Here’s what agents need to know about why some teams are failing.
Today, I’d like to address a topic that’s close to my heart and increasingly common among real estate teams—struggles, failures, and dwindling profitability. Many team leaders are finding it challenging to succeed in today’s real estate market, and I regularly engage with rainmakers across the United States, uncovering three key underlying issues:
1. Inadequate expense management. A common issue I’ve observed is teams not effectively managing their expenses. In an upmarket, many financial inefficiencies remain concealed. However, when market conditions shift, hidden overspending and a lack of clarity regarding ROI on lead generation become evident. Understanding your cost per closing is vital, and many teams are now grappling with the consequences of not having this information.
“Sometimes, there’s a disconnect between the split charged and the value delivered.”
2. Lack of accountability. Transitioning from a salesperson or individual agent to a CEO or team leader demands a distinct set of skills and a heightened level of accountability. Many teams are struggling to enforce accountability and leadership throughout the organization, leading to problems like lead management and team performance oversight. In an upmarket, this challenge often goes unnoticed but is now emerging as a critical issue.
3. Imbalanced value proposition. A crucial concern I’ve noticed is the disconnect between the split charged and the value delivered. As a rainmaker, you have the discretion to determine the split for your team members. However, the value you offer typically falls into three categories: leadership, leads, and leverage. Some teams exhibit an imbalance between the value provided and the fees charged, where they charge significantly more while offering minimal value.
These are the recurring themes I’ve encountered while engaging with business owners and rainmakers in the real estate industry over the past few months. Addressing these issues may be the key to navigating the challenges and achieving success in the current real estate market. Call or email me with any questions. I look forward to hearing from you.
