If you're a brokerage owner or team leader and you're saying to yourself, “hey, who should I target in terms of recruiting in my local market,” I'm going to give you The 20% Rule.

This is something we should all be aware of: There are people that are more likely to move than others in your market area, which falls in The 20% Rule.

Here’s what The 20% Rule means:

People that have had an upswing in their business by 20%, or a downswing in their business by 20% over the past 12 months.

So let's look at the downswing folks. The downswing folks are looking to be rescued. It's a perfect opportunity to be calling them because who do they blame? They never blame themselves.

There's never going to be a time where they say, “well, I didn't do what I was supposed to do.” They're always going to say, “well, my brokerage should have given me better marketing or better support or better training or better leads. It's their fault, not my fault.” It's just a natural tendency of what agents do.

A...

As an office leader, a brokerage owner, is having teams in your building, teams on your roster, a good idea or a bad idea?

So when you look at this from the outside perspective, and I'm somebody that's been in the business for 36 years, I've owned a network of 17 offices, I've run billion-dollar companies, and so I've had a lot of teams working for me over those years.

And I will tell you that teams overall can add a lot to your company because they help you with market share. There's going to be a tremendous amount of market share growth that they're going to bring to the table.

So do you make a lot of money on a team? Usually not. Usually they're on the lowest splits coming to the company. They take up a lot of resources. They can actually take up a lot of real estate in your office.

So on a profitability scale, not great. But on a market share scale, fantastic.

So we have to ask ourselves—we need to have the right mix. We have to run a lawnmower or a piece of equipment that req...