The Agent Count Model Doesn’t Work For Real Estate Teams
If you wish to see your group implode after a couple of years, concentrate on 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 group.
Should you’re gonna hand me the mic, I’m gonna say it: You’ll be able to’t construct a long-term, sustainably worthwhile group following the agent depend mannequin.
Now, you possibly can definitely construct a brokerage this manner, however not a group 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 respiration or not.”
Are you kidding me? You wish to see your group implode after a couple of 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 propose to encompass them with.
So why’s it OK to comply with that mannequin for a brokerage however not a group?
Nicely, in the event you run a brokerage, the issues which are necessary to brokers are completely different from brokers on groups. Most brokerages as we speak are pressured to comply with a “recruit first” mannequin as a result of their margins are so skinny, and the one option to enhance income, with shrinking margins, is to extend agent depend.
I get that, and I exploit that mannequin in my brokerages as nicely. 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 give the impression of being the opposite means.
Nonetheless, groups are completely different. These brokers need and count on extra. They need you and your atmosphere, your companies, your help, your advertising and marketing, 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 a part of a brokerage.
Groups have the distinctive potential to instill requirements, have construction and use accountability in areas the place brokerages cannot. Groups ought to not be revolving doorways. They need to be a spot that fosters prime manufacturing as a result of you have got prime producers who’re in it for the lengthy haul, not simply to get some “good” coaching for a couple of years.
Stop surrounding your folks with geese when they’re eagles. And in the event 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 can be pressured out as a result of they don’t wish to be surrounded by losers, posers and non-productive folks that so lots 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 reality to that, and also you wish to know what else is true?
In 20 years of doing this — and 18 of these in brokerage and group management — the amount will additionally push out the standard, and I don’t learn about you, however I don’t wish to get up sooner or later with a group of a bunch of useless weight. I wish to encompass myself with the perfect 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 means out. Positive, 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 techniques, your tradition — all of the issues that might 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 Corporations, the mum or dad firm of a number of actual estate-related companies together with the No. 1 homeselling group 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.