Why do top teams pay a Buyer's Agent the same for a buyer web lead as a seller from your listing who needs to buy a new home?
Are you overpaying your Buyer's Agent? See below.
Watch Video Now - Short 2 Minutes
Subscribe to our YouTube videos HERE.
Are You Overpaying Your Buyer's Agent?
I have seen almost ALL top teams with a crazy compensation model which makes no sense to me. Let's say they are paying Buyer's Agent on a 50/50 split. If a Buyer's Agent makes 200 dials on the phone over the course of 9 months to close a single buyer web lead, they are paid 50%.
If a Buyer's Agent makes close to 0 dials on phone and is given a Move Up Buyer from your team's Seller/Listing who is ready to go, and likely a higher priced buyer, they are paid 50%.
Does this make sense to you? If not, then why is almost everyone in the industry running their business with that model? Crazy...
Client Case Studies - Quick Tips
Here are some quick tips based on recent client calls or meetings:
· Allowing Agent to do Listings at 50%: The worst possible team model is where you allow the Buyer's Agent to also do listings, and you pay them the same 50% split. This is not so much a team, it is closer to a brokerage. Remember, a brokerage is a terrible business to be in - usually. A team is better. A Billion Dollar Agent is the best.
· Slow Sally: A Slow Sally is someone who does not get much of anything done. This applies to probably 50% of real estate agents or more. For example, if you analyze all of the agents in a typical Keller Williams Market Center, you will find there are 50 or more agents who SAY they work full-time and they only close 5 or fewer deals per year. The numbers do not add up. They are barely working 5 hours a week to close 5 deals per year. This is a Slow Sally.
Sometimes, a team leader will hire a Slow Sally as a Buyer's Agent. They get snowed during the interview with the Buyer's Agent because the agent may appear to be outgoing, friendly, great with people, interviews well, and more. But, they simply do not work. They spend their working hours on Facebook, Twitter, phone with family and friends, continual life crises, and chatting with the other Slow Sally's in the office. Do you have any Slow Sally on your team or in your brokerage?
Interestingly, in the Keller Williams model, they actually want to have 25-50% of the Market Center be a bunch of Slow Sallies. This creates the positive warm 'culture' which then attracts other agents who actually produce.
Like this blog? Do us a favor and “like” us on Facebook. Would you like help identifying ways you can improve your Organization and Efficiency? Reply to this blog and we can get started. For more information on how Best Agent Business can help you streamline your marketing, time management and many other aspects of your Real Estate Business, subscribe to our videos, visit us at www.bestagentbusiness.com, call (202) 297-2393, or e-mail us at: firstname.lastname@example.org.