Team vs. Rainmaker: Which Real Estate Business Model Do You Really Want?

by Steve Shull

I have an uncomfortable question for you. 

Presumably you’re thinking about starting a team, or you already have one. So let me ask you this…

Why not just use the rainmaker business model instead?

In the rainmaker model, it’s just you—the star salesperson—with a support staff and maybe one or two agents who take the leads you’re too busy to serve.

I’ve coached agents in this model who consistently close over $100M a year. Some have even gone over $500M a year. It’s a very streamlined way to do business.

The one downside is that you HAVE to be able to save money.

That’s the key to your eventual exit: building a retirement account so you can stop working at a reasonable age and live the way you want.

Because there’s no succession plan—you’re not training anyone to take over your business, and you’re not building something that’s sellable. Your last deal will be your last paycheck.

So if you go this route, it requires tremendous financial planning and discipline.

A true team is different—it’s about scaling up, having a succession plan, and building something that has lasting value beyond you. 

These are two completely different structures and end goals. 

The rainmaker model is about getting out as much as you can  before you retire. The team model is about building something that keeps going indefinitely

If you actually want to commit to the team model, your core beliefs need to include…

1. You can’t do everything.
2. Just because you can do it better doesn’t mean you should do it.
3. It’s not about you.
4. Nothing of significance can be achieved alone.
5. If you want to grow, you must let go.

You also have to get the math right up front.

I see way too many teams hiring people without understanding the financial dynamics…and that’s a big red flag. 

For the team to work, every additional agent has to generate a financial return. It’s not free to add a team member—you’re investing real time and money into them. You need to see a positive return on that investment, or it’s not an investment worth making.

What’s the minimum amount you need to make on each team agent to make this hire worthwhile financially?

Only you can decide for your team—you have to do the math for your organization.

What’s your average fee? What’s your split? What are your expenses? What does it take to earn $100k net from a team agent?

That’s the minimum standard I suggest when I coach team leaders—$100k net per agent.

That’s the equivalent of you personally doing $5M in closed sales volume. When you do the math, you’ll see that through a team agent, reaching this number will take at least $15 - 20M, depending on the split.

Which is a better bet? Is it easier for you to increase your own production by $5M…or to train and support someone else to produce $15 - 20M?

Don’t make the mistake of thinking you can simply hire agents who produce at this level right off the bat.

You may get lucky once in a while and hire someone who can do this on their own, but that’s the exception, not the rule.

For the most part, you are NOT going to get that level of production out of your team agents without providing them with a strong system, real guidance, and accountability.

So, what kind of effort and investment will it take for you to recruit and develop $20M producers on a regular basis?

If you can’t do that—or don’t want to—I’m telling you point-blank…DON’T start a team.

Bottom line: if you’re thinking of starting a team, you better know what you’re signing up for.

It is NOT the easiest way to make a lot of money in this business.

It is NOT a simple matter of hiring people and collecting splits from them.

The only real reason to start a team is to build a business that OUTLASTS you…and doing so requires a major investment in developing and supporting your people.

So ask yourself…is that what you want to do?