Module 1 ~ Lesson 5
Lesson 5: Two Critical Components of Team Building
- Admin assistant / transaction coordinator
- Team Manager
When are you ready to hire an assistant?
- Do you spend more time with a buyer or seller?
- How many hours on average to you spend with a buyer?
- What is your average net commission?
- 40 hrs spent with a buyer
- Average sales price is $300,000 at 3% = $9,000
- Total net commission after fees (90% net) = $8,100
- $8,100 / 40 hrs = $202.50/hr
What is your hour worth (on average)?
Download and complete the What is Your Time Worth Worksheet
Would you pay an assistant $202/hr?
- How many hours could you free up in a week with an assistant?
- If you used even 50% of those hours on revenue-producing activities – how many more transactions could you generate?
- How many transactions do you need to close to pay for your assistant?
Part time – Let’s estimate $20k in hourly plus bonuses
$20,000 / $8,100 (ave. net commission) = 2.5 closings
Full Time – $45,000
$50,000 / $8,100 (ave. net commission) = 6 closings
A Team Manager is the other Key Hire
- If you are planning to build a team with 2 or more team associates
- Run your team like a small brokerage
- Hire a “sales or branch manager”
- Key characteristics and responsibilities
- Second in command
- Not your business partner or co-team leader (Exception: Partnerships – may have one partner acting as the team manager)
- Supporting the team operations with the Admin and Team Leader
- Primary responsibilities include:
- Recruiting new talent to the team
- Retaining & training team associates
- Management & accountability of the team associate
Many agents who dive in to building a team do so before they are ready. They may have an admin assistant, however they generally do not have effective and streamlined core real estate business systems in place for them as an individual agent. This is an essential prerequisite to building a profitable team. The central idea is to implement clear and concise procedures and systems for each of the primary areas listed below. Then, you make slight variations to adapt the system for your team members. The goal is to allow your agents to plug in to your existing systems effortlessly.
The other major benefit to having effective real estate systems in place is the ability to run smoothly and pivot your focus under any market conditions or trends.
- Real Estate Business Plan and Goal-Writing
- Your Brand and Value Proposition
- Identifying Your Perfect Client
- Marketing and Advertising
- Your Database/Past Client/Referral System
- Listing & Farming System
- Buyer/Escrow System
- Lead Generation and Follow-up System
- Internet & Social Media Marketing Strategy
- Business Financial Basics for the Real Estate Agent
Don’t hire team associates until you are ready!
And ready means…
(1) You have an administrative assistant or transaction coordinator and ideally also a Team Manager and
(2) You have established real estate business systems in place
Implement key business systems that work for you and your business.
Once you have created and refined these systems it is easy to develop a team version that team associates (buyers agents) can simply plug into without reinventing the wheel.
If you have not already done so, go to the Module 1 Overview page and download the Workbook, Slide Decks, and all related Documents for this module.