Why would an agent want to pay team splits?
Maybe you’ve been considering joining a team, maybe even joining my team, but you’re worried about those dirty dreaded splits. You’re worried about having to give up some of your hard-earned moolah to a greedy team leader like me who’s just going to take all that money and leave you broke and destitute in a corner with a homeless guy somewhere. Well, I don’t want you to worry about that. So, in this post, I want to talk about team splits, specifically ours. I’m going to discuss a real example of an agent who moved over to the team recently and how that’s working out for them. I’m going to walk through the numbers and talk through how our splits work and why it might make some sense for you to join a team like mine that’s going to take a split of your commissions.
Why join a team?
Everybody sort of gets the basic idea that the only reason you’d ever join a team is if you felt like you’d do better, you’d have more fun, and your life would be a little easier. You’d make more money, right? That’s obvious. You’re going to join a team so you’ll sell more houses because those team leaders are pretty good at generating business and creating systems to follow through on that business. You’ll make more money even if the team leader takes their cut, right?
I think everyone kind of gets that, but there’s still some disconnect because as I’m out there in the streets, talking to agents, there’s still this thing where I’ll look up an agent and they’ve sold three houses in the last year, but they’re asking me what my splits are. It’s like, something’s not clicking. They either don’t believe I can help them sell more houses or that some other team leader can help them sell more houses.
I want to give you a real, specific example of how being on our team changed this person’s life so you can see what this looks like. And if you have any questions about this while you’re reading, feel free to reach out, you can shoot over some questions. If you want to talk to this person, call them up, and verify all this, let me know. I’m happy to put you two in touch. They’ll be happy to share their experience.
A Life Changing Team
Before joining our team, this person was making an income from real estate that averaged out to about $24,000 a year, which is a tough way to make a living, a tough way to feed a family, and not an awesome experience. That’s no fun as an agent. This person had other jobs to pay the bills and all that other stuff like that. It’s hard to make a living on twenty-four grand a year, right? So, that’s up until joining the team. Now since joining our team, the total commissions are about $213,000. And of that, I’m going to take $110,000. Now, our splits vary based on where the lead came from and if the agent provides the lead themselves. We don’t take as much if they went out and sourced that deal, and our splits are usually between 55% and 65%, depending on what kind of lead it is.
In this specific example, we actually took more overall than the agent did. Now you can be frustrated about that or unhappy about it or whatever, but here’s the reality. This agent made $102,000 in seven months. And if you annualize that, that works out to $175,000 a year, and that’s eight times the amount of money that was being made before joining the team. That’s incredible! Not only is this person making far, far more money, but transaction coordinating is included, everyone on our team gets an assistant, somebody who can help with all the administrative, not just transaction coordinating, but any administrative work you need be it setting up showings, helping you follow up with emails, getting to be a part of our team culture, going to our team events, our happy hours, getting access to me as a coach to help you scale up all of your operations. We’re a hundred percent convinced we can help everybody double their repeat and referral business. And we want to help you grow your own business because, yes, we want to provide leads. We want to absolutely help, have you help our beloved Gluch Group family, our clients that come and want to work with us. We also want to help you spin up your own business because you’re going to make more on those.
But all of that aside, just plain and simple, not only is your life better, simpler, more fun, but you’re making a lot more money, right? Be excited to cash those checks down at the bank, change your family’s life, pay those bills no problem, maybe go get yourself a new car, all of that stuff. That’s super exciting. So, really what matters to you is the net. What’s going to happen to your life when you, whether it’s my team or any other good team, when you join that team, what’s going to happen? Is your life going to stay the same? No, of course not. It’s going to get a lot better.
This person is a really good agent
Now here’s the thing. This person is awesome. This is a really good agent. So, does everyone get this track record? No, everyone doesn’t look like this, but I will tell you everyone who wants it can look like this. No problem. This is very doable. It’s just a matter of putting in the work, following what I say to do, what the team allows you to do, and going for it.
The splits help run the business
And another thing I’ll point out, one other thing too. We don’t, I don’t just get to take the $110,000 home. That money also helps cover offices, staff, software systems, etc. So, when it all boils down, we typically, the team, makes around 20% of that in take home of our revenue. We made about 20% of that $110, 000.
Being on a team is life changing
Being on a team will absolutely change your life. It’s not for everybody. Some people should go start teams, right? And some of these people that come on my team will eventually go start their own team. And that’s great. I’m happy about that. This is not for everybody, but I’m super proud of what we’ve been able to accomplish on our team and the fact that we can help someone move the needle this much is really, really exciting to me.
My suggestion to you would be to quit asking what the splits are and start asking, “What am I going to net?” and “What am I going to take home?” And even a better question than that is, “What can I contribute?” This person here is a contributing person to our team. They show up every day, excited, happy, and with a great attitude. “What can I do? Who can I help today?” Instead of “What can I get? Who can I help?” And that question right there, that little switch. That’s the secret. That’s the magic. So, I hope this helps you get your mind a little bit around how splits work. I’m happy to answer any questions you have. Just reach out to me. If you’d love to chat, I would love to chat with you.