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Thinking about joining a team this year?
Teams are all the rage these days. There are mega teams, partnership teams, expansion teams, the list goes on. Many new or struggling agents are wondering if they should join a real estate team. We’re going to do a deep dive into how different groups work so you can see if it’s a good fit for you and your business.
WHAT WE’LL COVER
- What is a real estate team?
- Different types of teams
- Reasons to join a team (PROS)
- Reasons NOT to join a real estate team (CONS)
- Team Commission Splits
- What changed with the 2024 NAR settlement
- Questions to ask when joining a team
- Frequently Asked Questions
- Making the the Big Decision
What is a Real Estate Team?
If you drive around your local market, you’ll probably see signs like the “John Smith Team at Remax” or the “Sell Smarter Group at eXp Realty.” These are examples of real estate teams under a specific brokerage. Real estate teams are a group of agents working together with a team leader under the umbrella of a real estate brokerage.
The team leader will typically provide training, leads, marketing, and a variety of other services for the agents on the team. In return, the agents share a percentage of their commission with the leader, in addition to what they share with their brokerage.
How Does a Real Estate Team Work?
There are typically two types of real estate teams, a community team, and a traditional team. More and more you’ll hear terms like “Mega Team” or “Expansion Team.” We’ll break them all down here:
TRADITIONAL TEAM – This is the most common real estate team structure, but every team runs a bit differently. If you are on a traditional team, you’ll typically receive buyer leads, administrative support, transaction coordinators, training, and accountability. Many traditional teams have a team leader and/or a seasoned agent who handle all the listings and the rest of the agents on the team only work with home buyers.
COMMUNITY TEAM – While this is less common, the community team or partnership team usually includes more experienced agents. All the Realtors work together under the team brand and they chip in a small percentage of their commission to cover the cost of marketing, signs, and lead generation. This is a good fit for agents who already have a steady stream of business, but enjoy the camaraderie, support, and work-life balance that a team environment offers.
MEGA TEAM – This is a traditional team on steroids. The mega team typically has at least 20 agents on the team and sells 500+ homes annually.
EXPANSION TEAM – This also follows the same structure as the traditional team, but the team leader has expanded the group into multiple cities or states. They all operate under the same team name/brand.
It’s also important to note that every real estate team is set up differently. Some traditional teams have a 60% split and others have a 40%. Others take a lower split but don’t provide leads. Some run like a well-oiled machine, others not so much. Before you join one be sure to read our “Questions to Ask When Joining a Team” below.
Reasons to Join a Real Estate Team (PROS)
Help with Lead Generation
Many teams have a strong lead generation system and/or a steady stream or referrals and repeat clients. If you are a newer agent with no marketing budget and don’t have a large network of family and friends in the area, being able to work the leads from the team will definitely give you a leg up and help you start selling homes faster.
Collaboration
By working with your team leader and the other members of your group, you’ll be able to learn from them on a regular basis. Hearing about other agents’ experiences and strategies for success can help you become a better agent and get your business off the ground much more quickly.
Support + Tools
Many teams offer a closing coordinator to help you prepare all of your paperwork for closing. They also give you access to a Customer Relationship Management (CRM) tool to help manage your leads. You may also be able to reach out to your fellow team members for backup help if you aren’t able to make it to a client appointment.
Reputable Brand
If the team has been in business for many years, usually they have a recognizable brand and great reputation in the community. You’ll also be able to leverage the team success statistics (i.e. “sold over 100 homes last year”) if you don’t have many of your own to share. If you are a new agent and join a real estate team, this can help build your credibility — and your confidence — when talking with potential clients.
This isn’t just anecdotal, either. An independent national study by Workman Success Systems found that 85% of real estate agents believe being on a team gives them a competitive edge, and 77% reported a “positive” or “very positive” experience working as part of one.
Reasons NOT to Join a Team (CONS)
Smaller Commission Split
As a member of the team, you’ll be sharing a portion of the commission with the brokerage AND the team leader. While you typically won’t have to spend any money marketing yourself, you will have to help more clients buy/sell homes each year to offset the expense of being part of a team. The average agent on a team keeps between 30%-45% of the commission generated.
We highly recommend that you crunch the numbers (solo agent vs team) to make sure the team is a good fit for you and your wallet.
Promoting the Team Name – Not Yours
Most teams have you complete all of the sales under the group name (or the team leader’s name) versus your own. Initially, most newer agents don’t mind not receiving credit for the sale. But if you are the type of person who wants to publicly celebrate your successes so you can start making a name for yourself in your community, that may be quite a bit more challenging when you’re on a team.
If you are a Part-time Agent
Being on a team may be difficult if you’re a part-timer. Most team leaders want you to be in the office for the morning meeting. They may also allocate certain times each day for follow-up calls and they want you to be there “smiling and dialing” for several hours each day/week. Also, if they are giving you buyer leads, they usually need you to contact the lead within 10 minutes of receipt. If you are working another job and can’t contact the incoming leads, that may be a problem.
If you have a large network or sphere of influence
Have you lived in the area for years? Do you have lots of family, friends, and acquaintances? If you are a buyer’s agent on a real estate team and one of your friends wants you to sell their home, you may not be able to. The team leader would take the listing and possibly give you a small referral fee.
You enjoy marketing
Do you have a background in marketing? Or do you just enjoy getting on social media, creating videos, or finding creative ways to promote your business? If so, being part of a team probably isn’t the best idea. Your team will usually handle all of the marketing on their social media pages and website and you may be limited to what and how you share online.
You’re a self-starter
Do you wake up in the morning ready to tackle the day? Whether it’s following up with leads, promoting yourself online, or trying to learn as much as possible? If you hold yourself accountable and are always striving to do and learn more, you’re most likely a self-starter. If you’d prefer to have someone else map out your day for you and hold you accountable to your goals, you would probably work best on a team.
Team Commission Examples
Okay, let’s talk numbers! This is an important factor when deciding if a team is right for you. Most agents on a team keep about 40% of their commission while the average solo agent keeps about 65% to 75% (after expenses and broker splits).
We are going to break down what you could earn as a solo agent vs team member and also look at the potential expenses associated with each one.
Example
Caley and Sally work at ABC Brokerage. Sally is a solo agent and Caley is on a team. The brokerage keeps 25% of the commission earned. Caley’s team also takes another 35%. Both sold 10 homes this year generating a total of $100,000 in gross commission (i.e. before splits).
- Caley
- Marketing expenses – $0
Broker split – $25,000
Team split — $35,000
NET TO CALEY === $40,000
- Marketing expenses – $0
- Sally
- Marketing expenses – $9,000 (she ran lead generation ads, sponsored a local event and sent postcards to her neighborhood every other month)
Broker split – $25,000
Team split — $0
NET TO SALLY === $67,000
- Marketing expenses – $9,000 (she ran lead generation ads, sponsored a local event and sent postcards to her neighborhood every other month)
While Sally made significantly more, she did have to put in the work and the marketing dollars to generate more business. Caley just focused on the leads that were provided to her and didn’t have to worry about anything else.
What Changed with the 2024 NAR Settlement
Since the National Association of Realtors’ 2024 settlement, buyer’s agents are now required to have a signed buyer representation agreement in place before touring homes with a buyer, and that agreement has to spell out exactly how the agent gets paid. This has two direct effects on the team-vs-solo decision:
- Buyer lead conversations start differently now. If you’re working buyer leads for a team, you need to be comfortable explaining and getting a signed agreement upfront, before you can even show a home. Established teams have typically already built training and scripts around this; solo agents often have to build this skill from scratch on their own.
- Buyer-side commission is no longer guaranteed the same way. Since compensation is now negotiated directly with the buyer rather than baked into the MLS listing, some buyer’s agents (team or solo) are seeing more variability in what they’re actually paid. This makes it even more important to ask a team leader directly how buyer-side commission works under the current rules before you join.
Questions to Ask When Joining a Real Estate Team
If you decide that you want to join a real estate team, now you have to find the right team. Ideally, they should have a fair commission split for the value they provide. Here are some important questions to ask when meeting with team leaders:
- LEADS: Do you provide leads? And if so…
- How many do you provide each month?
- Are they all buyer leads or also sellers?
- Where do your leads come from?
- Are the leads website registrations or actual buyer inquiries?
- How does the team handle getting buyer representation agreements signed before showings?
- TRAINING
- Will I be assigned a mentor or is any outside coaching provided?
- Can I shadow other agents on their appointments?
- Are there required meetings or training sessions each week?
- Will someone be available to guide me through the process when I start writing offers?
- COMMISSION SPLITS
- What are the team fees / splits?
- How to the commission splits work in these specific situations:
- Family member or friend who wants to me to help them buy a home?
- When I have friends or family who want me to list / sell their home?
- I purchase or sell my personal home or investment property?
- If I have repeat buyers or sellers?
- If my buyer lead also needs to sell their home?
- Once I’ve sold a certain number of homes, will my split improve?
- MARKETING
- Am I allowed to market myself and/or the team on my own website or social media pages?
- If I receive a client review or testimonial, does it have to be on the team site or can it be on my profile page?
- Do you feature agent success stories or reviews on your website and/or social media?
- Do you cover the cost of headshots, business cards, signs, etc?
- SUPPORT + TOOLS
- Do you offer agents admin support? If so, what can they help with?
- Does someone handle the transaction paperwork once it’s under contract?
- What kind of CRM do you use?
- TEAM POLICIES
- Do I need to sell a certain number of homes each year or month?
- Does this role require that I’m a full time agent?
- Are there any other requirements?
Frequently Asked Questions
Should new agents join a team or go solo?
There’s no universal right answer, but teams tend to shorten the learning curve for brand-new agents by providing built-in leads, training, and accountability during the hardest early stretch of a career. Agents who already have a strong sphere of influence, marketing skills, or a defined niche often see going solo pay off faster. The honest answer usually comes down to whether you already have a source of business lined up, not personality alone.
How does the 2024 NAR settlement affect joining a real estate team?
Buyer’s agents now need a signed buyer representation agreement in place before showing homes, and that agreement spells out exactly how you get paid. Established teams typically already have training and scripts built around this; if you’re going solo, you’ll need to build that skill yourself from day one. Ask any team leader directly how buyer-side commission works under the current rules before you join.
What percentage of commission do team members typically keep?
Most agents on a team keep somewhere between 30% and 45% of their commission after the team split, compared to roughly 65% to 75% for solo agents after broker fees. The tradeoff is that a team usually covers costs, like leads, marketing, and tools, that a solo agent has to pay for out of pocket.
How do I know if a team is actually a good fit, not just a good pitch?
Ask specific questions rather than relying on the sales pitch: how many leads do they actually provide each month, where do those leads come from, and what happens if you bring your own friend or family member as a client? See the full list of questions to ask above before signing on with any team.
Can I leave a team later if it’s not working out?
Yes, though the specifics, like notice period, pending deals, and any non-compete-style clauses, vary by team and by your independent contractor agreement. Ask about this directly before joining, not after you’re already unhappy.
Do I need to be a full-time agent to join a team?
Most teams expect full-time availability, since buyer leads typically need a response within minutes, not hours. If you’re working part-time, an independent brokerage is usually a better fit than a team — see our guide on succeeding as a part-time agent.
The Big Decision
We hope this has helped you make that big decision — to join a real estate team or run your business as a solo agent. In our (humble) opinion, whether you join a real estate team or not really boils down to your personality and whether or not you have a marketing budget.
If your primary focus is to get dressed up, show homes, and not focus on the marketing / lead generation side of the business, a team should be the perfect fit for you. If you are a self-starter who would prefer to start building your own brand and business, but don’t have the marketing budget and would like to learn from the pros, then joining a team for your first year or two would be ideal. For those of you that have a great network of friends/acquaintances as well as the time and/or marketing dollars to promote yourself, it’s time to go solo!
You may also like…
- 20 Questions to Ask When Choosing a Broker
- Can You Be a Successful Part-time Agent?
- How to Structure Your Team at eXp Realty
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Please note: This website contains affiliate links. As an Amazon Associate, we earn from qualifying purchases at no additional cost to you.
