Have you reached a plateau as a solo agent? Here are four essential steps to building a successful real estate team — moving away from having a job and toward running a business.

Step One

The first step is evaluating your systems and processes, and writing things down to be emulated. For solo agents, everything you need is in your head, but when you run a team, that no longer works. The same goes for scripts. You may know exactly what to say and when to say it, but how about your agents? Evaluate your tech as well. Will it work for a team? Can it transfer leads and manage sales?  It’s also essential to hire a transaction coordinator and a marketing assistant. Hand over the tasks that don’t make you money so you can focus your team on those that do. These assistants will reduce the work load for your agents and allow you to better justify proper splits.

Step Two 

The second step involves creating and understanding your value proposition. Show potential agents why they should join your team and agree to pay you a split. By creating a solid foundation from steps one, you’ll have a fair value exchange to justify the team split. While you handle the training, support, expenses, branding, marketing, and lead generation, your team can focus on working with clients. They may be giving up 50 percent of the commission, but only handle 30 percent of the work. That’s fair.

Step Three 

The third step is deciding team structure. There are two main team structures, the Mentorship model and the Leads model. In the Mentorship model, you personally train and coach your agents. Agents are drawn to your success and want to emulate you. While rewarding, this model can become a revolving door. Just when the agents start making you money, they decide they’re ready to fly solo.

A second approach is the Leads model, which is employed by many top teams across the country. In this model, agents are attracted to you because you’re giving them leads. The benefits of this model include immediate gratification to you and your agents. You’re providing them leads so they begin closing business quickly. Unlike the revolving door of the first model, your agents become addicted to your leads. It’s harder for them to leave because they don’t have the ability or money needed to generate the leads for themselves. The drawback in this model is the startup costs.

Step Four 

The fourth step is deciding on compensation. Splits matter. One of the biggest mistakes I see teams make is not charging a high enough split. With an 80-20 split, your team has to close five sales for the same income you’d earn closing just one sale as a solo agent. With a 50-50 split, agents keep their 50 percent share, while you have 50 percent to pay for leads, bills, and have a little left for yourself.

Conclusion

Be patient when hiring. If you’re doing it right, you’ll interview 10 agents for each one you hire. Build a culture that rewards agents for hard work, celebrates their successes and supports them through losses. Create a sense of family. Do that, and you will build a real estate team, and a business, where everyone wants to show up every day and work their hardest.