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What do you think about Referral Companies?

By
Home Stager with Currant Designs & Home Staging

I was contacted this week by a referral company.  I won't name names.  Here's their offer....

They say they're huge.  Actually, they said they were the biggest referral company for contractors.  I pick a budget and they send me referrals based on my budget.  Here's the shocking part.  For every referral - not for every contract I write from their referrals - but for just the referral I am to pay them $22.  They don't have a set number of any business category.  They could have 50 stagers.  So if I want to keep getting referrals from them, I'd up my budget.

Really?

Does anyone use this type of referral company for marketing?

Here's my problems with that.

  1. I know how people are searching the Internet for stagers in my area.  I check all the time to make sure my website comes up on the first page.  During all my time spent checking, I've never seen them!
  2. I  get calls all the time from people inquiring about my services.  I'm happy to talk them through the process as most people have no idea about their staging budget, etc.  Many of those calls lead nowhere.  Many do.  But for the ones that don't, here's $22.  Really?
  3. If someone were really to go to these people to find a stager, wouldn't they think it odd that they could just have easily have found those same stagers by Googling "(insert city name) home staging"?

I'm interested to see how many of you have used or are using this type of referral.  I'm always interested in increasing my business but I don't think this is the way.

Thanks

Amy Jeffrey, Currant Designs and Home Staging

 

Comments (12)

Karl Nettgen
Century 21 Agate Realty - Gold Beach, OR

It's a scam, they grab inquiries off the Internet with barley a pulse and sell them to you. Keep putting the money into your site design and placement. Think about offering a potential client why your better than the rest, build the value of your expertise and offer them an Internet bargain of some sort.....it's what they are all looking for.

Jul 22, 2008 02:48 AM
Danial Dansereau
Watson Realty Corp. - Fernandina Beach, FL
Fernandina Beach Realtor®

In my opinion, they should only get paid a fee if their referrals actually use your services. Why should you pay them for browsers.

Jul 22, 2008 02:52 AM
Douglas Cartwright
Bankers Life/Colonial Penn - Somerset, NJ

Amy,

I have yet to see any reputable referral company in my past 11 years in Real Estate. For the most part it seems that the only things they are really good at is making money, at our expense.

If someone knows of an absolutely free referral company that you only pay them once the deal is done let me know.

 

Jul 22, 2008 02:54 AM
Gary Barnett
Home Matters - Indianapolis, IN
Home Matters Property Stylist Group, Indianapolis

Amy, let me get this right.  You rank higher then them in web searches and they think you need them?  I think you should turn around and offer to sell them advice on increasing their Webb presents....

Jul 22, 2008 02:58 AM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant

Amy, You have a better chance of getting a qualified lead knocking on doors with a for sale sign in the yard.

Jul 22, 2008 03:15 AM
Phyllis Pafumi
ReStyled to Sell Home Staging New Jersey - Old Bridge, NJ
ReStyled to Sell Staging Homes NJ

No and NO and NO! Anyone who is looking to make money off of you is all about themselves and not about helping you. Your best marketing tool is YOU...get out there and let people meet you and see your talents

 

I like Gary's comments, listen to him!

Good Luck Phyllis Pafumi

Jul 22, 2008 03:54 AM
Julia Maher
Nestings: Connecticut Home Staging and Model Homes - Fairfield, CT
Connecticut Home Stager

Amy - I got the same offer - and my answer is NONONO!  Julie

Jul 22, 2008 04:00 AM
Susan Smith
Rooms That Work LLC - Sandy Hook, CT

Staging is such a word-of-mouth business built on relationships...that will bring better leads, IMO.  Although I am a huge fan of e-marketing to help build awareness.

Jul 22, 2008 04:52 AM
Alicia Barrington
THE ORIGINAL HOUSTON HOME STAGING - Katy, TX
Houston Home Staging Presents Alicia Barrington

A great way of building a referral network is through B.N.I. (Business Network International).   You can visit their chapters for the cost of breakfast or lunch.  Every chapter has a Realtor, and several Real Estate related members.  Also, you get a great chance to hone your sales skills.

I joined B.N.I. and maintained my membership for about six months.  I then moved on to other things.  Occassionally I'll visit a chapter.  Inevitably someone will say: "If you join, I'll give you referrals"! My response is:  "if you give me referrals, I'll join.....!"   So far, I haven't joined <G>

Jul 22, 2008 01:08 PM
Connie Tebyani
Platinum Home Staging, Inc. : RESA-Pro - Calabasas, CA
Platinum Home Staging, Los Angeles and Ventura County

It's a scam - don't bother with it.  We've used these before in construction and nothing ever came of it, save your budgetary dollars....

Jul 22, 2008 02:54 PM
Terrylynn Fisher
Dudum Real Estate Group - BuyStageSell.com - Walnut Creek, CA
HAFA Certified, EcoBroker, CRS, CSP Realtor, Etc.

NO it's not the way, and people paying people like these causes more of it.   Real estate referral companies (sometimes of your own clients) like 30% referral fees for relocation.  It stinks.  Who does all the work?  Who created a middle man for collecting these type fees?  Someone like these guys.  I'd stay away myself.

Jul 22, 2008 06:30 PM
Amy Jeffrey
Currant Designs & Home Staging - Austin, TX
Currant Designs & Home Staging Serving Austin, Texas

Thanks everyone for the advice.  I told the salesmen that I would need to talk to a couple of their clients who have found the referral service working for them.  In other words, I wanted a referral for their referrals.  He got off the phone pretty quick saying he'd look into it and get back with me.  I haven't heard from him since.  I appreciate all your comments.  I almost thought it sounded good for a second.  I'm glad I asked here.

Jul 28, 2008 03:42 PM