There are 3 levels of organization to the Realtor Industry. First, you need to be licensed with your real estate board. Second, you need to select a brokerage. At Champs our brokerage is EXP. From there some agents are solo, some agents join a team. A team is an organized group of agents at the same brokerage who all contribute part of their commission to the operation of the team. The team then provides services, tools, materials, education, and more, that the Realtors on the team need to operate successfully.

Every team will provide a different combination of ingredients a Realtor needs to run a successful business. These elements typically include leads, systems like a CRM, resources like marketing materials, brand recognition, administrative and paperwork support, training on how to become a Realtor, mentoring on working with clients, accountability, and a team culture.

Being on a team takes the risk out of the expenses of being a realtor. The team will cover all of the operating expenses of being a Realtor. The Realtors on the team only have the expense of contributing a portion of their commission when they complete a transaction. This is an attractive way to manage expenses for many agents. As well, many agents prefer to simplify their Realtor practice by having a team organize most of the systems and processes. This frees up the Realtors to focus on developing client relationships and closing transactions.

Splits vary from team to team and the variation is often related to how many services the team provides, as well as the source of the client with whom the transaction was completed. A typical baseline to start with would be 50% of the commission from a transaction going to the team and 50% going to the agent. Sometimes for listings or highly qualified clients the split to the team can be higher. Often, teams will give a larger % to the agent if the agent generates the lead themselves.

Start with what you feel you need the most to be successful. A team that does the best at providing these things will give you the best chance of doing more transactions. Some agents get very focused on splits, but it is important to remember that better % on zero transactions means zero income. Choose the team you feel provides the most elements you need to do the most amount of deals. Culture is also important to consider. Choose a team where you feel comfortable and welcomed. Feeling happy and positive is an important part of being a successful agent, you want to be with a team that helps you feel this way.

Many new agents prefer to start their career on a team because of what teams can provide and the education and mentoring. As well, a team will cover many of the start up costs required to successfully start a real estate career. That being said, the majority of agents will start their career as solo. After starting solo, many of those agents choose to join a team later on in their career. The right answer is the one that fits best for you.

Experienced agents join teams all the time, this is quite common. Many experienced agents have gaps in their Realtor practice that the right team can help bridge. This unlocks new levels of production. Being a solo agent can also be a lonely experience, the camaraderie, culture, and accountability of the right team often helps an experienced agent increase their production and enjoy their Realtor career more.

Most teams will promise that they will provide leads to the agents on the team. Discuss with each team about the kinds of leads they provide, because not all leads are the same. Often, Realtors will get a “lead” confused with a “client”. A lead is simply the contact information of someone who might have an interest in talking about real estate. That’s very different than a client, who has decided to choose you as their Realtor with intent to buy or sell a house right away. Discuss the source, level of intent, and typical amount of work required to convert the lead into a client. Also, be aware that the more qualified lead you receive, the higher the split you will likely be paying to the team.

Being a team leader means you are responsible for the success of the agents on your team. Often agents start a team when they get busy enough with their client load to justify bringing on help in the form of admin staff and other agents to assist. The benefit is that for providing support and leads to your team members, you earn a portion of that commission on a client you may have otherwise been to busy to convert to a transaction. Leading a team is also a great fit for someone who is strong with marketing, business systems, and administration. You can organize and provide these elements to Realtors who are not strong in these areas, but who are skilled at interacting with clients and closing transactions.