Someone once told me that one of the hardest things I would ever do in my life would be getting a company public the right way. As an eight-year-old Marine Corps infantryman, the idea was absurd. While it certainly wasn’t any more difficult than quickly ropeing up onto the deck of a moving ship or evacuating enemy fighters from a building, I can now fully understand what they meant. It’s a different kind of hard.
A lot of people ask us why we made the decision to go public so early, and the answer is simple: we had more options than we had capital. Our biggest expenses weren’t offices, people, or technology. It kept pace with our explosive growth. After two years and countless hours of work and millions of dollars spent on the process, we made our NASDAQ debut on July 31, 2020.
During our IPO, we announced that we were raising capital for three main purposes: accelerating growth, investing in our proprietary technology, and making strategic acquisitions including mortgage, property, insurance and smaller brokerage businesses. We didn’t miss anything to make our vision a reality.
Fathom Realty has a unique business model. We charge our agents a simple, low, flat-rate transaction fee per sale. In addition, we do not charge any monthly fees. Yet even for a fraction of the fees our competitors pay, we could still achieve profitability in brokerage with fewer than 10,000 transactions per quarter. Achieving this when most of our competitors were getting profitability on less than 30,000 transactions per quarter is a testament to the way we work, especially when we provide everything an agent needs to be successful without sacrificing anything.
In order to run a profitable real estate business with our model, we have to keep our costs low. The best way to do this is to own our technology and get rid of the bloat that comes with office space. Our complete technology platform enables us to streamline our operations, reduce human resource requirements, reduce our costs and dependency on others, and provide a better user experience for our agents and customers. While investing capital in our technology, we made two other strategic acquisitions: the home search and CRM company Naberly and the big data aggregator and hyperlocal content creator LiveBy.
In the last 15 months we have increased sales, the number of agents and the volume of transactions. We have made numerous strategic acquisitions and exceed every promise we made on our IPO roadshow. Also, as we expand in the US, we’re talking to more and more brokers about mergers and acquisitions. I couldn’t be more proud of our humble beginnings and the fantastic staff and agents I have the honor of serving every day.
To learn more about Fathom Realty, visit FathomCareers.com.
Josh Harley is a serial entrepreneur, founder, and CEO of Fathom Holdings, tech freak, innovator, disruptor, marketer, teacher, artist, U.S. Marine, and Alaska-raised sweet tea fan. He is a firm believer in the principles of servant leadership and strives to be an example to his leadership team and agents when it comes to serving others first.