Types Of Compensation To Offer Your Team (Real Estate Business)

What would you say if I asked you this question? How many types of compensation do you have to offer agents that join your team? Most of you are thinking like it's all commission splits, right? The only type of compensation that I have to offer are the commission splits. And if that's where your mind is right now, you have to watch the rest of this video. So stick around for the punchline of that. But also to learn more about a report I put together called the Real Estate Business Growth Navigator which will detail the six stages of business growth for you. If you like the video, make sure you give me the thumbs up and subscribe to the channel. And also make sure you turn notifications on and leave me comments. So let's talk about the types of compensation that we're able to offer as real estate team leaders. The conversation really has to start at the brokerage level. The brokerage industry, the industry we play in is, you know, essentially a bunch of brokerages trying to get agents to come into their world. And the only thing that they can offer at this moment in time because of the way things have shaken out over, over time, for the most part, the only compensation they offer is a commission split. So some version of like, hey, how much money are you going to pay me if I, if I come into your world? The byproduct of that approach is that average agents in a traditional brokerage environment sell seven homes per year. So do the math before you pay your broker or any expenses and get really any services because they're all sort of the same. And so the take home money and the stress and the hours is not a real attractive proposition. Right? You can try to spin it, you can try to say, hey, we give this training or we have this culture or we provide this community inside our brokerage bottom line is the number of homes sold by each agent. So the opportunity we have as team leaders is what other types of compensation could we offer agents that join our team? So number one is the commission split. That's the one that we all talk about and we think as team leaders, as team owners that we're competing with the brokerage. So hey, why would you come to my team if I only give you 30% of your of the commission check, why would you come to me, right? It depends on everything else I do. And if you can make more money in less time with less stress on my team, regardless of your commission split, then you're willing to have the conversation about what that looks like. What are the other ways that we can compensate you? Number One is in leadership, right? Are we able to lead you and hold you accountable and coach you and train you to a different level? It doesn't matter what I'm willing to pay you if you're only going to sell three homes, you know, on your own, left to your own sort of your own ways and your own own sort of methods that you're going to use traditional methods. Let's say you sell 10 homes, but it takes you 50, 60 hours a week to do it. What if I can lead and coach you and train you and hold you accountable and you can sell 30 homes in less time with less stress? That's number one. Number two, are the tools and systems and resources that a team could have available, Right. Are there real tools, whether they're tracking tools or technology tools or client care systems or you know, different sort of actual tools and systems that are running in the business that allow you to produce at a higher level with less stress, so make more money in less hours with less stress? Right. So that's another category. The next category are maybe leads and appointments, right. Is there. Would you sell more houses if you had a constant stream of high quality buyer and seller leads or if you had appointments set for you? Right. Would that be a form of compensation? So even if you get paid less on those deals, would there be a benefit financially? More money, less hours, less stress? If we could show you that it makes sense for you to, you know, allow us to invest in lead sources and track, you know, the conversion rates or allow us to teach inside sales folks how to convert those leads at the highest level so we can, you know, we can keep those lead gen levers going. And I would say the next thing is marketing and lead generation. So a bigger category around our lead gen levers. So in real estate B school we have eight lead gen levers, right? From database marketing to open houses to yard marketing to expires to fizbos to client care, to social proof, to, you know, getting listings in neighborhoods, you know, circle prospecting and also direct mail. So what are the, what are the lead gen levers that you would employ on your own versus allowing us to do it? That's a valuable form of compensation. And so I would say the last one is a structure, a culture, a cadence where similar to leadership and management and accountability. But like what are you plugging into in a traditional environment, a traditional brokerage, you're not really plugging into anything. And so could that be an additional form of compensation? You know, outside of. Actually there's one other two Other categories. But could you plug into something that's going to help you achieve via the culture and the camaraderie and the culture and the cadence? And I would say another one is brand, right? Is there enough power in a brand and then also physical office space, right. Is there a value to being in that environment with other folks and sort of being shoulder to shoulder within a team environment? So as a team leader you have to think about, you know, what value do you provide outside of commission splits, where commission splits don't honestly matter all that much. One of our most successful agents sold eight homes in two years outside of our team in our brokerage, but not on our team. In his first year with our team, he sold 37 properties. He went on to sell, I think just over 50 and this year he'll sell close to 70 in his third year. So can you imagine the shift in his income? Selling four homes per year for two years before he joined our team, Having to go back to the job that he had before joining us twice and now he's able to earn, you know, not quite multiple six figures, but healthy six figure income, working predictable hours, not a whole lot of stress, Massive administrator support. Oh, that's another category, another compensation is the administrator support that you get. I kind of alluded to it. But do you have the capacity alone? You know, if you're an agent coming on a team, the administrator support and the systems that they run, the client care systems are a phenomenal leverage point that will have you making more money because you'll get more referrals because you're not having to, you know, cross the T's and dot the I's. So the list goes on and on. There's a 10 or 12 forms of compensation and these are the same scripts we use in our recruiting process. You know that hey, there are 10 places you can go to get 100% of your commissions, but you're going to sell six to eight homes. That's the average. What would it look like to sell, you know, three to four homes per month in less time with less trust? And that's what we can offer you here. So go straight into value proposition. Your ability to attract the right people to your team. So if you're at the point in your business journey where you would love to see a roadmap, you know, there are six distinct stages to growing a business from struggling agent to, to a completely free, from a time and money perspective, business owner. Just go to realestatebusinessgrowth.com it's the Real Estate Business Growth Navigator report. It's realestate business growth.com or click on the link below. If you liked the video, give us the thumbs up. Make sure you subscribe to the channel and turn on your notifications and leave us comments we'll see in the next video. It.