ed franchising in 2015 and as of May 2018, we have over 290 fran- chised locations and 2,500-plus “NextHomies” across 43 states. In 2017 alone, the company closed over 10,000 transactions worth over $2.5 billion in volume. These are in- credible numbers for a three-year-old company. MP: How do you explain such tremen- dous growth in such a short amount of time? JD: Our growth really has to do with four things. The first is our flexible franchise model where franchisees can choose between a one-year or five-year franchise agreement. This length of agreement has never been available in real estate until we in- troduced it. The second is our variable fran- chise fees. Members can choose to pay us a flat monthly fee or a percentage of their commission. This allows higher-producing agents to save money by paying us a flat amount each month regardless of the number of transactions they close, while lower-producing agents only have to pay us when they close a transaction. The third reason is our technology platform. Not only is every solution we offer included for every member, but also the product offering provides everything they need to be success-
In just 3.5 years, NextHome has expanded to 2,500-plus ‘NextHomies’ across 43 states.
ful in today’s real estate business. More importantly, it’s completely automated so members can access everything in one location—the data is shared across the entire platform, so there’s no need for duplicate data entry. This is why our technology adoption rate is over 70 percent. The final reason for our growth is our branding and marketing. The NextHome brand is modern, clean, and designed to attract today’s Gen X and Y homebuyers and sellers. We worked closely with the world’s larg- est independent design firm, Penta- gram, to create a brand that truly res- onates with today’s consumer. This combination of products, services, and cost structure has provided an opportunity for small- and medium- sized brokerages to be part of some- thing bigger without the significant upfront or ongoing costs of our com- petitors. I believe this is why we’ve added so many locations in such a short period of time. MP: The average NextHome o ce is much smaller than traditional bro- kerages. Why is that? JD: We believe the future brokerage consists of smaller, highly produc-
NextHome’s modern brand identity, including mascot Luke, the orange Frenchie, was developed in collaboration with global design firm Pentagram.
RISMedia’s REAL ESTATE July 2018 81
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