The Agent Count Model Doesn’t Work For Real Estate Teams
If you wish to see your staff implode after a number of years, deal with filling seats with anybody who can breathe, Jeff Glover writes. Right here’s why the agent rely 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 rely mannequin.
Now, you possibly can actually construct a brokerage this fashion, 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 stated, out loud on Fb Reside, “Our standards for hiring is that if they’re respiration or not.”
Are you kidding me? You wish to see your staff implode after a number of years of quick-hit success, comply with that technique, and higher but, broadcast it on social media for all your 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?
Nicely, when you run a brokerage, the issues which can be necessary to brokers are completely different from brokers on groups. Most brokerages in the present day are pressured to comply with a “recruit first” mannequin as a result of their margins are so skinny, and the one option to enhance earnings, with shrinking margins, is to extend agent rely.
I get that, and I exploit that mannequin in my brokerages as properly. 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 approach.
Nonetheless, groups are completely different. These brokers need and count on extra. They need you and your surroundings, your companies, your help, your advertising and marketing, all of that, to be higher, and heck, they’re paying extra for it, in order that they deserve it. In any other case, they’d be part of a brokerage.
Groups have the distinctive capacity 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 a number of years.
Stop surrounding your folks with geese when they’re eagles. And when you aren’t attracting eagles, it’s time to take a step again and consider your complete enterprise mannequin. Beginning with your self.
Why? As a result of someday you’ll get up and your prime producers will likely be pressured out as a result of they don’t wish to be surrounded by losers, posers and non-productive those who so lots of you deliver 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 wish 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 wish to get up someday with a staff of a bunch of lifeless weight. I wish to encompass myself with the perfect in order that they power me to be higher and power us to proceed hiring prime leaders and expertise, which additional drive manufacturing and profitability.
You see, making recruiting your sole focus is the lazy approach 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 programs, your tradition — all of the issues that may 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 Reside Unreal Corporations, the mum or dad 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 houses yearly within the final decade.