There will be backlash
Compass tries to have the best of both of worlds — license its technology and broker deals.
Pivot: The residential brokerage is now venturing into the business of licensing its software to other firms. While they still plan on brokering deals, this allows them to add another revenue stream. Co-founder Ori Allon said that Compass will not sell its technology in core markets.
Heard on the Street: “If you’re a brokerage and Compass is a competitor, would you want to use technology that says ‘Powered by Compass’? It doesn’t make sense.” Good point.