The K Co. may not be a household name like Coldwell Banker but it’s attracting agents at a rapid clip across Florida.
The Pompano Beach-based brokerage has signed up 350 agents in the past year to surpass 615 realtors, said CEO and broker Nathan Klutznick. Most of them are residential brokers.
Klutznick founded the company in 2009 after he lost his job selling houses for Centerline Homes amid the recession. It was slow growth for him at first. Then in August 2012, when he had just 17 agents, he changed the technology platform with an online and mobile program for brokers and made the financial terms more attractive.
Most large residential brokerages ask for a cut of every commission, often 50 percent, plus a franchise fee. The K Co. charges $49 per month and $49 per transaction and lets brokers keep all of their commissions, Klutznick said.
“A lot of people can’t afford the fees at a big firm,” he said. “Many firms have 100 agents and make money off 10 really productive agents. I would rather make more money off all my agents, even if it’s only a little.”
That strategy has worked out well so far. Klutznick said K Co. increased from $234,540 in revenue in 2011 to $2.7 million in 2013 to $5.2 million in 2014.
Having so many agents can lead to challenges. The K Co. processes 300 to 400 closings per month and it must ensure that all of its agents comply with state law. The company recently formed an in-house title firm. It moved into a 6,000-square-foot office at 1500 E. Atlantic Boulevard in Pompano Beach that has access to a 70-seat training room. The company has five full-time office employees.
The K Co. is expanding geographically as well. It opened offices in Orlando and Miami. Klutznick said he has agents from the Keys to Jacksonville.
“We will show you 10 different lead generation options and you can choose the best one,” he said. “We can offer a lot of the same things as traditional brokerages but we created a far more efficient platform.”