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We’ve all seen it play out in our office…
2 busy agents look at each other, struggling to manage their hectic schedules and out-of-control budgets and decide to team up.
Why does this often end a few short years (or months) later?
Here are 5 reasons why “teaming-up” often ends in a business divorce:
#1. Similarities/differences between teammate
#2. Income/expense sharing
#3. Differences in values/goals & unexpressed expectations
#4. Loss of identity
#5. Lack of systems & planning…
Let’s set the stage here with an example:
Let’s say that Bob (a 65-year-old agent with 30 years of experience) and Amanda (a 30-year-old agent with 6 years of experience) are both top producers in their company.
Amanda and Bob likely both spend a lot of time at the office and run into each other at showings, maybe end up competing with each other for the odd listing, and even cover for each other during vacations… so they figure, “you know what, let’s team up! There’s already so much overlap and we’re both sooo busy!”
REASON #1: Similarities/differences between teammates
Bob and Amanda are likely going to have very different client databases and lifestyles.
Amanda will often be working with young families that have to see homes on evenings and on weekends. These young families often need to see more properties and have smaller budgets.
Bob will often work with more retirees who have the availability to view homes during the week before 5. They also often have a bigger budget and a better idea of exactly what they want and therefore view fewer homes before buying.
It’d be really easy for Amanda to get upset with Bob when she is the one working all the evenings and weekends. But Bob may very well produce more commission in fewer hours worked just based on the demographics of their clientele.
REASON #2: Income/expenses sharing
Often, teams/partnerships automatically assume they should split their income and expenses equally. It’s only fair, right?
Except, everyone has a different opinion on what’s an “investment” or a “waste of money”.
Similarly, one teammate starts keeping track of the other’s number of hours worked (that they’ve observed).
Amanda will likely have many clients ask her to sponsor their kids soccer teams, she’ll want to invest in SEO and sponsored ads to help with client loyalty and lead generation, where Bob may see these as a waste of money or “charity cases” and urges for money to be saved in a “rainy day fund” instead.
When is the right time to hire admin staff? Should they be local or virtual? Do we prioritize investing in future growth or maximizing the return on the current business?
REASON #3: Differences in values/goals & unexpressed expectations
Often, one teammate has a goal of a healthy work/life balance, and the other has desires to set records in sales. Unexpressed expectations or expected standards that were not communicated before a partnership are likely to be contributing factors to a downfall.
This can create a lot of head-butting and finger-pointing.
Bob may be highly focused on efficiency, while Amanda may be more focused on presenting a client with as many options as possible to “prevent buyer’s remorse”. There’s merit to both strategies, but there are side effects to each also.
If Bob has to watch his grandkids a few times per week, has a bi-weekly board meeting and can’t miss his slow-pitch league without discussing Amanda’s son’s day care schedule, T-ball calendar, or girl’s night plans but both were assuming that the other would cover their “life appointments” – both may wonder why they even have a teammate.
REASON #4: Loss of individuality
RECO states that you have to advertise your trade name, title, and the brokerage name/logo. You and your partner want to market your new team, BUT, you also want to work on building your personal book of business… you start to wonder, ” what if my name gets lost in the mix”? Now I have to advertise “The Bob & Amanda Team”, Amanda Smith, Real Estate Agent, Anytown Realty Inc. Should I have my own Facebook business page, Google profile AND website in addition to the team and brokerage website pages and profiles? Is this confusing to the public? Am I losing my personality? Is the emphasis on the team instead of me?
REASON #5: Lack of systems & planning
Two busy people partnering up without systems or planning doesn’t create a well-oiled machine; it creates a tornado of disorder fueled by coffee, commission and competitiveness. Without a proper database (CRM), administrative processes, plan on coverage, budgets, etc. Bob and Amanda just may say, “to heck with it! It was easier just doing this by myself,” and go their separate ways.
Here’s what’s interesting, though: if Bob and Amanda take the time to discuss these things in advance, play out each potential scenario by example with written processes, agree in writing, and put systems in place… all these reasons teams fail could very well be the reasons this one doesn’t.
Often, a good marriage is a story of 2 opposites attracting in a complementary way. In business, this partnership may grant both Bob and Amanda the ability to cover for each other when needed (so that Bob can get his Tuesday morning golf game in, and Amanda can still make those Saturday afternoon kids’ birthday parties) when those are their typical working hours.
If the opposite were the case, and more often it is, when two similar in age (or life stage) agents join up as a team, they end up not being able to help each other with coverage because their schedules are too similar.
Additionally, the blend of practical advice and wisdom learned through the experience of Bob’s long career, coupled with Amanda’s youthfulness, energy and fresh perspective on tech and marketing, could very well give their clients some of the most well-rounded advice out there!
The bottom line? Teaming up can be an incredible way to grow your business, share the load, and serve your clients better – BUT, only if it’s built on intentional planning, clear communication, and mutual respect.
Before you jump into a partnership, take the time to ask the tough questions, map out the “what if” scenarios, and put your agreements in writing. A strong foundation doesn’t just prevent cracks – it gives you the structure to build something bigger and better than you could alone.
Because in real estate, just like in life, it’s not enough to find someone who works with you. You need someone who works well with you. That’s the difference between a short-lived business romance and a long-term, thriving team.
Thinking about starting a partnership or team? Is your current partnership or team struggling with any pain points listed above?
Feel free to reach out! …I would be happy to discuss and/or share my experiences with you!
Cody Kraus
Broker | Owner
c: 519.322.7105
e: cody.kraus@century21.ca
