Onboarding new agents into your brokerage is one of the most challenging aspects of owning a real estate company. Providing resources to those agents is critical to the long term success of your business which hinges on the success of your agents. A mentor program is critical to the success of new agents but who are the right people to mentor them, and how should your mentor program be structured?
Agents are busy people, running around showing homes, visiting open houses and staying connected with what’s going on in their market. So how do you incentivize them to spend time with new agents teaching them their craft? Profit sharing is typically how a mentor-mentee relationship is structured. The mentor provides a certain amount of their time and in exchange gets a percentage of each commission from the mentee’s closed deals. While this can work well if the new agent is motivated and begins to see some success, all too often, new agents fall short of goals and the mentor is left resentful that they spent a ton of time with someone who didn’t produce much. So I’d like to suggest that brokers shift this model slightly to give the mentor a percentage of their mentee’s deals, and a percentage of all office closed deals, basically making them a small partner in the business. Why you ask? Well, it’s a guaranteed income stream for that agent. It doesn’t have to be a huge amount. Maybe it’s $150 per deal. Maybe it’s only $50. It’s for you to decide based on your revenue. But it keeps money coming into the agents pocket in exchange for them providing mentor services to a certain number of agents. In addition, by laying out the terms of the mentor agreement very specifically you can prevent mentors from just collecting checks without actually doing their work. Make sure the mentor knows exactly what is expected of them and that they are accountable to you, the broker or owner, if they don’t live up to their end of the bargain.
By offering mentor roles to some of your best agents, it can work in your benefit on three different fronts. One, the mentors will be making consistent extra money and in turn will be less likely to want to leave your office, so it can help you retain your best agents. Two, new agents get training from experienced, successful agents, giving them better odds at succeeding in a tough business. Three, you retain your top agents and continue adding more successful agents which brings in more commission dollars over time.
What do you think about this alternative mentoring plan?