Elevate program offers higher level of services, including “done-for-you marketing,” lead generation and transaction management, in exchange for what the company considers to be a low split.
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Fathom Realty, whose flat-fee and revenue-sharing commission models have helped the company grow its agent count, is now offering its agents the option of paying a 20 percent commission split in exchange for “concierge-level services” including dedicated marketing support and lead generation.
The Elevate program is an addition to Fathom Realty’s existing commission plans, offering a higher level of brokerage services in exchange for what the company considers to be a low split, Fathom Holdings CEO Marco Fregenal said Wednesday.
Marco Fregenal
“While many brokerages charge 20 percent to 40 percent of an agent’s commission just to hold a license, Elevate delivers far more for only a low 20 percent split,” including “done-for-you marketing,” lead generation and transaction management, Fregenal said in a statement. “It’s not just about saving time; it’s about making every minute more profitable.”
Elevate is aimed at not only empowering Fathom Realty agents to “potentially close more deals and operate at a higher level,” Fregenal said, but at “significantly” increasing gross profit and margins on each Elevate closing, “creating meaningful value for our shareholders as we scale our agent base and transaction volume.”
But Fathom Holdings noted that the company “is not currently providing guidance on Elevate’s potential impact on its future EBITDA (earnings before interest, taxes, depreciation and amortization) or other financial metrics.”
Fathom Holdings shareholders were unmoved, with Fathom’s price per share sliding 2 percent Wednesday to close at 76 cents. Shares in Fathom, which in the last 12 months have changed hands for as much as $3.37, hit a 52-week intraday low of 69.8 cents on March 10.
Cary, North Carolina-based Fathom Holdings on March 12 reported a $21.6 million 2024 loss, including a $6.2 million Q4 net loss.
Fathom grew its agent count by 21 percent last year, to 14,300 agents. But 2024 was the real estate industry’s slowest year for existing-home sales since 1995, and Fathom’s transaction count shrank by 3 percent to 37,000.
Double-digit growth in Fathom Realty agent count
Source: Fathom Holdings Inc. earnings reports.
Fathom executives have said the brokerage’s flat-fee and revenue-sharing commission models have helped it continue to grow its agent count in a difficult period for the industry.
Agents who work for Fathom pay an annual fee of $700, and can choose to pay either a $465 transaction fee per sale (capped at $9,000) or a 12 percent commission split (capped at $12,000). Agents in both plans pay fees of $165 per transaction after hitting their caps, but agents who pay a commission split can earn bigger revenue shares.
In addition to its real estate brokerage, Fathom operates a technology-driven, end-to-end real estate services platform that integrates residential brokerage, mortgage, title and cloud-based “software-as-a-service” (SaaS) offerings for brokerages and agents.
Fathom said Elevate’s “concierge-level services” include:
- Dedicated marketing support, with “expert marketers” creating “done-for-you lead generation, social media management, custom branding, ongoing marketing and listing promotion.”
- Lead generation from “multiple lead sources,” automated lead nurturing plans, personal outreach from Fathom’s client services team, and advanced strategies and analytics to maximize conversion rates.
- Transaction management utilizing “experienced staff who coordinate contracts, monitor deadlines, and work directly with mortgage and title companies.”
- Skills development and coaching sessions “designed to refine agent skills, foster collaboration and drive sustainable growth”
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