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.