Real estate coaching is a relatively new term. Coaching of course is defined by Wikipedia as a training or development process via which an individual is supported while achieving a specific personal or professional competence result or goal.
Real estate coaching gained interest in the 1990’s when real estate agents desired a trainer and coach who was not their Broker or Manager. This occurred as a result of a change in the real estate industry in which some agents wished to earn a larger “split” of the commission on a real estate transaction, and did not need or want the services provided by a Broker. Prior to this time, Brokers typically earned 100% of the commission, and paid their Agents a split of that income to actually provide the services related to a sale. Normal “splits” were never to be discussed, however common practice was 40-60% of the commission went to the Agent. The Broker provided, in exchange for their portion, training, advice, motivation (sounds like “coaching”, doesn’t it) and normally a place and tools with which to do business – an office location, contracts, office supplies, perhaps even a facsimile machine (cutting edge technology in the 1980’s).
The popularity of Brokerages offering much higher splits to Agents, and in some cases 100%, became popular, causing the Brokerage to change business models. Instead of a “split” the Broker charged a desk or office fee that was paid regardless of how much an Agent earned. This model did not allow the Broker to continue to “coach” his or her Agents as they were not making enough income any longer to provide that service. Most Brokers began selling again to earn a living, or hired massive numbers of Agents as the small desk/office fee encouraging them to work from home in order to keep a small office space overhead.
This model of real estate brokerage birthed a new industry – Real Estate Coaching. No longer could a new Agent in the business count on a Broker or Manager to do more than a cursory training. They simply couldn’t afford to be a “coach” to their Agents, so Agents began looking elsewhere for those services. Indeed, high producing agents also began hiring Coaches to motivate and inspire them to higher and higher levels of production. Agents also leaned toward hiring a Coach that was not someone within their own company, franchise, or even their own city. That training could be had by their competition. They wanted a Coach that saw a broader perspective and perhaps even gave them an edge that their local competition did not have.
Today the Real Estate Coaching industry serves a large percentage of top level Real Estate Agents as well as those new in the business and it works. In my own business, agents that are coached full time earn more than 10X the average agent not coached.