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How to Double your SOI in less than 24 hours with NO Money out of Pocket

With tens of thousands of real estate licensees bailing out of the industry, there is a fantastic window of opportunity for those who are the real estate professionals.

Why not offer to "buy" the business from those who are fleeing. A few of our coaching clients are employing this and are having fantastic results by asking those folks who are leaving the industry the question - "Do you want to sell your business?"

It works like this, you ask the FL (Fleeing Licensee) to send a hand-off letter to their sphere of influence who they have been working for the last couple of years.

The letter explains how they are going back to their previous career and appreciate all the support they have received, and how they have found a real estate professional who is unbelievably talented and will give them amazing service and that you are the recommended choice for their future real estate needs.

You then absorb them into your "VIP" SOI program and continue the warm relationship.

As the transactions come in, you will offer to pay a referral fee for the first year to the referring licensee, the second year it is ½ of the first year's fee and the third it is ½ of the prior year's fee. You have created a win-win for both your business as well as given some value to those jumping out of the business (and may even push some of them over the edge who are just thinking about it).

Carpe diem,

Chris

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Posted by Chris Pollinger on 05/08/2008 04:51 PM

Comments (26)

soi, buying a real estate business, selling a real estate business

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26 Comments on How to Double your SOI in less than 24 hours with NO Money out of Pocket

What a great idea! You are right - we are seeing quite a few agents jumping out of our industry. Thanks for the tip!!

05/08/2008 05:01 PM

by Melissa Schnieders (RE/MAX Pinnacle)

There are a lot of agents leaving the business. I am not sure if this is legal in my state. I would have to research that here. How can you pay a referral to someone that is no longer an agent? What is a fair compensation for their SOI?

05/08/2008 05:05 PM

by Huntsville Alabama Real Estate Agent, Kimberly Grant (Exit Leon Crawford Realty)

Thanks for the idea- seeing so many leave. Really can't blame them right now!

05/08/2008 05:20 PM

by Rob Muller - ABR, ASP, RCC, CNHS, LREA Cherokee County Real Estate (ReMax Town & Country)

That is a really good idea. Offer a referral fee and the agent who is leaving might make more money not being in real estate than they do by being in real estate!.

Best,

Scott

05/08/2008 06:05 PM

by Scott Cowan -Tacoma & Pierce County Area (Terry Wise & Associates)

This is a great idea! The next step is finding them. My office is not losing anyone...yet...

05/08/2008 09:01 PM

by Chuck Carstensen (Re/max Associates Plus inc)

Most of the agents leaving the business weren't maintaining their SOI in way that makes buying their database worthwhile. "Hey Honey, remember that agent who sent us two newsletters last year? Looks like he sold our information to someone else." Not a great way to add to your SOI.

05/10/2008 03:17 PM

by Frank Jewett (tech4REpros)

Another possible liability, which could probably be worked around, is privacy matters. If the outgoing agent had anything on his Web site that said the consumer's information will not be sold...

In that instance though, if you had an agreement to "purchase their business," that may be a work around.

I like Frank's comment. If they had a good SOI, they probably wouldn't be exiting the business.

05/11/2008 03:44 AM

by Jesse Barron -- Real Estate Made Easy™ -- Anne Arundel & Central MD (Keats & Co. Real Estate, LLC)

Having said that, I can also see how this could be a great opportunity. I guess the secret to success would be buying out the right agent(s).

05/11/2008 03:47 AM

by Jesse Barron -- Real Estate Made Easy™ -- Anne Arundel & Central MD (Keats & Co. Real Estate, LLC)

That makes a lot of sense. Rather than have their customers left hanging, they are leaving them with a professional image. Good idea!

05/11/2008 04:46 AM

by Allison Stewart REALTOR ®St. Cloud Florida (Florida Pines Realty, Inc)

Neat idea! Thanks so much for sharing it!

05/11/2008 10:28 AM

by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta)

Chris,

Great idea.....what are they going to do with their past clients?

05/11/2008 04:59 PM

by Dan Brudnok - ePRO, ABR, CSP - Chester County, PA Real Estate Pro (Keller Williams - Exton - PA License Number #RS225179L )

I have to wonder if you are leaving the business how many clients you had in the first place.

05/11/2008 05:36 PM

by James Lockard - Realtor, Allendale, NJ (RE/MAX Properties - Saddle River)

Chris,

This is a great win win solution for both of the agents and their clients. Thanks for sharing.

05/11/2008 07:59 PM

by Susan Peters - Seattle Realtor/Staging Specialist (Re/Max Mutual Realty)

Great idea, Chris, very positive idea for the typical flow of the real estate population. The longer we stay afloat the bigger our income will be when this turns around. Thanks, Here's to my 25 years, A coack called us dinosaurs, since the Real Estate business has such a turn around of new licenses. They say homes being sold 5 years fron now will be from agents that have not even received their licenses yet. Us die hards need to realzie just how important and rare our experience is.

05/11/2008 08:59 PM

by Mary Thomas (Remax PV Realty)

I think it's a great idea! If the exiting agent had an SOI that he/she did not keep in contact regularly with and did not get enough business to stay afloat, it's a great opportunity to show these contacts that we're not all the same! Some of us do follow up and make things happen. And if nothing develops from it, well, it won't cost you anything, since the deal was to pay a referral fee only on anything that comes to fruition (closed deals). It is a win-win for both parties.

05/11/2008 10:59 PM

by Meli Gerogianis, e-PRO (Keller Williams Realty)

Sounds like a great idea.

05/12/2008 09:05 AM

by Bonner Thomason CRS, ABR, GRI, e-Pro (Keller Williams Realty)

That sounds like a win-win when you come across agents leaving. I usually don't realize who is gone until I bump into them later.

05/13/2008 06:00 PM

by Sandra Carlisle, Realtor - Newport Beach - Corona del Mar (First Team Estates)

Chris, I saw this happen once, and then the agent got back into the business...not sure what the ending result was.

05/13/2008 09:43 PM

by Joddie Roberts - Your Spokane Realtor - Spokane, WA (Exit Real Estate North)

Good idea! If the departing agent continues to hang their license somewhere, would you have to pay their broker the fee? What if they give up their license, can you pay them a referral?

05/14/2008 12:37 AM

by Robert Machado, CPM MPM Sacramento Area Property Manager and Property Management (HomePointe Property Management, CRMC)

Good idea. But it will have to be done through the referral program where the agent hangs the license. laws may differ in other states.

05/14/2008 05:55 AM

by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES (ReMax Centre Realtors)

Great idea

05/14/2008 06:57 PM

by Kevin O'Shea, White Plains, NY Real Estate (American Classic Homes, Inc.)

fantastic idea! One of my mentors mentioned doing this a long time ago and i totally forgto about it.

05/14/2008 11:56 PM

by John Ford (Champion Real Estate)

Chris, every once in a while someone throws out a diamond in the rough of an idea.

05/15/2008 12:44 AM

by Rob Baldwin, Santa Clarita REALTOR® (Pinnacle Estate Properties)

That sounds like a great idea. This pitch is something to do only in person with people that you know - I think anyway. . .

05/17/2008 11:21 AM

by Nyles Courchesne Massachusetts Real Estate Attorney (Peskin, Courchesne and Allen, P.C.)

Chris - what an inventive idea! I am seeing similar trends in the mortgage industry with brokers consolidating businesses, etc.

05/19/2008 09:35 PM

by Jackie - Mortgage Virtual Assistant (Close-More-Loans.com)

I like this ideal alot. Question for you is how do you find those agents who are leaving the business? I don't think that they are advertising it anywhere.

Also, not sure of the legal issues surrounding paying a referral fee?

If you could explain these two things to me, count me in! I am ready to buy them out.

Looking forward to your response.

07/14/2008 04:27 AM

by Troy Erickson (Terra Solis Realty, LLC)

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