BETTER
A GUIDE TO BUILDING A BETTER REAL ESTATE TEAM
BY:
BY:
WRITTEN
Linsey Ehle
FOREWARD
Mark Woodroof
BUILDING
BETTER
A GUIDE TO BUILDING A BETTER REAL ESTATE TEAM
AUTHOR: LINSEY EHLE
EDITORS: ELIZABETH HECKEROTH, LAURA JENSEN
DESIGN & COVER: ELIZABETH HECKEROTH
FOREWORD
Real estate keeps evolving and the way agents operate will continue to evolve with it. Agent teams are a pivotal part of that evolution. At Better Homes and Gardens Real Estate Gary Greene we have many very successful teams which we are proud to call a part of our brokerage. These teams come in various sizes and utilize various models. Just as a brokerage is not one size fits all, neither is an agent team.
An agent who wants to expand their business by forming a team should give as much consideration and planning to creating a team as a broker would to starting a brokerage. Agents who want to join a team should also be as thoughtful about joining the team as they would be about joining a brokerage. Being part of a team or a Team Leader is not for every agent. This book is a great guide to help agents consider all the areas of team management from set up to agent selection to marketing and much more.
We are fortunate to have Linsey Ehle and her wealth of experience in the real estate industry. In this comprehensive look at teams, Linsey covers all the bases for running and maintaining a team. She uses her own experiences, both successes and lessons learned, to illustrate the work involved.
We hope you find value in the chapters ahead and that it helps you make an educated decision about whether or not to develop a team or stregnthen your team management.
Mark Woodroof CEO, BHGRE Gary Greene
PREFACE
I was invited to speak on Tom Ferry’s podcast to discuss what it takes to build a successful team among other things. When the podcast aired, there were over 54,000 teams in the United States - a number that continues to grow every year. The collective production of those teams is staggering.
There is a lot that is attractive about building a team. Those production levels are part of the allure. And... If you are a successful top producing agent, isn’t growing a team the obvious next step?
I have seen a lot during my 20+ years in the real estate industry. I have made my own mistakes and had my own successes. I have coached agents through building teams, reorganizing teams, and I have coached some through the dismantling process. I have been hired by a major real estate portal to evaluate top teams, analyze lead flow, system structure, and their P&L’s. Those experiences continue to inform my coaching and training today, and they played a pivotal role in shaping this guide.
Starting a team can be an exciting endeavor. There are many things to seriously consider prior to starting and building a team. Sadly, far too often, we see that agents build quickly, often too quickly. They fail to think through value proposition, systems, strategy, or plan for contingencies. Unfortunately, that leads to a rocky road ahead for all parties.
But there is a reason that so many agents struggle with building a team. There are so many options, and so many opinions. If you were to ask 10 Team Leaders to define their value proposition and structure, you are likely to get 10 answers…or an inability to articulate a value proposition at all.
Compensation, leads, systems, tools, hiring practices, compliance, team modeling, value proposition, and training are only a few of the items that you will want to consider as you build your team. You may be anxious to get started now. All these questions can feel tedious to explore and work through. But the time invested exploring these answers in advance will expedite your success, improve your agents’ satisfaction and their outcomes, create a positive and dynamic environment, and importantly, one that is profitable. Do not shortcut the process. Invest the time for yourself, and your Team Members.
At BHGRE Gary Greene, we are committed to partnering with our agents to create rewarding lives and businesses. We want to partner with you as you expand your practice and build your team. This guide is meant to help you ask the right questions, explore the answers that are right for you and help you build a better team.
We appreciate your partnership, and we are excited to see your team grow with our team.
Linsey Ehle Director of Agent Services, BHGRE Gary Greene
Dedication
To the agents I have had the good fortune to work with over the years.
And to each person that held their hand out to me as I took my next leap into something unknown. You know who you are.
“I’ve never scored a goal in my life without getting a pass from someone else.” - Abby Wambach American Soccer Champion and Gold Medlaist
CHAPTER ONE THE BIG QUESTION
SHOULD I BUILD A REAL ESTATE TEAM?
At this stage, it is important to have an open mind. The answer may be ‘yes,’ but you may be surprised that in fact, the answer is ‘no.’ If you are quick with an unmitigated ‘yes,’ I implore you to pause and explore more within these pages. Teams started too soon, or for the wrong reasons, are destined for a challenging road ahead.
Do not be afraid to discover the answer is ‘no’ or ‘not yet.’ Instead of a team, you might need an assistant, working partner, or someone to refer an occasional lead to when you are not able to service the lead yourself. Or you might find that you have a good deal of work to do before you are ready to take on the commitment of a team.
However, if after you go through this discovery phase and the answer is ‘yes,’ this guide will provide the framework to build your team and set you on the path to becoming a successful, and profitable, Team Leader.
BENEFITS OF BUILDING A TEAM
SCALE
A team can scale in ways an individual cannot. With a team, you can expand your reach, grow market share, and build an identifiable brand across a larger geography or drill deeper into your existing market.
CREATE AN ASSET
The business, if treated like one, is an asset. It is something that can be sold if it is built with proven, replicable, and profitable systems. You could do this as an individual producer, but as a team the scaled book of business and the associated systems can become increasingly valuable.
BALANCE
With the right people, structure, and training, a team can operate without you for periods of time. This can contribute significantly to a work/life balance.
PROFIT
Leveraging the size and scale of a team, done right, can be very profitable.
THINGS TO ASK YOURSELF
AM I CLEAR ON WHAT I HOPE TO ACHIEVE BY BUILDING A TEAM?
This requires some internal exploration. This is at the core of your vision - your purpose. Is it the desire to grow market share and maximize profit? Valid reasons. Is your desire rooted in creating a culture that inspires growth, collaboration, and support? Also, a valid reason. Is your desire to achieve a better work/life balance? Another valid reason.
Building a team to satisfy ego is not the reason to begin this endeavor. We often see the glamorous side of teams - the excitement of production awards, photos of a polished group of professionals, and the powerful nature of managing a team. Yet, I have seen far too many teams with far too many agents who are frustrated and disappointed. And at the helm is a frustrated and financially struggling Team Leader.
Ego is a trap that far too many agents fall into. Don’t.
Define your ultimate vision for the team structure. That vision allows you to make decisions with the long view in mind, and not just present day circumstances. By staying true to your vision, your model, and your profitability, the success you are seeking will be easier to achieve.
AM I GENERATING PRODUCTION AND LEADS A TEAM CAN LEVERAGE?
Modeling your success as a solo agent is the first step. Not only do you need proven success to give you credibility with your team, but you will also need to have success the team can leverage. Your successful lead generation systems, lead sources, and lead volume will play a significant role in your selection of the right team model, as well as supporting the team to build their own level of success within your environment.
AM I READY TO TAKE ON THE RESPONSIBILITY OF BEING A LEADER, COACH, AND MANAGER?
“A leader is one who knows the way, goes the way, and shows the way.” - John Maxwell.
Are you able to lead by your own example?
As the Team Leader, you will have an increased level of responsibility. Providing coaching, mentoring, and an environment of accountability will be critical to your team’s success.
Managing and leading people requires the ability to both inspire and critique performance. Running team systems, building opportunities, converting leads, and problem solving will take time from your own real estate practice. Balancing the needs of your team and your own business will have its own learning curve.
There is also a legal and ethical responsibility for oversight and management of your Team Members. As a Team Leader and Designated Supervisor, you have an increased level of accountability that you must be prepared to take on.
At a recent BHG Fusion event, a top producer spoke on a panel about dismantling her team and only keeping her assistant. She sold $40 million in real estate that year with a transaction coordinator, and a well-trained assistant.
“What I discovered is a great assistant gave me freedom - a team was a responsibility.”
AM I SYSTEM DRIVEN?
Providing an environment with structure and proven systems is one of the biggest value propositions a Team Leader can offer. Creating systems for operations, lead generation, lead nurturing, lead conversion, marketing and service delivery are highly valued by Team Members. Many join a team because they have been unable to architect those systems, or hold themselves accountable for the execution on their own.
Creating those systems will be something that you will need to begin first and continue to evaluate often. Without the right structure, you will not be able to recruit and retain the growth-minded Team Members that will contribute to the success of your team.
AM I FINANCIALLY PREPARED?
Your early hires will not make you much more money. In the beginning, those early hires are often an expense, so you will need to be ready for that financial reality. Whether it is early marketing costs, leads shared that you might have otherwise worked, or simply time away from your own practice (the most overlooked expense), the beginning stages of building a team are more of a financial liability than a profit center.
Marketing, tools, and systems may require an initial investment. If your model is one that depends on you being a consistent rainmaker (provider of lead opportunities), are you prepared for that financial commitment?
Important legal and structural arrangements will need to be put into place. Consult your tax adviser about compensation for your Team Members. You may find it is important to set up the appropriate legal entity to mitigate tax consequences. Please note: in order to have a legal entity paid by the brokerage, that legal entity must be licensed by the Texas Real Estate Commission and must have a licensed Broker.
AM I COMMITTED TO CREATING A MEANINGFUL VALUE PROPOSITION FOR POTENTIAL TEAM MEMBERS?
Agent churn can be expensive, frustrating, and detrimental to both team culture and momentum. It is worth the time upfront to develop your unique value proposition. You will want clarity about why you want a team, but you will also need to know why someone would want to be on your team - and equally important - stay on your team.
This guide will provide exercises and considerations to support you in fleshing out your unique value proposition before onboarding new team members.
HAVE I MASTERED THE CRITICAL ELEMENTS OF TIME MANAGEMENT AND DATABASE MANAGEMENT?
Agents are notorious for struggling with these two skills. If you want your Team Members to be executing at a high level, maximizing conversions, and managing a consistent volume of business, you will need to coach and model best practices for both time management and database management. In other words, make sure your own house is in order before getting started.
If the answer to these questions is ‘yes’ let’s get started...