Sneak a Peek Inside Redfin
Over on Guy Kawasaki’s blog today, Redfin CEO Glenn Kelman gives a detailed breakdown of life in the two year old startup, in his post How to Change the World: Financial Models for Underachievers: Two Years of the Real Numbers of a Startup.
A couple of interesting items to note.
In the Numbers section, Kelman, admits that the company’s bonus model, which is based on customer service objectives has been “difficult.” Seems like even in a down market, people want to be paid.
And in Lessons section, Kelman says “Admit that revenues are a mystery” while also saying you should “Hit $100 million in revenues within five years”. A tall order, but the scrappy brokerage has been remarkably resilient so far.
A changing market might yet turn the fortunes of the discount brokers (see Foxtons Almost Gone - About to Become a Footnote in Real Estate History) - but, in an earlier post on the company’s blog, Kelman remains optimistic and insists a that a buyer’s market is just what the company has been waiting for.
In any case, it’s refreshing to see the company lay bare its books and divulge its cost structure. What I’d really love is to see some of the other Real Estate 2.0 players do the same (see Storms Ahead for Real Estate Sites).
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Andrew | Oct 1, 2007 | Reply
I don’t see them making that much within 5 years. Look at zips numbers and consider how much money redfin gives back on rebate. My family played a huge role in bringing Buyer Agency to the masses when it was virtually untested. We started more than 18 years ago. I understand the problems they face and I also understand how they can succeed but I dont think they will bring in the numbers within 5 years. Discount agencies have a tough time retaining good agents which doesn’t help revenues.