From time to time, it is necessary for Zolo to review neighbourhoods and to adjust the number of realtors assigned if the neighbourhood is oversaturated.
The purpose of this policy is to ensure that neighbourhoods are well served and that realtors have a viable lead volume.
Fluctuations in the market can materially affect the number of realtors assigned to a neighbourhood. For example, if trade volume decreases by 40% in a market, this reduces the number of client leads Zolo has, and consequently the number of realtors needed in the area to service those clients.
If we find that the number of realtors in a neighbourhood exceeds demand, we may rebalance the neighbourhood by removing some realtors. This is determined by earnings, starting with the lowest-earning realtors.