Real Estate June 5, 2024

To TEAM or Not to TEAM?!?!

The Pros and Cons of Forming or Joining a Real Estate Team


Hi again, Mike Ferrante here with Century 21 HomeStar and the 21 Mike Team. Today, I want to dive into a topic that I frequently get questions about: real estate teams. Specifically, when is the right time to start a team, what type of team should you form, and what are the advantages and disadvantages of joining a team?

Whether you’re considering starting your own team or thinking about joining one, there are several factors to weigh. In this blog post, I’ll share my insights on the pros and cons of forming or joining a team.

Understanding the Importance of a Team

Before diving into the pros and cons, it’s crucial to understand the concept of a team in real estate. A real estate team can enhance your business operations by pooling resources, providing support, and increasing accountability. However, it’s not always the right fit for everyone.

Pros of Joining or Starting a Real Estate Team

Shared Resources:

  • Staff: Teams often have administrative staff to handle paperwork, marketing, and transaction coordination.
  • Marketing Systems and Software: Teams usually have access to advanced marketing tools and systems that an individual agent might not afford.
  • Brand: Joining a well-known team can provide instant credibility and trust in the marketplace.
  • Pooling Volume: Teams can combine their sales volume, often leading to higher rankings and more significant recognition.


  • Teams provide a structured environment where agents are held accountable for their goals and performance. This can be particularly beneficial for newer agents or those who struggle with self-discipline.


  • Teams offer various support systems, including training, mentoring, and coaching. This support can be invaluable, especially for agents who are just starting.

Increased Income Potential:

  • By pooling resources and leveraging the team’s marketing and administrative support, agents can focus more on selling, potentially leading to increased income.


  • Teams allow for role specialization, where agents can focus on what they do best, whether it’s working with buyers, sellers, or focusing on specific niches.

Cons of Joining or Starting a Real Estate Team

Less Control:

  • Joining a team means adhering to the team’s rules, systems, and processes, which can limit your independence.
  • Your personal brand may take a backseat to the team’s brand.

Split Commissions:

  • Being part of a team typically means sharing your commissions. This can be a drawback if you’re used to keeping 100% of your earnings.

Potential for Internal Competition:

  • Within a team, there might be competition for leads and opportunities. Ensuring that the team leader fairly distributes leads is crucial.

Dependence on the Team:

  • If the team leader leaves or disbands the team, it could leave members scrambling to rebuild their business.

Types of Real Estate Teams

When considering forming or joining a team, it’s essential to understand the different types of teams available:

1. Partnership or Family Teams:

  • These are typically small teams formed by family members or close partners who share duties and responsibilities.
  • Pros: Close-knit, high trust levels.
  • Cons: Limited growth potential, potential for family disputes.

2. Rainmaker or Hero Model:

  • A high-producing agent (the rainmaker) generates the majority of the leads and business, distributing opportunities to team members.
  • Pros: Consistent lead flow, strong leadership.
  • Cons: Dependence on the rainmaker, potential for uneven distribution of leads.

3. Standard Teams:

  • Structured more like a business, with various roles including buyer agents, listing agents, transaction coordinators, marketing specialists, and sometimes even ISA (Inside Sales Associates).
  • Pros: High level of support and resources, structured environment.
  • Cons: Higher overhead, more complex management.

Roles within a Real Estate Team

Here are some of the key roles you might find on a well-structured real estate team:

  • Team Leader: Oversees the team’s operations, strategy, and growth.
  • Buyer Agents: Specialize in working with buyers.
  • Listing Agents: Focus on securing and selling listings.
  • Transaction Coordinators: Handle the administrative aspects of transactions.
  • Virtual Assistants:  Handle behind the scenes tasks.
  • Marketing Specialists: Manage the team’s marketing efforts, including social media, advertising, and branding.
  • ISA (Inside Sales Associates): Focus on generating leads and setting appointments.


Deciding whether to start or join a real estate team is a significant decision that can impact your career trajectory. If you’re considering starting a team, think about what value you can provide and whether you’re ready to support other agents. If you’re considering joining a team, evaluate what you need to succeed and whether the team can meet those needs.

If you have any questions or want to discuss this further, feel free to reach out to me at I’m always here to help you make the best decision for your real estate career. Happy selling!


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