Darren Aftahi: And I guess just last one for me, your productivity per agent on a transaction basis is very impressive. I’m just curious if you scale to tens of thousands, if not hundreds of thousands can that metric stay at that level or do we assume at some point it starts to get diluted?
Tamir Poleg: Well, I believe that this is sustainable. At the end of the day, it’s about the focus of the company. So as a company, we’re not focused on the vanity number of — the number of agents on the platform. We want to focus on production, and we want to help agents that are serious about practicing real estate. So at the end of the day, we’re not trying to attract only any agent. We’re trying to attract the agents that want to succeed and want to close transactions and want to focus on real estate. And I think that this is why we’re seeing such impressive per agent productivity numbers. And I believe that we will continue to attract those agents that are more focused on production rather than other things. So I believe that this is sustainable.
Michelle Ressler: Yes. And I also think we should highlight that this is a challenging market. So we expect that those metrics will only go up from here.
Darren Aftahi: That’s helpful. Thanks, Michelle.
Operator: Thank you. Your next question is coming from Tom White from D.A. Davidson. Your line is live.
Wyatt Swanson: Hey, this is Wyatt Swanson on for Tom. Thanks for taking our questions. I’ve got a few here. My first one is just kind of on the changes to the agent fee structure. Could you talk a little bit more about what the rationale was for implementing those changes now? And then how does your current revenue share offering differ versus some of the other similar models in the space?
Tamir Poleg: Sure. The changes fee in fees has been a collaborative process and effort with our agents. At the end of the day, our agents are shareholders in the company. So they’re both the clients of the company, but they also own an equity stake in the company. So they want to see the company succeed and grow and become profitable. So we had very long discussions with groups of agents. We explained the situation and our cost went up because of inflation, but our model is such that it’s capped at some point. So when agents close more deals, they pay us the same because there is we stop participating in the commission split with them. So when we explained all of this and we thought about how to minimize the impact, the negative impact to the average agent, we came up with all of those different fees.
So the joining fee for agents who want to join it really doesn’t make a big difference if they pay $149 or $249. This is why we increased this fee. We implemented a very modest transaction fee of $30. We wanted to stay competitive compared to other brokerages out there. But at the end of the day, we wanted to make sure that our agents would be as slightly impacted as possible. And I think that we came to a solution that everybody was somewhat happy with. Regarding revenue share, we — different revenue share in the fact that — our revenue share is very generous; let’s say, again the average agent. So we are generous on the first year. We believe that most agents will be attracting one, two, three, four, five agents to the company versus those agents that attract hundreds of agents into the company.
So we wanted to be generous with the — let’s say, every day average agent. And this is why we are generous there. And we also announced a co-sponsored revenue share, which I will spend a minute on. When we looked at our 900,000 agents base, we realized that only about 1,500 of them are actually attracting other agents. And when we ask them why is that? Why are the rest of the agents not really engaged in attraction? We realized that many of them are interested in building a revenue share, revenue stream, but they don’t really know how to have those conversations. So we decided that we are going to allow every agent to name two sponsors, and this provides a chance to every agent to team up with other agents who are maybe more experienced in agent attraction and just cooperate in attracting agencies of the company.