When You Get a Referral, and You Agree to Pay a Percentage... Is it Forever?
What a great question in this case I think it would be as long as the person is on my team plus 1, after that it is my client, If the person did not work on my team it would be based on the way they want to work the referral. I do have a few referral sources where I pay a fee all the time on the clients.
I was recently given a referral for an investor from my Transaction Coordinator. Their kids go to school together and the investor knows that my TC works in Real Estate. My TC, who is a licensed agent, has been very busy by the work I have been doing with other investors...and I am pleased that he is confident in my abilities and skills that I have working with investors.
Today I received a detailed list of criteria from this investor-- who has gathered other buyers to form an LLC-- regarding their search for properties. They are seeking REO's, distressed, fixers, to rehab-- some to rent out, some to resell.
I agreed to pay a 25% referral fee to my TC on transaction(s) from this client-- and although we have not
consumated the deal, and I have only begun to do research on finding homes for him... and it will be a considerable amount of work, but I'm seeing that this could turn into a "multiple deal" client.
I realize that I would not have this opportunity without the referral-- but is he a referral forever?
I want to be fair and do the right thing-- my TC will also be getting paid a transaction fee for every deal we close together as well.
My QUESTION is... do you put a LIMIT on how many homes you pay a referral fee on?
If you are looking for a great real estate agent in the Palm Springs area... let me
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Kathy Schowe 760.333.8886
Intero Real Estate Services in Old Town La Quinta
SchoweProperties.com☼ KathySchowe.com☼LivetheDesertlife.com
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