REAL ESTATE B-SCHOOL HIGHLIGHT: 3 Different Ways to Structure a Real Estate Business That Serves You

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Transcript:

Let's go into the specific organizational structures for principal agent, team leader, and owner models. This goes back to making sure you're going after what you really want.

This section here - I was blessed to work with Bob Corcoran, Corcoran Consulting, and the biggest takeaway I got from my time with Bob was really working through these models. When I look at the Principal Agent versus Team Leader versus Corporate Model, having this as a backdrop and understanding why these different structures were in place and how to go from one structure to the next is critically important.

That's what we're going to focus on here in this section. You may already have a business that is putting out 200 transactions but you don't even know where you are in the different structures. This will give you the 3 steps that you need in order to build the kind of organizational structure that will serve you in the way you'll want your business to serve you.

Principal Agent Model

Let's start here with the Principal Agent Model. At the top of each of these diagrams we'll go through is you or me. This is where I was when Tia was my client care person here. Chris was my first Buyer Agent hire. That was the end of 2009, and it was the 3 of us. These 2 shaded squares here are additional buyer's agents.

In the 2010 time frame was when we had an average of 2 to 3 Buyer Agents at a given time. I was the principal agent. I was still out-producing everyone. I was outproducing Chris 2 to 1.

Team Leader Model

Then when we look at Team Leader, this is when I'm still involved in production. I'm managing the admin team, and I'm managing the sales team. I had a differentiator - I never had agents that did both sides. I always had Buyer Agents and Listing Partners. But I managed the sales team so didn't have a person in that green box there. I was also managing the admin team.

We had Tia working on buyer closings. I had a different person working on seller management. I had what we called a Client Care Coordinator at the time. She's now my Admin Services Manager.

2011 was when I hired my first Listing Specialist. Then I hired another Listing Specialist in 2012, and the admin team was taking on a little bit more form. In 2011 we hired a Listing Manager and an inside sales person, and we separated out the buyer closing and the listing client care. So that's the Team Leader Model.

Corporate Model

Then we look at the Corporate Model. This is where I am at currently. So Keeley is my Sales Manager, and Chari is my Operations Manager. Under Chari we have a seller client care person and a buyer client care person. We don't have an on-staff courier or even on-staff photographer anymore. The gray box on the bottom-left is a part-time person who helps out with operations.

The sales side, we've got 4 existing and 3 new Buyer Agents. So our buyer production this years, over 100 sides, is from 4 agents only. We've got a couple listing partners. One of our Buyer Agents was half-time. He's now transitioning to the listing side, plug-and-play style. And we've got a couple inside sales people. One is offshore, helping Keeley generate seller leads, and one is in our office on the buyer side.

So that's what we look like right now.