By: KeyCrew Media
Radius CEO argues data ownership and commission economics will define which brokerages thrive as platform dependence reshapes the industry.
SAN FRANCISCO – October 21,, 2025 – Biju Ashokan has watched real estate brokerages struggle with a fundamental tension. Third-party lead generation platforms deliver qualified buyers quickly, but accessing those leads requires surrendering significant commission percentages and, often, control over client data.
As CEO of Radius, a white-label real estate technology platform serving over 200 brokerages, Ashokan argues the industry has reached an inflection point where data ownership and lead generation strategy will separate thriving brokerages from those competing on borrowed infrastructure.
“The market is such that they need good leads, right?” Ashokan said. “But if you have a lot of lead sources, you don’t need to rely entirely on platform leads and then pay significant percentages back for that.”
The Commission Pressure
Following the National Association of Realtors settlement that eliminated automatic buyer agent compensation splits, commission margins face new scrutiny. When brokerages pay 30-40% of commissions to access platform-generated leads, those costs compound with other business expenses and regulatory changes.
The leads convert efficiently because they arrive pre-qualified through multiple touchpoints. That efficiency creates dependency. Alternative lead generation feels slower and less certain by comparison, even when it preserves more commission dollars.
“These are agents that depend on platform leads like crazy, and they don’t even see where this is headed,” Ashokan noted. “If platforms eventually increase to 50%, they’ll have to pay it because they don’t have any other source of leads.”
The calculation involves both immediate economics and long-term strategic positioning. Platform leads may close efficiently today, but dependence on a single source creates vulnerability if pricing or terms change.
The Data Ownership Question
A related issue involves customer relationship management (CRM) systems. When brokerages use CRM platforms provided by lead generation companies, client data resides within systems controlled by third parties.
This creates complications around data ownership and usage rights. Some CRM agreements include clauses permitting the platform provider to contact clients in the database for various purposes. Brokerages may discover that uploading their own independently generated leads into these systems grants the platform certain access or contact permissions.
“Instead, what if all your leads are in your own white-labeled system?” Ashokan asked. “You’d never lose these leads because they’re in your system. They’re not going anywhere else.”
The fundamental issue is whether client relationships remain with the brokerage or become shared with platform providers. Client databases and lead pipelines represent the foundation of a real estate business. How much control to cede to platform operators creates long-term strategic implications.
The Platform Economics Model
Ashokan draws parallels to how platform companies operate across industries. The model involves owning no inventory, carrying minimal liability, yet capturing significant percentages of transactions by controlling the platform connecting supply and demand.
“It’s exactly the Uber model,” he said. “If I’m a driver, all I have to do is buy a car. The platform gives me all the passengers. I just need to pick them up and drop them, and I make money. But the platform takes 30%. It’s the same model, but in real estate.”
The evolution reduces agents to showing properties and processing paperwork while platforms handle lead generation, qualification, and nurturing. Platform companies position this as a service. Brokerages must weigh whether the trade-off serves their long-term interests.
“Platforms do all the convincing and lead nurturing,” Ashokan noted. “Agents just have to show up at a property showing, show the place, and help with the paperwork. And platforms take 40%.”
The Alternative Infrastructure
Radius recently introduced the latest version of Mel, an AI-powered assistant designed to help agents and brokers maintain ownership of their lead pipelines and nurture them at scale. The company positions its technology as infrastructure that brokerages control directly.
Mel operates within a white-label CRM system, meaning the brokerage’s brand appears on the platform rather than a third-party provider’s. When leads exist within this environment, the data remains under the brokerage’s control. The AI assistant can handle routine nurturing tasks like responding to inquiries, recommending properties, and scheduling showings without requiring agents to cede data to external platforms.
Radius operates on a 5% transaction fee on deals processed through the platform, leaving 95% of commission with the agent minus whatever split the brokerage takes. This aligns incentives differently than models where lead generators capture larger percentages.
“Now imagine doing this for thousands of leads with help from AI. Your leads will never go out of your ecosystem.” Ashokan said.
The pitch acknowledges brokerages may still use platform-generated leads for some business while maintaining independent lead pipelines that avoid complete platform dependency.
Market Forces Driving Change
Several trends are converging to make data ownership and lead generation strategy more critical for brokerages. Platform companies have successfully positioned themselves as default destinations for property search, generating behavioral data that informs lead qualification. This data advantage compounds over time.
Market conditions have shifted from the seller frenzy of 2021-2022 toward more balanced dynamics, creating more challenging environments for agents competing for business. Remote work has increased client mobility, meaning brokerages need capabilities to serve clients relocating across markets.
In this context, maintaining control over lead generation and client relationships becomes increasingly important for competitive positioning.
Technology as Defensive Strategy
Ashokan frames the AI assistant launch not as aggressive market expansion but as a defensive necessity. The conventional brokerage model faces pressure from multiple directions. Large platforms are capturing commission share through lead generation. Mega-brokerages are consolidating market share. Independent brokerages need tools that reduce platform dependence without requiring massive capital investment.
“With these tools, we want to provide an alternative way forward, not by running a traditional brokerage,” Ashokan said.
The response cannot compete directly with consumer-facing aggregation platforms. Few brokerages have the resources to build comparable search and discovery tools. Instead, the strategic move involves providing agents with capabilities that reduce reliance on platform-generated leads while maintaining competitive service levels.
Implementation Considerations
Mel handles routine nurturing: responding to inquiries, recommending properties, scheduling showings, and maintaining contact during consideration periods. This automation allows agents to focus on relationship building and negotiation while ensuring leads receive consistent attention.
Because the system operates within the brokerage’s infrastructure, interaction data remains within that environment. Lead behavior and preferences inform agent strategy without being visible to platform competitors.
Most brokerages lack the technical capability or capital to build sophisticated AI and CRM infrastructure independently. White-label solutions like Radius aim to solve this by providing enterprise-grade technology that smaller operators can brand as their own.
The Strategic Choice
Ashokan points to market valuations as evidence of which business models currently dominate. Major lead generation platforms command market caps exceeding $10 billion. Recent brokerage acquisitions have closed around $1.6 billion.
“Obviously that says the brokerage business is dying with this current model,” he said. “Platforms are clearly winning. No other brokerage is taking them on.”
His argument isn’t that platform strategies are flawed. From a business perspective, he acknowledges the model works. The question is whether agents recognize the trajectory and whether alternatives exist.
“Thinking like a business person, that’s genius for platforms, and that’s where I think the industry is headed anyway,” Ashokan acknowledged. “But what if we can change that narrative a little bit?”
For Radius, the bet is that enough brokerages will choose to build owned infrastructure rather than rent platform access, even if building requires more upfront work and delivers slower initial results. Whether that proves correct depends on how brokerages weigh short-term lead quality against long-term business independence and retained commission.
The optimal answer likely varies by brokerage size and market position. High-producing brokerages with strong brands may find proprietary infrastructure more valuable. Smaller operations or those in highly competitive markets may rely more on platform-generated leads despite the commission costs.
What appears clear is that the question itself is becoming more central to real estate business strategy. As platforms evolve their offerings and potentially adjust their economics, brokerages that have built alternative capabilities maintain more strategic flexibility than those entirely dependent on third-party lead generation.
About Radius Agent
Radius provides a white-label real estate technology platform powering backend operations for independent brokerages. Radius partners and agents maintain ownership of their client data and lead pipelines. The platform’s AI assistant, Mel, helps agents nurture leads while keeping all client relationships within the broker’s ecosystem. Radius serves over 200 brokerages.
Media Contact:
Heather Hook
KeyCrew Media
heather@keycrew.co
