My last broker would take a referral if it was one of this personal properties since he was a builder/developer. Collecting on other leads is just greedy.

I'm a broker, small independent office, and I answer the phones 99% of the time. When the office is closed the calls come into my cell. 99% of buyer leads are given to the agents and I've never taken a referral fee. Never.

The potential seller leads are questioned extensively as to how they came to call our office and those leads go to the agents who have canvassed them, sent letters, etc. We have never had a seller lead issue. Never.

NJR, good for you.

Early in my career, someone once said "the manager sets the tone".

Work for scum, and most agents become scum or move on. In the past 20+ years in the business, I've seen both sides.

Good to see other brokers are fair. IMO, broker referral fees are just wrong. They'll make it up in the end if they're fair to the agents.

I went to an independent broker that not only gives me a great split, does not charge referrals, he pays for print ads, he even buys me lunch all the time. I pay my E&O, association dues and for my website. No hidden fees at all. My broker goes above and beyond for me.

To me there are 2 types of brokers: the ones that want you to succeed OR the brokers that want to make money off their agents.

I can't see how a broker can take a referral fee from their own agent. A lead fee yes, a referral fee no.

I have been a proponent of eliminating referral fees all together or at the very least coming up with some type of system that defines what a referral is vs. what a lead is. A real honest-to-goodness referral is worth 25%, a real "lead" is worth what??

Many brokerages have different business models and there are some here that do charge their agents 25-30% if they supply them with a lead. They know who they are. One new broker in my area is offering 90% commission to agents for business they generate on their own, and 65% if they give them a lead. 25% for a lead in this instance isn't so bad since agents have the option of taking it or not. A 70% split is generous... so 5% off that isn't criminal. Anyone who uses homegain does essentially the same thing plus fuels the bastardized referral fee madness.

My former broker charged a fee for giving leads (I don't know that it makes it any different by calling it something else- referral fee, etc.). She picked the best of the best then handed out what she didn't want. Then if it panned out, she'd collect a larger split from the agent that worked the deal. We also had franchise fees we had to pay. Can't say that I ever complained. I had options. The moment I could get my broker's license - I did. And then I quit. Couldn't be happier on my own. I do miss seeing the other agents on a daily basis though.

Hey it gets even deeper than that.. remember that walkin that the broker took a referral fee cause he owned the office.... i have seen that same broker then order a second level referral to the company for the sale of his own home once you found him a new home...
But bottom line... you evaluate the situation and if another broker offers you a better split.. go for it.. otherwise stay wheere you are...as it must still be good our you would be gone...when a broker is too greedy he shortly has no agents..

It all works out in the end.... matter of supply and demand of agents..

This is a very strange Broker. That is good you quit.

Healthy, happy agents add up to make happy, healty brokerages.

Constantly bleeding one part of the organism to benefit the other is a deadly decision. Since I don't want to become the dead part, I would simply leave a brokerage that charged me a commission split and then added on referral fees.

I am an independent broker serving Dallas/Fort Worth and Houston, and I charge a 20% referral fee to my agents...but then I only charge a $350 transaction fee for sales and $50 transaction fee for leases. We brokers have to recoup the costs of marketing somehow...plus it gets the agents more business.