Redfin Going into the Referral Business?

February 11, 2009

Tips and Advice

 

Redfin is Going into the Referral Business, according to Refin’s CEO, Glenn Kelman.  Redfin generates a tremendous amount of traffic to it’s website, Redfin.com but they only operate in 7 real estate markets.   According to Greg Swann, “the Redfin.com web site is better than anything else in the Real Estate 2.0 universe.“  So it’s no wonder they not only generate real estate traffic in the markets they service but in real estate markets they don’t service.

Redfin will begin to refer out their customers, in a customer-centric way that are generated from their website to real estate agents at different real estate companies.  They are looking to build a “network of progressive agents.”  Redfin will take a 30% referral and sticking to their business model, will refund half of their commission back to their customer.

Redfin’s incentive will definitely encourage their customers to choose a real estate agent through their website based on the agent’s “performance data”.  If the agent performs well, the better reviews they will receive, but if they get bad reviews they will be fired!  That would suck to be fired by a real estate company you don’t even hang you license at.

Overall, I think its a great idea and I believe it will be a success for Redfin.

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2 Responses to “Redfin Going into the Referral Business?”

  1. SalSells Says:

    Tony, I think it is a good thing. Good opportunity for us Realtor. I believe networking is very important and at one point or another, we will need eachothers help. I remember seeing a 20/20 special on Redfin (http://a.abcnews.com/Business/Story?id=5190041&page=1) where Redfin stated they where going to change the way Real Estate sales where handled. I disagreed with them at the time and still believe till this day the Real Estate Sales is a face to face sport and always unique in every local market. As a Realtor, we definetly earn our $$. It’s not as easy as certain people may think.

  2. Karoll-Ann Fanfan Says:

    Im totally agree on we earn our $$. A really good realtor has to stay on top on all the other aspect of the business. Many time the client comes to us and beside wanting to owned a home has no clue of the rest of the procedure. We need to educate them on choosing an inspector, choosing a title company, getting pre-qualify for a mortgage…and so on. If you are a realtor like me who treat every client has it would be buying my own home it is a lot of to stay informed!We have to read, always browsing the net, go to seminars, continues’s education and I love it!
    All this to say I do agree with you it really upset me when someone refer to us as realtor as “MLS searchers”

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About the author

Tony Sena