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