Pros and Cons of Joining a Team
There is a clear upward trend of real estate agents combining their talents, experience, and individual strengths into a team. While you would be required to split your commissions with your team members, you will also benefit from the deals any of the members close. A fixed split agreement is the most common arrangement, but each team can decide which form of commission division works best for them.
Still, this only scratches the surface of the pros and cons of joining a team, so let’s get into it.
Following the Leader
Generally speaking, each team has a team leader. This realtor handles the listings, brings in new business, has a robust body of experience, and is able to leverage their abilities to benefit the team as a whole.
As the main income generator, the team leader has the most power when the team agrees to a commission distribution structure. Associates can be given a salary, receive a set percentage of each closed deal, or receive instead a percentage that slides in accordance with their performance.
How Clients View a Team
Often, a client is reassured by the idea of a collaborative team working to help them sell or purchase a property. However, this upside will only be a reality if you all pull together as one to accomplish your goals. Lapses in communication, a weak team member, or an associate who has poor social skills will reflect poorly on the entire group. As a result, your reputation could suffer through no fault of your own.
The solution? Be selective when joining a team or forming one of your own and remain aware of how well each member performs as time goes on.
The Pros of Joining a Team
Lead generation is the single most challenging aspect of being a newer real estate agent. If you were to join a team, your team leader would bring a healthy stream of referrals from their robust network. The leader would divide the leads among the team, giving each agent leads to work. Once handed out, that lead would be yours, and you would be that client’s agent for the duration of the transaction. As a newer real estate agent, this arrangement would increase your pool of potential referrals to help when you eventually leave the team to work independently.
You would be in constant contact with a skilled mentor who would ensure that you would be learning constantly. As you know, finding a mentor who has the time and interest to work with newer agents is nearly as difficult as tracking down good leads, so this benefit cannot be overstated.
Administrative work can bog an agent down. In joining a team, you would have access to an assistant to help you tackle the tasks that would otherwise take time away from your clients and your efforts to grow your business.
Content creation, marketing, and branding are costly and time-consuming. By sharing these costs with your entire team, you could choose higher-quality products that will give your marketing presence the boost you are eager to create.
The Cons of Joining a Team
Lest you think joining a team is all roses, there are some sharp thorns to consider before you take the plunge.
Interpersonal conflict within teams is nearly inevitable. The team you join would likely consist of strong, motivated people. While this would have numerous upsides, personality clashes are bound to happen.
The marketing and branding we covered above wouldn’t be for you as an individual; rather, it would be promoting your team leader. Your challenge would be creating a reputation for yourself through stellar work. If you know you’re someone who struggles to stand out from the pack, a team arrangement may delay your ability to gain visibility within the community.
If you have a specific market niche you want to pursue, being part of a team may make this impossible. Unless your team leader already works in the niche you prefer, you would possibly be spending years in a niche that wouldn’t help you establish yourself as an individual agent.
You would have to share your commissions. But, if your team turns out to be consistently busy, you would stand a good chance of earning back enough to offset this sacrifice.
You would not have full autonomy. If you’re someone who hates working for someone else, a team is not for you. Real estate agents often value their independence more than people in other lines of work, so do be honest with yourself as you reflect on how working for someone else will make you feel long-term.
The Takeaway
A real estate agent who has created a team has been successful on their own to such an extent that they were able to support the needs of many others on the backs of said success. Therefore, if working in a team dynamic seems appealing to you, we encourage you to take full advantage of the resources and mentorship such a position would grant you.
As with any other business opportunity, please pay close attention to the fine print. It is up to you to do your due diligence and ensure that the team leader you choose to align yourself with offers a commission split that you will be truly happy with.
If you have been in touch with agents who worked as members of a team in the past, ask if you can take them out to lunch and pick their brains about their experiences. If you have the good fortune of hearing about an excellent team, don’t hesitate to ask for an introduction to the team lead. This word-of-mouth method of finding an outstanding leader is often the most straightforward.
We wish you the best as you consider whether or not to join a team. Take your time, consider the pros and cons, and you’re sure to make the best decision for your career trajectory.