"As a franchisor and a brokerage, Compass only has so much power when it comes to trying to compel agents to comply with certain company initiatives, like its three-phased marketing strategy. The truth is, even in their owned operation, they can encourage or strongly encourage [agents] to offer private exclusives on listings they are taking, but they cannot force a listing agent to do that, or at least not without a lot of pain, Steve Murray, the co-founder of RTC Consulting, said."
"While Reffkin expressed potential interest in getting into the franchise game back in February 2023, his firm did not become a franchisor until its December 2024 acquisition of @properties, which owns the Christie's International Real Estate affiliate network. Since closing the acquisition back in mid-January 2025, Christie's affiliate network has continued to grow and thus far, it appears that Compass has taken a hands-off approach to its new franchise business."
Compass will have just north of 90,000 owned domestic agents after the merger, assuming little to no breakage and accounting for Anywhere’s 132,700 non-U.S. agents. Most agents operate as independent contractors, which limits Compass’s power to dictate how agents run their businesses or to force adoption of initiatives like its three-phased marketing plan. Compass can encourage or strongly encourage specific listing practices, but compelling agents risks them leaving for other brokerages. Compass became a franchisor with the December 2024 acquisition of @properties and Christie's affiliate network, and the firm has so far taken a largely hands-off approach to the franchise business.
Read at www.housingwire.com
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