How Compass Makes Money

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Compass is a tech-enabled real estate brokerage that claims to only hire the best agents out there.

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Its 25,000+ agents can handle everything from home purchases and sales all the way to property developments.

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Its tech-first approach has enabled the firm’s founders to raise $1.5 billion in funding while taking Compass public back in 2021.

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Today, Compass claims to be the leading real estate brokerage (as measured by transaction volume) in the United States.

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But how does Compass, which generated $6.42 billion in revenue during 2021, make money?

Commission

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Being tech-enabled and focusing on higher-value properties has allowed Compass to get away with charging comparatively lower fees (~ 3%).

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Referral Fees

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