Redfin Max and What it Means For Realtors
This is a condensed and summarized version of AJ LaTrace’s article Redfin Max to offer LA, SF agents a richer commission split; written for Real Estate News. To view the original article click here. Redfin is implementing a significant change to its pay plan for agents launching first in San Francisco and Los Angeles. Starting January 1, agents in these markets will shift from Redfin's base salary and bonus model to a more conventional commission structure called Redfin Max. Under this model, agents working on their own deals and clients can earn up to 75% of the commission split, while they receive a 40% split on deals with customer leads provided by Redfin. Lead agents, remaining W-2 employees, will enjoy full-time benefits like healthcare, a 401(k), and an employee stock purchase plan. Redfin aims to attract and retain top talent in competitive markets, offering a combination of entrepreneurial opportunities and the support of Redfin's team and mission.
The change is seen as an effort to remove the ceiling from earning potential and enhance Redfin's profitability and industry reputation. The new compensation plan eliminates base salaries and event pay, focusing on a commission split model that combines traditional high splits for self-generated business with leads from Redfin.com. The move is not viewed as conceding to a commission split model but rather embracing a hybrid approach for the best of both worlds. Redfin is also testing buyer agreements in certain markets, aligning with its goal to adapt and grow the business according to customer preferences and market dynamics.
——————————————————
As Compass agents ourselves, we are viewing this move as a way for Redfin to cut costs while still trying to attract talent to work with them. From an industry level, knowing that many agents (and therefore brokerages) are struggling right now, this comes as no surprise. Most brokerages tend to react to the shifts in the housing market opposed to being proactive, and then have to struggle to keep up when the tide shifts. The Macdonald Group has chosen to partner with Compass for that very reason. As a proactive brokerage, Compass is leading the way in researching and utilizing technology, keeping on top of market trends, and creating memorable experiences for clients. Just yesterday we heard our CEO speak on some exciting stats about our brokerage from the past year that we will share below. While we share our personal team’s “wins” often, we are just as excited and proud of our company-wide accomplishments!
5 Compass Facts:
For the 2nd year in a row, Compass is the #1 Real Estate Brokerage in the United States by sales volume.
Compass agents sell nearly 2.5X more than the average agent in the industry.
Compass has funded more than $1B in Compass Concierge projects for sellers, where Compass arranges for the cost of home improvement services like staging.
Compass has invested over $1.5B in the Compass technology platform, the only proprietary end-to-end platform for real estate agents that allows them to better serve their buyers and sellers.
Within 10 years of launching our first sale on Compass.com, Compass will have sold over $1 trillion dollars in sales volume.
Interested to see what Redfin is saying? Click the button below to visit the original article.