out of taking buyers, then you might step out of taking listings, then you might step out of running the team … you might retire to spend more time with your family, or you might explore other business opportunities.
To do that, you need to be able to replace yourself with regards to real estate sales. And in order to do that, you need to understand how to create an enticing real estate sales manager salary.
Even if you’re reading this and you’re nowhere near a place where you could make this move, let me tell you, it’s a good idea to know your finish line. This will keep you motivated to trudge through the ups and downs of a commission-based business.
Even if you’re reading this and you’re nowhere near a place where you could make this move, let me tell you, it’s a good idea to know your finish line. This will keep you motivated to trudge through the ups and downs of a commission-based business.
Brian Icenhower
Introducing the sales manager, and figuring out the proper real estate sales manager salary
You can call this role sales manager, director of sales, general manager, lead buyers agent, lead sales agent, etc. All of these roles are interchangeable.
Basically, it’s someone who runs the sales agents on your team. Generally speaking, if you’re still taking listings yourself but you have a team of buyers agents, you would call this role a lead buyers agent. If other people are taking listings and you’re stepping out of listings, you would call this role the sales manager or general manager.
This person is usually going to be the person who also ends up replacing you and running the team down the road.
This is a stepping stone process of taking someone into this leadership role as you slowly step out of production. Making this slow transition allows this person to slowly gain rapport and respect from the agents on the team, and also allows them to develop relationships with the clientele.
And during this time, this sales manager is learning, being coached by you, as they slowly take on more responsibilities. Eventually, you can take on less responsibilities on the team, and stop being in production at all. And, you won’t need to manage the team, even.
At that point, you will be able to shift your focus in the way that you have been desiring to shift. You can have more family time, start a new business venture, or enter into retirement.
But first … you need to hire/promote this person! And in order to hire/promote them, you need a job description and a real estate sales manager salary and compensation model to follow.
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Create a job description and a real estate sales manager salary
The most prudent place for you to start is to consider the job description for this sales manager position. And, along with it, the real estate sales manager salary and compensation plan.
In a nutshell, you would ideally like this person to be someone who is already on your team, who rises up and sets the standard for the rest of the team. What I mean by “setting the standard” is that they:
- are producing at a high level.
- show up every day and have a great attitude.
- are generating a significant amount of business from their own sphere of influence (SOI), they aren’t just relying on leads from the team.
The job description
At the end of this blog, you can download our real estate manager job description. It’s a great example of what we tell our clients to include in their job descriptions. It’s broken into sections. I’ll give you some notes on these sections, below.
- Key activities and duties
- All of these key activities and duties can be broken down into two major areas.
- Recruiting: Bringing in more agents to help the team sell more.
- Retention: Training, coaching, mentoring, to help everyone sell more.
- All of these key activities and duties can be broken down into two major areas.
- Job specific skills
- Performance benchmarks
- Specific and measurable expectations for the key activities and duties
- Real estate sales manager salary and compensation plan
- This role will be compensated, to some degree, based on the growth of the team.
Real estate sales manager salary
How do you compensate a person in this sales manager role? At the bottom of the job description, we have this section that details our real estate sales manager salary. Note that this figure will depend on where you live, but it must be an attractive amount to keep them focused on this important role.
The sales manager can still be in production. So, they can handle their sales manager role in the morning and still have time to list and show property in the afternoon.
Yes, your split will go down, but remember, you set production standards in place for this position. So, they are held to these standards. They need to be growing the team through recruiting in a way that more than pays for their position.
Recruiting is the essential ingredient that makes this whole system work. If there is no recruiting, there is no growth. And if there is no growth, your business will not survive.
You would ideally like this person (your sales manager) to be someone who is already on your team, who rises up and sets the standard for the rest of the team.
Brian Icenhower
FREE DOWNLOAD: Real Estate Sales Manager Salary & Job Description
This is the job description that we give our clients who are hiring their “replacement.” It’s a great jumping off point and you can fully customize it to fit your organization and your needs. Simply subscribe below, and you’ll receive the free download via email.
