The Agent Count Model Doesn’t Work For Real Estate Teams
If you wish to see your workforce 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 workforce.
In the event you’re gonna hand me the mic, I’m gonna say it: You may’t construct a long-term, sustainably worthwhile workforce following the agent depend mannequin.
Now, you may actually construct a brokerage this fashion, however not a workforce 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 Stay, “Our standards for hiring is that if they’re respiratory or not.”
Are you kidding me? You need to see your workforce implode after just a few years of quick-hit success, comply with that technique, and higher but, broadcast it on social media for your entire 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 workforce?
Nicely, for those who run a brokerage, the issues which can be vital to brokers are totally different from brokers on groups. Most brokerages at this time are compelled to comply with a “recruit first” mannequin as a result of their margins are so skinny, and the one approach to improve earnings, with shrinking margins, is to extend agent depend.
I get that, and I take advantage of 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 appear the opposite method.
Nevertheless, groups are totally different. These brokers need and count on extra. They need you and your atmosphere, your companies, your help, your advertising, 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 a part of a brokerage.
Groups have the distinctive skill 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 just a few years.
Stop surrounding your individuals with geese when they’re eagles. And for those who 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 probably be compelled 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 carry on to your groups. There’s a saying that’s been round for a bit: The standard will present up within the amount. There may be 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 workforce 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 workforce of a bunch of useless weight. I need to encompass myself with the very best 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 method out. Positive, it takes a ton of effort to recruit, and I’m not saying you shouldn’t be concerned in recruiting actions each day. What I’m saying is give extra consideration to build up your leaders, your individuals, your techniques, 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 Stay Unreal Corporations, the father or mother firm of a number of actual estate-related companies together with the No. 1 homeselling workforce 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.