Redfin, founded in 2004, sought to disrupt the real estate industry with a salaried agent model that offered benefits but led to a decline in agent retention. High-performing agents found income potential capped, contributing to a 22.5% drop in Redfin's agent count since early 2021, contrasting with significant growth at other firms. In 2023, Redfin pivoted to the Redfin Next model, aligning its compensation with more traditional standards, which has revitalized agent recruitment and reflects the challenges of maintaining a successful growth trajectory with a W2 structure.
But some agents particularly high-performing agents thought the arrangement put a cap on how much they could earn. It shows in the data.
[Redfin Next] has rejuvenated agent growth. They've actually added agents rapidly in the last couple months.
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