Comments on: How much do I charge for sending out a referral? http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/ Tracking Charlottesville's Real Estate Market since 2005 Sun, 12 Feb 2012 23:56:00 +0000 hourly 1 http://wordpress.org/?v= By: Blog Wayback - How Much Do I Charge For Sending Out a Referral | Real Central VA http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-26435 Blog Wayback - How Much Do I Charge For Sending Out a Referral | Real Central VA Wed, 22 Apr 2009 19:01:19 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-26435 [...] From May 2008 - How Much Do I Charge For Sending Out a Referral? Karma. Just (hopefully good) Karma. [...] [...] From May 2008 – How Much Do I Charge For Sending Out a Referral? Karma. Just (hopefully good) Karma. [...]

]]> By: I Call that Extortion | Real Estate Magazine - Real Estate Opinion Column - AgentGenius http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-26384 I Call that Extortion | Real Estate Magazine - Real Estate Opinion Column - AgentGenius Thu, 16 Apr 2009 16:26:07 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-26384 [...] I don’t ask for anything other than Karma in return for referrals, and I don’t have any issue with paying someone a referral fee. Where [...] [...] I don’t ask for anything other than Karma in return for referrals, and I don’t have any issue with paying someone a referral fee. Where [...]

]]> By: C-Ville Gets it on Real Estate Blogs | Real Central VA http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-18882 C-Ville Gets it on Real Estate Blogs | Real Central VA Thu, 25 Sep 2008 13:05:33 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-18882 [...] diligence from a close personal friend as I do from someone I meet through my blog or one who is referred to me by another [...] [...] diligence from a close personal friend as I do from someone I meet through my blog or one who is referred to me by another [...]

]]> By: Jeremy Hart http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16236 Jeremy Hart Fri, 30 May 2008 04:12:46 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16236 I don't necessarily mind referral fees all that much IF the referring agent has taken the time to get to know me, my business practices, and provides a lead that is quality. What I don't want to see is agents just randomly calling whomever pops up on Google first and getting a fee off of that. They've done nothing to assure that their referral is being well taken care of, and I know we've all seen situations where that's hurt the consumer AND the referring agent's reputation. Of late what's REALLY gotten me pissed are the companies who are charging 35-40% fees AFTER contract ratification. Case in point - client went to a company to inquire about their loan program. He signed up for information, which automatically enrolled him in some cashback program. That company then contacted Cartus, who sent my broker a 35% referral fee agreement because they have a "contract" with Coldwell Banker and this lending company. I've spent four years cultivating and massaging the individual who referred this client to me, and suddenly some corporation swoops in to take close to two thousand dollars from me? Client asked where his kickback was coming from (let's be honest, that's what it is) and I told him "me" ... he immediately called the lending company and asked to opt out of the program, and was flatly told no. I have a few thousand dollars in fees outgoing over the next 45 days for two transactions that were in no way, shape or form initiated by the company receiving my money. Shameless. These corporate referral programs are out of hand, and they hurt not only the agents but the consumers. In many cases, the consumer doesn't have a clue what's happening. It's a racket, and I think it's shameful that these corporations are being allowed to offer kickbacks for using their services. Excuse me while I step off this soapbox ... much better. it's an issue that obviously hits home with me right now. I don’t necessarily mind referral fees all that much IF the referring agent has taken the time to get to know me, my business practices, and provides a lead that is quality. What I don’t want to see is agents just randomly calling whomever pops up on Google first and getting a fee off of that. They’ve done nothing to assure that their referral is being well taken care of, and I know we’ve all seen situations where that’s hurt the consumer AND the referring agent’s reputation.

Of late what’s REALLY gotten me pissed are the companies who are charging 35-40% fees AFTER contract ratification. Case in point – client went to a company to inquire about their loan program. He signed up for information, which automatically enrolled him in some cashback program. That company then contacted Cartus, who sent my broker a 35% referral fee agreement because they have a “contract” with Coldwell Banker and this lending company. I’ve spent four years cultivating and massaging the individual who referred this client to me, and suddenly some corporation swoops in to take close to two thousand dollars from me? Client asked where his kickback was coming from (let’s be honest, that’s what it is) and I told him “me” … he immediately called the lending company and asked to opt out of the program, and was flatly told no. I have a few thousand dollars in fees outgoing over the next 45 days for two transactions that were in no way, shape or form initiated by the company receiving my money. Shameless.

These corporate referral programs are out of hand, and they hurt not only the agents but the consumers. In many cases, the consumer doesn’t have a clue what’s happening. It’s a racket, and I think it’s shameful that these corporations are being allowed to offer kickbacks for using their services.

Excuse me while I step off this soapbox … much better. it’s an issue that obviously hits home with me right now.

]]> By: Landflip http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16235 Landflip Fri, 30 May 2008 02:05:36 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16235 I feel if you are not willing to pay a referral fee then do not take the referral...do your own work! I feel if you are not willing to pay a referral fee then do not take the referral…do your own work!

]]> By: Landflip http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16234 Landflip Fri, 30 May 2008 02:04:13 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16234 I feel like if you are not willing to pay the referral fee then do not take the referral. I feel like if you are not willing to pay the referral fee then do not take the referral.

]]> By: Pavel Dovgalyuk http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16231 Pavel Dovgalyuk Thu, 29 May 2008 23:41:12 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16231 Some relo organizations will even ask for a referral fee if the buyer they originally referred to you decided to employ you in the future as the listing agent. Now that is a strange concept as there is no longer any agency agreement after settlement. Can a relo company really "claim" people and their money? Some relo organizations will even ask for a referral fee if the buyer they originally referred to you decided to employ you in the future as the listing agent. Now that is a strange concept as there is no longer any agency agreement after settlement. Can a relo company really “claim” people and their money?

]]> By: Julie Emery http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16230 Julie Emery Thu, 29 May 2008 23:40:14 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16230 Jim, I agree! It makes me feel dirty to ask for a referral fee! It's not that I don't want to make a little extra money. Who doesn't?! But the system has gotten insane and I don't think it serves the clients' best interests most of the time. How many agents are fully disclosing that referral fee? Jim,

I agree! It makes me feel dirty to ask for a referral fee! It’s not that I don’t want to make a little extra money. Who doesn’t?! But the system has gotten insane and I don’t think it serves the clients’ best interests most of the time. How many agents are fully disclosing that referral fee?

]]> By: Athol Kay http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16229 Athol Kay Thu, 29 May 2008 22:28:09 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16229 I think it really depends on the quality of the referral. If someone hands you a ready to move seller, who has spent the last three months cleaning up their property, and understands that pricing is the key to getting buyers and a closed transaction, is that worth nothing to you? Given the choice between you making $5 and paying me $1, or you making $0, you'd actually choose the $0 option? Now if all these referral leads are simply worthless time/money sinks, then it certainly makes sense to turn the the leads off. I think it really depends on the quality of the referral.

If someone hands you a ready to move seller, who has spent the last three months cleaning up their property, and understands that pricing is the key to getting buyers and a closed transaction, is that worth nothing to you?

Given the choice between you making $5 and paying me $1, or you making $0, you’d actually choose the $0 option?

Now if all these referral leads are simply worthless time/money sinks, then it certainly makes sense to turn the the leads off.

]]> By: Danilo Bogdanovic http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16227 Danilo Bogdanovic Thu, 29 May 2008 20:32:47 +0000 http://www.realcentralva.com/2008/05/29/how-much-do-i-charge-for-sending-out-a-referral/#comment-16227 I'm with you - (good) karma. I’m with you – (good) karma.

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