Team Splits, what's fair?

[coastal]

As a relatively new small team leader I've got a few questions for you seasoned team leaders.

At the moment I've got three agents working on my team.
I do all of the promotion including web, newspaper and postcards.
I give my team 95% of all of their leads both sales and listings.

Basically they sit around and wait for me to send them either buyers or sellers.

How much is fair (%) to give them for selling a home?

If they take the listing and sell it themselves how much should they get (%)

If they take the listing and another team member sells it what % should they get?

If an outside agent sells one of these listings that one of my agents listed how much should my listing agent make? (%)

Remember without me giving them buyers and sellers they would have very few sales or listings.

I'm basically acting as a broker but I only have an agent license and good marketing skills. I've got another three years as an agent before I can legally be a broker in my state.

[kensmith]

It depends on how much of the filtering you are doing. If you are handing them appointments, that is ready to act buyers and sellers, then 35% is very common among established teams. If they have filter out the garbage and deal with all of the follow up until they turn into a real prospect then 50% is fairly common.

Be careful, if you let the agents do all the follow up and filtering you will be wasting a lot of quality leads due to the agents not being good at staying on top of the long term prospects. Most good buyers agents suck at follow up, but are great at converting a ready and willing buyer. Two different skill sets are required.

[satxproperty]

Are they working under your phone number and name on the signs? (i.e. Call the Michaal Brown Team... ?) Or do they branch off away from you when you give them the lead and work solo?

[Web Agent]

Do you pay them any base salary or straight commission?

[metaylor9]

When I was on a team, we did things a little differently. We worked on an "override" system, everybody pooled the money for the month and the more $ you closed that month the higher the % you got to take out.

[coastal]

No salary and yes they are working under my team name. "The Brown & West Team" I'm also doing a good deal of the filtering for them.

[OCTeam]

Also, consider that you need to make the split attractive enough so that they stay with your team. Otherwise you train them, they learn what and how to work the leads and they leave to be one their own based on the fact the split is more attractive working by themselves. We have found the best team member is one who wants to do 6-8 deals a year, we do the marketing and lead generation. We make no difference to the split whether buyer or seller. Very important to have a written agreement that addresses all possible scenerios including agreement about when and after they leave the team. If, for example, they leave and then do business with any of your clients that they think they can take with them, they pay you a 90% referral fee.

Just don't lose sight that you are successful because of how you do business. For many, having a team can distract from what they may do best.. converting leads and closing deals. Many think a team is the way to riches when in fact it may be the way to downfall!

[OCTeam]

delete duplicate

[coastal]

OC,

Without a team I would loose my mind! I don't know anyone who can handle 20 - 40 leads a day and take good care of all of them.
What, you want to take a day or two off each week? Have fun on Monday catching up and calling back 60 - 120 leads.

It's just too much for me to do all by myself.

My team this year consists of me (marketing and some sales)
Salesperson and listing agent
Salesperson 2
Salesperson 3
Tech Support/Video/Photo guy.
Office Manager

My only difficulty right now is how to compensate our team member who is taking our new listings. Obviously taking new listings is a lot of work, maintaining the listing is also a lot of work, If the house does not sell nobody makes any money. If it does sell how should the listing agent be compensated?

If the listing agent were finding the listings themselves it would be a different story but as it is I get the leads and then say "Hey Listing agent, please call so and so at this phone number and get the listing) Right now I've got around 30 team listings and all but one of them came from my leads.

Our local reputation is good enough that the listing agent does not have to sell themselves to our potential customers. All I need to do is send someone who can walk them through a listing agreement and get them to sign it.

[OCTeam]

Congrats to you, Coastal, on your success. Your problem is one many would like to have!