Build a Real Estate Team
Instructor: John Henderson
Not everyone is cut out to be a team leader. Many solo agents do not want to manage other agents. Here are a few qualities that effective leaders need:
A real estate team’s culture significantly influences the team-building process, as it sets the conceptual framework for how a team supports, shares, problem solves, motivates, and celebrates one another. The team leader must envision the team’s culture before it can be verbalized and implemented by its members. This is done by creating the proper support structures and developing value propositions that define the identity of the team. As your team grows, there must be regular – most likely annual – meetings for team members to engage and help develop the vision, goals, objectives and strategies of the team and allow it to evolve. A cohesive real estate team is more likely to be successful than one that does not share common goals.
Communication is a two-way street. It requires both speaking and listening. Team leaders need to be adept at both. Being a good communicator includes training, encouraging, celebrating and sometimes reprimanding a team member. It also includes listening, being open to new ideas, and hearing both the words and feelings conveyed when being spoken to. Setting weekly or monthly team meetings are good ways to keep communication lines open.
Nothing destroys the morale of a team faster than a leader who fails at being consistent or transparent. Once the decision is made regarding performance minimums and compensation packages, it’s the team leader’s role to manage each member within those standards. Back-room deals or special treatment for certain team members and not for others will create an environment of mistrust. Each team member must feel valued and that they’re treated fairly.
Regarding performance minimums, all tasks need to be divided into income-generating or supporting roles. Performance minimums for team members handling income-producing tasks should be based on the number of daily contacts or hours of face-to-face client time. Those in supporting roles need performance minimums that aide in client development (i.e. database management, client mailers, etc.) as well as their daily tasks.
Team leaders compensate team members using various agreed upon commission formats. Compensation options include a flat rate for a salaried associate, receipt of a portion of the team leader's commission, a particular percentage split based on performance, or any combination thereof. As commissions are negotiable, it is up to the team leader and the team members to determine the appropriate compensation.