I get asked this a lot, “Do you think it is better to join with a team or work as a solo agent?” Working as a solo agent meaning that you work for a brokerage or become a Broker. This is the classic question for new real estate agents. And there are three considerations here. Things to consider include: risk, control, and money. If you want less risk, less control, and less money, join a team. If you want more risk, more control and the opportunity to make more money then you work on your own. You’re somewhat of a business owner either way. But if you build your own team and own the company, you ultimately have more stock in everything. Even though most Realtors work for themselves anyway, one is more like being an employee. The other, of course, is being an owner.
Less risk on a team
So, as an employee for someone, there’s less risk. Somebody else is providing some leads, an office, guidance, and are the base for your income. Yes, your paycheck is coming from them, not just your completed transactions. When you get a Broker and join a team, you have to know that they aren’t all the same. Some provide more and some provide less. It’s having a boss so you’ll work when they want you to, take the clients they want you to, etc. You have to be available on their terms. Some Brokers may let you work as you want to and be flexible with you. Typically you would have to prove that you are committed. A Broker usually doesn’t want to waste time on an agent that doesn’t provide for the company.
But when you own the company, you’re taking all that risk on. You’re hiring, firing, providing support, etc for everyone you employ. You have to make sure your agents are being ethical and supporting your company. Really, that part is just like being any sort of business owner.
Less control on a team
When you join a team, you have less control over your circumstances. You can’t just take days off when you want or have three hour lunches. Your boss is going to largely dictate what your schedule is going to be. After time and proving to be a valuable team member, your Broker will likely give you some leeway. But, as a Broker yourself, you have all the say in what you do and when you do it. And you let your agents know what you expect of them. In that case, you need to figure out what kind of boss you want to be. And I can give you some clear advice here… Do not micro manage people. If you’ve ever been micro managed at a job you know that employees don’t perform at their best when they’re being watched closely.
Sharing with your broker
Working in real estate is kind of like a legitimate MLM. The Broker is at the top and always makes the most money. That money trickles down to their employees that make commissions. The more agents a Broker employees, the more partial commissions they get from each one. As an agent, you share your commission with your broker. So, you make one home transaction and get a certain percentage of that transaction. You don’t get a full commission because your broker is taking part of it. And usually you need to allocate some of that money to advertising and business if you’re Broker doesn’t.
Now, one of the reasons that people work for a brokerage is that they want to learn from someone experienced. Yes, you go through training of some sort and take the exam to be an agent. But, that doesn’t give you real world experience. To get better, you need to do the job in real life. And if you have someone by your side that already knows how to handle different situations… Even better. That said, new agents can really benefit from joining a team. As well, experienced agents that don’t want tons of responsibility are better off joining a team. What you lose in money and control you make up for with less risk.
Money and Control
If money and control are your biggest reasons for being in real estate, you may want to become a Broker. Personally, I’m not into being in the lower parts of a team. I love teams and teamwork, but I want to be at the top! Building a great team and a great business is important to me so I’m willing to take on risk. If you feel the same way, you shouldn’t join a team and should branch off on your own. Now, maybe this is something to strive for… When you start working in real estate, it’s actually nice to work for someone else. You can learn things and figure out what you do and don’t like. That way, in the future, you can build yourself an amazing company.
So, a lot of people gravitate toward a team because it’s safer and more comfortable. If you want the opportunities that come with owning your own real estate business, you’ve got to be a Broker.
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REAL ESTATE AGENT GUIDE
- WHAT MAKES AN EFFECTIVE AGENT
- FIRST 30 DAYS AS A NEW REAL ESTATE AGENT
- FIRST STEPS FOR NEW REAL ESTATE AGENTS
- CONTROLLING YOUR ONLINE PRESENCE
- HOW NOT TO BRAND YOURSELF
- AVOID THE UPS AND DOWNS IN SELLING
- BREAK THROUGH WITH EXPIRED LISTINGS
- FIND CASH BUYERS – YOU NEED THEM
- HOW TO GET MORE LISTINGS – PREPARATION
- GET MORE REFERRALS
- HOW TO GET SELLERS TO PRICE IT RIGHT
- GET YOUR 1ST DEAL FAST AS A NEW AGENT
- JOIN A TEAM OR GO SOLO
- FAST WAY TO BUILD REAL ESTATE BUSINESS
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- WHY MOST NEW REALTORS FAIL
- WHY REAL ESTATE IS FOR ENTREPRENEURS
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