There are many myths, misperceptions and misunderstandings about real estate teams that persist among brokers, team leaders and agents alike. However, it’s clear real estate teams are here to stay, and Follow Up Boss wants to cut through the confusion and offer clarity through our customer-led education.
We’ve been listening to top teams, their leaders and operators — like you — for insights and hard-earned lessons that they apply each and every day. Through 70+ published episodes of Real Estate Team OS (and counting), top myths became clear through team leaders’ and operators’ stories, insights and hard-learned lessons. Here are five of them.
Myth 1: Your goal is to build a mega-team
At one point in the hype cycle, “team” became synonymous with “mega-team.” Then the “SEAL team” structure became a counterpoint. All the while, an agent who’s partnered with another agent and a part-time admin also constituted a team.
In reality, there is no “right” size of a team beyond what’s right for you. In the words and experiences of the many dozens of team leaders we’ve talked with, smaller teams enjoy higher profit margins, and larger teams sacrifice some margin but win through volume and growth. In between? It’s rough going and often referred to as the “messy middle.”
For more insights on this, click here to hear from Koby Sway with The Briley Team, a team in Omaha that pushed through the messy middle and became the top team in Nebraska. Click here to hear from Katie Day with The MOVEMETOTX Team in Houston, who opted for the SEAL team over the mega-team.
Myth 2: You must leave sales production to lead a team
Many people mentally pin on a merit badge when they leave sales production for full-time team leadership. But leaving production remains completely optional — in fact, sometimes it’s not the right decision.
Many leaders of successful and scaling teams prefer to stay in production, though they tend to cut back production to invest more time and attention into building the organization. Why? Staying active provides income, keeps you in touch with the market, and helps you to coach and train agents.
That said, many leave at the first opportunity. However, failing to plan that transition financially and logistically can be costly. Hear why 12 team leaders opted to leave or stay in production in two subscriber-only episodes (get access right here).
One tip team leaders often recommend: if you stay in production, account for it properly by paying yourself according to your team splits.
Myth 3: Splits are ‘better’ for solo agents
For solo agents, team splits are the most common objection. It’s easy for an agent to look at the split they have now and see the contrast in a team split. But any cost has little meaning on its own; every cost should be weighed relative to benefits.
Lead generation and qualification, appointment setting, coaching, training, marketing, media, transaction coordination, listing management — a successful real estate business needs them all, and a productive agent pays for them one way or another. Great teams build them in, often with economies of scale that make the cost/benefit analysis equitable for all.
Interview team leaders. Ask questions. Run the numbers for yourself. Make a thoughtful decision. To help with this process, take a look at one of three subscriber-only episodes on joining a team, “Find Your Best Fit.” Watch it now right here.
Note: on mature teams, splits can be nuanced and slide based on a number of factors.
Myth 4: Teams are only for new agents
For onboarding, training, accountability, and the ability simply to “plug in” to a tested and proven system, teams offer a great start to agents new to the industry. But experienced agents are choosing teams over staying solo, too — more for lifestyle than for leads. Here’s an example from Tom Ferry, where he speaks to the benefits of working within a team.
Again, interview team leaders. Run the numbers. Assess your strengths, weaknesses, passions and style. There may be a great-fit team out there for you.
Myth 5: There’s a secret playbook for team success
One of the most engaging and challenging aspects of building a real estate business: there’s no one “right” way to do it. Yes, there are fundamentals. Yes, the goal is sustained profitability. But the details are completely up to you.
Fortunately, there are few secrets in this open and collaborative industry. At conferences and in masterminds, most team leaders, brokers and agents are open about what’s working and what isn’t. They’re also open with stories, insights and hard-learned lessons in videos and podcasts like Real Estate Team OS.
Take advantage of that to inform your own journey. Connect, listen, and learn to inform your next right step and next right decision — unclouded by myths, misperceptions and misunderstandings.