Zillow, the National Association of Realtors (NAR) and MLSs are exploiting agents in the same way the National Collegiate Athletic Association (NCAA) exploited college athletes. The legal battles that have forced the NCAA to reform its rules around compensation for college athletes should serve as both a wake-up call and a framework for the real estate industry, where there’s a similar exploitative system.
For decades, the NCAA made billions of dollars off the unpaid work of so-called “amateur” college athletes. Federal Courts eventually ruled that prohibiting athletes from being compensated for their name, image and likeness violated antitrust laws. And in 2021, Supreme Court Justice Brett Kavanaugh’s legal opinion cut to the core of the problem: The NCAA’s business model would be “flatly illegal in almost any other industry in America.”
Just this past June, a transformative $2.8 billion settlement was approved, awarding damages to compensate current and former athletes who had competed and were previously barred from potential earnings using their name, image and likeness.
This seismic shift underscores a clear lesson: When the individuals who produce the work that drives an industry’s profits are not fairly recognized, even the most influential and established organizations can be held accountable.
As it stands today, organized real estate — namely, Zillow, NAR and MLSs — take, control and monetize listing content created by agents. Agents spend years building trusted client relationships, and they invest their own time and money in producing professional photos, videos and listing descriptions. And then the MLS forces agents to give the MLS their listing and to give up their rights to their listing photos and content.
“Agents are the cheapest creators of content in the world. In fact, we have to pay the MLS and Zillow to take our content from us.” — Leonard Steinberg, Compass Chief Evangelist
To add insult to injury, MLSs forbid agents from watermarking their own listing photos (with up to $250 fines), while the MLS then adds their own MLS watermark to the agents’ listing photo. The MLS then sells listings to third-party internet portals that hide the agent’s contact information and monetize the listings by selling buyer leads to other agents.
To enforce this restrictive system, MLSs fine agents up to $5,000 if the agent markets off the MLS, and now, Zillow bans listings if the agent markets off Zillow. Much like the NCAA once justified its anti-competitive regulations as a way to protect fairness for student-athletes, Zillow, NAR and MLSs defend their policies as a way to protect consumer transparency.
We know, however, just like the NCAA before losing in federal court, Zillow, NAR and MLSs are just monopolies that profit from work they don’t create. They are all dictating mandatory policies that strip agents and their clients of choice and force listings into a one-size-fits-all marketing system that they can control and profit from.
Compass has taken a firm stand to challenge a system that disadvantages the very professionals and homeowners who power it. We are fighting for a future where every agent is fairly recognized for their work and has the freedom to decide with their client when, where and how their listing is marketed.
When the courts forced the NCAA to recognize athletes’ rights to their own name, image and likeness, it didn’t destroy college sports. It simply rewarded the contributions of the athletes who make the system work. Real estate can take the same path. By ensuring that agents keep the leads tied to their listings and receive fair compensation when others use their content, the industry would not just be fairer, it would also be stronger and more trusted by consumers.
Robert Reffkin is the founder and CEO of Compass.
