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Building a real estate team can be a game-changer for your business, but choosing the right size is just as important as having one in the first place. Too big, and you may struggle with inefficiencies and unnecessary overhead. Too small, and you may find yourself overwhelmed, unable to scale or leaving money on the table. It should all start by matching the size of your team with your work style, business goals and the lifestyle you want to create.
Most team leaders don’t start off wanting to grow a specific size or type of team. They feel overwhelmed and stressed with more opportunities than they can handle or the pressure of not being present when they’re with family or friends because they’re focused on work all of the time, which causes them stress or anxiety.
Believe it or not, there is a mathematical process to determine when and who to hire. Let’s lay it out. For every listing you have active, it should generate 1.5 buy-side closings.
Each listing, when marketed correctly, should generate six to eight leads per month. Every 25 leads generated in a 30-day period from all lead sources requires you to hire one additional buyer’s agent. So if you have 10 active listings, you should have three buyer’s agents on the team to hold them open, follow up with buyer leads and convert the opportunities into deals.
If you look at your numbers and see that you are not getting 1.5 buyer sides to each listing, then chances are you don’t have the time or energy to follow up with the B and C leads, so you put them on drip campaigns or auto hot sheets and hope they call and turn themselves in. Hoping is not a strategy.
Understanding the different types of team structures
There is no right or wrong in creating a real estate team. Some are good as lone entrepreneurs, whereas others thrive well with an organizational structure and specific roles with different levels of leadership.
At the most basic level, there are small teams, where the team leader still acts as an active participant with clients. These teams are mostly composed of a team leader, a buyer’s agent and an administrative assistant or transaction coordinator. This arrangement works best for agents who enjoy interacting directly with clients but require support for efficiency.
Mid-sized teams will take delegation further by including listing partners, inside sales agents and dedicated marketing staff. More volume can then be accommodated while maintaining healthy client relationships.
Larger and mega teams operate more like corporations, with a CEO or team leader overseeing multiple departments. A VP of sales might manage a group of buyer’s agents, while a chief operations officer ensures transactions and marketing efforts run smoothly. This structure is ideal for those who prefer leading rather than working directly with clients.
Matching your work style to your team size
Your work approach is the greatest determining factor for the size of your team. If you enjoy immediate client contact and the high-speed environment of closing deals, having a small team may be your best option. But if you are more concerned with leadership, business development and creating a long-term brand, you need a large team with distinct roles and delegation.
One of the key considerations is control. Solo agents and small team leaders maintain full control over every aspect of the business. They decide marketing strategies, client interactions and how deals are handled.
With a larger team, control shifts into leadership and management. The team leader is no longer the primary point of contact for every client, but instead, they are responsible for mentoring agents, tracking performance and ensuring systems are in place.
Lifestyle is another reason. Some agents want to expand their business to the maximum level, while others prefer a well-balanced workload that allows time for personal issues. A lean, high-efficiency team will give you very strong earnings without the need to oversee a huge team. But if you want to step away from production and focus on long-term growth, then a structured team with clear leadership roles will be the perfect fit.
Key considerations when choosing your team size
Regardless of the size of your team, certain elements need to be in place to ensure profitability and smooth operations.
Clearly defined roles are important. Whether you have two people or 20, everyone needs to know what they are responsible for. The job of the team leader, especially in larger teams, is to replace themselves in day-to-day operations by hiring the right people for each position. This means gradually shifting tasks like buyer consultations, listing presentations and lead generation to specialists as the team grows.
Compensation design is essential to profitability and drive. Small teams often have simple commission splits, whereas larger teams need a well-designed pay system that includes salaries, bonuses and production incentives. It’s an art to keep agents and staff motivated without compromising profitability, but a carefully designed commission program will have every team member impacting the bottom line.
In addition, lead generation and conversion efficiency must also be considered. Most agents believe they require more leads, when, in actuality, they require better conversions. A small team can be highly effective with a strong follow-up system, but bigger teams require a dynamic lead distribution strategy so they do not get left out of opportunities.
Technology and systems help streamline operations at any size. A solo agent may only need a CRM and a transaction coordinator, while a large team benefits from automation tools, AI-driven lead scoring and data tracking to maximize performance. The right tools keep your team focused on income-producing activities rather than administrative tasks.
Planning for growth — or staying lean
One of the mistakes that most real estate agents make is growing too fast without thinking whether they actually need a bigger team. Just because you can hire more agents does not mean you should. A well-organized small team can be as profitable, if not more so, than a large team weighed down by inefficiencies.
Conversely, if your intention is to step back from production and create a business that operates independently, you must prepare for leadership succession. Succession planning will keep your team strong even when you step back, and it also provides room for agents in your team to develop into leadership positions.
Whether you want a small, agile team or a full-scale operation, your business should support your lifestyle, not the other way around. Choosing the right-sized team for your work style is about more than just numbers — it’s about creating a business that works for you.
Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.
