One of the foundation blocks of our business is referrals. Referrals can come from family, friends, and clients. There is also an important source of referrals that come from other agents. If you network well you can develop important realtionships in our business that can lead to referrals from other agents. There is one Big problem with the referral from another agent. That is the referral fee.
I believe that if you refer a client, you should get a fee. However think about what you are asking for. If you are asking for a 25% referral fee on a client who is looking to rent where the agent showing is only going to make 200 or 300 dollars then you could be asking for a long time. If you are asking for a 25% referral fee for a buyer who is buying a 3,000 lot than you may be asking for along time. I pass on referrals and have asked for as little as 10% or in some case nothing based on the amount the person I am referring is going to spend. I hope that the agent I send the referral to will remember me.
So if you are in a good position to send a referral consider what the client is buying and structure your fee accordingly. Do not say , "I have a standard 30 percent fee" as an example. Ask yourself this question. "If I were getting this referral how much would I pay and still make my work worth while?" After all if we cannot help and respect each other, rather than making every dime possible, how can we expect clients to be any different?
Think about what you are asking for in terms of the deal BEFORE going out for a referral. This post does not even talk about the quality of the referral. That is a whole nother subject.
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