To Partner or Not?

We're friends and REALTOR®s. Should we be partners?

Most real estate teams follow the traditional “rainmaker” model: One REALTOR® leads the team, handling member recruitment, business operations, lead generation, and decision-making. But sometimes, two agents decide to form a partnership—something I often see with spouses, though not exclusively.

Key Ingredients for a Successful Partnership

In conversations with agents in successful partnerships, two key ingredients consistently came up:

• Respect for each other

• Trust in each other

If that sounds like you, keep reading! Here is some things to keep in mind when considering a partnership.

Is a Partnership Right for Me?

Start by asking yourself these questions:

• Why do I want to form a partnership?

• If there’s a period when I’m contributing more to the business than my partner, will I feel resentment?

• If my partner contributes more, will I feel guilty?

• Am I willing to share decision-making responsibilities and relinquish some control?

Also, have your potential partner answer these questions and discuss your answers together.

One More Thing: Complementary Strengths

Do you and your prospective partner have complementary strengths? For example, if both of you are extroverts with a big-picture mindset and struggle with organization, a partnership might be more challenging.

As you discuss these questions, make sure the conversation is open and free of defensiveness—this is a key test of how well you will communicate as partners.

Should I Partner with My Spouse or Romantic Partner?

If you’ve decided that a partnership is right for you, and your spouse or romantic partner is the one you’re considering, ask these additional questions:

• Are we prepared for the business to impact our relationship?

• Can we separate business from our personal relationship and set boundaries?

• How will we keep business and personal finances separate?

Should I Partner with My Bestie?

Even if your “bestie” isn’t your actual best friend, these questions apply if you’re considering a partnership with a close friend:

• Are we OK with the business affecting our friendship?

• Can we keep business separate from our friendship? Or will the business become the core of our relationship?

Partnership is Happening – Now What?

If you and your prospective business partner are ready to move forward, here are some things to consider:

• Vision: Do you share similar goals for the next year and the next three years? For example, if one of you wants to build a 100-person team and the other wants to remain a two-person partnership, you’ll need to reconcile those visions.

• Legal Structure: What legal structure will you use? Consult your CPA to ensure you’re on the right track.

• Financials: How will you split expenses and commissions? How often will you check in on the financial health of your partnership?

• Branding/Partnership Name: What will you call your partnership publicly?

• Systems/Checklists: Do you both agree on systems and processes? Will you be flexible as you set everything up?

• Software: What tools and software will you use to run the business?

These questions are just starting points. But if you're still intrigued, then good luck! May it be of service.