Redfin expands pay plan across the US
The brokerage will be offering its Redfin Next commission-split plan to agents in all markets starting Oct. 27, a year after it unveiled the pilot program.
Redfin is taking its new agent compensation plan nationwide — ahead of schedule.
The company announced Sept. 9 that Redfin Next will be available to agents in all of its markets starting Oct. 27. The program, which offers splits as high as 75%, also covers nearly all business expenses and provides healthcare, a 401(k) program and paid vacations, according to the company's website.
Redfin first piloted the program, then called Redfin Max, nearly a year ago in San Francisco and Los Angeles. Orange County and San Diego were added in January, and the program has since expanded into several other markets.
The nationwide rollout of the new pay plan is happening sooner than previously announced; Redfin originally said it would be ready in 2025.
An eye on growth: "We're fully committing to Redfin Next because it has played a significant role in transforming our business and propelling our growth," said Jason Aleem, Redfin's chief of real estate services, in a news release.
"Redfin Next has empowered our agents to amplify their businesses and unlocked the opportunity for them to earn more money, while also inspiring other entrepreneurial agents to join us. Having the best agents in the industry is critical to our mission to make real estate better for consumers, and with Redfin Next, we know we can continue to grow our impact."
The company has recruited hundreds of agents in the launch markets and is planning to hire hundreds more in the coming months, according to the news release.
Employees, not contractors: Agents in the Redfin Next plan will continue to work as employees rather than independent contractors.
When Aleem described the new plan last year, he said "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," but noted that agents in the program would no longer receive a base salary or event pay.
He also said the plan offered "the best of both worlds" to agents: "We're combining the traditional model of high splits for business that you generate on your own with all of the contacts that we generate off of Redfin.com. So if you can put both of those things together, that's the best of both worlds."