Teaming Up

Teaming Up

Deciding whether to join a team is not a decision one should take lightly. Anyone who has been on a team and has decided it is not for them can attest to that. Denise has advice for anyone considering a team.

Most of you who are reading this right now likely fall into one of four categories:

  • You have been part of a team,
  • You are currently on a team,
  • You have been asked to be on a team previously, or
  • Are actively considering joining a team.

Deciding whether to join a team is not a decision one should take lightly. Anyone who has been on a team and has decided it is not for them can attest to that. The bottom line is that when you join a team, you are making a tradeoff - possibly more business security in exchange for putting a halt to building your own business.

In other words, that security may feel great now, but it can prolong the pain of getting your own business up and running if that is your real long-term goal.

I have seen dozens-of-teams fizzle through the years. In fact, most true real estate teams in which the principals are not married or family do not make it. Why? There are two primary reasons:

  1. The principals are entrepreneurs. That usually means they are people-people. The reason for forming a team is to bring on board people who have a different skillset from each other. So, when a people-person gets together with another people-person, who is assigned to do all the tasks? Cue agents pointing at each other.
  2. Failed expectations: Piggybacking on the first point, agents who form teams usually have an expectation of one another and what they are going to bring to the table. It could be that an agent forms a team with another agent so they can take more time-off; but what happens when the agent has one expectation of how much time-off they want to take and the other agent has a different expectation of how much time they are going to have to cover? I'll tell you what happens: The team implodes.

If you are thinking about forming or joining a team, I have some solid advice for you as well as some things to consider about who is and who isn't a good fit for a team.

Grove vs Stand-Alone Tree

Think of it this way. If you are a sapling in a grove of trees, your growth may be more protected by the grove, but the grove is going to limit your growth and you will never truly stand out. Whereas with a strong tree such as a cedar standing alone, it may take more strength and nurturing to get established, but the tree can become strong, sturdy, and identifiable in its own right. Most of you are cedars who need some direction or resources on how to grow your businesses. If you are a cedar, then you probably won't get what you need by joining a team.

Who Should Join a Team?

Agents who truly never want to go out on their own can make amazing team members. However, it is important to recognize agents who are not comfortable being on their own at the moment versus those who will never likely be comfortable being a rainmaker, in any way, ever.

For example, Agent A has been licensed for a year. He hasn't mastered his lead generation, but has been doing a lot of open houses in order to generate business and has connected with several buyers. An agent in his office sees his motivation and thinks he would be a great buyer agent on her team.

Agent B, however, is in the same office and has also been licensed for about a year. She is an analytical-supporter personality type and is very uncomfortable when it comes to engaging with the public. She has done some floor time but has a hard time connecting with those who come to the office. She would rather create MLS reports and materials for another agent and get a steady income. This money stress has her anxiety on overload which isn't helping her interactions with the public.

The personality differences between these two agents are critical. Agent A may join a team in order to relieve his present money discomfort, but he wasn't meant to be on a team and that relationship could fizzle quickly. Agent B, however, might be a great team fit! As an analytical-supporter personality type, they are task-oriented and ready to be of assistance - that's team material.

I am ready! I want to join a team!

If you have determined that you are a good team fit, don't just join the first team that approaches you. Think about what role you want to have on a team. Would you like to get listings ready by doing paperwork and creating flyers? Would you like to show buyers property and do open houses? Or do you want to oversee the transaction and make sure all the I's are dotted and T's are crossed?

There is no guarantee that you will only be doing the tasks you prefer unless it is a big team that does a lot of transactions. So, if there is only one aspect that you want to focus on, maybe you should be focused on finding a bigger team. Also, how you get paid is also worth considering. If you want to make the move in order to achieve financial stability, then make sure your team offers that. That means you are likely taking a smaller slice of the pie, but at least you are guaranteed some pie.

I also encourage you to find out additional details such as:

  • Will you be considered an employee or a sub-contractor?
  • What is expected of you? What hours you are expected to be on or available?
  • Are you expected to furnish your own technology?
  • Who is responsible for paying your MLS dues, REALTOR, or other dues?
  • Do you supply your own business cards (if applicable)?
  • What is the process for taking time-off?
  • Are benefits included?
  • Are you paid additionally for any leads you bring in?
  • And most importantly, what are the job details? What are you hired to do?

Agreements prevent disagreements! Make sure you get your team agreement in writing.

I have seen too many agents go down the team path who never should have taken that detour. It has derailed their business and actually set them back. In most cases, you are better off taking the steps needed to allow your own business to take root instead of building someone else's.

By Denise Lones CSP, CMP, M.I.R.M.
The founding partner of The Lones Group, Denise Lones has over three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development and more, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.