Originally posted by R Hess:
Could someome please help me understand why they would be willing to pay a 25%-30% referal fee to get business in their area, instead of using aproximately the same amount of money to buy leads from a vendor with high quality leads, and work the leads to get more than 1 sale from that money?
Thanks much,
Rebecca
First problem find a vendor with high quality leads. Second problem see first problem

. Third problem they want a referal fee at closing also.
A lead from a fellow realtor is more than just a lead. It is a duty to give more than your best, to go above and beyond what you would normally do for a client. It is an issue of trust from the other Realtor. You are playing with their referal pipeline. You have a direct impact on their future income. A referal from another Realtor comes to you with the expectation that you are there for them and the best that the person that they trust in their home area can find for them in their new area. If you can not or will not take care of that person coming into the area properly you had best just tell the other agent that you can not help them.
I had an outgoing referal that I lost 3 transactions on because the Broker of the refered Brokerage lied to my clients. I tried to do damage control and get them hooked up with someone else but at that point the people moving to the new city found someone else that they were comfortable with. They in turn refered 2 other people that were trailing them to that agent.
Sorry to go off on referals and leads but to me they are 2 seperate and distict issues. Leads may or may not ever develope into any thing. A referal impacts 2 agents.
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