My professional purpose is to help you, the broker, optimize your productivity and help you become the best version of yourself. Why? Because happy brokers sell more real estate. I do that by helping you handle challenges and opportunities that you face every day. If you can effectively manage certain situations that arise on a daily basis in your business, you'll be more productive and live a life that is the best version of you.
Today, I want to take you inside the conversation I've been having with many agents 18 months into a pandemic and 15 months into a raging real estate market that is starting to make them question: "What is enough?" A question only each of you can answer for yourself.
I think what has made me an effective manager, leader and coach, is that "I speak agent.” Yes, it is a language that is a combination of work ethic, drive, focus and psychology. In most cases, the only people that understand brokers are other brokers. For competitive reasons, agents don't or can't talk too much to other brokers because of confidentiality reasons. This can and does lead to a life and business that is lonely if that business is not managed and built the right way. Those that live with us and know us think we are freaking crazy half the time. In some cases, our friends stop inviting us to dinners and days out because we always "have to take a call" or "I'm in the middle of a negotiation.” Sound familiar? So this leads to a deepening issue that I am hearing more and more from agents and am trying to help them navigate. For many, this 15-month run, with no end in sight, is starting to have a significant impact on marriages, partnerships, relationships, family and friendships forcing agents to ask themselves "What is enough?"
Do I stay on this crazy pace of production or back off? What is enough?
Do I get out completely? What is enough?
I can't get out because real estate brokerage is all I know. What is enough?
Do I build a team or a larger team to help manage the business? Maybe, but I hate managing people. What is enough?
These questions are different, too, based on where an agent is in his/her career. Also, if you have a family with young children, it adds an entirely different level of complexity to the situation.
Some of you may be hearing this and might be saying, "I wish I had those problems.” True, I think most agents feel really blessed for what they have in their lives but it's also what pushes them to that question after another 15 hour day. What is enough?
I think as we go the process of planning via this "Championships are Won in the 4th Quarter,” "What is Enough?" is the basis for our planning. It is the question that pairs with "How do I want to live?" and "Who do I want to become?” the 2 questions that all of our planning should cascade off of. So, as your coach, leader and mentor, let me take you into the choices available to you to answer the challenges I've laid out above.
First and foremost, let me remind you of some boundaries that every agent should live by:
- After 50 hours a week and/or 2,600 hours a year, you start hurting your clients. You do not nor will you have the energy to properly function. Manage your business to that number or lower.
- You need to commit to one day off a week to completely recharge and multiple long weekends and vacations planned throughout the year.
- 25 transactions a year or $25M in production is the most you can handle by yourself before you need to invest in adding capacity (team member). (Yes, it is an investment, not an expense.)
There are 3 business models to consider heading as you build your business plan and strategy.
Individual Agent
This is reserved for the agent who wants to operate by themselves or with an assistant. This person needs to be extremely clear and dedicated to boundaries based on geography, price point and lead source. They know exactly who they are, who their clients are, and they execute within those parameters and become really good at referring out business and/or saying no. They add an assistant either to handle the transaction and marketing systems and processes. As their production grows, normally their average sales price is the main driver. A successful individual agent becomes really good at identifying and building referral partners within their brokerage and nationally to help them serve their clients.
Small Team
RealTrends looks at teams of 2-5 licensed members as a small team. The process is the same as I mentioned for Individual Agents, but with a small team you can increase your transaction count by 25 for each licensed member of your team. At 75 you need to add another admin or marketing person to support the group. A small team still needs to build in boundaries based on geography, price point and lead source. The difference is that the team lead must focus a lot of energy training and managing the team to become a highly functioning team. It takes a minimum of 90-120 days to fold in and immerse a new team member. Processes, systems and procedures must be fully documented and followed by each team member in order to become fully functioning.
Medium and Large Teams
There are medium and large teams being built over 5 licensed members and this size team should be reserved for agents doing 125+ transactions or $100M in production to be useful. Over 10 licensees is closer to building a small brokerage. I can talk all day about that but will reserve that strategy for a different venue. If you don't have the production to provide opportunities for your agents, beware of ego and don't overbuild the team.
The goal for being a team lead is that you, personally, only focus on what is on your job description, get out of the weeds and allow your team to manage the details.
So, in essence, to build a business that is enjoyable and predictable, you MUST create a business model that works for you and include boundaries that are flexible based on your desired production vs lifestyle conversation you've had with yourself.
You can raise or lower your price point boundary based on your current strategy or market conditions. Refer everything else out that doesn't live within your price point boundary.
You can widen or decrease your geographic boundaries based on your current strategy or market conditions. Refer everything else out that is not in your geographic area of expertise.
You can increase or decrease your lead generation strategies based on your current strategy and market conditions. Refer everything else out.
You can build a baseline on how many people are in your TOP 100 that you will consistently stay in touch with throughout the course of the year. You can amp up or decrease your production based on the size of your database.
Last but not least, get really good at saying to yourself "If it is not a hell yes, it’s a hell no" and understand that the 20% bad decisions steal 80% of your joy. If you say yes to a hell no, point the thumb. Don't blame anyone else for your stress. Pay special attention to your mindset and your need to constantly be in control. If you are a control freak, you will be miserable.
On top of these boundaries, if I was an agent doing 25 transactions a year, start with identifying an outstanding assistant either in office or in the field, be patient and put a ton of effort into training this person to operate like you do. Start with the items that can easily be trained and have the highest impact on your business. While you're at it, identify 3-5 good referral partners or team members that can help you take on the business that is not in your personal wheelhouse. Refer it out if it is not a "hell yes" for you.
Team, I quickly took you through a quick framework on how to protect your relationships while running a business that is more enjoyable and predictable. Use these strategies as a framework in your business planning. It can be done but you've got to put EGO aside and be smart. Agents suck at living by nature. Flip the switch and move towards this optimized way of running your business. It takes intentional effort to "think.” Some direct "thinking sessions" on "What is enough?" will lead you in the right direction. Your spouse, partner, family and friends will thank you later.
