There are a lot of types of teams in the business world, and for real estate, community teams, rainmaker teams, CEO teams, and Navy Seal teams are the most common. Do you know which type of team you lead?
In this Team Building Podcast episode, our host, Jeff Cohn, dives deep into the top four types of teams and types of team members in the real estate business. Are you curious to know which team structure is most suitable for you? And, more importantly, how can you ensure a profitable business?
In a community team, you typically find three or four individuals who come together to share overhead expenses and form a small, cohesive unit; these are usually small family businesses. While this model may seem appealing at first glance, it lacks long-term sustainability.
Jeff himself has personal experience with this team model as he started his real estate journey alongside his mom and family. Together, they divided their tasks and embarked on their entrepreneurial adventure.
However, it's important to note that this team doesn't hold much value if any member decides to leave the business.
While the community team model can function without a designated CEO or leader and allow team members to contribute equally, it may lack the necessary structure and direction needed to excel in the competitive real estate industry.
In this team structure, the rainmaker takes center stage and handles the majority of the business and income-generating activities. They are the driving force behind the team's success, handling the biggest deals and usually securing the highest income as well.
The other people are there as support team members and handle non-critical or less important tasks, which can lead to an imbalance in workload and responsibilities. This lack of equal distribution usually results in a less sustainable team dynamic.
As a consequence of the work dynamic, the team may experience a higher turnover rate as others feel undervalued or lack opportunities for growth.
One of the main shortcomings of the rainmaker team model is its heavy dependence on one individual. If the rainmaker is absent or unavailable, it becomes challenging for the team to maintain its sales momentum. So it is not a very sustainable or saleable business in the long run.
In this business model, the person who otherwise would be the rainmaker, becomes the leader or CEO. They shift their focus from working in the business to working on it, overseeing the operations, and guiding the team toward success.
In the CEO team, the leader's presence is not essential for the business's operation and success; this basically means that the company becomes sustainable and can grow without having the CEO there. The leader's role becomes strategic and plans for the company's future.
The team can be sold easily and seems more appealing to potential buyers since they don’t need to spend time working in the business. If you aspire to implement this model and retire as a CEO, it's crucial to consider the position you need to hire to ensure a smooth transition. Identifying the right individual to take over your role requires careful consideration of their skills.
After reading The Millionaire Real Estate Agent, Jeff successfully applied this model, retiring from his sales position and transitioning into a team leadership role.
In this model, you have the freedom to choose your desired income level and charge clients accordingly for your expertise. By prospecting for leads 80% of the time and attending to those leads the remaining 20%, you can focus on generating high-quality leads and nurturing client relationships.
One of the key principles of the Navy Seal team model is delegation. You can distribute the rest of the deals and sales among your team members; they will do most of the work anyway, allowing them to take the lead and showcase their talents.
While you can decide what business to make and how to work with, the rest of your team keeps leveraging their skills and expertise, resulting in increased productivity and overall success.
Hybrid: CEO and Navy
In this model, you combine the roles of CEO and Navy in your real estate business. You basically take on 10 or 15 high-value clients per year, focusing on deals that are not only financially advantageous but also align with your strategic goals. By dedicating just a few hours a month to these select clients, you maintain your position as the leader of the company, prioritizing CEO tasks over your real estate agent responsibilities.
The hybrid CEO and Navy model allows you to strike a balance between working on real estate deals and fulfilling your overarching role as a visionary leader. This will maintain the company's sustainability and saleability while still making some room for you to close deals and make some extra revenue.
Start Building a Strategic Team for Your Business
Imagine yourself in the future, outside the confines of the job market, where you have successfully built a thriving real estate team and are reaping the rewards of your hard work and strategic decisions. This is the vision we want you to embrace when deciding what type of team you want to work on.
By leveraging your existing client database and expanding your real estate team, you can position yourself for exponential growth and profitability. Want to learn how? Contact Elite Real Estate and start making your dreams come true.