Ever thought about teaming up with another agent to expand your business? Forming a partnership may be your next power move, but, like any great venture, it requires some serious thought. There are several important factors you should take into account to ensure that collaboration is successful and mutually beneficial. I will be the first to admit that forming a partnership it is not easy. I consider the fact that it’s worked out for my partner and I this long, a real victory.
When Jonathan and I started our partnership, we’d worked together on a team previously. So, when we started The Heard Newman Team, we weren’t going in blind. But if I were thinking about starting a partnership now, these would be the things that I would be taking into consideration before I establish the partnership.
Here are key considerations:
1. Complementary Skills and Strengths
- Strengths and Weaknesses: Do their skill sets complement each other? One agent might excel in negotiation while the other may be more marketing-savvy. Complementary strengths help balance the workload and increase efficiency.
- Specializations: If one focuses on luxury homes and the other on first-time homebuyers, they should assess whether these specializations align with their overall business goals.
2. Shared Vision and Goals
- Long-Term Goals: Both agents should be aligned on the direction of their partnership. Are they looking to scale quickly or maintain a more boutique operation?
- Values and Work Ethic: Differences in core values or commitment levels can create tension, so it’s crucial to ensure both partners share similar values and are equally invested in success.
3. Financial Arrangements
- Revenue Splits: Agree on how commissions and revenue will be split. This includes deals they both work on and deals they bring in individually.
- Expenses: Partnerships often involve shared costs (marketing, office space, CRM tools). Discuss how these will be managed and split to avoid misunderstandings.
4. Legal Structure and Contracts
- Partnership Agreement: A formal partnership agreement is essential to clearly define responsibilities, decision-making processes, and conflict resolution strategies.
- Legal and Financial Liabilities: Decide how liabilities will be managed. Both parties should be aware of any legal risks, including debts or lawsuits that could affect the business.
5. Roles and Responsibilities
- Division of Labor: Clarify who is responsible for what. For example, one agent may focus on client acquisition, while the other handles transaction coordination or marketing.
- Leadership Roles: Who will be the primary decision-maker, or will it be an equal partnership? Defining leadership early on can prevent power struggles.
6. Branding and Marketing
- Unified Brand: Decide whether you will operate under one brand or maintain individual branding. This could impact your marketing strategy and client-facing image.
- Client Management: How will clients be assigned or shared? Will they be handled as joint clients, or will each partner retain their own clients separately?
7. Communication and Conflict Resolution
- Communication Styles: Partners need to establish open lines of communication and preferred methods (e.g., weekly check-ins, email, etc.) to ensure smooth operation.
- Conflict Resolution: Decide how disagreements will be handled. Setting up a conflict resolution framework in advance helps avoid future disputes.
8. Exit Strategy
- Dissolution Plan: If the partnership doesn’t work out, having an agreed-upon exit strategy is vital. This might include how assets or leads will be divided and what the process will look like.
9. Work-Life Balance
- Flexibility and Availability: Do both agents have similar expectations around work hours, vacations, and family obligations? If one agent is highly available while the other prioritizes work-life balance, it could cause friction.
10. Reputation and Network
- Industry Reputation: Both partners should have a strong professional reputation. Any past issues with ethics or professionalism could affect the business.
- Sphere of Influence: Agents should assess the strength of their respective networks. Combining complementary networks can create more opportunities for business growth.
A well-thought-out partnership could be the secret to your success. So, grab a coffee (or maybe something stronger), sit down with your potential partner, and work through these considerations. The right partnership could transform your career, bringing shared responsibilities, expanded networks, and massive opportunities.
Ready form a partnership, but your needing MORE? Join me in my program, The Elevated Agent Collective, a membership experience designed to give you the strategies and systems, mindset support and energetic up-levels my team and I have personally used to go from zero to $150 MILLION worth of listings in our pipeline.
Ready to finally start seeing real results in your real estate business, but you have a few questions? Grab a spot on my calendar for a 15 minute clarity call and let’s chat!
