The real estate industry has always been quick to evolve, but few shifts have been as dramatic as the one we’ve seen since 2020. Traditionally, real estate was all about buyers and sellers - estate agents built their business on listings, show days, and closing deals. But in recent years, a new model has disrupted the industry: the “agent attraction” model.

This shift, first popularised by Keller Williams in the US, has changed the way agencies structure themselves, how agents earn income, and even who the “client” really is.

What Is the Agent Attraction Model?

At its core, the agent attraction model focuses less on recruiting buyers and sellers, and more on recruiting other agents. The business grows by expanding its pool of agents, who are incentivised not only through commissions but also through revenue share or profit share from the agents they bring into the business.

This has several key features:

• Revenue/Profit Share: Instead of income being limited to one’s own transactions, agents can earn a portion of the company’s revenue generated by those they attract.
• Infopreneurship: Training, mentorship, and coaching have become additional revenue streams. Agents often brand themselves as thought leaders or educators to attract other agents.
• Agent as the Target Client: In this model, the real customer isn’t the property buyer or seller - it’s the agent. The company’s real product is its platform, culture, and compensation model.

Global Origins and South African Adoption

The concept gained traction with Keller Williams in the US, where profit share became a unique way to attract and retain agents. EXP Realty took it further by adopting a cloud-based brokerage model with a highly aggressive revenue share system.

In South Africa, we’ve seen similar approaches with companies like Keller Williams South Africa, Real Estate Services, EXP South Africa, and Mandated Property Group adopting variations of the agent attraction strategy. They present themselves as platforms where agents can be entrepreneurs within a bigger brand, earning from both sales and recruitment.

Who Really Benefits?

The agent attraction model is polarising. Supporters see it as innovative, empowering, and scalable. Critics dismiss it as a pyramid scheme in disguise. The truth is somewhere in between:

✔️ Benefits for Agents

• Multiple income streams: Commission + revenue share.
• Scalability: Top recruiters can build large downlines and earn passive income.
• Flexibility: Many platforms are cloud-based, cutting overheads.
• Community: The model often fosters training, mentoring, and peer-to-peer learning.

❌ Downsides for Agents

• Recruitment pressure: Success often depends less on selling houses, more on selling the model to other agents.
• Unequal outcomes: Only highly connected, persuasive recruiters thrive. Many agents earn little beyond their own commissions.
• Buyer/Seller neglect: Some argue that the model shifts focus away from client service, weakening the public’s perception of the profession.
• Regulatory grey areas: Pyramid-like structures draw scrutiny, especially where recruitment is prioritised over sales.

Pyramid Scheme or Smart Strategy?

It’s important to distinguish between an illegal pyramid scheme and a legal revenue share model:

• Pyramid schemes reward recruitment alone, without underlying value creation.
• Revenue share models (like EXP) are tied to actual property sales - meaning income is generated only if real transactions take place.

That said, the line can blur when companies place more emphasis on recruitment presentations than on property transactions.

What Kind of Agent Thrives in This Model?

• Natural Recruiters & Networkers: Agents who love people, networking, and building teams.
• Infopreneurs: Those who position themselves as trainers, coaches, and mentors can attract large followings.
• Digital Natives: Agents comfortable with online marketing, personal branding, and social media.
• Long-term Players: The real rewards come from building a sustainable downline - not from quick wins.

By contrast, agents who prefer to focus solely on client service and closing deals may find the recruitment aspect a distraction.

Impact on the South African Market

Since 2020, the agent attraction model has reshaped the local industry in several ways:

• More fragmented agency structures, with many small teams under larger umbrellas;
• A new wave of training-driven content as agents market themselves as mentors;
• A shift in value perception - young agents are drawn to platforms that promise entrepreneurial freedom, higher commission splits and income potential beyond commission; and
• Increased competition for agents, rather than listings.

Conclusion

The agent attraction model may have reshaped the real estate landscape, shifting focus toward recruiting and revenue sharing. But at the heart of property sales, success still comes down to something timeless: serving your buyers and sellers. If you never lose sight of who the real client is - the person entrusting you with their property journey - then no business model or trend will ever derail your success.