How do you know when you have enough leads to hire an agent?
This is the question that every team owner or soon to be team owner asks themselves. Most people hire too soon or hire the wrong Position.
The question: Do I have enough leads to hire is a perfectly normal question. The problem is most Team Leaders add the word “an agent” to the end of that sentence. Go back and read ‘WHO SHOULD I HIRE FIRST?’ if you haven’t already. This will help you answer that very important question. Then you can ask your self the next question. Do I have enough leads to hire? So once you read that article, you’ll know you should hire 2 admin and a licensed showing assistant before you hire an agent. Most people don’t do it this way, but you’ve got to ask yourself, do I want to run a team or do I want to make money. With a good TC, Listing Coordinator & Showing Assistant you can close 125 transactions in a year and not work over 40hrs/week with vacations. Doing the math that’s $1,250,000 in GCI and if you’re like many teams and you charge a $300 admin fee that’s an additional $37,000 so you’re looking at $1,287,000 in Gross Income.
You pay all 3 of your admin 40k, so that’s 120k in wages, and you pay 21k (if you’re at KW) to the brokerage, so your overhead is 141k. Let’s just say you spend 400k/year on your advertising and we’ll just say 25k in misc expenses. So your total expenses are 566k. This means your Net Income would be $721,000. That’s a lot of money, and all without hiring a buyer’s agent. Just saying… don’t do what most people do and hire a buyers agent right off the bat.
So the now that you know who you’re supposed to hire 1st, you should be doing probably 15-20 transactions before you hire a TC. Then hire your boss. Hire some one who can manage you and your transactions. Hire someone amazing that loves to be behind the seems. Then let them handle everything other than going out there and getting the business, going on listing appointments and showing homes. Now you have an amazing assistant you should be able to get to 40-50 transactions still keeping it under 40hrs/week. But now you should be looking at hiring a dedicated listing coordinator. They need to do everything that has to do with a listing. You are only going on a listing appointment and then seeing the client at closing. Your listing coordinator does everything else. Then as you increase your business above 70 transactions, you hire a showing assistant. Now you only see your buyers at the 1st meeting and at closing. Showings assistant does everything else.
You are focused entirely on 3 things.
- Lead Generation
- Lead Conversion
- Closing the Transaction
Once your’e at this point and you close 115-125 transactions you look for a buyer’s agent. That’s the way I’d do it if I could start over again. Your buyer agent would still utilize the showings assistant. (Let’s assume your 50% buyers 50% sellers). Your income will drop by 25% but you’ll gain 50% of your time back, which then will give you the ability to generate more leads.