Entire CRE Team Jumps Ship - What is the Reasoning behind this?
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[{"id": "hmsxdsa", "text": "***Money***", "replies": [{"id": "hmsxid8", "text": "Essentially a large signing bonus/ stock options?", "replies": [{"id": "hmsy5yk", "text": "It could be 100 different things but my young child it all comes down to money.", "replies": [{"id": "hmszof3", "text": "Noted. Regarding the company they left, what do you think will happen with the remaining agents working in that asset class? To give you a breakdown, from my understanding it was broken into 2 separate teams, there are roughly 2-4 agents left - working in that asset class. Would this give them more opportunity, or hurt them? The companies in question are the \"big dogs\", not small shops. Just an FYI", "replies": [{"id": "hmt060q", "text": "There is a reason why they weren\u2019t invited to jump ship with the big dogs\u2026 if they rocked they would\u2019ve gone with the rest of the team.", "replies": [], "depth": 5}, {"id": "hmtm0fp", "text": "Probably not going to help the remaining agents. When I need to buy land, there\u2019s a few guys I\u2019ll call in particular. Hell if I know which brokerage they\u2019re at or who their assistants are. Frankly I think you\u2019ll see a lot of brokers use Gmail and a personal cell so they\u2019re always ready to jump like this.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hmsywus", "text": "Cash/stock options/better splits", "replies": [], "depth": 1}, {"id": "hmsyyla", "text": "Why do you think they jumped ship?\n\nTo make less money and split more of their fees w the house? \n\nHmm\u2026 wonder what it could be!", "replies": [{"id": "hmszk1v", "text": "The only logical answer ^", "replies": [], "depth": 2}, {"id": "hmt036v", "text": "Right, I get it. How will this affect the company they left? Give the remaining agents in that asset class more opportunity?", "replies": [{"id": "hmt5mud", "text": "I have no idea. \n\nI don\u2019t know the firm, how many agents they have left, how many clients they took with them to competing firm, etc etc.", "replies": [], "depth": 3}, {"id": "hmtstqt", "text": "The only correct answer to this question is \"It depends.\"  If the firm that lost the team is concerned about losing more agents (i.e., they're good producers), they might get retention bonuses. In the mean time, the old firm will likely go out and try to hire another team to add to their office.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hmszkfp", "text": "CRE brokers are mercenaries. Typically for a move like that it would be a signing bonus and better splits, but could be a million things.", "replies": [{"id": "hmt1y7u", "text": "If by things you mean dollars.", "replies": [{"id": "hmt28a7", "text": "I'm a broker. I would leave for stuff other than dollars if they were bad enough.", "replies": [{"id": "hmta089", "text": "This \u2b06\ufe0f. Money isn't my primary motivator...diminishing marginal returns. My free time and less stress are more valuable to me. Remrmber QTL - Quality Time Left", "replies": [], "depth": 4}, {"id": "hmtfih9", "text": "I was joking. I left brokerage for the opportunity to learn the equity side. There are plenty valid reasons to leave. Brokerage is a grind constantly though the money can be great.", "replies": [], "depth": 4}, {"id": "hmtinfq", "text": "it was slightly more complicated than that, but I know a broker whos last straw was the copy machine breaking (it wasn't the first time).  She packed her shit up and left and was at a competitor by the end of the day.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hmt0176", "text": "Lift outs are common in many industries. Saves the time/cost of training &amp; development and you're trying to build a book/revenue quickly (to pay the $ it took to get that whole team).", "replies": [{"id": "hmt0euj", "text": "Hmm interesting", "replies": [], "depth": 2}], "depth": 1}, {"id": "hmtb7u8", "text": "The biggest reason is probably money.  But depending on the team there could be other reasons for a lift out.  Maybe the local office of the brokerage decided to focus on a different asset class, leaving one team in the wind. So they go somewhere else.", "replies": [], "depth": 1}, {"id": "hmtohnv", "text": "Usually money,  the rainmakers will get a bonus + a greater share of the profits.  The people underneath get a signing bonus, but not usually raises.  But there's the implication that if they stay behind they'd likely get fired when all of the business dries up. \n\nAlso sometimes, a company just wants to get out of the business, (more stress than it is worth) so they let the team know they can jump ship with no ill will.", "replies": [], "depth": 1}, {"id": "hmtphai", "text": "Yes, I\u2019ve been through this more than once. Here\u2019s what happens\u2026\n\n**Let\u2019s say you have a rainmaker, a superstar CRE producer. Everyone knows they aren\u2019t making it rain independently. They, as an individual, aren\u2019t that damn special**. \n\nMore often than not, it\u2019s the team behind the rainmaker that are really running the circus. The rainmaker shows up, puts on a top hat and shiny jacket like a ringmaster does, and steps into the spotlight. \n\nWho puts up the big top? The team\n\nWho trains the circus animals? The team\n\nWho entertains the crowd by walking on a tight rope? Certainly not the damn ringmaster!\n\nHe\u2019s just a dude in a flashy outfit. \n\nWorking on a CRE team that *works* is damn near magical. It takes years to get into that groove, and when we find that groove, we travel in packs.", "replies": [], "depth": 1}, {"id": "hmu9i7e", "text": "I\u2019ve been through this, I was working with two different teams in a firm and the one team jumped ship and asked me to come with but it didn\u2019t shake out in my favor so I stayed. \n\nI think their reason for leaving was office politics/red tape and probably got a better commission split from the new firm.", "replies": [], "depth": 1}, {"id": "hmv29ta", "text": "Also take into consideration the clients of the individuals agents. In my area there a lot of \u201cglobal\u201d accounts, large companies that are embedded with the brokerage company, harder to keep those clients with you when you switch houses. But if you are the main point of contact for the client (i.e. you run with the decision makers) and maintain the relationship, the clients often leave with the you. Particularly true of tenant/buyer brokers. But also true of landlord/seller reps as most good listing agreements define the individual brokers as the \u201clisting team\u201d specifically for the reason if the broker leaves and you want them to take your business with them then you\u2019re not tied to the company but the broker.", "replies": [], "depth": 1}, {"id": "hmvapyj", "text": "It's just follow the leader just like whole teams of ibankers, or wealth managers will moving. Not any different than residential team leaders leaving for Compass.", "replies": [], "depth": 1}]