New tech startup makes it easy to earn 35% referral fees

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Real Estate Technology with Roosted

Since 2018, over $10 billion of venture capital money has been invested in real estate. The amount of venture capital (VC) money being invested today is over 150 times the amount invested less than 10 years ago.

 

One facet of real estate that has not been changed by technology is referral only brokerages. 

 

Referral only companies were created by large real estate franchises to avoid REALTOR dues. Referral companies are a place for non-practicing real estate agents to “park” their license for a lower cost. While a real estate agent is at a referral only brokerage, the agent does not represent clients. Instead, they earn a commission by referring clients to practicing agents.

 

As of 2019, OpenDoor has raised over $600 million to create a “radically simple way to buy and sell your home”. RedFin is now a publicly traded company aiming to make the residential real estate process more consumer friendly through tech. Yet, referral only companies still use PDFs and a manual process to send referrals, negotiate referral fees, and process commissions. 

 

A new tech startup out of Arizona aims to change this. Roosted was founded by local entrepreneurs with backgrounds in real estate sales, brokerages, mortgage, title, and technology. Their proprietary development stack allows real estate agents to quickly send real estate referrals in any state for a 35% referral fee. 

 

“We saw that there was a need that wasn’t being served within the real estate community,” says Dane Briggs, Founder and Arizona Broker of Roosted. “I knew we could use our backgrounds in technology to make it easy to earn a passive income with a real estate license.” 

 

Launched in May 2019, the first tech-enabled real estate referral company has already become one of the top 250 largest brokerages in Arizona. The next state on Roosted’s radar? California. 

 

“There has been a huge amount of interest from California, and we’ve partnered with a reputable broker to assist us with our launch there,” the founding team noted while planning the October 2019 launch of Roosted CA. 

 

While there has been interest from investors, Roosted’s founders are committed to remaining a bootstrapped company for as long as possible. “When you take money from investors, the business becomes more about hitting metrics and growth, which has its time and place,” says Dan Might, Founder and CTO of Roosted. “For now, we’re able to remain focused on our most important goal: building great technology for our agents and partners.”

 

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Rainmaker
2,807,121
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Sep 20, 2019 06:06 PM #1
Rainmaker
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Ian Flannigan
North Texas Real Estate Team - Plano, TX
Expansion Team Leader & Investing Consultant

Amanda, welcome to ActiveRain. Interesting model for sure. Does Roosted have any lead generation systems or solutions to drive more referral business?

Sep 20, 2019 07:16 PM #2
Rainer
479,714
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Interesting business model, yet, 35% referral fee of what? Is there a parking fee to hold a license with the participating referral company if so, what's the fee? Finally, could agents deactivate their participation at anytime? 

Sep 20, 2019 11:24 PM #3
Rainmaker
3,492
Amanda Sue Briggs
Roosted - Phoenix, AZ
Real estate tech junkie, Founder of Roosted

Hey Ian, thanks so much! We offer training and shareable content for our agents to help them generate more referrals. Roosted agents are always welcome to prospect on their own also, of course (some attend networking events, others have blogs or run ads). And right now we're working on creating a 100% automated, hands-off solution for our agents to keep in touch with their database!

Sep 20, 2019 11:33 PM #4
Rainmaker
3,492
Amanda Sue Briggs
Roosted - Phoenix, AZ
Real estate tech junkie, Founder of Roosted

Hey Kimo! The referral fee is 35% of the agent's commission. So for example, if a Roosted agent referred a buyer, and the agent who handled that transaction made a $10,000 commission, the referral fee would be $3,500.

An agent who hangs their license with a referral brokerage would not pay NAR (or local or state REALTOR association) dues nor MLS fees. Their only cost would be what the state charges to renew your license ($65 every 2 years here in Arizona).

Roosted has a free plan (no brokerage fees ever), a $9/mo plan, and a $19/mo plan. The different plans just change the commission split (e.g. how much of that $3500 is retained by the brokerage and how much is paid to the agent). Roosted agents can change their plan at any time, and yes, they can cancel at any time as well!

And there’s no up front or monthly cost to agents that receive the referrals either (just that 35% referral fee paid after closing).

Sep 20, 2019 11:44 PM #5
Rainmaker
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Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Will have to watch for more info on this and if it becomes popular in my part of the USA.  I like AR to learn about new technologies like this

Sep 21, 2019 01:41 PM #6
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Amanda and welcome to ActiveRain. While I'm not an agent, it is interesting to see what new practices and technology are coming about. I wonder what agents who are approaching retirement think of this?

Sep 21, 2019 01:52 PM #7
Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                    

Sep 21, 2019 06:12 PM #8
Rainmaker
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Amanda Sue Briggs
Roosted - Phoenix, AZ
Real estate tech junkie, Founder of Roosted

Thanks Kathy! It's a great option for agents who are wanting to retire from selling real estate; they can "sell" their book of business by referring the deals out!

Sep 21, 2019 08:00 PM #9
Rainmaker
3,492
Amanda Sue Briggs
Roosted - Phoenix, AZ
Real estate tech junkie, Founder of Roosted

Hey Mary! I'm from Kansas City originally, and my mom is an agent at Reece & Nichols KC. Kansas and Missouri are definitely on our radar! :-)

Sep 21, 2019 08:01 PM #10
Rainmaker
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Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Amanda Sue Briggs 

Thank you for this post AND Welcome to Active Rain. There are many changes coming to Real Estate involving technology

Sep 22, 2019 06:17 AM #11
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Welcome to AR. Our industry is certainly changing...I'll need to research this more before trying to comment with any semblance of thoughtfulness. 

Sep 22, 2019 07:19 AM #12
Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Amanda Sue Briggs - this is an interested concept.  And welcome to Active rain.  Looking forward to more posts from you.

Sep 22, 2019 12:37 PM #13
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

If your posts are going to be this interesting, we are definitely in business, Amanda! Feel free to follow back.

Sep 22, 2019 09:55 PM #14
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Interesting concept, Amanda! If I'm understanding this right, this may be a good way to 'semi-retire,' if one wanted to do so. 

Thanks for sharing your innovation and welcome to the Rain!

Sep 23, 2019 05:58 AM #15
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Amanda Sue Briggs welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Sep 26, 2019 05:31 PM #16
Rainmaker
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Sara Wagner
The Woodland Companies - Adams, WI
Stevens Point Rentals

Welcome to ActiveRain, I hope that your participation here helps your business to grow.
Btw, I followed your blog, and would be honored if you followed mine.
Thank You!

Sep 26, 2019 09:32 PM #17
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Amanda Sue Briggs

Real estate tech junkie, Founder of Roosted
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