Redfin: Knockoff-ee or Knockoff-er
Posted on August 6th, 2007 by Jonathan Dalton
Redfin’s Glenn Kelman mentioned a “Redfin knockoff” that had set up a booth at Inman’s Real Estate Connect conference in San Francisco last week.
I had a response in mind but Thomas Heimann from Bravo Brokers in Sarasota beat me to the punch.
“A Redfin knock-off bought a booth and sent five people to the show.”
Harsh words Glenn; you know there were actually quite a few companies who are doing what you are (giving buyers a commission rebate) long before you did. Someone could accuse Redfin of being their knock-off.
While you have done a truly superb PR job for Redfin, and while Redfin certainly is at the leading edge with respect to the search and mapping technology you have developed, you have not invented the idea of flat rate or commission rebates. …
There’s little new under the real estate sun, folks, at least in terms of untapped business models. The “race to zero” contingent has been in existence for a long time in one form or another. Most seem to fall by the wayside before the reach zero, though.
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What is new or interesting about Redfin is not its price but how it engages its customers and how it pays its agents.
Hey, Glenn … thanks for stopping by!
Feel free to expound upon the idea. For example, I’m not sure how the way you “engage” your customers is any different than the rest of us. I use technology. I provide high tech with high touch. Maybe not as severe high tech but I’m a bit of a different budget.
As for how you pay your agents, that is different. Salary’s a unique concept. I am not against it - I worked on salary at Schwab, for example. But I also can tell you there’s a different level of motivation when you know you ONLY get paid IF a home sells, not regardless of the outcome.
Like I said, you’re welcome to expound your thoughts however you like.