Solo Agent vs. Building a Team
One of the things you'll often hear me say is that there are a million different ways to succeed in this business; it's not a one-size-fits-all endeavor. A key decision that agents face at different stages of their careers is whether to operate as a solo agent or build a team. Both paths offer unique advantages and challenges, and the right choice depends on your personal goals, work style, and vision for your business. In our latest podcast episode, which you can listen to here, we talk to Portland broker Toni Mikel, who began as a solo agent, opened her own company where she mentored other agents, and then returned to being a solo agent.
Considerations of Being a Solo Agent
Autonomy and Control: As a solo agent, you have complete control over your business decisions, from marketing strategies to client interactions. This autonomy allows for a highly personalized approach to your work.
Lower Overhead Costs: Without the need to support a team, expenses are generally lower. This can result in retaining a higher percentage of income as profit.
Cap on Production: There are only so many hours in the course of every day. Working as a solo agent means you will only be able to take on a certain number of clients in order to service them correctly.
Direct Client Relationships: Working solo means you can maintain direct relationships with your clients, fostering a more personal connection and potentially higher client satisfaction.
Considerations of Building a Team
Structure: How you structure a team can significantly impact its success. The concept of a team has evolved over the years, and it's important to understand there are various options available. Some team leads focus on delivering a high volume of leads, which can be costly. Other teams emphasize more collaboration of marketing efforts rather than purely transactional interactions.
Brokerage: It's important to evaluate your brokerage to see how it fits your team's business plan. Stock options and revenue sharing can significantly impact your bottom line as well as the agents you bring on, offering various ways to build and support your team. Additionally, healthcare and educational support are valuable resources that a brokerage should provide. Tune into Ep. 3: Finding the Right Brokerage to hear more on seeking alignment with the firm you choose to work under.
Scalability: Building a team enables you to manage a larger volume of transactions and clients, which can lead to significant business growth and increased revenue. However, this also involves more management responsibilities. It's crucial to focus on profit rather than volume, as more deals do not always result in higher profit margins.
Specialization and Efficiency: Teams can divide responsibilities, allowing members to specialize in areas like marketing, client relations, or transaction coordination. This specialization can increase efficiency and improve overall service quality.
Support and Collaboration: A team provides a support system and collaborative environment, which can be particularly beneficial during busy periods or challenging transactions. You need to be prepared to outline responsibilities and job descriptions to make this work.
Work-Life Balance: Delegating tasks within a team can help reduce individual workloads, contributing to a better work-life balance for team members.
Ultimately, whether you choose to go solo or build a team, the key is to align your decision with your personal and professional goals, understanding that these goals may evolve at different stages of your career. I often see agents staying in situations or running their businesses in ways that worked for them 10 years ago, rather than adapting to what suits them today. Remember, there's no right or wrong path—only the one that best fits your unique circumstances and aspirations.
Self-Awareness: Reflect on your strengths, weaknesses, and preferred work style. Do you thrive on independence, or do you enjoy leading and collaborating with others?
Vision and Goals: Consider your long-term vision for your business. Are you aiming for rapid growth, or are you content with a steady, manageable workload?
Market and Resources: Evaluate your market conditions and the resources available to you, including potential team members, financial backing, brokerage, and technology.
As you grow and evolve in your career, be open to reevaluating your choices and adapting to new opportunities and challenges.
52 Weeks of Conversation Starters
Have you ever found yourself doing things that sellers ask you to do, even though you know they aren't the best use of your time and will not yiled the results they desire?
Knowing the most effective strategies for marketing and selling homes is, of course, essential, but it's equally important to be able to articulate the reasoning behind your approach. This not only builds trust with your clients but also ensures that your efforts are focused on activities that truly add value and lead to successful transactions.
To illustrate the importance of targeting your efforts, consider these statistics from the National Association of Realtors' 2023 Profile of Home Buyers and Home Sellers, which highlight how buyers found the homes they purchased:
Internet: 52%
Real estate agent: 28%
Yard sign/open house sign: 4%
Friend, relative, or neighbor: 8%
Home builder or their agent: 6%
Directly from sellers/Knew the sellers: 3%
Print newspaper advertisement: Less than 1%
These numbers clearly show that focusing on a strong digital presence and marketing to other real estate professionals will yield the greatest results. In contrast, traditional methods like print advertisements have become less impactful. By understanding these trends, you can allocate your resources more effectively, focusing on high-impact strategies like online marketing and leveraging your network. Share all of this with your sellers.
Regularly evaluating where you spend your time and money is crucial for maximizing your effectiveness and ensuring that you're not just doing things out of habit or at the request of others. By staying informed and adaptable, you can better serve your clients and optimize your business practices.
Looking for aditional support in your business? Here are thre ways we can help.
Schedule a 1:1 strategy call here.
Listen to our podcast here.
Interested in learning more about REAL, book a 15-minute discovery call here.
