When should real estate agents join a team? At ICC, we get this question all the time. In fact, it’s the reason that many Realtors seek out a coach. They want to grow, but don’t know how.
Many times, new agents wonder if starting a team is the right move. Today we will dive into the answers to each of these age-old questions: Should I start a team? Should I join a team? What is the value of starting or joining a team?
There are two main factors to consider with real estate team splits. This is important to consider as you answer the question, “When should real estate agents join a team?”
We coach a large percentage of the highest performing teams in North America. And most of them have a 50/50 split, or something close to it. At first glance, this may feel too low. But that’s because you’re not thinking about the lead flow.
The only way you can get away with a 50/50 split is if you provide the agents on your team more than half of their business. We call this The Matching Standard. You must be able to give them a substantial number of leads, or they are a flight risk.
I’ve talked about The Matching Standard, at length, many times before — and it’s worth repeating again now. The Matching Standard concept ensures that you are matching the number of leads that an agent brings in from their own personal book of business.
On your Team Dashboard, you keep track of this as Closed YTD — how many units they have closed year to date. Then, you break the numbers down based on “agent generated” business (where they generated their own lead) vs. team generated business (leads from you as the team leader).
The team leader needs to stay ahead of the team in order to demonstrate the value of the agent staying on the team. If the team member is bringing in more than they are getting from the team, why should they stay? Sure, they get other valuable things from being on a team. But for agents, leads are usually the most important.
Agents often do not understand the difference between generation and conversion. I would say fewer than 1% of agents really understand. Use the “but for” test to determine where the lead came from. You can ask, “But for the existence of the team, would the lead have been generated?”
An agent may convert all of their leads, but they are not generating all of their leads. Show them where their bread is buttered. Show them how many leads they are getting from you as their team leader. This will motivate them to work harder. It will also demonstrate the value of staying on your team.
Here are three primary reasons why an agent would join a real estate team.
Today we are giving you a free download of our ICC Team Dashboard template. It’s an excel spreadsheet, which is very old school, but honestly, it’s all that it takes. This stuff is foundational and necessary for any team’s success.
If you have more questions about starting or joining a team, get your hands on my foundational book The High-Performing Real Estate Team. It is the handbook you need — whether you are a team leader, team member, or solo agent considering the benefits of joining a team. If you find yourself asking, “When should real estate agents join a team?” then this book is a must-read.
You are three times more likely to succeed as a real estate agent if you join a team. This is a substantial statistic. When you join a team, you get those three benefits listed earlier in this blog: leads, administrative support, and accountability. Each of these elements provides you with better chances of succeeding as a real estate agent.
If you are a new real estate agent, you may be considering, “When should real estate agents join a team?” To me, the question should be answered the same way. Will you make more money if you join the team? The team must be able to show you that you will make more money if you join the team.