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The Agent Count Model Doesn’t Work For Real Estate Teams

If you wish to see your group 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 group.

In the event you’re gonna hand me the mic, I’m gonna say it: You’ll be able to’t construct a long-term, sustainably worthwhile group following the agent rely mannequin.

Now, you possibly can definitely construct a brokerage this manner, however not a group 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 Stay, “Our standards for hiring is that if they’re respiratory or not.”

Are you kidding me? You wish to see your group implode after a number of 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 propose to encompass them with.

So why’s it OK to comply with that mannequin for a brokerage however not a group?

Effectively, should you run a brokerage, the issues which might be vital to brokers are totally different from brokers on groups. Most brokerages at this time are pressured to comply with a “recruit first” mannequin as a result of their margins are so skinny, and the one approach to enhance earnings, with shrinking margins, is to extend agent rely.

I get that, and I take advantage of 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 means. 

Nonetheless, groups are totally different. These brokers need and anticipate extra. They need you and your surroundings, 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 part of a brokerage.

Groups have the distinctive potential 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 might have prime producers who’re in it for the lengthy haul, not simply to get some “good” coaching for a number of years.

Give up surrounding your individuals with geese when they’re eagles. And should you aren’t attracting eagles, it’s time to take a step again and consider your total enterprise mannequin. Beginning with your self.

Why? As a result of sooner or later you’ll get up and your prime producers might be pressured out as a result of they don’t wish to be surrounded by losers, posers and non-productive people who so a lot 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 may be 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 group management — the amount will additionally push out the standard, and I don’t learn about you, however I don’t wish to get up sooner or later with a group of a bunch of useless weight. I wish to encompass myself with the most effective 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 means 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 individuals, your methods, 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 Firms, the mum or dad firm of a number of actual estate-related companies together with the No. 1 homeselling group 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.