Redfin has undergone significant changes, including a shift from a salaried agent model to a traditional commission structure, which initially resulted in some agent turnover. However, this strategy appears to be yielding positive results, as evidenced by a 25% increase in agent count and the strong performance of new hires compared to tenured agents. Despite cutting costs by eliminating certain benefits like vacation pay, executives believe these changes have enabled Redfin to attract more experienced agents, which is crucial for maintaining its competitive edge and brand reputation in the real estate market.
The transition to a more traditional commission split model has resulted in some agents leaving, but those hired are already performing better than tenured counterparts.
Kelman emphasized that the changes at Redfin have attracted experienced agents, allowing for a curated selection of quality personnel and enhancing the company's brand reputation.
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