In this episode of Business Breakdowns, host Matt Reustle interviews Geoff Collette, founder of Aeon Capital Partners, about Compass, the real estate brokerage. Collette describes Compass's advantages: its integrated software platform, national scale, network of top agents, and exclusive listing inventory. The discussion covers Compass's founding, early pivots, and financial challenges, particularly during the housing market downturn of 2022. They explore Compass's current market share, its strategy to achieve 30% market share in its top 30 markets by 2026, and its focus on premium listings. The conversation also delves into the complexities of the real estate industry, including the role of the National Association of Realtors (NAR), Multiple Listing Services (MLS), and consumer-facing portals like Zillow, as well as Compass's three-phase marketing strategy for listings and its antitrust lawsuit against Zillow. The discussion further covers Compass's revenue model, commission splits, operating leverage, technology investments, and potential risks, including macro risks and execution risks related to agent retention and M&A.
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