The Real Brokerage Enhances Revenue Share Plan to Incentivize Growth through Collaboration

Rhea-AI Summary

The Real Brokerage Inc. (TSX: REAX, NASDAQ: REAX) has launched a transformative Co-Sponsored Revenue Share program, effective February 1, 2023, across the U.S. and Canada. This first-of-its-kind initiative allows agents to partner in sponsoring new recruits, enabling shared revenue from commission splits. The program aims to foster collaboration among agents and enhance recruitment, reflecting positive feedback from existing agents. Real's rapid expansion was highlighted, noting a doubling of agent count in 2022. The initiative emphasizes the company's commitment to building a culture of teamwork and economic incentives.

Positive

• Launch of Co-Sponsored Revenue Share program expected to enhance recruitment and collaboration among agents.
• Agent count more than doubled in 2022, indicating strong growth and market presence.

Negative

• None.

First-of-its-kind program allows two agents to co-sponsor a recruit, share revenue and amplify community support

TORONTO & NEW YORK--(BUSINESS WIRE)-- The Real Brokerage Inc. (TSX: REAX) (NASDAQ: REAX), the fastest-growing publicly traded real estate brokerage, today announced that it is enhancing its revenue share program to give its agents the choice to partner to bring new agents into the company. Real’s Co-Sponsored Revenue Share program, which launches February 1, 2023 throughout the U.S and Canada, is designed to break down silos and encourage collaboration as the company continues its rapid expansion. It is believed to be the first of its kind in the industry.

Until now, an agent joining Real was able to name only one sponsor, an existing Real agent who would receive a portion of the brokerage’s share of the agent’s commission split on the completion of a real estate transaction. Under the new program, an agent can be sponsored by up to two agents, with each agent sharing equally in a portion of Real’s split of the commission.

“Our existing agents are our biggest source for attracting new agent talent. They are the reason we more than doubled our agent count in 2022,” said Real Chairman and Chief Executive Officer Tamir Poleg. “At the same time, we are mindful of our overarching goal of building a culture that rewards both production as well as collaboration. Incentivizing agents to work together to recruit new team members aligns with our core values and will lead to increased teamwork and community-building beyond an individual’s established network. We believe that a culture built on economics can be very successful, but a culture based on economics and collaboration grows exponentially.”

Poleg said the program enhancement is a direct result of agent feedback and is designed to provide new recruits more flexibility during the onboarding process while encouraging agents to focus on sharing Real’s benefits with other high producing agents.

Under Real’s revenue share program, agents earn revenue on transactions closed by agents they directly sponsor as well as the agents their recruits sponsor. The new Co-Sponsored Revenue Share program significantly broadens the earnings opportunity for agents beyond a singular agent network, increasing earnings capacity over the long-term and fueling cross-network collaboration.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding Real’s growth and the business and strategic plans of the Company.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

About Real

The Real Brokerage Inc. is revolutionizing the residential real estate industry by pairing best-in-class technology with the trusted guidance of the agent-led experience. We provide a digital brokerage platform for agents, while working to build a better end-to-end home buying experience for consumers. The company was founded in 2014 and serves 45 states, D.C., and three Canadian provinces with over 8,000 agents. Additional information can be found on its website at www.onereal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005228/en/

For additional information:

Jason Lee

Vice President, Capital Markets & Investor Relations

investors@therealbrokerage.com

908.280.2515



For media inquiries:

Elisabeth Warrick

Director, Communications

elisabeth@therealbrokerage.com

201.564.4221

Source: The Real Brokerage Inc.

FAQ

What is the Co-Sponsored Revenue Share program by Real Brokerage (REAX)?

The Co-Sponsored Revenue Share program allows two agents to co-sponsor a recruit, sharing revenue from commission splits, aimed at enhancing collaboration and recruitment.

When does the Co-Sponsored Revenue Share program launch for Real Brokerage?

The program launches on February 1, 2023.

How has Real Brokerage's agent count changed recently?

Real Brokerage's agent count more than doubled in 2022, reflecting strong growth.

In which regions is the Co-Sponsored Revenue Share program being implemented?

The program is being implemented throughout the U.S. and Canada.

What strategic goals does the Co-Sponsored Revenue Share program support for Real Brokerage (REAX)?

The program supports strategic goals of increasing teamwork, community-building, and economic incentives for agents.