Giving and getting agent to agent referrals has changed over the years. The number of agents in the business and the internet has put a new spin on this process. Referrals are a business deal. One agent agrees to pay another agent for a "lead" to work. Now with the internet however I am finding:
1. When I call to give a referral I am quizzed. How do I know the person I am referring, how long do I know them, are they a friend, did they just find you on the internet, have you worked with them for a long time, and more such questions. For a while I thought that these questions were just talk and the agent trying to obtain some background information. Now I know that a lot of agents are tryng to find out the likelihood of the referring agent finding out that they sold the client/customer.
2. Make sure that the client/customer is contacted, and contacted within 24 hours not two weeks from now. A referring agent wants to know that there was follow up, we have put ourselves out on a limb and don't want the ball dropped. Make contact and let the referror know either by email or a call that you spoke to the individual and that you feel you can help them or can't help them. If you feel that you can't work with the individual please don't just not follow up, let the referror try another agent that's only fair. I call and follow up. I touch base every couple of weeks to see how it is going.
2. If you are giving a referral it is up to you to discuss how much you expect to be paid if the broker sells the individual. I have gotten 15%, 20%, 25%, 30% referrals. I have one agent who will only take the referral if the payment is on a sliding scale. He feels that if he ends up working with the individual for a very long time it will not be worth paying 25 or 30%. This needs to be discussed, agreed to and put onto a referral form so that it is clear to all before you give the referral. DO NOT ASSUME THAT AN AMOUNT IS AGREED TO WITHOUT A SIGNED REFERRAL FORM!
3. If you change offices or let your license lapse or expire call the referring agent and explain to them what you would like done. If yoiu license is no longer active you are no longer affiliated with any office! DO NOT EXPECT THEM TO KNOW WHAT YOU WANT. A referring agent does not know the circumstances of your status change, does not know which office you were with when you gave the referral, does not know who your office/broker is or should be. A referral you might be entitled to may go to the wrong office without your knowing it. I just sold a young couple who was referred to me by their relative out west. That agent kept in touch with me, sent me her license and explained to me what she wanted done with the referral check, she did the right thing, kept on top of the referral and I knew exactly who to make the check out to and where to send it.
4. If you have a friend search out an agent for you to refer to for whatever reason and the referral is given by the friend as "THE REFERRING AGENT IS >>>>>>>>>>>, THIS REFERRAL IS FROM>>>>> I AM NOT THE REFERRING AGENT" please don't change the referral terms to suit you. You can't become the referring agent because circumstances have changed and it suits you better. Live by your word. Your word is golden.
5. Agents who work hard to sell and work with the client you have sent want to be respected and thanked for their hard work and it is very hard work in this environment. Call and say thank you I appreciate your efforts and am glad it turned out well.
Last week I sent a referral to an agent in another state. I have not heard a peep from her. She has not signed the referral form I sent, does not respond to emails. It is amazing but that is what is going on. It is incumbent on me to make sure my referral is placed properly. I called the client who has not heard from this agent and I will refer to another agent. If I am to be paid the ball is in my court to follow up, discuss the amount, get it in writting and communicate with both the agent and the client.
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