Recruiting & Interviewing
There's a saying...Be slow to hire and quick to fire, and I couldn't agree more in terms of building your team. If you hire the wrong agents (which usually happens because you hired them quickly) you're going to be stuck with an agent that can potentially bring down the morale of your team or worse (the example in the video above.
There are multiple ways to find agents to fill your team. I have heard countless team leaders share their techniques. Here's a short list of the most successful styles I've heard of...
• Agents you do business with. This is the most popular form of recruiting for multiple reasons. First of all, you don't have to go in search for an agent that comes into your life by doing a deal with you and when you're in the deal with them, you get a preview on how they perform as an agent. That being the case, DON'T recruit them until the deal is done. Sometimes we discover an agent's bad attitude one week before the closing so wait until the deal is closed before you invite them to join your team.
Many Realtors aren't happy with the agency they're with. You can use this to your advantage by asking them how they enjoy the agency they're with. If they're happy, no need to press them on joining you but if they aren't happy, treat them to lunch and move them over to your team.
Expand your reach by asking the agents who are already on your team to share with you the agents they enjoyed working with in the past. You can do this by asking them about the deals they have closed and how the other agent was to work with. You can also offer an incentive to the agents on your team for every agent they invite into the team, they get a bonus from that new agent's first closing.
• Rookies graduating from licensing school. You can ask to teach a class in order to get in front of the students. This will require developing a relationship with the people who manage the school which in itself can be a big undertaking but once you're in, use it to your advantage and get in front of those students.
• Friends and family. If someone you know shows potential as an entrepreneur, you might be exactly what they need. Know this, most people are not cut out for this work so be discerning when selling the real estate life to people you know. You don't want to be part of this very serious career decision simply because it benefits your needs. If you do, you could contribute to them wasting a whole year discovering real estate just isn't their bag and in return, wasting your time and energy trying to convince them otherwise.
• Networking events where Realtors are en masse. Realtors are invited to events often and since you're a Realtor, these events are where to shop for potential team members. Many solo agents in their first year are in need of mentoring and leads. When you discover them, focus on fostering the relationship instead of selling yourself to them immediately. Be selective. You want to attract agents who will make you money, not the needy ones who are struggling.
• Recruiting In-House. This, in my opinion, is the laziest way to recruit agents as you aren't putting yourself out there, stepping outside of your comfort zone and approaching people to join your team. You're relying on the brokerage to send you an agent they don't have the time or energy to train. It's also not a cost effective strategy as you probably won't have the same commission split benefits (most brokerages will take extra since they found the agent). I only recommend this technique if you're new to team leading and need to learn the training process for new agents. It's your test run but ultimately, not a money-maker.
It’s a more effective use of your time and energy to turn down agents that aren’t the right fit and go in search of the ideal team members. There will be plenty of agents that may not be ideal for your team so identifying this and not recruiting them will save you the stress of carrying a struggling agent.
I recommend letting all agents know during the interview that they have three months to close the first transaction in order to stay on the team. This timeframe gives them a goal in order to produce as early as possible and also takes the sting out of letting them go if they are not a producing agent. People like rules and boundaries so give them this rule up front so they know what they're dealing with.
There are agencies that also put a strict rule that you close at least $6M in sales by the end of the year. That's an agency rule. Your team rule is to close on the sale of at least one home within the first two months.
People will get away with whatever they can so if you don't have a policy in how many deals to close in a timeframe, they'll simply show up whenever they want without a sense of order or motivator to get them to actually work.
That is NOT the environment you want for your team. They deserve the nudge that tells them "I have faith you can do this in this timeframe" so that they'll go out there and perform. This is what leadership look like. Establish a standard early and hold them to it.
The document below is the worksheet to use whenever you are interviewing an agent...