After a successful launch of its new agent pay structure in Los Angeles and San Francisco in late October, Redfin announced Monday that it was expanding the new pay structure to its San Diego and Orange County markets.
The pay plan now known as Redfin Next, after rebranding from its original launch name of Redfin Max, allows agents to earn commission splits of up to 75% for transactions they generate on their own and up to 40% for transactions with clients they met via the Redfin platform. Despite the change in pay structure, agents enrolled in the Redfin Next pay plan remain W-2 employees who still receive benefits, including health care, 401(k) matching, technology, and an employee stock purchase program.
Since launching in October, the brokerage said it has signed on 40 new agents in San Francisco and Los Angeles to the Redfin Next program. Over the past two years these agents have collectively sold nearly $1 billion in sales volume, the company said in the release. The Glenn Kelman-helmed firm said the positive reaction to the launch of Redfin Next led it to expand the program to San Diego and Orange County.
“We set out to create a compelling compensation plan that would wow agents from across the industry by offering the best of both worlds: a big traditional split coupled with Redfin.com customers, benefits and support,” Jason Aleem, Redfin’s senior vice president of real estate operations, said in a statement. “We couldn’t be happier with the early response in Los Angeles and San Francisco and feel even more confident that this plan will help us retain and recruit top talent and ultimately grow our market share in California next year.”
All of Redfin’s agents in Los Angeles, Orange County, San Diego and San Francisco will move to the new pay plan on Jan. 1, 2024. Redfin agents in all other markets will continue existing under the firm’s existing pay plan.
