Redfin Next Commission Plan: 70% Splits and Covered Expenses Expand to 7 New Markets

The Redfin Next compensation plan is expanding to seven major US markets, offering experienced real estate agents commission splits as high as 70% while the company covers virtually all business expenses. This employee-based model, which launched in late 2023 in California, aims to recruit and retain top-performing agents by combining high earnings with robust corporate support, technology, and customer leads. For agents in Chicago, Connecticut, Dallas, Miami, New York, Palm Beach, and Washington, D.C., the new plan becomes effective May 5.

What is the Redfin Next Compensation Plan?

The Redfin Next plan is a revised commission split model—the percentage of a real estate commission an agent receives from a completed transaction. Under this plan, agents in the specified markets can earn splits up to 70%. A key differentiator is that Redfin covers all necessary business expenses, including benefits, mileage, payroll taxes, and listing marketing costs. This structure means an agent's earnings are not reduced by typical overhead, a significant financial advantage.

What Benefits and Support Does Redfin Next Include?

Beyond the competitive split, the plan is designed as a "business in a box." Agents gain access to several resources:

• Lead Generation: Integration with the Redfin platform, which attracts approximately 50 million users monthly, provides a steady stream of customer introductions. The company handles qualifying new customers and scheduling initial tours.
• Operational Support: Administrative tasks like coordinating sales and listings are managed by Redfin's staff and technology, allowing agents to focus on closing deals.
• Employee Benefits: As employees, agents receive a benefits package including medical, dental, and vision insurance, fertility benefits, a 401(k) with an employer match, and an employee stock purchase program.

How Does the Redfin Employee Model Work for Agents?

Unlike most real estate agents who work as independent contractors—self-employed professionals responsible for their own taxes and expenses—Redfin agents are employees. This employee-agent model is structured to provide consistent support and hold agents to a high service standard. Redfin claims this leads to higher productivity, stating their agents close more than twice as many transactions annually as the industry average.

Is Redfin Next a Response to Industry Changes?

The expansion follows the recent NAR settlement, which has reshaped buyer and seller expectations regarding transparency and value. Redfin positions its model as being well-equipped for this new environment, emphasizing its consumer-focused approach that aims to help clients save money. The company believes offering agents superior resources is key to delivering this high level of service, making the plan strategically important for growing market share.

What Can Top-Performing Agents Expect to Earn?

Nationwide, Redfin reports that its agents currently earn more than double the typical real estate agent, with top performers exceeding $750,000 annually under the existing compensation structure. The company anticipates that top agents will earn even more under the Redfin Next plan due to the higher split percentage combined with the existing lead generation and operational support.

For agents considering a move, the Redfin Next plan offers a high-earning potential with the security of employee benefits and extensive corporate support. The expansion into seven new markets provides a clear opportunity for experienced professionals in those areas to grow their business with a significant reduction in operational overhead.