The Agent Count Model Doesn’t Work For Real Estate Teams
If you wish to see your staff implode after just a few years, give attention to filling seats with anybody who can breathe, Jeff Glover writes. Right here’s why the agent depend mannequin merely doesn’t work for constructing a worthwhile staff.
In case you’re gonna hand me the mic, I’m gonna say it: You possibly can’t construct a long-term, sustainably worthwhile staff following the agent depend mannequin.
Now, you may actually construct a brokerage this manner, however not a staff that’s in it for greater than a fast hit in success. Somebody shared with me a video from a competitor that actually mentioned, out loud on Fb Dwell, “Our standards for hiring is that if they’re respiratory or not.”
Are you kidding me? You need to see your staff implode after just a few years of quick-hit success, comply with that technique, and higher but, broadcast it on social media for your whole brokers to listen to what you plan to encompass them with.
So why’s it OK to comply with that mannequin for a brokerage however not a staff?
Effectively, should you run a brokerage, the issues which might be vital to brokers are totally different from brokers on groups. Most brokerages at present are pressured to comply with a “recruit first” mannequin as a result of their margins are so skinny, and the one solution to improve income, with shrinking margins, is to extend agent depend.
I get that, and I take advantage of that mannequin in my brokerages as effectively. Most brokerage brokers are used to it and don’t care who you rent, as long as they’re getting worth for what they’re paying you for, they appear the opposite method.
Nonetheless, groups are totally different. These brokers need and anticipate extra. They need you and your atmosphere, your providers, your assist, your advertising, all of that, to be higher, and heck, they’re paying extra for it, so that they deserve it. In any other case, they’d be part of a brokerage.
Groups have the distinctive capability to instill requirements, have construction and use accountability in areas the place brokerages can’t. Groups ought to not be revolving doorways. They need to be a spot that fosters prime manufacturing as a result of you will have prime producers who’re in it for the lengthy haul, not simply to get some “good” coaching for just a few years.
Give up surrounding your folks with geese when they’re eagles. And should you aren’t attracting eagles, it’s time to take a step again and consider your whole enterprise mannequin. Beginning with your self.
Why? As a result of sooner or later you’ll get up and your prime producers will likely be pressured out as a result of they don’t need to be surrounded by losers, posers and non-productive those that so a lot of you convey on to your groups. There’s a saying that’s been round for a bit: The standard will present up within the amount. There’s absolute fact to that, and also you need to know what else is true?
In 20 years of doing this — and 18 of these in brokerage and staff management — the amount will additionally push out the standard, and I don’t learn about you, however I don’t need to get up sooner or later with a staff of a bunch of lifeless weight. I need to encompass myself with one of the best so that they drive me to be higher and drive us to proceed hiring prime leaders and expertise, which additional drive manufacturing and profitability.
You see, making recruiting your sole focus is the lazy method out. Certain, it takes a ton of effort to recruit, and I’m not saying you shouldn’t be concerned in recruiting actions every day. What I’m saying is give extra consideration to build up your leaders, your folks, your methods, your tradition — all of the issues that will trigger somebody to like their life with you — and get these so as first earlier than hiring anybody who can fog a mirror.
Jeff Glover is the founding father of Dwell Unreal Firms, the guardian firm of a number of actual estate-related companies together with the No. 1 homeselling staff in Michigan, actual property brokerages consisting of over 600 brokers, a homebuying cell phone app and can also be the No. 1 producing actual property coach within the nation, promoting over 100 properties yearly within the final decade.