Jeff Brown makes a good point about Rainmakers and teams
Saturday, June 14, 2008 at 08:08AM http://www.bloodhoundrealty.com/BloodhoundBlog/?p=3198
I think the real estate enviroment is changing to the point that diversified marketing efforts and service demands require a team effort and that the team should be made up of producers with diverse talent.
This is not to say that a lone wolf agent can not still carve out a successful niche. The problem is that there are only so many niches, so for the majority of agents, teams seem to be the way to go. Being one among many in a large office that's unorganized and chaotic is probably a poor choice in today's market. I have never completely understood this business model of hiring as many agents as possible regardless of their production, but many brokerages are made up this way.
I suppose it is the same idea behind MLM, that a whole lot of agents will sell a few homes to family and friends and you just turn over frequently while having about 10% that produce on a regular basis.
It seems to me that a office with a hundred agents would be far more productive by creating 5-10 teams that are made up of producers, but this changes the whole nature of the individual contractor who in reality is running his/her own business through the broker's license, so I see where not everyone would want to be on a team -- still I don't see the point from the standpoint of the company. If being productive and profitable is the goal, then it seems that teams are the most productive and profitable route to go, even if it means changing your model and requiring anyone who wants to work with the company to be part of a team.
In other words, agents may prefer the independent contractor route because it gives them freedom to do as many or as few transactions as they feel inspired to do, but the companies have control over their models and who they take on and how they write up the independent contract agreements.
If companies built more efficient business models, it would eliminate the dabblers in real estate and those not suited for the real estate business. This wouldn't necessarily eliminate all part-timers, but it might create a situation where an agent/independent contractor would have to prove value to the company on a part time basis in order to be accepted by the company.
Large companies need to stop the practice of taking on all agents who have a license and start running the businesses more efficiently -- this will be better for everyone, not just the companies.
I have decided to go the small team route not connected to a large office or franchise. What I'm developing will not be for everyone because the demands and expectations will be greater. So, getting back to the majority of agents, I think our whole industry will be better off if companies take average agents and create good teams working within good systems. The truth is that most agents are average -- there is nothing wrong with this, it's just reality -- not everyone will be a superstar -- life doesn't work that way. However, good systems can be universal, but companies have to implement them and manage them and hold people's feet to the fire until they are internally motivated to produce without hot-feet.
This will take a major change in mental models among real estate companies, but I think it has to happen.
Reader Comments (2)
Thanks Mike. I'm thinkin' the market is making these decisions for the company owners these days.
When your team is up and running, it'll be very interesting to watch how your competitors respond. It's tough to compete when you learn knives don't do well in gun fights. :)
Thanks, Jeff, I'll keep you updated -- I spent the day with george and he said he has been meaning to follow up with you, and will.
he said you had some very interesting ideas. We rocked the house today.