Choosing a real estate agency is one of the most consequential decisions a real estate leader can make. It’s not just about splits, tools or logos; what matters is whether the structure you work in supports where your business is going, not just where it has been.
For years, my Seattle team, now known as McConnell Group (formerly the NK Team), operated under a traditional brokerage model. It has served us well during an important chapter of our growth.
But as our organization grew, we asked ourselves a more fundamental question: Is this structure still aligned with how our company operates today and where we are going?
That question ultimately led us to move to a cloud-based brokerage model.
This was not a reactionary decision. It was the result of a long evaluation of the influence of leadership, operational control, financial efficiency and how modern real estate companies grow at scale. As you consider taking your team to the next level, it’s helpful to think about the things that can and cannot be changed with a move to a brokerage firm.
Brand ownership
As teams grow, leadership responsibilities change. At some point you no longer just sell real estate. You lead an organization with layers of operations, marketing, recruitment, training and responsibility.
In a traditional brokerage model, much of that leadership infrastructure is externalized. Culture, brand positioning, internal norms, and even growth incentives are often dictated by the brokerage rather than intentionally built within the team.
Over time, this can limit your organization’s visibility, not only among consumers, but also among agents you’re trying to attract and retain. Ultimately, strong teams need the ability to take full control of their identity, leadership structure and long-term vision, regardless of what happens at the agent level.
That became increasingly important as consolidation accelerated across the industry. When brokerages merge or expand through acquisitions, teams under the same umbrella can suddenly find themselves competing with each other – sometimes for agents, sometimes for visibility, and sometimes for resources.
Clarity of leadership is important on a large scale. Owning your internal structure is not about ego or branding. It’s about sustainability.
Operations and scale
One of the most overlooked differences between traditional and cloud-based models is the way they handle operational growth.
As organizations grow, complexity increases. More agents means more contracts, more marketing, more compliance, more systems, and more leadership bandwidth needed to keep everything running smoothly.
What we found was that cloud-based brokers are structurally better suited to support this reality. They typically offer centralized technology, flexible operational frameworks, and systems that allow teams or solo agents to build on top of the platform rather than work around it.
This doesn’t just apply to large teams. Independent agents also benefit. The same technology, marketing systems, transaction support and operational tools that help a team scale are just as valuable to a solo practitioner who wants efficiency, leverage and margin.
In other words, many of the benefits traditionally associated with physical brokers now exist in cloud-based environments without the same overhead or rigidity.
Financial reconciliation and long-term sustainability
At a certain level of production, financial reconciliation becomes impossible to ignore.
Traditional brokerage models are often based on fees, transfers and structures that make sense when a company is small but become increasingly inefficient as volume grows. When we looked closely at our numbers, it became clear that the economic situation no longer matched the value delivered.
A colleague of mine who leads a large team on the East Coast once described his own realization after reviewing his books at a traditional brokerage: “At one point it felt like financial malfeasance.”
That stuck with me because I saw the same pattern in my team.
Cloud-based models tend to reward contributions differently. Revenue sharing, equity participation, and scalable economics structures are designed to align incentives with growth rather than punish it. The result is a model where leadership, recruiting and operational excellence actually improve, rather than erode, the bottom line.
That doesn’t mean traditional brokers don’t serve a purpose. For newer agents or teams just starting out, the built-in credibility and local structure can be incredibly valuable. But once an organization reaches a certain level of maturity, the math and strategy change.
According to proven patterns
One of the strongest signals for us came from looking across the country.
Some of the most productive, cutting-edge teams in the industry now operate within cloud-based brokerages. Different markets. Different business models. Same conclusion.
Success leaves clues.
When you see high-performing organizations consistently opting for a structure that gives them greater operational control, leadership power and financial efficiency, it’s worth paying attention – not as a trend, but as a data point.
Our decision wasn’t about pursuing something new. It was about aligning with a model that supports long-term growth, leadership development and operational excellence without sacrificing culture, autonomy or financial discipline.
This entire month we’re focused on The New Brokerage Playbook. Running a real estate agency in 2026 is nothing like it used to be. From big players to scrappy indies, we’re mapping the new playing field and talking to brokerage leaders across the country about what’s working now – and what’s next.
Sean McConnell leads Seattle-based McConnell Group (formerly NK Team), one of the top-performing real estate groups in Washington state. You can connect with him via LinkedIn.
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