Redfin brings new agent pay model to 7 more markets
Redfin Next, which offers “competitive splits” while continuing to provide agents with employee benefits, has expanded to major markets across the U.S.
Redfin announced the expansion of its Redfin Next agent pay plan to several new markets this week. The compensation program was originally rolled out in San Francisco and Los Angeles as Redfin Max, with San Diego and Orange County added to the program in December.
Redfin has differed from other brokerages by providing its agents with a base salary and bonuses. Agents in Redfin Next markets, however, will be able to take advantage of a more typical commission-based structure. Redfin says the new compensation program offers "competitive splits as high as 70%," in line with some traditional brokerage splits.
In the original California markets, splits can be as high as 75%.
Where is the program available? While all of the launch markets were in California, Redfin is now expanding Redfin Next to seven additional markets: Chicago, Connecticut, Dallas, Miami, New York, Palm Beach and Washington, D.C. The new compensation program will go into effect in these new markets on May 5. Redfin expects to roll out the program nationwide in 2025.
How has the program been going so far? In the announcement, Redfin said its Next pay plan has attracted new agents in the launch markets, noting that the company has recruited "90 top producing agents in California" since introducing the program. The company sees the new compensation model as a useful recruiting tool in the wake of the recent NAR settlement.
"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," Jason Aleem, Redfin's SVP of real estate sales said in the announcement. "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."
What else does it offer? Redfin says its model offers high splits with no additional expenses to their agents. The company covers its agents' benefits, mileage, payroll taxes, listing expenses, and other business expenses. Redfin also sends leads over to its agents, saying that the new plan will allow agents to meet "over 100 customers a year."
The company noted that Redfin Next agents will still be Redfin employees, not independent contractors.