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How do you know if you’re ready to build a team? This is a critical decision point, and my one-on-one coaching clients often find themselves at this crossroads. Building a real estate team is an area I specialize in, having been part of teams, built them from the ground up, and enjoyed every aspect of team dynamics.
The One Reason to Build a Team
Let’s cut to the chase: there’s only one valid reason to build a real estate team—having an excess of leads that you are unable to handle on your own. If you can’t be a rainmaker and generate leads consistently, building a team might not be the right move for you. It’s not about the team funding you; it’s about having a surplus of leads that necessitates additional support.
Lead Generation System: A Prerequisite
Before even considering team building, ensure that your lead generation system is dialed in. It’s a common misconception to join or build a team with the hope that the team will provide leads. In reality, you need to bring a proven lead generation system to the table. A successful team needs a leader who can create opportunities through a robust lead-generation strategy.
Building a Team: Financial Preparedness
Understand that building a team might lead to initial financial setbacks. In many cases, you may lose money before the team starts making money. Be prepared for a temporary slowdown in your production as you bring the team up to speed. This is why financial stability, especially having a lead generation system in place, is crucial before venturing into team building.
Team Members Are an Investment, Not an Expense
If you’re thinking of joining or building a team, remember that team members, especially buyer agents, are not just an expense; they are an investment. While it may seem like you’re giving away a portion of your commission, in reality, the team should provide proven agents with quality leads. It’s a reciprocal relationship where team members contribute to the team’s success.
Separate Personal Business from Team
Maintain a clear separation between your personal real estate business and the team. Recognize that the team, especially in its early stages, might require funding from you. Be strategic about when to transition from solely funding the team to reaping the rewards of a well-established and thriving real estate team.
Team Building at the Right Time
Team building is great, but timing is everything. If you’re doing fewer than 25 personal transactions a year, it might not be the right time to think about building a team. You need to bring value to the team, and that often comes with experience and a proven track record in the industry.
Conclusion
In conclusion, building a real estate team is a significant decision that should be approached with careful consideration. Seek guidance from a coach to objectively evaluate your business and determine if you’re truly ready for the responsibilities and rewards that come with leading a team. Remember, humility and a genuine desire to help others grow are key factors in successful team building.
Ready to take the next step? Click here to connect with me for a one-on-one coaching consultation. Let’s discuss your goals and determine if now is the right time for you to build a real estate team.
