They need to reduce their agents' commission from 75% to at most 60%. The 75% payout to agents is unsustainable. Other agencies approximate 50%.
The main agents either do or should have shares in the business and make up the balance of their commissions by the business being profitable.
At present, most agents have no interest in how other agents are doing. If part of all agents remuneration was via dividends and capital growth in the business, via shareholdings, they would all have a strong interest in how their colleagues are performing.
I sold out ages ago when I could see the model doesn't work. The agents are milking the business. No way do I want to be a shareholder.
AU1 Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
