A brief look at Redfin’s business model

At most real estate brokerage firms, agents are independent contractors who work solely on commission. Redfin agents are salaried employees who also receive fringe benefits and bonuses based in part on client satisfaction.

Redfin depends on its website to deliver leads to its agents rather than on agents cold-calling, networking and undertaking their own personal marketing efforts.

The company’s website aggregates information about listed homes from a variety of sources, presents listing information via a fast, functional map-based interface, and also offers a variety of statistical information, forums, a blog and other interactive features.

Redfin’s signature appeal to buyers, however, may be its rebate program, which returns a portion of the firm’s commission back to buyers on properties that meet Redfin’s minimum price and other criteria.

Dario Medina, manager of Chicago’s Redfin office, and Mark Reitman, a Redfin regional manager, recently visited YoChicago’s offices for a chat about Redfin’s innovative business model and its popular website.

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