It Was a Good Partnership...Until It Wasn't

It was 2013. I sat in the chair opposite my Team Leader, my two partners of six years to my left. I was asking for a divorce. At least, that's what it felt like.

I wanted out because the partnership felt grossly unbalanced. I was terrified of starting over and losing those relationships, but man, did I learn from that split.

Years ago, I heard Dave Ramsey say, "The only ship that won't sail is a partnership."

It's a clever phrase that sticks with you. Since then, I've coached many partnerships to incredible success. And sadly, though sometimes necessarily, I've coached others through the dissolution of their business.

What makes partnerships succeed or fail? How do you build one that lasts?

Consider comparing it to a marriage. Imagine two people fall in love, both entering the relationship with significant personal assets. They aren't thinking about failure or irreconcilable differences; they are lovestruck and optimistic.

Yet, as outside observers, we might wonder, "Shouldn't they sign a pre-nuptial agreement?" We care about our friends and worry about the assets they bring into the commitment. If you could counsel them, you'd encourage them to document every possible scenario now. Before negative emotions or difficult circumstances get in the way.

Here are the top three things you must do BEFORE forming a partnership:

1. Decide Who You Are: Define your MVVBP (Mission, Vision, Values, Beliefs, and Perspective). This is uniquely yours, and when marketed clearly, your clients become your biggest cheerleaders. Miss this, and you won't know who you are as a brand.
2. Hire an Attorney to Create your Partnership Agreement and most importantly, the Exit Strategy: Detail everything in writing ahead of time. How much capital does each partner bring to the table? What's your legal status and how will you file with the IRS? If the unexpected happens, who gets the database? Which marketing assets belong to whom? How is Net Operating Income split? What constitutes a breach?
3. Go All In: Have a "do not fail" attitude and put each other first. Yes, even before your clients. Protect one another, avoid keeping a record of wrongs, and recognize that when workload shifts back and forth, it usually balances out over time because you've defined your roles and understand the ebb and flow of those roles.

1. The Agent Strategy: Clarity Before Commitment

If you are considering partnering with another agent, do not let enthusiasm replace due diligence.

A shared pipeline or a great personal friendship is not a business model. Sit down and write out your MVVBP together before you draft a single marketing piece or sign a team agreement.

Define who handles lead generation, who manages administrative operations, and how commissions and expenses are split. What is your criteria for hiring leverage? Here's the really tough one: Someone has to be the CEO! Who has the tie vote? Who makes the ultimate decisions? Having these uncomfortable conversations on the front end protects both your business assets and your personal relationship over the long haul.

2. The Leadership Insight: Coaching Teams Through Standoffs

Market Center Leaders, when a team or partnership in your office starts showing signs of strain, the root cause is almost always an unaddressed agreement or a missing exit strategy.

Your role as a leader isn't to take sides (and that's often hard to do). Your job is to facilitate the hard conversations. Guide your partnering agents to review their founding vision, revisit their operational agreements, and address friction points openly before frustration leads to a sudden split.

When you help leaders establish clear boundaries and mutual protection, you keep their business, and your Market Center's culture, steady through the storm.

Are you thinking of partnering with someone? Want to structure your team for long-term success?

If you aren't currently in coaching but you're thinking of a partnership, please hear me….get counsel! Hire a coach that has experience with partnerships! You need clear agreements, and a predictable growth plan.