With $325M in VC money, can the brokerage break away from the pack?...critics said Compass’ tech focus won’t eliminate the reality of running a low-margin business. “It certainly helps, but it’s hard to change the fact that the success of the Compass model will be based on traditional brokerage metrics,” said Stuart Siegel, CEO of residential brokerage Engel & Völkers’ New York City operation. “Converting market share, especially market share that comes with a high price tag, to dependable EBITDA [earnings before interest, taxes and depreciation] is virtually impossible without curtailing spending and top-line growth initiatives,” he added.
Recruiting and retaining agents is the name of the game for brokerages large and small, but for many, it’s a practice that boils down to being easier said than done. A hot topic at RISMedia’s 2017 CEO Exchange this past September, an esteemed group of panelists—moderated by Joe Rand, chief creative officer at Better Homes and Gardens Real Estate Rand Realty—offered their insight from a firsthand perspective...For Stuart Siegel, president and CEO of Engel & Völkers New York City, timing is everything. “Retention begins at the first recruiting meeting,” noted Siegel, “when expectations are set and the brokerage’s value proposition is explained.”
