Redfin expands agent compensation plan to seven new markets
Redfin is expanding an agent compensation plan it launched last year by adding seven new markets starting in May, the national real estate brokerage announced Thursday.
Initially launched in October 2023 as Redfin Max, the compensation plan was rebranded soon after as Redfin Next and grew to include agents in the California markets of Los Angeles, San Francisco, San Diego and Orange County.
Beginning May 5, Redfin Next will be available in seven markets outside the Golden State —including Chicago, Connecticut, Dallas, Miami, New York City, Washington, D.C., and the growing South Florida hub of Palm Beach. Agents in markets where the plan isn’t available will continue to operate under the company’s existing compensation structure that includes a base salary and bonuses for every closed deal.
“We’ve never seen more enthusiasm for a new compensation plan from agents than we’ve seen with Redfin Next,” Jason Aleem, senior vice president of real estate sales at Redfin, said in a statement. “No other brokerage can offer agents a big traditional split and all the benefits, support, technology and customer introductions that we provide here at Redfin.
“These resources are what agents need to serve buyers and sellers well, and let those buyers and sellers keep more of their hard-earned dollars. In the wake of the NAR settlement, customers are telling us this is more important to them than ever before.”
With Redfin Next, agents are W-2 employees rather than independent contractors, and they can earn commission splits as high as 70% on leads generated through their own book of business, or up to 40% on leads generated by Redfin. The brokerage will also cover many standard business expenses such as mileage, listing costs, payroll taxes and benefits. At a national level, Redfin claims that its agents earn more than twice as much as the typical agent, with its top performers earning more than $750,000 per year.
Additionally, the company touts its tech-enabled platform that has 50 million users per month as a business booster. Agents focus on closing deals while support staff handle the qualification of new clients, scheduling tours, and coordinating sales and listings.
The company also reported that the compensation plan has aided in its recruiting efforts as it has hired more than 90 high-producing agents in California since October. Redfin says it is contemplating the offering for all agents in 2025.
“It’s like someone at Redfin followed an agent around and figured out every pain point in their day, and then created technology or a process to circumvent it,” Gabe Schmidt, a Redfin agent in Orange County, said in a news release. “I have bought leads from practically every lead source out there, but I have never in my life had a more qualified lead come across my phone as I have with Redfin.”
