The future of Redfin Next as agent income jumps
A year after expanding its commission split program nationally, Redfin says agent income has increased 14% on average — and top performers are making even more.
Key points:
- A year after Redfin expanded its commission split program nationally, agents saw an increase in earnings — even while facing a down market.
- Redfin’s top agents saw income rise 20% on average, while the overall average income increase was 14%.
- Redfin is working on software improvements and tinkering with incentives so that top-performing agents can maintain those income levels moving forward.
Though the U.S. housing market has endured a sluggish year, Redfin agents appear to be on board with changes to the company's commission split program.
A little over a year ago, Redfin rolled out its Redfin Next plan nationwide. The company promised agents a boost in commission income — with splits as high as 75% — and also provided healthcare, a 401(k) program and company vacations.
In the first year of Redfin Next, top-performing agents saw the biggest income uptick, according to a new Redfin study. The top 10% of Redfin agents saw their income rise an average of 20%, while the top 25% of agents averaged an 18% increase. Redfin agents overall averaged 14% more.
A boost for agent recruitment
Jason Aleem, Redfin's chief of real estate services, said in an interview with Real Estate News that he's excited about the first year's results and what they could mean for agents once the industry gets back on track. So far, the company has received a vote of confidence from the agents themselves — particularly the top performers.
"I've been very happy that our top performers have stayed put," Aleem said, adding that attrition in that group is in the single-digit range. "This plan works for them, and that's who we developed it for."
The popularity of Redfin Next has also contributed to recruitment efforts. The company had a surge of agent hires in early 2025, adding hundreds to push its total to 2,200 by March. That included the addition of Bruce Tyburski, who was a top REMAX agent in Virginia with over $2 billion in career sales, and Brian Wilson, a former eXp agent in Virginia with $800 million in sales volume.
"I know it was going to be good, but the cream of the crop that's made the move — it's been a pleasant surprise," Aleem said.
Rocket's impact
The national rollout of Redfin Next occurred months before Rocket Companies' $1.75 billion acquisition of Redfin. The deal didn't change the Redfin Next model, according to Aleem, but it did improve it.
"Now you've got a whole new bucket," Aleem said, referring to the leads that now come from the nation's largest mortgage lender. Rocket customers "have invested a lot of time in getting pre-approved before they even get to you," he added. "That's the gold standard of contacts in the space."
Agent income expected to rise as market conditions improve
Redfin wanted to have its commission split plan in place in time for what many anticipated would be a strong spring homebuying season. While this year's housing market ended up being sluggish overall, Redfin agents were able to improve their income per transaction — and when the market does finally start to bounce back, Aleem said their income should grow.
"Agents got a lot of the goodness with the increased compensation, but our close rates increased as a company as well. We got more efficient," he said. "We got that with a headwind. I'd love to do it with the tailwind of the market."
For Chaley McVay, an agent in Portland, Oregon, the compensation change led to her best year ever. "The most exciting part is that I'm hitting this milestone in a really tough housing market, with fewer deals this year," McVay said in a news release accompanying the data, adding that the compensation model "rewards all the hard work I've put into my loyalty business."
What's next?
While pleased with the results from this first year, Aleem said there is room for improvement. Growing Redfin Teams, which launched in December 2024, is one goal. An agent who is part of a team averages $205,274 a year, compared to $122,807 for solo agents, according to Redfin data.
Meanwhile, the company has been assessing different software options and other solutions that Aleem said need to be put in place "to prepare for next year," and is exploring ways to help top performers maintain their higher compensation levels from year to year.
"We're playing around with different incentives we think are going to sweeten the pot," Aleem said.