Reffkin admits mistakes were made in 2018

In an end-of-year email the CEO acknowledged the company “faced challenges” but predicts 2019 will be “monumental”

TRD NATIONAL /
Jan.January 04, 2019 12:15 PM

Robert Reffkin (Credit: Columbia University and iStock)

In many ways, Robert Reffkin had a blessed year. In 2018, Compass expanded from 37 markets to 122, raised $1.2 billion, hired over 1,000 employees and signed on almost 6,000 new agents, the brokerage head told staffers in a company-wide email.

But Reffkin also admitted that in some areas, the company “fell short.” He highlighted the failed July launch of Powered By Compass, software the company had hoped to license to independent brokerages but was forced to roll-back following criticism from their own agents.

“We launched some technology without testing it thoroughly with agents,” Reffkin wrote, “and learned we can move too fast.”

Another “rocky” moment for Reffkin came in August, when news of Compass’s acquisition of Pacific Union, a blockbuster California brokerage, leaked to the press. “Doing multiple mergers in a single year put strain on our employees, our culture, and unfortunately, the incoming agents felt and saw those cracks,” said Reffkin, according to Inman, which published his email on Thursday.

In his company-wide email, Reffkin also expressed regrets over what he had previously called an “arrogant marketing strategy.”

Reffkin predicted that 2019 would be “monumental” for the company and reiterated his “20/20 by 2020” plan, which would see Compass reach a 20 percent market share in each of the top 20 markets by 2020. [Inman] — Decca Muldowney

Correction: A prior version of this report said Reffkin didn’t note in his company-wide email a previous regret regarding “arrogant” marketing strategies; he did.


Related Articles

arrow_forward_ios
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jennifer Lopez and Alex Rodriguez with their Malibu beach house (Getty; Courtesy Compass)

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...