If you’re thinking of applying to work for a real estate business, or simply just using their services, you want to ensure that they are legitimate. You want to be certain that they treat employees well and that the way they run is trustworthy and reliable. You certainly want to avoid any pyramid schemes that could leave you in a sticky situation, which is why it’s always a good idea to do your research before you sign up for anything you’re unsure of.
So, you’ve come to the right place – in this article we are going to be answering ‘is Compass realty a pyramid scheme?’. Let’s get to it.
The definition of a pyramid scheme is as follows: a form of investment (illegal in various parts of the world) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.
There are a few different elements for us to dissect and compare within this definition. First off, Compass isn’t a ‘form of investment’. Whilst, yes, their agents sign up to work for them and use their real estate technology for their benefit, it is a legitimate job. They do their work, and in turn, get their commission. Compass does take a cut of the commission they gain, but this is perfectly normal in this line of work.
Next up, the definition states how pyramid schemes are illegal in some areas. This is because often, the people involved lower down the pyramid usually end up losing out on time and money by the end of it. They are essentially tricked into something, thinking they’re going to make gains when in fact it’s the opposite. The way Compass works are totally legal. Their employees and agents know what to expect from the work they do and they get rewarded for their efforts. If they sell, they see the monetary gains, as agreed.
Now, whilst Compass would encourage recommendations from their team for new talent to sign up, this is not mandatory. It’s not about the numbers, it’s about finding the right individuals for the job. With a pyramid scheme, this is the opposite. It’s all about getting as many people signed up as possible to see the sign-up fee that comes with each new member.
Compass has thousands of willing applicants wanting to join their business annually. This is not a scam – agents and employees have seen the success and want to be a part of it, with access to the innovative technology that Compass offers. They have proven themselves to help streamline the processes in property buying and selling, which is something that makes them so appealing to agents. Agents are easily connected to the right people through the Compass app, meaning sales are more likely to come through in the end. So, to wrap it up, Compass realty isn’t a pyramid scheme. It’s a trustworthy real estate business that abides by legal practices.