Soaring Referral Fees and Bloodletting....
A 25% referral fee is a happy Number to use. That is What I pay.
Referral Fees that suck your business dry....
I just read a post by an Active Rain Agent who had a client that was moving and a couple of weeks after her interview, she was contacted by the relocation company for a 38% referral.
Guess this is going to be a rant because I feel her pain. In 15 years in this business I have seen referrals climb from 20% to 33% most often in REO World. While I appreciate the business and I recognize that everything costs money, I'm amazed at the 3rd party fee's that continue to sky rocket. At conventions and conferences if anyone complains or even brings up the topic of the soaring costs of referral fees, the moderators are quick to point out that there can not be any discussion so that no one can be accused of price fixing.
Pretty darn convenient....damned if you do....damned if you don't.
The sad part is, if you decline the business, there are 20 people standing in line waiting to jump in your spot. Those 20 agents who are willing to sell out don't realize that there has to be profit figured in to your business model or else you basically have a job and not a business. Meanwhile, those with the overhead, the staff, the software, the infrastructure stay on the treadmill.
Where does it end?
Janet Fetterman, Broker Associate/Owner
Veteran REO Agent, CDPE
Concord Real Estate-Sellstate Concord Realty
132 Canal Street, New Smyrna Beach FL
386-299-6393
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