While solo agents have long dominated the industry, many real estate sales professionals are now choosing to team up to share resources, referrals and more — and brokerages are capitalizing on this trend with team-friendly programs, including Real’s Private Label initiative, Side’s boutique-team platform, and Redfin’s push to formalize teams within Redfin Next.
But where are these teams finding clients, and how much are top teams spending on their lead generation efforts? And in the ever-changing world of residential real estate, is there such a thing as a “typical” team?
These are just a few of the questions explored in a recent deep dive into teams by consulting firm (and Real Estate News parent company) T3 Sixty and research partners RealScout and Tom Ferry International.
Most ‘teams’ are small — just 2 agents
A team can be any size, in theory, with some even resembling small brokerages. But the T3 Sixty study found that the median size of a real estate team in 2024 was six people. However, researchers noted that the “most common team size among respondents was two,” meaning that agent pairs account for a large chunk of the overall team count.
Team roles, responsibilities and operations vary considerably, researchers noted. Some teams consist of spouses who work together “as one ‘agent,'” or are made up of “two or more individuals that simply market under a team name, but have no real operational overlap.”
At the other end of the spectrum, there are teams that “operate more like a small business with well defined marketing, admin, transaction coordination, and buyer and seller agent roles.”
Large teams spend more money on lead gen
Larger teams typically invest more in lead generation and referrals compared to smaller teams — perhaps not surprising since they have more resources. But exactly how much do they spend?
The majority of small teams (between two and five agents) surveyed spend $1,000 or less per month on lead generation efforts, while larger teams (6 agents or more) are willing to go much higher. Nearly 20% of larger teams reported spending between $2,500 to $4,999 on lead gen each month, and an equal share invested between $5,000 and $9,999 per month.
“Most small teams are more likely to be highly dependent on singular sources, and are thus often sensitive to price and program changes,” T3 Sixty researchers noted.
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Author: AJ LaTrace
