The conversation around an Open MLS model is gaining traction, particularly among real estate professionals who hold active licenses but are not members of local, state, or national REALTOR® associations. These licensee-only practitioners represent a largely untapped market for MLS growth. By quantifying this opportunity, MLSs can make informed business decisions about adopting an Open MLS strategy.

Estimating the Potential Market for Open MLS

To assess the revenue potential of an Open MLS, consider the number of licensee-only practitioners in your state. Let’s break this down with a simple example:

  1. Total Licensee-Only Practitioners – Assume your state has 5,000 licensee-only practitioners (real estate licensees who are not part of the local, state, or national REALTOR® organizations).
  2. Eliminating Non-Practicing Licensees – Some of these licensees may not be actively selling real estate. If we estimate that 50% are inactive, that reduces the potential pool to 2,500 active licensee-only practitioners.
  3. Geographic Relevance to Your MLS – Your MLS likely does not cover the entire state. If your MLS serves 25% of the counties, you can reasonably estimate that 25% of the 2,500 active practitioners operate within your MLS’s service area. That equals 625 potential Open MLS subscribers.
  4. Projected Adoption Rate – Not all of these 625 potential users will join your Open MLS. If you assume a 25% adoption rate, that translates to 156 new Open MLS subscribers.

Your Board of Directors can build their own assumption models so you can quantify a likely potential of an Open MLS in your market. 

Financial Impact of Open MLS Subscribers

With 156 potential new subscribers, the revenue impact depends on your MLS’s pricing model. For example:

  • As an example, if an Open MLS subscription costs $50 per month, that equates to $7,800 in monthly revenue or $93,600 annually. 
  • Some markets offer Open MLS subscriptions at the same price as REALTOR® subscriptions. Others charge a premium. To guide your process for determining price, you can download the FREE WAV Group White Paper entitled Open MLS Subscription Pricing Best Practices to help you build your own pricing assumptions 

While 156 new subscribers may not seem like a massive number, the benefits to the MLS and its Association/Broker shareholder(s) extend beyond revenue generation.

Reducing Litigation Risk with an Open MLS Model

Beyond revenue, an Open MLS model can serve as a strategic shield against legal challenges. Lawsuits against MLSs and REALTOR® associations are becoming more common, with brokers in states like Michigan, Pennsylvania, Texas, and Louisiana filing litigation against MLSs and industry organizations. Offering an Open MLS option reduces exclusivity concerns and mitigates the risk of being targeted by legal actions challenging membership requirements.

Next Steps: Explore Open MLS for Your Market

If your MLS is considering an Open MLS model, it’s essential to evaluate your market’s potential carefully. WAV Group can help educate your organization on the implications and opportunities of an Open MLS strategy.

To learn more and discuss how an Open MLS approach might benefit your business, fill out the form attached, and let’s start the conversation!


Hire WAV Group

  • Please select a service.
  • How can we help you?