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Someone posted a question on a real estate Facebook group I am a part of recently that sparked a conversation that I thought was worth sharing. The question was, “How can agents who make six figures still have time to spend with their kids?” Her post got over a hundred comments and I was hesitant to respond since it seemed the conversation had largely been had. I decided to share a simple response: “It is absolutely possible, but only if you build a team!” A few minutes later she shared with me privately that she had tried this approach but had failed and decided to quit, choosing to run her business on her own to avoid the trouble.
So how do you do it? What are the steps to take if you want to, as she proposed, make six figures and still have time for your kids? In my experience, it comes down to three pillars: foundation, execution and compensation. Each pillar is as crucial as the other; without one of them, it all crumbles, like most new real estate teams do.
Pillar One: Foundation
The foundation of your team consists of two factors that must be placed accurately in order for this to work. They have to do with mindset and personnel. The first one is you. Are you the kind of person who is right for a team? While the idea to build a team usually starts with wanting to make more money and have more time, it cannot be that simple. You have to have a sincere desire to help other agents around you succeed.
In order to know if you are the right person for a team, you need to ask yourself a few questions: Are you willing to share? Share your time, talents, knowledge and, most importantly, your money? Building a team will undoubtedly cause you to make less money early on. Much less! You have to have a long-term mindset going in. If you do that, you will have turned the corner.
The next step is to find the right people. They must also be willing to share and contribute just like you. They must be coachable and optimistic. When we started looking for agents for our team, we did not rely on experience at all. We have a unique workflow, and that means that regardless of experience level, I was going to have to train these agents from the ground up.
What I was concerned with was the agents’ attitude. I recommend seeking out newer agents who have a hunger to learn and want to be a part of something great — agents who see your vision and take it as their own. These are hard to find and it may take a few tries, but once you have them, hold on to them.
Pillar Two: Execution
Now that you have the team in place, it’s time to execute. You have to become an avid trainer and coach. This does not come naturally to everyone, but if you want this to be successful you have to become a great teacher. The team must have very clear goals and be well-trained. Your job is to provide that training consistently.
In order to develop your team to win, you must develop a completely consumer-centric culture. The client has to come first and they have to know that. The protocols, tasks and accountability must be crystal clear. Confusion is your worst enemy.
Throughout this process, there will undoubtedly be mistakes made. What helped us correct these was documenting all of them. Every single mistake should be documented and addressed in a weekly accountability meeting. The focus of the meeting has to be improvement, not blaming. You must create a safe space during these meetings for healthy debate. Encourage healthy conversation while moderating toward solutions in a timely fashion. I have found that when team members feel heard, they are more receptive to coaching. If they feel constantly scolded, they shut off. It is a fine line to walk, but a crucial one.
Pillar Three: Reward
This last pillar was tricky for me. When we started building our team I had the impression that the path to everyone’s heart was through money. I was wrong. Though for most agents, the motivation is indeed a better financial situation, that is not the only thing they care about. I was particularly surprised after one meeting with an agent who had doubled her income in one year, yet told me she would gladly take a pay cut if she could get more team members. It’s not all about money!
That being said, your job is to make the compensation as attractive as possible. You do this in two ways: First, you must be willing to pay as much as you can. Second, you plant a vision for future growth. When it comes to paying as much as you can, you need to be very smart. You have to strike that sweet spot where people are happy with their compensation while making sure the work they are putting in is substantial enough to allow you to do other things. If you swing too far in either direction, you lose. Pay as much as you can, but not so much that you’re stretched thin and can’t afford to pay people to cover all of your bases. Don’t pay so little that people are unmotivated or feel exploited.
The last point to make when it comes to compensation has to do with emotional compensation. People want to feel like they belong to something great — we all need to feel significance and belonging. We crave to matter and feel appreciated. Make your team members feel this at every turn. Celebrate them and appreciate them. No matter what role they fill, large or small, celebrate them. If you do so, you’ll win.