Elevating Your Real Estate Career with Team Effort
January 9, 2019
January 9, 2019
Bear in mind that upon considering real estate as your career and business is a considerable investment for buyers, you should not assume to earn any money right within the first couple of months. So how do to achieve success in this industry, should you do it alone or hire a team, a partner, or a brokerage? Here are the factors to consider:
There are more than 125,000 licensed realtors in Canada, how are you supposed to emerge on top?
Solo vs. Teams
You may already be a seasoned real estate agent already, it is natural to do things your way to achieve your desired results. Of course, everyone dreams of being their own boss, but not everyone succeeds on their own.
One of the classic questions most agents always have is whether to go solo or to branch out into a team. There are three main factors that you need to study and research carefully:
Dealing with legalities, taxation, and even back office work can be ultimately dreading. It is such a relief when you are in a team because you don’t have to bear the weight of all these taxing duties. Having to perform various roles as a solo entrepreneur requires you to wear many hats and become a generalist. You cannot be expected to excel at any one department but simply regress to the average in each area. It is not common to find someone in our industry who is an expert in marketing, sales, operations, technology and the list goes on.
Benefits of Going Solo:
- You are only responsible for your own performance
- Full commission
- More flexibility when it comes to advertising and marketing
- Create your processes and systems based on what works for you
- No quota or targets imposed by others
Benefits of Joining a Team:
- Office and other expenses are shared
- Broader networking opportunity
- Sophisticated systems and tools shared amongst a team
- Risks spread to all members of the team
- Greater lead generation volume
- Advertising and marketing costs shared
- More focus on income-producing activities
Evaluate the risk vs reward ratio on your own terms and see what works for you after considering both sides of the coin.
Will your business flourish if you have full control? Perhaps. The strength of a team relies significantly on each members responsibility while acting as an individual agent you have to endure every side of the business process.
Cons of Going Solo:
- You are accountable for all your actions and decisions
- Lead sourcing depends solely on your efforts
- Systems and processes not as well established
- You have to handle all transactions
- Hiring an admin assistant will oblige you for payroll
Cons of Joining Teams:
- Achieving quota and deadlines
- Must work on different tasks assigned
- May lock you in a role and limit your capabilities
- Limited personalization
This is the most crucial aspect of scaling any type of business. How much income you foresee entirely depends on how you will begin the journey. Just like in investment, the higher the risk, the higher the reward, but careful consideration and due diligence should be completed to achieve the financial status you dream of. Let’s put that into context. As a team, a pooled investment into different departments (ie. Operations and Marketing) will result in allowing you more time on closing and servicing clients without having to constantly worry about where your next client will come from.
Market Survey and Business Plan
You may have heard it many times, that to succeed, you must have a plan. However, not everyone follows it and understands the real meaning of planning.
- Research your target market – Location, specialization, and demographics are critical factors of your study. This one is often overlooked and many agents tend to take a shotgun approach and send out the same email blast or mail launch (are you guys still sending mailers?) to their entire market. This audience needs to be segmented and your offer should be personalized for each segment of that market.
- Draft a Business Plan – Your business plan should include, your startup budget, mission, overall objective, sales approaches, income and expense forecasts, market report, and group management. Estimate realistic figures in your business plan especially when it comes to expenses, including office stationery and marketing tools. When you are clear with these basics, you can always use this as your map throughout.
- Management – Aligned with your business plan, ask yourself what members or roles would balance well given your abilities. This attribute is another vital part of your business because these people can either make or break your team. Collaborating with a partner who has a lot of connections could bring in more volume. Of course, with this, you need to have someone to do the dirty jobs while your hands are full; this means that you need to hire an admin assistant at the least.
Mitigate the risks by finding the right blend of alternatives:
- Partnership with other Agents – There are certain situations in your career that you may stumble upon a client which is not a fit given your background, instead of losing this prospect, you can refer them to your team or partner who might be more suitable. You may have a real estate investor knock on your door and you may be quick to claim that you are experienced in this sector but when they start speaking in investment jargon, will you be best equipped to service them? Having several members working with you gives you more depth and trying to be a specialist in every department.
- Practice leadership skills – Being a leader doesn’t mean you are all-knowledgeable. It takes dedication, passion, and people-skills to become the best version of a team leader. The success of most teams highly depends on the direction and path with all members working in unison.
- Utilize technology – 92% of buyers use the internet and 50% of buyers use mobile apps in home searching. Whether you are going solo, in a partnership or a team, you must cultivate an online presence to reach out to clients even if it seems quite complicated. Technology is here to stay and will only keep advancing; you have to compete with the growing trends.
Consider leveraging others’ skillsets and build out a team that not only gels well together but also boosts your bottom line.