Real Estate

The Complete Guide to Real Estate Teams: How They Work, How to Join, and How to Build One

February 19, 2025
Thinking about joining or starting a real estate team? This complete guide explains how real estate teams work, how agents split commission, how to join a team, and how to build one for long-term success.

When I first started in real estate, I was doing everything on my own. I was juggling lead generation, marketing, client follow-ups, and transaction paperwork—all while trying to actually close deals. Some days, it felt like I spent more time organizing my business than actually selling real estate.

Then I started noticing something: the top-producing agents in my office weren’t working alone. They were part of real estate teams—leveraging shared resources, getting more real estate leads, and focusing on what they did best instead of wearing ten different hats. 

That’s when I realized I had two options: keep struggling solo or join a team and scale my business faster.

If you’re an agent wondering whether a real estate team is the right move, I get it—I’ve been there. In this guide, I’ll break down:

  • How real estate teams actually work (and how they’re structured)
  • How commission splits work in teams (so you don’t get shortchanged)
  • How to find the right real estate team to join (or know if you should stay solo)
  • How to start and grow your own team if you’re ready to lead

Real estate teams can be a game-changer—but only if you choose the right path. By the end of this guide, you’ll know whether joining a team, leading a team, or staying independent is the best move for your career.

How Does a Real Estate Team Work?

I remember the first time I seriously considered joining a real estate team. I was working 60-hour weeks, spending half my time chasing leads that went nowhere, and constantly feeling like I was hustling just to stay afloat. Then I sat down with a team leader who broke it down for me: “You don’t have to do this alone.”

That conversation changed everything

A real estate team is a group of agents working together under a structured system, sharing resources like lead generation, marketing, transaction coordination, and training. Some teams are small—just two or three agents—while others operate like mini-brokerages with 20-100+ team members, marketing staff, sales coaching staff, administrative staff, and inside sales agents (ISAs).

Types of Real Estate Teams

Not all teams work the same way. If you’re thinking about joining (or building) a team, it’s important to understand the different structures so you can choose the right fit.

Team Type

How It Works

Best For…

Partnership Team

Two or more agents work as equal partners, often specializing in different roles (e.g., one focuses on listings in one market segment, one on another, or you are colisting agents on everything buyers).

Experienced agents who want to scale without a boss.

Rainmaker Model

A single team leader generates most of the leads and distributes them to agents. The leader takes a percentage of every closed deal.

Newer agents who want steady leads and mentorship.

Brokerage Team

A team operates like a small brokerage within a larger firm, with multiple agents, admin staff, and marketing support.

High-volume agents or brokers who want to expand their brand w/o the headache of owning a brokerage.

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Roles Within a Real Estate Team

When I joined my first team, I thought every agent did the same thing—just closing deals. I was completely wrong. A good team is like a well-run business, with each person playing a specific role.

Here are the key positions you’ll find in most successful teams:

  • Team Leader / Rainmaker – The driving force behind the team, often responsible for lead generation, branding, and big-picture strategy.
  • Buyer’s Agents – Agents who specialize in working with buyers, handling showings, negotiations, and contracts.
  • Listing Agents – Agents who focus on seller clients, preparing listings, marketing homes, and fielding offers for the listing.
  • Inside Sales Agent (ISA) – Handles lead nurturing, setting appointments, and ensuring the pipeline stays full.
  • Transaction Coordinator – Manages paperwork, deadlines, and compliance to keep deals on track.
  • Marketing Specialist – Oversees the team website, digital ads, social media, and listing promotion.

When I was a listing agent on a team, I didn’t have to worry about where my next lead was coming from—I just focused on serving my clients and closing deals. That structure allowed me to increase my sales volume without burning out.

Benefits of Joining a Real Estate Team

If you’re struggling to scale your business, joining a team can provide instant support and stability. Here’s what I gained when I joined my first team:

  • More Leads – I no longer had to spend hours prospecting because the team leader provided a steady stream of warm leads.
  • Lower Expenses – Instead of paying for marketing, CRM software, and transaction coordination out of pocket, the team covered most of those costs.
  • Built-in Mentorship – I had direct access to experienced agents who helped me refine my sales skills and negotiate stronger deals.
  • Work-Life Balance – Instead of handling every single aspect of my business alone, I could focus on what I did best: selling homes.

I’m not saying teams are perfect for everyone—some agents thrive as solo agents—but if you’re struggling with lead generation, scaling your business, or finding mentorship, a team can help you level up much faster.

What’s Next?

Understanding how a team operates is just the beginning. The next big question is: how does commission work in a real estate team? Before joining, you need to know how splits are structured and what’s fair.

In the next section, I’ll break down how real estate teams split the commission, how to negotiate a good deal, and whether a team is financially worth it.

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How Do Real Estate Teams Split Commission?

One of the first questions I had before joining a real estate team was, “How much of my commission will I actually keep?” I had heard horror stories from agents who joined teams, closed a bunch of deals, and walked away with far less money than they expected.

Commission splits vary from team to team, and if you don’t understand how they work, you could end up working harder for less money. Before joining a team, it’s critical to know what’s fair, how splits are structured, and what you’re actually getting in return.

Standard Real Estate Team Commission Splits

Real estate team commission splits depend on who is generating the lead and how the team is structured. Here are the most common commission split models:

Split Type

How It Works

Best For…

50/50 Split

The agent and team leader split the commission evenly. The team usually provides leads, training, and administrative support.

Newer agents who need a steady flow of business.

60/40 or 70/30 Split

The agent keeps 60-70%, while the team keeps 30-40%. Usually applies to self-generated leads.

Agents who want more control over their business.

Tiered Commission Structure

Agents start with a lower split (e.g., 50/50) but move up to a higher split as they close more deals.

Agents who plan to grow within the team long-term.

Cap Model

Agents pay a set amount (cap) to the team each year. Once the cap is met, they keep 100% of their commissions for the rest of the year. The cap resets annually.

High-producing agents who close enough deals to reach the cap quickly.

Salary + Bonus Model

Some teams pay a base salary plus bonuses instead of commission. Often used for ISAs or administrative roles.

Agents who prefer consistent income over commission-based earnings.

When I first joined a team, I was on a 50/50 split, which at first felt like I was giving up too much money. But since I wasn’t spending a dime on lead generation, marketing, or admin support, I quickly realized I was actually making more net income than I was as a solo agent.

What’s Included in a Commission Split?

Before deciding if a split is fair, consider what you’re getting in return. A lower split doesn’t always mean a bad deal if you’re gaining access to resources that allow you to close more deals overall.

What a Good Real Estate Team Should Provide:

  • Leads – How many qualified leads will you receive per month?
  • Marketing Support – Who pays for ads, listing photography, and branding?
  • Transaction Coordination – Will someone handle paperwork and compliance for you?
  • Training & Mentorship – Will you get coaching or scripts to help you convert leads?
  • Office & Technology Costs – Is CRM software, signage, and admin support covered?

A friend of mine joined a team with a 70/30 split, thinking he was getting a great deal. What he didn’t realize was that he had to pay for all of his own marketing, leads, and transaction coordination. In the end, he was keeping more per deal, but closing fewer deals overall.

Negotiating a Fair Commission Split

Not all commission splits are set in stone. If you’re joining a team, it’s okay to negotiate—especially if you bring value to the table.

Ways to Negotiate a Better Split:

  • Prove your experience. If you’ve closed deals before, ask for a better split or more self-generated lead opportunities.
  • Offer to take on extra responsibilities. Some teams will adjust splits for agents who help with training or marketing efforts.
  • Ask about performance-based incentives. Many teams offer higher splits after a certain number of closings.
  • Clarify self-generated leads. If you bring in your own business, make sure you’re keeping a higher percentage of those commissions.

I once negotiated a higher split on self-generated leads because I had a strong referral network. This meant I still benefited from the team’s structure while keeping more money on deals that I sourced myself.

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Is a Team Commission Split Worth It?

A team isn’t just about the split—it’s about how much money you can make overall.

Scenario

Solo Agent

Team Agent

Leads Provided

No, must generate own leads

Yes, steady flow of leads

Marketing Costs

Paid out of pocket

Covered by team

Admin & Transaction Support

Self-managed

Provided by team

Commission Per Deal

100% (minus brokerage split)

50-70% (depending on split)

Total Deals Closed Per Year

Fewer deals (depends on lead gen skills)

More deals (team structure helps with volume)

Overall Income Potential

High if great at lead gen

High if working a strong team system

For me, joining a team meant sacrificing some commission per deal but closing more deals overall. That trade-off worked because I wanted consistent income and less stress over lead generation.

For some agents, staying solo is the better path—especially if they’re strong at marketing and client acquisition. But for others, a team can provide the structure, leads, and support needed to grow much faster.

How to Join a Real Estate Team

Joining a real estate team can be one of the best career moves an agent makes, but only if it is the right fit. I have seen agents join teams that promised unlimited leads and top-tier training, only to find out they were barely getting any opportunities and were left to figure things out on their own.

The key to success is knowing how to evaluate a real estate team before signing on. Here’s how to find the right team, what questions to ask, and how to avoid common mistakes.

Deciding If a Real Estate Team Is Right for You

Before looking for a team, take a step back and ask: Why do you want to join one? And more importantly, why do they want YOU to join their team? What can you bring to the table and can you help the team leader achieve their goals? The right team can provide structure, resources, and support, but it is not for everyone.

A real estate team might be a good fit if:

  • You struggle with generating consistent leads.
  • You want hands-on mentorship from experienced agents.
  • You prefer working within a structured environment.
  • You want access to marketing, admin support, and transaction management.
  • You are willing to split commissions in exchange for a steady pipeline of deals.

A solo career might be better if:

  • You already have a strong network and lead generation skills.
  • You want to keep full control over your branding and marketing.
  • You prefer working independently rather than following team rules.
  • You are comfortable handling administrative tasks on your own.

When I first considered joining a team, I had to be honest with myself. I was spending too much time on tasks that were not making me money—managing paperwork, struggling with marketing, and trying to generate leads with inconsistent results. That’s when I knew I needed a team’s support.

Where to Find Real Estate Teams Hiring New Agents

Once you decide that a team is the right move, the next step is finding one that matches your goals.

1. Brokerage Websites and Office Boards

Most large brokerages have teams looking for new agents. If you already belong to a brokerage, ask the managing broker which teams are recruiting.

2. Real Estate Job Boards

Websites like Indeed, WizeHire, and LinkedIn often list openings for agents looking to join teams. These job postings typically include details on team structure, commission splits, and expectations.

3. Networking at Real Estate Events

Attending industry events, mastermind groups, and training sessions is one of the best ways to connect with successful team leaders. Many teams prefer to recruit agents who have already built a relationship with them rather than hiring from a job posting.

4. Social Media and Online Groups

Many real estate teams actively recruit through Facebook groups, LinkedIn, and Instagram. Following successful teams in your market can give you insight into their culture and whether they might be a good fit.

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Questions to Ask Before Joining a Real Estate Team

Not all real estate teams are structured the same way. Asking the right questions before joining can help prevent surprises down the road.

Lead Generation and Distribution

  • How are leads generated?
  • How many leads can I expect to receive per month?
  • Do I have to generate my own leads, or are they provided?
  • If I bring in my own leads, do I keep a higher commission split?

Some teams claim to offer leads, but when agents join, they find out only a handful of leads actually convert or that they are competing with multiple team members for the same prospects.

Training and Mentorship

  • Does the team offer structured training for new agents?
  • Will I receive direct mentorship from the team leader?
  • Are there weekly meetings or coaching sessions?

A well-run team should provide clear guidance and ongoing support. If a team does not have any training system in place, it may not be the best environment for a new agent.

Commission Splits and Costs

  • What is the commission split on team-provided leads?
  • What is the commission split on self-generated leads?
  • Are there any monthly fees for being part of the team?
  • What marketing and administrative costs does the team cover?

Some teams take a higher split than expected or require agents to pay for their own marketing. Getting these details upfront helps avoid surprises.

Team Culture and Expectations

  • What are the daily and weekly expectations for agents?
  • Is this a high-pressure team, or is there flexibility?
  • How is performance tracked, and are there minimum sales requirements?

The right team should align with your work style and career goals. Some teams expect agents to follow strict scripts and processes, while others allow more flexibility.

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Red Flags to Watch Out for When Joining a Real Estate Team

Not all teams are created equal. Some promise more than they deliver, while others are disorganized and lack clear leadership.

Warning signs to look out for:

  • The team leader does not actively sell and only recruits agents to collect a percentage of their commissions.
  • The team provides very few leads despite advertising “high volume.”
  • There is high agent turnover, meaning agents are constantly leaving the team.
  • There is no clear system for training, mentorship, or ongoing support.
  • Commission splits are vague, or the team avoids discussing contract details.

One of my biggest mistakes early on was joining a team that sounded great on paper but lacked real leadership. The team leader was rarely available, there was no structured training, and I felt like I was on my own despite splitting my commissions.

Eventually, I found a well-run team with strong mentorship, a clear system for handling leads, and a culture of collaboration. That team helped me refine my skills and significantly increase my closings.

How to Build a Real Estate Team

After spending a few years as a solo agent, I hit a ceiling. I was closing deals, but I was stretched thin—handling every client, every showing, every contract, and every marketing task myself. At one point, I had so many active buyers and sellers that I was dropping the ball on follow-ups and missing opportunities simply because I didn’t have enough hours in the day.

That’s when I realized I needed a team.

Building a real estate team is not just about hiring other agents—it’s about creating a structured business that scales efficiently. If done correctly, a team allows you to:

  • Leverage other agents to handle more clients.
  • Increase overall revenue while reducing personal workload.
  • Focus on high-level business growth instead of day-to-day tasks.

But if done incorrectly, it can become an expensive, time-consuming mistake that drains your profits and creates more stress than working solo.

Here’s how to build a successful real estate team without making the mistakes I did early on.

When to Start a Real Estate Team

Not every agent is ready to start a team. I have seen agents rush into building a team too soon, hiring people before they have a steady business themselves. That usually ends with frustrated team members and financial struggles.

A real estate team makes sense when:

  • You consistently generate more leads than you can handle alone.
  • You are turning away clients because your workload is too high.
  • You have a repeatable system for converting leads and closing deals.
  • You are ready to step into a leadership role instead of just selling homes.

For me, the tipping point came when I had so many buyer leads that I couldn’t service them all properly. I realized that bringing on a buyer’s agent would allow me to increase my total transaction volume without working more hours.

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Step 1: Define the Team Structure and Roles

A well-structured team is more than just a group of agents. Each person should have a specific role that maximizes efficiency and profitability.

Role

Responsibilities

Best For…

Team Leader

Generates leads, sets team vision, and oversees operations.

Experienced agents looking to scale.

Buyer’s Agent

Works with buyers, handles showings, and negotiates contracts.

Agents who enjoy working with buyers but don’t want to generate their own leads.

Listing Agent

Focuses on seller clients, pricing strategy, and marketing listings.

Agents with strong negotiation skills and market expertise.

Inside Sales Agent (ISA)

Nurtures leads, sets appointments, and follows up with prospects.

Agents who excel at phone sales and lead conversion.

Transaction Coordinator

Manages paperwork, compliance, and contract deadlines.

Administrative professionals who ensure smooth transactions.

Marketing Specialist

Handles social media, email marketing, and listing promotions.

Someone skilled in digital marketing and branding.

When I built my first team, I made the mistake of hiring another agent before hiring an administrative assistant. That led to double the workload because now I had to manage another person’s deals on top of my own. Hiring an admin first would have freed me up to focus on selling and recruiting.

Step 2: Recruiting the Right Agents

Hiring the wrong people will kill a team before it even starts. I’ve seen teams fall apart because they rushed into hiring without making sure their new agents were a good fit.

Key traits to look for when hiring:

  • Coachable and willing to follow team systems.
  • Motivated and proactive—not just looking for easy leads.
  • Strong work ethic and ability to handle rejection.
  • Good communication skills and team-oriented mindset.

Where to Find Good Team Members

  • Networking events and real estate meetups.
  • Online job boards like WizeHire and Indeed.
  • Real estate schools—many new agents are looking for mentorship.
  • Social media groups for local real estate professionals.

I found one of my best agents by posting in a local Facebook real estate group. She was a newer agent looking for mentorship, and after an interview, I knew she would be a great fit. She went on to become one of my top-producing team members.

Step 3: Setting Up Lead Generation Systems

One of the biggest mistakes new team leaders make is hiring agents without having enough leads to support them. Before bringing people on, make sure you have a scalable lead generation system.

Best Lead Generation Strategies for Teams

  • Online leads – Zillow Premier Agent, Realtor.com, and Facebook ads.
  • Sphere of influence marketing – Staying top-of-mind with past clients and referrals.
  • Geographic farming – Dominating a specific neighborhood with direct mail and community events.
  • Inside sales agents (ISAs) – Having someone dedicated to following up on leads and booking appointments.

I made sure my team had at least 20-30 leads per agent per month before hiring. That kept everyone busy and productive instead of waiting around for business.

Step 4: Creating a Fair Commission Split

Commission splits should be structured to attract talent while maintaining profitability. Here are some common models for real estate teams:

Split Type

How It Works

Best For…

50/50 Split

The agent and team leader split the commission evenly.

Newer agents who need leads and support.

60/40 or 70/30 Split

The agent keeps 60-70%, while the team keeps 30-40%.

Experienced agents who bring in some of their own leads.

Tiered Commission Structure

Agents start at 50/50 but move up to higher splits based on production.

Teams that want to incentivize performance.

Cap Model

Agents pay a set amount (cap) to the team each year. Once the cap is met, they keep 100% of their commissions for the rest of the year. The cap resets annually.

High-producing agents who close enough deals to reach the cap quickly.

Flat Fee Model

The team takes a set dollar amount per transaction instead of a percentage.

High-volume teams with experienced agents.

My first team used a 50/50 split, but as we grew, I moved to a tiered model that rewarded agents for closing more deals. This kept them motivated and reduced turnover.

Step 5: Training and Retaining Team Members

A team is only as strong as its training and retention system. Hiring great agents is pointless if they don’t know how to close deals or if they leave after a few months.

How to Train and Retain Agents on a Real Estate Team

  • Weekly team meetings to discuss wins, challenges, and market trends.
  • One-on-one coaching sessions to improve closing skills.
  • Lead accountability tracking to ensure agents are working their pipeline.
  • Team culture events to keep morale high and encourage collaboration.

The best way I kept my team members engaged was by creating a strong team culture. We celebrated wins, shared strategies, and supported each other. That sense of community helped reduce turnover and keep everyone performing at a high level.

Author
Meet Mark, the founder, and CEO of Highnote, a presentation and proposal platform designed specifically for service providers. With a background as a top-producing salesperson, team and brokerage leader, computer engineer, and product designer, Mark has a unique insight into what it takes to create great software for service providers who don’t have time to design.