Real estate is a volume business. As an agent, at some point as you develop your career, it is a good idea to hire an assistant. But when is the right time to do it?
Number one ranked REB Top 100 Agent Alexander Phillips from Phillips Pantzer Donnelley in Sydney says the right time is when you are doing two deals a month or “twenty deals-plus” a year.
“Because, depending on where you work, two deals pay for your assistant per annum,” he told REB on the Secrets of the Top 100 podcast.
Mr Donnelley said it’s about investing in yourself.
“Something I think that we’ve always done well, when I look at the guys that are doing well now that are coming through the ranks, they’re investing in themselves and they’re putting themselves on the line by really stretching themselves.”
“It makes them more accountable, makes them more hungry."
Mr Phillips said there is a long-term benefit to bringing on an assistant, despite the added costs.
“You’re building up someone within their own business that may become an agent one day and that would satisfy that particular person.”
“But this is where I think a lot of agents fall short. They don’t re-invest in themselves and an assistant’s the first thing you can do in respect to that.”
Mr Phillips also said the next level up is to bring a junior agent into the business as an understudy.
“That’s probably when you’re doing 50-plus, or even 40-plus, deals per annum.”
“Because, unless you’re able to do everything, which you can’t, the customer is not going to benefit from your service, and you’ll have leakage with the process of actually selling someone’s home.
“Things go wrong, they turn on you, you don’t sell their property, and then you’re going back to even letting go of your first assistant."
Mr Phillips said it’s a good idea to have a 10-year growth plan.
“Like anything lasting, you need a business plan or model on where you want to get to,” he said.
“And then break it down on how many deals that needs to be, how many years you want to be at that position with one assistant and then you put on a second or third.”