The Battle of the Brokerages

Why are cloud brokerage models gaining so much popularity with agents?

Date08.07.2024
Words byErin Best
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BEST ON REAL ESTATE
In recent years, cloud model real estate brokerages have become very popular. EXP Realty grew from 15,570 members in 2018 to 85,780 members in early 2024. REAL Brokerage made a big impact on the 2024 RealTrends rankings because it now has over 16,000 agents in the U.S. and Canada. Back at the end of 2021, Real had only 3,850 agents, which was already a 161% increase from 2020.

Lower costs and greater freedom?

These new types of brokerages are changing how agents work, solving old problems and offering many benefits that traditional offices can't match. This shows that technology in real estate is here to stay.


One big benefit of cloud model brokerages is that agents can get higher commission splits and stock options. Since these brokerages have lower costs because they don’t need office space, they can give agents a bigger share of their earnings. Traditional real estate brokerages have high costs like office rent, utilities and maintenance. This often means agents get smaller commission splits or have to pay desk fees.


Cloud model brokerages give agents more freedom and better control over their schedules through online learning and training. Agents can work from home, a coffee shop or even while traveling, as long as they have an internet connection. This flexibility helps agents balance work and life better and respond to client needs more quickly. And while this also can be true for brick-and-mortar brokerages, traditional brokerages usually require agents to work from a physical office from time to time, which limits their flexibility. That being said, in-person meetings are important for building relationships, which is crucial in real estate.

Erin BestErin Best

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Where you hang your license is irrelevant and Homeseekers hire you for your personal brand.

Erin Best
Director of Real Estate & Industry Engagement. 

The impact of technology.

Cloud model brokerages use advanced technology platforms that offer great tools for marketing, customer relationship management (CRM) and transaction management. This helps agents work more efficiently. These tools include virtual tours, digital signatures and automated marketing campaigns, helping agents serve their clients better and close deals faster. Cloud brokerage models are built with technology at their core and can easily adapt, providing a flexible, agent-focused experience.


Agents at traditional brokerages often have limited support and training resources, usually only available through in-person meetings. Cloud model brokerages focus on agent development by offering comprehensive training programs, mentorship opportunities and robust support systems that are available online and at any time. This helps agents improve their skills and succeed in a competitive market.


Many cloud model brokerages create a collaborative culture using virtual communication tools. Agents can easily connect with colleagues, share knowledge and work together on deals, creating a supportive and dynamic working environment. This sense of community is especially valuable for new agents.

But does it matter to Homeseekers?

The growing popularity of cloud model real estate brokerages shows the significant benefits they offer agents. In my experience? A brokerage is a tool to support your business. Where you hang your license is irrelevant and Homeseekers hire you for your personal brand—especially when it comes to younger generations of buyers and sellers.


By addressing key problems like high costs, limited flexibility, outdated technology and lack of support, these new brokerage models provide a great alternative to traditional offices. With higher commission splits, advanced technology, more flexibility, comprehensive training and a collaborative culture, it's no surprise that more agents are choosing cloud model brokerages. As the real estate industry evolves, cloud model brokerages will play a bigger role in shaping its future.

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Embracing technology is key to the real estate industry’s success.

If the real estate industry wants to succeed going forward, it’s essential to embrace technology as an opportunity, not a threat. Agents, brokerages, regulators and Homeseekers can all benefit from the smart use of technology.

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