Follow KW

Breakout Session Highlight: How to Build a Small Team

gene riversWe just spoke with Gene Rivers, OP and KWU Master Faculty, who just facilitated the How To Build a Small Team session at Family Reunion. Here are some of his main points to remember when building a successful small team:

It is ALWAYS about Careers Worth Having, Businesses Worth Owning and Lives Worth Living!

  • The future of the industry is the high-knowledge, professional and tech-savvy agent team.

The most profitable part of the real estate agent industry is the residential real estate agent sales team.

  • The Way to Build a Big Business, any Big Business….is to build a Phenomenal Small Business – going from single agent to team of 5. We call it TEAM ONE!

  • Success is built on customer satisfaction. And, customer satisfaction is built on high touch and high quality information. It is true that busy single agents have no time….so their customers and clients have to wait.
  • Any office with 20 or more agents has someone at the top that wants a team, and along those same lines, any office that has 50 or more agents has one or more teams trying to make it work.
  • The industry is following the 80/20 or 90/10 rule as far as who (agents) does the sales, and it is teams that dominate the top.
  • Most teams, even those doing sales, don’t last because they are built from the wrong model – or worse, no model. The best teams are comprised of individuals who would never do what their fellow team mates do.
  • Building a team is nothing more or less than starting any business.  Most small businesses don’t make it long term.  The ones that do follow a franchise model by buying one or imitating one.
  • Most of all, who you are in business with matters!  Follow a hiring process to make the odds of succeeding in your favor. RSTLM – Recruit-Select, Action Train, and Lead and Motivate.
  • crowd

Tagged with:
Posted in Uncategorized
 
12 comments on “Breakout Session Highlight: How to Build a Small Team
  1. Great information, Each team member is a valuable component and performs their task better than anyone else on the team! I am ready to get going…

  2. Paul Cross says:

    Outstanding information! Nancy and I are done trying to do it “our” way – now we will just follow Gene and MREA – look for a whole new Cross Team in 2010!

  3. Carol Murphy says:

    This is the primary reason I am with KW after many years with RE/MAX. Not in New Orleans but this is a topic I want to apply to my business model.

  4. Great stuff! Gene Rivers is inspirational. He is one of my favorites on the KWU falculty. Thanks Gene! Looking forward to seeing you again in the Greater PA Region.

  5. My wife and I are trying to work out our roles as we begin to work together as a team. Unfortunately this was not our year to attend Family Reunion and we missed this session. Sooo, where and when can we pick up Gene’s manual for building small teams???

  6. Jim Gatos says:

    I’d Kill for that manual! (LOL) Where can I get it?

  7. Jeff Payne says:

    Lets all hit Jay Papasans facebook page and ask for this material to be presented first.

  8. mylisa413 says:

    Did anyone find out where to get this manual?

  9. What a great class!! Awesome information!!! You need Standards!!

  10. Christopher Spada, Exit Cherry Hill NJ says:

    I have to commend all of us who fight the good fight. I respect KW, ReMax, Pru., C21 and all the others.

    There are several reasons why, approx. 14 yrs. ago, I could not see the rewards to join KW. Here was my thinking….pls.; was I thinking correctly?

    Pls. help me if I am mistaken. I have seen all top management in all RE companies promoting “TEAMS” and had wondered why such a push from every top executive in our business. O’ I know, the premise is, so you can make more money, work less hours and have a better life. Let’s think this one through; you are good at you job. You really like your job. Face to face with public, closing 25-35 deals and building a great reputation. No law suits. You’re good. Very good. Great….now top management want more market share. Hmmmm…They say; “I know, let’s convince, our top producers that; the only way you (our best agents) can make more money and work less is….da da…form a team. We’ll give you even more fame and bigger trophies.

    Ok; we buy into the thought. Now you become employers. That’s right, if you read you IC agreement, you are an IC for tax purpose only. Now, I believe, you may even need a whole new set of insurances to cover your new role. E&O will not cover work place harassment, sexual harassment, lose of income from termination and anything else a lawyer can throw in. And now you are hiring, training, holding people accountable, firing or worst yet, training the next wave of producing agents for the benefit of top management. WOW, top management, smart boys. For those of you who run teams; how many people did you train only to have leave? Even worst, leave and work for another broker? Even worst, leave and work for your broker?

    And I could never understand the Profit Sharing matrix. 1) Agents receive residual income based on profit. 2) Agents receive residual income on what they generate that month to be applied to office profit. 3) Agents can recruit eight great agents below them and the one above them recruited only one good agent (you) and the same residuals are paid out up line as well as down line. 4) The percentage of residual is based on your portion of the office profit for that month, if any. 5) The small percentages going eight generation deep were hard to follow. 6) There was no direct reward for one individual who recruits well to reap most of the reward. Confusing, at least for me at the time. Rich showed me a KW residual check and he was confused on how he received that amount and it was only $5.38.

    We just hired three KW agents to our office. Rich being one of them. Rich sponsored one agent, Jen. Jen closed a deal. Gross fee was approx. $3,800 to office. Rich received $365.00 approx. 10 days after closing. Jen has four more pending deals. Simple and rewarding the agent who brought in a producing agent. Rich will receive 10% off gross for as long as Jen closes deals. Rich will receive 7% in retirement and 5% to his loved ones after death on all of Jen’s closed deals. Rich was blown away on how simple and straight forward the EXiT Formula worked. Percent are paid up to $100,000.00 of gross commissions. Sponsor eight good agents, earn approx. $80,000.00 @ yr.

    Let’s go a little further, after an agent pays in approx. $25,000.00, that agent get a free ride for the rest of the year, beside a small monthly fee. Hmmmm??
    Doesn’t that mean that all the average agents, those grossing $25,000 to $93,000.00 in commissions, left in the office, are paying for all the continuing expenses of the super agents. Some of these super agents will hit $25,000.00 by April. And if the super agent has a team, how much does the team pay as a whole? The lease, advertising, admin. staff, heat, electric, insurances, copier, phones system, phone bill, office supplies etc. are now being paid by the average agent for the rest of the year. And, all the expenses are now being pulled from the office profit. Hence, no residual profit sharing. When is the last time you received a substantial residual check?

    That is why at my brokerage. You close 25-35 deals a year, you earn approx. $120,000 to $185,000.00. You want to earn more. Just sponsor another agent like yourself and get approx. $10,000.00 off of gross, $7,000.00 in retirement and $5,000.00 to your loved ones. This happens for everyone you sponsor. And even if you start a team; if a team member leaves and stays with EXiT you still get your residuals off of their gross. EXiT had paid out over $160,000,000.00 in residuals of gross commissions and has been around for approx. 1/3 the time KW has.

    Pls. let me know if I missed something in my thinking. I am always looking for good, sincere, honest, no spin information. By the way; The Millionaire Mindset has been taught by every RE Trainer / Success Trainer since the beginning. It’s nothing new. Tom Hopkins, Joe Stump, Darryl Davis, Dale Carnegie, Napoleon Hill were some who taught me. Be a free thinker and do what is right for you and your loved ones. Stay or go, but be a free thinker. God Bless.

    Chris S.

  11. Mike Brady says:

    Christopher,
    This response is from someone who is investigating which company to go with, currently an independent broker.

    My name is Mike Brady and I got my first license in 1979, took some years in the mid 80’s off to run a group home with my wife, and went into commercial in 1989. In 2002 I went into development and redeveloped 2 historically preserved buildings into condos. I can’t say I’m the smartest guy about real estate because we started selling our last 119 unit $32mm condo project in 2005 and 2006! Ouch.

    Since developing is probably not the best call right now, I’ve been investigating commercial real estate brokerage options. I am impressed with the caliber of people I have contacted and met at KW around the country, veterans in their 50’s and 60’s (like me) who have been in the business for a long time. Since I’m investigating commercial, they’ve only been there a year or two as it is a newer division.

    Regarding your comments, Christopher. I read the KW books and I thought they had a lot of down to earth practical ideas. It seems you think that the agents are lemmings and will just go wherever they are told to go. I’m sure there are some agents like that. (They are probably the most successful ones, ha!, wish I had that kind of personality some times.) But most of us are just grateful that there is someone at the top thinking about giving training and information to agents. I’m not sure of the exact statistics, but the success rate for new agents lasting a few years…dismal. I say keep the ideas and training coming. We can discern what is best for us to utilize.

    Maybe Exit has a better residual plan vs KW’s profit sharing plan. I am happy to see any kind of reward for those who help build. Kudos to Exit. Having been a business owner, I personally like KW’s because it has to do with everyone winning. it seems to be, however, as you say, slow in the beginning. The franchisees can not afford to pay something out if they are not making a profit, right? I think it’s genius. The small beginning may be a deterrent for those who want something simpler and/or faster and I can understand that. KW’s is not a “here’s a big reward right away for you deal”. But being 55 years old and getting pretty much wiped out in my last project, I believe, after running some proformas, working 5 more years and recruiting agents and helping them recruit agents will build slowly for years and then catch fire. It, Lord willing, will mean a passive cash flow in maybe 10 years that will significantly outperform a residual plan or obviously no plan.

    Regarding commissions in general, I agree the average agents will be paying a higher percentage of their commissions, as you say, to cover expenses. Isn’t thst true no matter what office they choose. I think Exit’s is 70/30 as well until the agent reaches $100k, right? After that, it’s 90/10? Seems like a good plan and sounds pretty similar. I personally want to go higher than that so I prefer the KW plan.

    I’m glad to hear you are happy where you are. That’s how we can serve our customers the best! keep up the good work for the customers, Christopher. We need all the good press we can get out there.

    If you ever have any commercial or development deals in Minneapolis that you need a good broker for, you’ll probably find me at Keller Williams, Maple Grove, and I pay a 25% referral fee.

    Thanks for the challenge. It helped me process.

1 Pings/Trackbacks for "Breakout Session Highlight: How to Build a Small Team"
  1. […] Breakout Session Highlight: How to Build a Small Team at […]

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Archives
Search by Category
Tweets from Keller Williams Realty