WeWork revamps broker referral program

Co-working company now offers more fees, tracking tool

TRD LOS ANGELES /
Jul.July 26, 2016 01:00 PM

From the New York website: WeWork changed its partnership program for office leasing brokers, offering additional fees and new tracking tools in a bid to win referrals.

Brokers who refer clients to the co-working company now earn referral fees beyond the first year of WeWork membership, and also get paid if their clients renew or expand their membership agreements.

Under WeWork’s prior referral system, brokers received 10 percent of a client’s monthly membership fee for up to a year – which they still do. But now brokers also earn 2 percent for months 13-36 if their clients sign longer-term membership deals, plus additional fees if they sign further agreements. WeWork also lets brokers track clients through an online portal and notifies them if they are in talks to expand their footprint.

“I think it’s really important for brokers to realize that they continue to own the relationship (with their clients),” WeWork’s chief revenue officer Francis Lobo told The Real Deal, adding that the changes sprang from conversations with brokers.

The company hired former JLL broker Julia Davis to manage the partnership program, and says it installed an account management team to ensure brokers get properly credited for referrals and paid on time.

“We’re not making salaries so the commissionable event is what we’re in it for,” said Derrick Ades, a broker at CBRE who has used the referral program. “I think it would be a disincentive if there was no compensation offered.”

WeWork currently operates 32 co-working spaces in New York City and was valued at $16 billion in a funding round earlier this year.

Bloomberg, citing a leaked internal document, reported last week that the Adam Neumann-led firm recently cut its profit projections by nearly 80 percent.


Related Articles

arrow_forward_ios
WeWork’s Adam Neumann and Onni Group President Rossano de Cotiis with a rendering of Wilshire Courtyard (Credit: Getty Images and Michael Maltzan Architecture)

Onni inks lease with WeWork after closing on massive Wilshire Courtyard purchase

Adam Neumann, Arash Gohari, and one of their new offices in Santa Monica

Headquarters by WeWork expands into LA; adds to NY locations

David Ellison’s Skydance buying Santa Monica office campus for $350M: sources

WeWork signs 40K sf lease in North Hollywood

WeWork signs another lease in Downtown LA

WeWork expands its portfolio with first Beverly Hills lease: sources

WeWork nearing deal at Hudson Pacific’s Maxwell project in Arts District: sources

DTLA could see another 212K square feet of co-working space by year’s end

arrow_forward_ios