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Redfin reaches profitability, $60M revenue if conditions hold? [VIDEO]

redfin

Interview

Michael Arrington at TechCrunch sat down with Glenn Kelman, CEO of Redfin over the weekend and discussed both the past and the future of Redfin. What you’ll find past the disruptive title is a very matured pitch from Kelman where the traditional industry conversation is concerned. Without making too many apologies, Kelman acknowledges fear and possibly a little naiveté in the beginning (my words), but appears to have a much clearer picture of their place within the industry.

Potential market share

In a nearly $50 billion market for real estate commissions, Redfin is virtually doubling in revenue year over year, currently running at $30 million. Kelman wouldn’t go so far as to say they would see $60 million in 2010 as market conditions are susceptible to macro economics and traditional seasons, but nonetheless, Redfin’s 98% consumer satisfaction rate and market growth (currently at 12 markets) at one new market per month says that $60 million is plausible. Kelman states that the average investment of $200k per market does impact overall revenue, but make no doubt about it, Redfin is growing. When asked if Redfin could see $2 billion, Slavet skirted the question by simply restating Redfin’s overall potential.

Redfin

Redfin boasts an average consumer savings of $8,000 on both sides of the transaction and a 98% consumer satisfaction rate. Redfin’s current approach to sustainability is recognizing it’s partnership in the transaction with so-called traditional agents and utilizing those relationships in Agent referral programs across the country.

Video

Here’s Michael Arrington, Glenn Kelman, and James Slavet with Greylock

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Benn Rosales is the Founder and CEO of The American Genius (AG), national news network. Before AG, he founded one of the first digital media strategy firms in the nation has received the Statesman Texas Social Media Award and is an Inman Innovator Award winner. He has consulted for numerous startups (both early- and late-stage), and is well known for organizing the digital community through popular offline events. He does not venture into the spotlight often, rather he believes his biggest accomplishments are the talent he recruits and develops, so he gives all credit to those he's empowered.

13 Comments

13 Comments

  1. Ron Ares

    April 28, 2010 at 10:21 pm

    About 2 minutes of good interaction, the rest I could have done without.

  2. Terry Sanford

    August 3, 2011 at 10:50 am

    Here is a good examination of Redfin's use of dual / designated agency with comments from the Redfin team. Highly relevant for anyone trying to evaluate the the brokerage service they offer.

    alfredsanford.com/blog/redfin-just-another-used-car-salesman/

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