Eight questions new agents should ask brokerages they’re considering.
What are the eight financial questions to ask a team or a brokerage you might want to affiliate with? That conversation can be complicated, and these eight questions are really helpful for you to compare and find out which team is the best fit for you.
1. Occupancy costs. This will show up as profit and loss on your 1099 form. Ask whether you have to pay for where you work or not. Is there a monthly cost, or is there a regular ongoing fee?
2. Brand recognition. I learned this the hard way when I first started a business. I didn’t have a brand behind me so my conversion was very low. The moment I got a large name behind me that people knew and trusted, it increased my conversions and helped me earn more money.
3. Administrative support. Are you going to be doing all the administrative work yourself, will you hire out, or is there somebody assigned to you to take that off your plate?
4. Lead generation. If you’re a real estate agent trying to get into the business, it’s really hard to get new leads. I also learned that the hard way. Evaluate whether the brokerage, team, or outfit you’re working with will provide you with leads and what the quality of those leads is. Are they just funneling them to you, or are they vetted appointments?
5. Technology. Are you going to be paying for the technology, or is that provided for you?
6. Leadership and accountability. Is there going to be someone there training you, onboarding you, answering your questions, and getting you through those first dozen transactions until you develop confidence?
7. Commission splits. We focus a lot on these and don’t ask about the other ones. I’d rather have half or three-quarters of a watermelon than a whole raisin, so when you’re thinking about commission splits, make sure you’re thinking about it in light of the other six forms of compensation.
8. Annual operating budget. How much is invested per agent in the organization? Take the annual operating budget and divide it by the number of agents. Think about that as a monthly check they’re putting on your desk that they’re investing in you and hoping that you’ll pay back. You’ll find that the average brokerage will invest about $200 to $400 per agent per month. Our team is a little bit different. On average we invest about $8,200 per month per 1099 agent that affiliates with our team. That’s why we don’t see ourselves as a recruiting company. We want to ensure we have a deep connection and a win-win relationship with anybody we bring on.
As you’re vetting those teams, if you have any other questions that I could answer for you or if you’d like to do a free strategy session about your business, don’t hesitate to reach out via phone at (717) 216-0860 or email firstname.lastname@example.org. Click here to get all of our latest community and listing updates: Facebook.com/DaveHookeTeam