T
he upstart brokerage LPT Realty is making waves with its innovative approach to growth, offering both revenue-share and fee-based plans that CEO Robert Palmer believes will be key to the company's success. So far, it seems to be working.

    Key points:

    * The addition of California's Big Block Realty in December bumped LPT's agent count to around 15,000 — a 50% increase from March.

    * Palmer explained his approach to the cloud-based, revenue-share model and how LPT prevents siloing of agents in downlines.

    * The company has recruited top executive talent from competitors in an effort to scale and get LPT IPO-ready.

    LPT Realty is not alone in its cloud-based, revenue-sharing brokerage model. eXp, a popularized by eXp, competes at the level of stalwarts like Anywhere and HomeServices, and Real Brokerage has demonstrated consistent — and stratospheric — growth.

    Florida-based LPT Realty aims to take on major competitors like eXp with its similar downline model and recruitment of top talent away from the brokerage giant. Palmer says he's big on "agent choice" and believes that offering different fee structures and allowing agents to opt-in to revenue share programs will be key to LPT's success.

    The industry is taking notice: This year, Palmer moved up 103 spots to No. 68 on this year's Swanepoel Power 200 rankings.

    Big Block Realty and its 1,200 agents recently joined LPT without an acquisition. The company has grown organically with walkovers and no actual acquisitions.

    LPT Realty currently has around 15,000 agents, a 50% increase from March. Palmer emphasizes that the focus should be on the real estate sold, not just recruiting efforts.

    What sets LPT apart is its single-entity national model, offering two compensation plans, and allowing agents to thrive at different points in their lifecycle. This approach has been pioneered by LPT and allows for greater flexibility and choice.

    Some critics argue that the downline model gives rise to unproductive agents or a 'professional recruiter' mindset, leading to siloing. Palmer disagrees, stating that individuals should have their own definition of success and that the platform serves all levels of producers.

    LPT Realty has recruited top executive talent from competitors, including former eXp leaders Michael Valdez and Jeff Whiteside. The company is looking for talent in the single-entity national space to help scale and get IPO-ready.