When I entered the real estate business in the 1970's, a common practice was to identify those among your family and friends who would "talk you up" to potential clients. These individuals were known as "bird dogs" and would be rewarded with a crisp new $100 bill after the close of escrow for every successful lead they gave us. While this may not sound like a large amount now, but back then it was equivalent to about 14% of our commission on an average selling house. In today's dollars it would be around one thousand dollars on a $400,000 sale - no small amount! RESPA was subsequently passed by Congress which forbit the payment of referral fees unless actual services were performed. This law effectively put the "bird dogs" out of business. 

With the recent large influx of new agents we are seeing all types. Some are only investors joining to buy properties on the MLS "at a discount" with no intention of actually listing and selling property for others. Some have "real" jobs at the same time and only wish to "pick up a few extra bucks".  Many, due to lack of knowledge and experience, will be lucky to close one or two transactions a year with a low commission split.  Without question, most of these agents will not be in our ranks in a few years.

So I got to thinking - since a salesperson must be employed by a broker who exactly is hiring these "agents"? It then occurred to me - the agencies with 100 - 150 agents on their roster, and only 60 - 80 closed transactions annually on the MLS!  None of these "agents" are given an assigned desk, floor time, training, or direct broker coaching which were all standard practices when I first became an agent.

I  then suddenly realized that the "bird dogs" are back - only now we call them "agents"!  What a neat way to get around the law and pay referral fees (only they're called "commissions").  The hiring brokers could care less if their "agent - bird dogs" really succeed, they just want their friends, relatives, and business associates as clients like we did with our bird dogs. 

Thoughts?