Following a successful launch of the new agent payment structure in Los Angeles and San Francisco in late October, Redfin announced Monday that it is expanding the new pay structure to the San Diego and Orange County markets.
The payment plan, now known as Redfin Next after rebranding from the original name of the launch of Redfin Max, allows agents to earn commission splits of up to 75% for transactions they generate themselves and up to 40% for transactions with clients they meet through 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 employee stock purchase programs.
Since launching in October, the brokerage said it has signed up 40 new agents in San Francisco and Los Angeles for the Redfin Next program. In the past two years, these agents have collectively sold nearly $1 billion worth of sales, 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 will wow agents from across the industry by offering the best of both worlds: great traditional severance combined with customer support, benefits, and Redfin.com,” 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 more confident that this plan will help us retain and recruit top talent and ultimately grow our market share in California next year. ”
All Redfin agents in Los Angeles, Orange County, San Diego, and San Francisco will transition to the new salary plan on January 1, 2024. Redfin agents in all other markets will continue to exist under the existing company’s salary plan.