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Big brokerages will die a slow death via referral fees
Interesting.... ReBlogged...
Today Redfin was touting the merits of their agent partner program. They claim to to have 200 partner agents across the country in their program from big brokerages like Century 21, Coldwell Banker, Keller-Williams and John L. Scott. The program is pretty simple. Redfin screens for quality agents to join, they provide high quality referrals from their website, and agent quality standards are upheld via customer reviews. In return for the referrals from the Redfin website, agents pay a 30% referral fee from their commission. 15% is paid to Redfin for the referral, and the other 15% is given back to the client as a rebate. On a $300,000 purchase, Redfin would receive a referral fee of $1350.
This referral concept is as old as our profession, and there are countless players out there touting similar models. However, with the rise of popular internet search sites (Redfin, Estately, Sawbuck, etc), the big brokerages should be ashamed that their agents need to participate in these referral plans and terrified that their agent’s loyalty to their office is in jeopardy. By tacitly allowing their agents to participate in their competitor’s referral programs, the big brokerages are undermining their own value to ... more

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