WeWork Doubles Down On Its Poaching Strategy

WeWork Doubles Down On Its Poaching Strategy

WeWork is now offering brokers 100% commission to bring in new clients from its competitors, plus a 50% discount on a one-year lease

  • Last year, WeWork tried to poach clients from several competitors
  • WeWork’s aggressive marketing tactics continue to this day
  • The coworking giant is now offering brokers 100% commission to bring in new clients

Last year, Allwork.Space reported that WeWork was poaching clients from its competitors, offering as much as 50% off if they signed a one year contract.

“In the past 2 to 3 weeks we’ve experienced the most aggressive attempts  to poach our clients; where they are setting up sales stations outside of our locations, and deliberately attempting to solicit our clients as they enter the building,” Carrie Gates from Barrister Executive Suites, Inc. told Allwork.Space back then.

Barrister Executive Suites, Inc. wasn’t the only operator whose members were being targeted. Other brands affected by this behavior include Downtown Works, Knotel, and various operators outside of the US.

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WeWork’s aggressive marketing strategies are not over yet. The National Real Estate Investor recently reported that:

“WeWork is enlisting another party in the battle: brokers. The company is offering commercial real estate brokers worldwide a 100 percent commission on the first year of rent paid by any tenant who switches to WeWork from a top competitor and signs a lease by October 1. Tenants also get half off the first year’s rent if they sign for at least 12 months.”

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According to the report, WeWork is targeting clients from Knotel, International Workplace Group (IWG), and Industrious.

If WeWork is offering brokers 100% commission to poach clients from its competitors and also offering clients 50% off, that could mean that WeWork is paying out 150% of what they actually receive from its new members. It’s no wonder then that WeWork remains an unprofitable company.

Yet, even though the coworking giant seems to be tightening its relationship with brokers, it’s at the same time also hoping to compete with them. In July this year, the company launched WeWork Workspace Services, a “one stop shop solution for businesses” looking for office space.

In its blog, Dave Fano, Chief Growth Officer, wrote that , “we will now be able to offer holistic real estate solutions –– both within and outside of WeWork –– to small and mid-sized companies.”

WeWork’s growth plans have come at a high price, with its costs are fast-outpacing its revenue.

Stand by for a more detailed account of WeWork’s recent poaching saga.

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