Fast-growing firm The Real Brokerage is making it easier for their agents to take advantage of the company’s revenue share program.
During the brokerage’s monthly video call on Wednesday, Real president Sharran Srivatsaa announced that any agent who has recruited at least five producing Real agents into their network will be bumped into the second tier of the firm’s revenue share program, as first reported by Real Estate News. This opens opportunities for higher compensations and a more streamlined downline system, the brokerage said.
“What this does is it changes the number of people that unlocked tier 2 by over 250%,” Srivatsaa said on the call. “Just think about that number — I know that is very valuable for all of you. This unlocks immediate network effects for everybody.”
Under the current model, agents must successfully attain 10 referrals before hitting the second tier. The changes go into effect on November 1.
According to Srivatsaa, roughly 15% of the commission from a transaction, which is nearly half of the brokerage’s split, goes back directly into the revenue share pool. He also noted that the revenue share model changes give more agents the ability to access profit sharing, which the firm believes will help with recruiting.
“We’re going to start to see more small and mighty teams because that’s the way we’re seeing people service clients in a much better way,” Srivatsaa said.
On the call, Srivatsaa also announced the launch of an optional “Attraction Accelerator” to help agents achieve more quickly achieve five referrals. Agents will graduate from the accelerator program once they have attained five referrals.
“We’re going to teach you how to attract the right way, how to attract the kind way, how to attract the fair way, and how to attract the supportive way,” Srivatsaa said.
With the changes to the revenue share program, Srivatsaa said Real is looking at rolling out a “sponsor creed” to create a more standardized and formal framework to guide sponsors, as well as to reinforce the responsibility they have to their recruits.
This is the second major change Real has made to its revenue share program this year. In January, the brokerage announced that it would allow two existing Real agents to co-sponsor a recruit.
During the second quarter of 2023, the Tamir Poleg-helmed firm added nearly 1,500 agents, achieving a total headcount of 11,500 agents as of June 30. That was up 105% from the second quarter a year ago. In addition, the company reported a 65% annual increase in revenue for the quarter to $185.3 million and a net loss of $3.97 million, a slight improvement over the $4.2 million loss posted in Q2 2022.