Should I join a real estate team or work solo at a brokerage?

For most new agents, joining a team gives more structure, leads, accountability, and support than working solo. Teams often provide lead flow, ISA appointment setting, transaction coordination, and tactical training. Working solo at a brokerage offers more freedom and a higher split on self generated business, but requires that you already have a strong sphere of influence and a proven plan to generate consistent appointments. New agents without a deep sphere or 12 months of living expenses should strongly consider starting on a team.

What is a good commission split for a new real estate agent?

There is no universally perfect split, because what matters most is net income, not the headline percentage. A lower split on high quality, team generated leads with ISA support and marketing can produce more income than a high split on very few deals. New agents should compare multiple scenarios, including splits on self generated versus brokerage or team leads, caps, monthly fees, and marketing costs, and calculate what they would actually net at different production levels rather than focusing only on the top line split number.

How long should I give a brokerage before deciding it is not working?

If you have a clear 30 60 90 day plan and are hitting your activity metrics, you should expect to see real progress within three months. By 30 days you should be fully onboarded, working systems, and holding live appointments. By 60 days you should have signed buyers or listings and at least one transaction under contract. By 90 days you should have one to two closings or be on track to close shortly. If you are doing the work but are not reaching these milestones, it is important to have a serious conversation with your broker or team leader around day 60 and consider interviewing elsewhere if nothing changes by day 90.

Can I switch real estate brokerages if I have active deals?

In most cases you can change brokerages while you have pending transactions, but the details depend on your independent contractor agreement and state law. Typically, pending deals remain affiliated with the original brokerage and you will be paid for them when they close under the terms you agreed to there. Active listings may need to be released or transferred, and lead ownership rules vary by company. Always review your contract, ask how pending deals and listings are handled before you move, and get the answers in writing from both your current and future brokerage.

What if I do not have a strong sphere of influence when I get licensed?

If you do not already have a large sphere of influence, you should prioritize joining a brokerage or team that has a proven lead generation engine and ISA support. Without a sphere, it is very difficult to build a pipeline quickly using only personal contacts. When interviewing brokerages, ask specifically about lead sources, how many new leads and set appointments the average agent gets per week, and what conversion training is provided for each lead source. A good fit for agents without a sphere will have documented lead volume, clear response expectations, and systems to help you learn how to convert cold or online leads.

Should I be worried about non-compete or non-solicit clauses in brokerage agreements?

Yes, you should read and understand any non-compete or non-solicit language before signing an independent contractor agreement. Some brokerages include reasonable protections, such as short time frames or limited geographic areas, while others attempt to restrict your ability to contact past clients or work in entire markets for long periods after you leave. It is wise to have any restrictive covenants reviewed by a real estate attorney before you commit so you know exactly what your rights and limitations will be if you eventually decide to move to another brokerage or team.

Questions to Ask When Choosing a Real Estate Brokerage

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Questions to Ask When Choosing a Real Estate Brokerage | Metro Detroit Agent Guide

Congratulations on Getting Your License! Now Let's Make Sure You Don't Make My $40,000 Mistake

Hey, I'm Michael Perna - been selling real estate in Metro Detroit for 24+ years, closed over 8,000 transactions, and made pretty much every mistake a new agent can make (so you don't have to).

Here's the thing nobody tells you at those brokerage recruiting events with the fancy PowerPoints and free lunch:

Over 50% of people who get their real estate license quit in the first year. 90% are gone by year three.

And it all boils down to one thing—they're not making money fast enough and have to go get a job.

But here's what makes me absolutely crazy (in a bad way): It's not the agent's fault. Most new agents fail because they joined the wrong brokerage or team and didn't know the right questions to ask.

I know because I was one of them.

The Mistake That Cost Me Four Months and One Lonely Commission

I joined my first brokerage because... honestly? I didn't know what questions to ask. They had a nice office. The broker seemed nice.

The split sounded good. That was basically my entire due diligence process.

(If you're cringing right now, good. Learn from my pain.)

I sold ONE home in my first six months. One. Do you know what it's like watching your savings account drain while your broker tells you to "just work your sphere" but gives you zero training on HOW to actually do that?

Then I switched to a brokerage with actual systems—leads hitting my CRM, ISA setting appointments, transaction coordinators, weekend support, training that was tactical not motivational fluff—and I took off like a rocket.

That switch cost me four months and probably $40,000 in lost income. Four months I'll never get back. And I waited three months too long to make the move because I felt guilty (don't fall for that trap either).

So I made you something: The exact questions I wish someone had told me to ask BEFORE I signed that first independent contractor agreement.

The Questions That Actually Matter (Not the Fluff They Want You to Ask)

Look, every brokerage is going to tell you they have "great training" and "amazing support." Those words mean nothing. Here's what you actually need to know:

THE MONEY STUFF (Because We're All Here to Get Paid)

What are the splits for self-generated leads vs. team/brokerage leads?

(This is where they hide the real numbers. A 70/30 split sounds great until you realize it's 70/30 on YOUR leads and 40/60 on their leads, which are the only leads you're getting.)

Is there a cap on company dollar and royalties? When do they reset?

(Translation: When do you stop paying them and keep everything? And does that cap reset annually or never?)

What are ALL the costs I'm responsible for?

(Make them list EVERYTHING. Desk fees, technology fees, franchise fees, E&O insurance, MLS dues, signs, lockboxes, continuing education, transaction coordinator fees. If they say "just desk fees," they're lying or don't know their own fee structure.)

What are ALL the costs you're responsible for?

(This shows you what VALUE they're actually providing beyond just letting you use their license number.)

Who pays for photos, video, floor plans, staging consults, and ads?

(I've seen agents spend $500+ per listing because their "great split" didn't include any marketing support. That adds up fast.)

THE LEAD QUESTION (This is Where Most Brokerages Fail)

First question: Do you actually have leads?

(Half will say yes and mean "we have a Zillow account we're not really using" or "past clients sometimes call." That's not a lead program.)

What are the lead sources running RIGHT NOW?

(Make them be specific: Zillow? Realtor.com? PPC? Geographic farming? If they say "we're looking into that," run.)

What's the average number of new leads AND set appointments per agent per week over the last 90 days?

(This is the nuclear question. Most brokerages can't or won't answer this. If they can't show you actual data from the last 90 days, they don't have a real lead program. Period.)

Who owns the contact long-term and at exit?

(Some brokerages will claim they own YOUR clients even after you leave. Find out now, not when you're trying to switch.)

Is there training specific to each lead source?

(Zillow leads are different from PPC leads are different from sphere leads. If they're just throwing leads at you without source-specific training, you're going to waste 80% of them.)

THE ISA PROGRAM (If They Have One)

What's your ISA staffing ratio and what hours are they working?

(One ISA for 50 agents working part-time is not support. It's theater.)

What are your set-to-held and held-to-signed rates by lead source?

(If they don't track this, they're not serious about lead conversion. You need to know what percentage of set appointments actually show up and what percentage of those sign with you.)

What's your handoff process and recovery plan for cancels and no-shows?

(Because appointments will cancel. How does the ISA follow up? Do they reschedule? Or do they just shrug and move on?)

TECH AND SYSTEMS (The Unsexy Stuff That Matters)

What's your CRM, dialer, texting platform, and transaction management system?

(If they say "you can use whatever you want," that means they don't have integrated systems and you're on your own. Also, make sure their texting is TCPA compliant—agents are getting sued left and right for this.)

Do I get my own subdomain and profile with IDX search and review integration?

(Example: YourName.TheirBrokerage.com with property search and your Google reviews embedded. This matters for SEO and looking professional.)

What's your provided marketing stack?

(Listing launch templates? Social media graphics? Email campaigns? Print materials? Video editing? AI tools? Or are you building everything from scratch in Canva at 11 PM?)

TRAINING AND COACHING (Where the Rubber Meets the Road)

What does weekly coaching actually look like?

(Weekly team meetings don't count. I mean: roleplay, pipeline reviews, one-on-ones with someone who can actually help you.)
What's your typical ramp time to first closing for experienced agents?

(If experienced agents take 4-6 months to close their first deal, something's broken. Should be 30-60 days max with proper support.)

What's your 30-60-90 day onboarding plan, and who is my named point person?

(If they don't have a documented plan and a specific human assigned to you, you're going to be figuring this out alone.)

OPERATIONS AND SUPPORT (The "Will I Want to Quit" Test)

Is transaction coordination included or do I pay per file? What's the scope of service?

(Some "included" TC services just mean they'll open the file in the system. You want someone who's actually handling compliance, coordinating with title, chasing docs, and keeping you out of the weeds.)

Do you have showing assistants or runner services available?

(Especially important if you're juggling multiple buyers or have a family. Can someone else run to a listing to let the inspector in?)

Are signs, lockboxes, and print assets provided or billed back to me?

(Death by a thousand cuts. Make sure you know what's included and what's coming out of your commission.)

BRAND, REVIEWS, AND SPHERE (Your Long-Term Assets)

What are the co-branding rules for listings, ads, and social media?

(Some brokerages require their logo to be bigger than yours. Some won't let you use your name at all. This matters for building YOUR brand.)

Who owns my Google Business Profile and the reviews I get while I'm here?

(If THEY own your Google profile, you'll lose all those reviews when you leave. This is a huge deal.)

What support is there for past-client and sphere nurture?

(Automated campaigns? Pop-by gifts? Client appreciation events? Or are you building this from scratch?)

TERRITORY AND SPECIALTIES (Can You Actually Make Money Here?)

What's your team's strength by ZIP codes, price points, and property types?

(If they say "we cover everywhere," they're probably not dominant anywhere. You want a team that OWNS certain markets.)

Is there any ZIP or farm exclusivity? How is opportunity distributed?

(Are you competing with 40 other agents for the same leads in the same neighborhoods?)

Do you have relocation, new construction, REO, or luxury programs?

(These are high-value niches that require specialized support and relationships.)

EXPECTATIONS AND KPIs (What They'll Actually Hold You To)

What are the required weekly standards for contacts, appointments, and signed agreements?

(You need to know what "good" looks like and what's expected.)

What are your conversion benchmarks at each stage of the funnel?

(Lead to appointment, appointment to buyer consultation, consultation to signed agreement, signed to closed. If they don't have these numbers, they can't help you improve.)

What happens if I miss standards two weeks in a row?

(Are they going to coach you, yell at you, or just stop giving you leads?)

What are the weekend coverage and schedule expectations?

(Real estate happens on weekends. Can you reach your broker on Saturday at 2 PM when a deal is falling apart?)

LEGAL, RISK, AND EXIT (The Stuff Nobody Wants to Talk About)

Can I see a redlined copy of the independent contractor agreement before I decide?

(If they won't show you the contract until you're "ready to sign," that's a red flag the size of Texas.)

What are the non-compete or non-solicit terms, duration, and geography?

(Some brokerages try to prevent you from taking "their" clients if you leave, even clients YOU brought in. Know this upfront.)

What are my database export rights at exit, including my nurture campaigns?

(Can you export your full contact database with all notes and history? In what format? Some CRMs make this nearly impossible.)

How are pending deals, active listings, and leads in my pipeline handled after I give notice?

(Do you get to close out your deals? Do they reassign your listings? What happens to leads you've been nurturing for three months?)

PROOF AND PERFORMANCE (Show Me the Receipts)

What's your median production per agent and top-quartile performance?

(If they won't share this, it's probably embarrassing. You want to see that their systems actually work.)

What are your lead-to-close conversion rates by source over the last 90 days?

(This tells you which lead sources are actually worth your time.)

What's your agent attrition over the last 12 months and average tenure?

(If agents are leaving faster than they're joining, that tells you everything.)

Can you show me anonymized dashboards for lead routing, response SLAs, and pipeline aging?

(Real businesses have real data. If they're running this on gut feel and whiteboards, you're in trouble.)

COMPENSATION AND GROWTH PATH (Where Can This Go?)

Are there leadership tracks, listing specialist roles, or mentoring positions with overrides?

(Can you grow into something beyond just being an agent grinding out deals?)

Is there profit share, equity, stock awards, or revenue share?

(Some brokerages offer ways to build passive income beyond your direct production.)

What production is required for higher tiers or team lead roles?

(If you crush it, what does the next level look like?)

CULTURE AND FIT (The Intangibles That Matter)

How are wins recognized and how is accountability handled?

(Public shaming or private coaching? This matters for your mental health.)

What's the vacation and coverage policy?

(You're an independent contractor, but can you actually TAKE a vacation without losing all your deals?)

What are the top reasons agents stay and the top reasons they leave?

(Ask current agents this question directly. Not the broker—the agents.)

The Fast Red Flags (Run, Don't Walk)

"Free leads" without documented SLAs or real ISA coverage - (Free leads that don't convert are worse than no leads—you waste time instead of building your sphere.)
Split stacking that quietly reduces your net on team leads - (Example: 70/30 split, but then there's a 25% "team lead fee" and a 10% "marketing fee" and suddenly you're at 35% net.)
No clear database ownership or review portability - (If you can't take your clients and reviews when you leave, you're building THEIR business, not yours.)
Vague answers on conversion data, agent attrition, or lead reassignment rules - (If they can't or won't answer these questions clearly, there's a reason.)
Heavy upfront fees or required spend with "preferred" vendors - (Some brokerages make more money selling you services than helping you sell houses.)
Broker says "trust me" or "we're a family" when you ask hard questions - (Real families have boundaries. Real businesses have contracts. Get both in writing.)

The 30-60-90 Day Yardstick (Hold Them to This)

Don't just ask about support—ask them to commit to specific milestones:

30 Days:

Full onboarding complete
Live leads flowing into your CRM
At least two SET appointments held (not just scheduled—actually held)
You know exactly how to work every system they have

60 Days:

Four appointments held
Two signed buyer or listing agreements
At least one deal under contract
You're hitting weekly activity standards consistently

90 Days:

Two closings (or on track to close within 30 days)
Clear understanding of your conversion rates at each stage
Established routine for lead follow-up, sphere nurture, and pipeline management

If a brokerage can't commit to supporting you toward these milestones, they're not set up to help new agents succeed.

I Made You a Scorecard (Because I'm Obsessed with This Stuff)

I packaged everything into a clean spreadsheet so you can take it into meetings and score each brokerage or team side-by-side.

Download the Brokerage Comparison Scorecard

Visit three brokerages. Ask the same questions. Score them honestly. The right choice will become obvious.

One More Thing (The Part That Matters Most)

Look, I've been doing this for 24+ years. I've built a successful team. I've seen hundreds of agents start their careers—some crush it immediately, others struggle for years, many quit.

And here's what I know for sure: Your first brokerage choice will either launch your career or delay it by 12-18 months.

The questions in this guide aren't about being difficult or high-maintenance. They're about protecting your investment (your license, your time, your savings) and making sure you land somewhere that's actually set up to help you win.

Because here's the truth: Most brokerages aren't set up to support new agents. They're set up to recruit new agents, collect fees, and hope a few succeed.

You deserve better than that.

Need Help Evaluating Your Options?

I field questions from new agents all the time—even agents who aren't on my team. It's just part of being in this business for 24+ years. People ask my opinion, and I give it straight.

If you're comparing brokerages and want a second opinion, or if you just need someone to decode what a broker is actually saying during your interview, I'm happy to help.

Call or text me: 248-886-4450
Email: michaelperna@pernateam.com

I'm available 7 days a week. Seriously. I actually field the most questions on weekends when it's hard to get hold of an office broker.
(And yes, if you interview with me and decide to go somewhere else, I won't be weird about it. I'd rather you make the RIGHT choice than make the convenient choice.)

Frequently Asked Questions

Should I join a team or work solo at a brokerage?

For new agents, teams typically provide more structure, leads, and support. Solo agents have more freedom but need to generate their own leads from day one. Ask yourself: Do you have 12 months of savings and a plan to generate 20+ appointments per month from your sphere? If not, start with a team.

What's a good split for a new agent?

Splits don't matter—net matters. I'd rather take 40% of team-generated leads with full ISA support than 80% of nothing. Calculate your projected net income across different scenarios, not just the split percentage.

How long should I give a brokerage before deciding it's not working?

If you're following the 30-60-90 milestones and not hitting them, have a serious conversation with your broker at 60 days. If nothing changes by 90 days, start interviewing elsewhere. Don't wait a year like I did.

Can I switch brokerages if I have active deals?

Usually, yes—but it depends on your contract. Your pending deals typically stay with your current brokerage, and you'll still get paid when they close. Active listings can be trickier. Review your ICA and ask both brokerages how they handle transitions.

What if I don't have a sphere of influence?

Then you MUST join a brokerage or team with a real lead program and ISA support. You cannot build a business on hope. You need appointments on your calendar from day one, and if you don't have a sphere to generate them, the brokerage needs to provide them.

Should I be worried about non-compete clauses?

Yes. Some are reasonable (6 months, 5-mile radius). Some are aggressive (2 years, entire county, all past clients). Get this reviewed by a real estate attorney BEFORE you sign—not when you're trying to leave.

Michael Perna
Real Estate Broker/Team Leader
The Perna Team

Serving Metro Detroit (Birmingham, Bloomfield Hills, Troy, Franklin, Clarkston, and 12+ markets)

248-886-4450
michaelperna@pernateam.com
24+ Years | 8,000+ Transactions | Michigan License #309650

P.S. - Yes, I'm recruiting agents too. But I'd rather arm you with the right questions and have you make an informed decision than recruit you under false pretenses. If you end up on my team, great. If you end up somewhere that's actually a good fit for you, that's also great. The industry needs more successful agents and fewer casualties.