After just seven months, popular startup Urban Compass, which paid agents salaries and bonuses based on customer satisfaction, has shifted its business model towards a more traditional brokerage concept to allow for experienced sales brokers to join the ranks.
Initially launched as a New York City rental search site, Urban Compass, eventually expanded into home sales this past October. The company recruited 12 new agents, including Citi Habitats’ Steve Halpern and Udi Eliasi, and other talented individuals from Brown Harris Stevens, Town Residential, Halstead Property, Nest Seekers International and The Corcoran Group.
According to senior executive Gordon Golub, the company will now pay some of its agents solely on commission.
“Many of the initial hires were asking if they can go to independent contractor status because of the very high closing ratio that they had,” Golub said. “They thought it would be more profitable for them. Others who had seen the success of those who made the change initially are now looking to do the same.”
Nearly 50 percent of all Urban Compass agents have become independent contractors working on commission, and the remaining agents can choose to continue being salaried.
Edited by Gordana Davila