Derek Carlson discusses overcoming business adversity and legal challenges

Entrepreneur Derek Carlson is sharing insights on overcoming business adversity following significant legal challenges to his real estate brokerage. Carlson previously grew a one-man operation into a major US brokerage with over 1,300 agents.

In December 2023, Carlson’s firm was named in one of the initial National Association of Realtors (NAR) class action lawsuits. The litigation targeted brokerages based on high sales volume. However, Carlson notes a fundamental discrepancy in the legal claims: while his firm had high transaction volume, it operated on a 100% commission model where agents kept their full commissions. Because the brokerage generated revenue through flat monthly and transaction fees rather than commission splits, Carlson argues the settlement amounts demanded by plaintiffs were based on a misunderstanding of his company’s actual revenue.