With the expansion, Redfin Next is now available to agents in 36 markets nationwide, according to an announcement Friday. Redfin execs said the plan has “proven to be even better” than expected.
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Redfin has expanded its commission-based payment model, Redfin Next, to agents in Austin, Boise, Coastal North Carolina, Columbus, Denver and 20 other markets across the South, East, and West Coasts, it was announced Friday.
Redfin Next enables agents to keep their full-time W-2 status and traditional benefits while getting variable commission splits based on the average home price in their market. Agents in Los Angeles, San Francisco and Orange County will get max commission splits of 75 percent, while agents in the newest lineup of markets will max out at 70 percent, a company spokesperson explained.
Redfin still covers agents’ business expenses, provides a 401k alongside medical and stock equity benefits, and offers technology, support programs and leads.
Jason Aleem. Image: Redfin
“Redfin Next has proven to be even better than we imagined at igniting our salesforce, helping us recruit new talent,” Redfin Chief of Real Estate Services Jason Aleem said in a statement. “When you pair a competitive traditional split with the technology, customer introductions, benefits and support that only we offer, there’s really no limit to what you can achieve at Redfin.”
“Redfin Next is also helping us gain market share faster in our early markets, which means we’re helping more customers get a better deal when they’re buying or selling,” he added. “This expansion is a big step toward making this opportunity available to all Redfin agents as we continue to transform our brokerage and grow our presence nationwide.”
Glenn Kelman
In Redfin’s first-quarter earnings, CEO Glenn Kelman said Redfin Next helped the brokerage improve a few of its key performance indicators.
“Our brokerage initiatives are working,” he said. “Market-share, loyalty sales and luxury sales increased, with the strongest increases in the four California markets that eliminated agent salaries in lieu of higher bonuses.”
“Revenue improved year over year, gross profit improved even more, and adjusted EBITDA improved the most, which tells us that we can spend less and still make more,” he added.
Redfin Next is also an integral part of Redfin’s post-settlement strategy. The company settled Gibson for $9.25 million on May 6 and has the option of buying into the National Association of Realtors’ $418 million Sitzer | Burnett settlement.
“In the wake of the NAR settlement, customers are telling us this is more important to them than ever before,” Aleem said in a previous statement to Inman. “We’ve always been focused on giving consumers a better deal, so we’re well equipped to support them.”
“We believe Redfin Next will be transformational for our brokerage, helping us retain our best agents, recruit top talent, and grow market share faster through both the ups and downs in the market,” he added.
With these additions, Redfin Next is now available in 36 markets nationwide. Agents in the latest cohort of Redfin Next markets will switch to the plan on August 11.
Email Marian McPherson