Redfin logo against a backdrop of the San Diego skyline

Redfin expands (and renames) its new agent-pay program 

San Diego and Orange County join San Francisco and LA as Redfin Next launch cities on Jan. 1. The program is designed to “remove the ceiling” from compensation.

December 12, 2023
2 minutes

Redfin is expanding its new compensation plan to more locations in California, saying that it has signed nearly 40 top-producing agents in San Francisco and Los Angeles, and is "having conversations with dozens more."

The Redfin Next program, formerly known as Redfin Max, will now also include San Diego and Orange County when it officially launches on Jan. 1, 2024.

Agents in the Redfin Next markets will move away from Redfin's current structure, which provides a base salary and bonuses, to the more common commission-based structure.

"The way I think about it is removing the ceiling from compensation," Jason Aleem, Redfin's senior vice president of real estate operations, told Real Estate News when the program was announced in October. "In these markets, we want to be able to set up agents to be million-dollar producers."

What does Redfin Next offer? Agents who source their own deals and clients can earn up to 75% of the commission split, while they would get a 40% split on deals with customer leads provided by Redfin. These "lead agents," as Redfin calls them, will remain W-2 employees and have typical full-time benefits such as healthcare, a 401(k) and employee stock purchase plan.

"We still believe that that W-2 model allows us to hold a certain level of accountability that you just don't get with a 1099 model," Aleem said.

What about other markets? Redfin agents in other locations will continue to operate under the company's existing plan, earning a base salary and bonuses for every closed transaction. However, Redfin CEO Glenn Kelman told investors in November that some version of the program could go out nationwide in a year if it's profitable for Redfin and agents alike. 

What is Redfin saying? Aleem said he "couldn't be happier" with the early response in Los Angeles and San Francisco and feels "even more confident that this plan will help us retain and recruit top talent and ultimately grow our market share in California next year."

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