Real Estate Referral Fee
In this blog, we talk about the famous real estate referral fee and how the old school of doing things is ending. Learn more here.
How do you handle your real estate referral fee? The tried and true method can take a very long time and there has not been a simpler way. Time is a rare resource, we only have X amount every day, and you don’t want to waste it calling and trying to find the best agent for your referral. Let’s look at referral fees a bit deeper and check out both the old-school way of doing it and the new way with NuOp.
What Is A Referral?
Referrals are people who come to you or a brokerage after being pointed in that direction by another agent. Also termed real estate referral agents, referring is in of itself an entire industry inside of real estate. And getting a real estate referral fee is always the goal. But if you want a deeper dive into what referrals are make sure to check out “Lead Generation Company – Important Knowledge”. But with the base concept down let’s jump into a quick look at how agents get their real estate referral fee and how time can be saved using NuOp.
Real Estate Referral Fee and Its Parts
With the definition reviewed, what are the parts of a referral and why are they so important? Also what parts are in these fees? You most likely know that there are many different elements that go into setting up a referral fee and winding through the full referral itself. So we won’t cover every step but just some of the more standout moments that can set the tone for the entire referral. Such as:
- Meeting with the referred agent and setting your referral fee
- Getting paid
One last thing we should talk about before getting into these parts is when are you actually able to set up and get referral fees? That is both a very easy and very hard question to answer and there are a few things you need to have checked off before you can start. First, you have to be working under the supervision of a brokerage. And to work in a firm you need to be a licensed real estate agent. Also, you need to be able to write a referral agreement which needs to be signed by the brokerage you work for,
Secondly, if you are not working under the supervision of a brokerage, you yourself must be a broker. So overall to even start with this process your foot must be well into the door. But with the nature of real estate and handling multi-thousand-dollar homes or more, you have to know what you’re doing. Though don’t let this discourage you!
Now let’s talk about communication and that first meeting.
Meeting and Negotiating
Old School –
After your client or friend comes to you looking for help with something like selling their home, or something similar, what’s the next step? Finding the agent or professional to refer them to! There are a bunch of ways to do this but the best may be finding the area in which your client lives and contacting the closest brokerage. Then ask them who the top agents are in that firm, that way you are not only reaching out but are guaranteed to find the best person for your client.
After this, it’s all about that initial meeting. This is where you meet the agent you are going to send your referral to and set the all-important referral terms. Most agents set their real estate referral fee to around 25% to 35% though this could be higher or lower it depends on the referral. If it is a high-priority one or just a really big referral where a lot of money sits, this fee can go even higher. The trick to getting your agreed-upon fee is to show confidence. If you do that the agent you are meeting with is more likely to pay the fee without thought, or with less friction.
Think about it, what sounds better?
“This is my referral fee, how does this work for you?”
“What referral fee are you ok with? Is this ok?”
It is always good to be a nice person and compromise but do not compromise your paycheck. Of course, don’t be a jerk but be firm in your proposition. This entire process can take days, how can NuOp speed it up and make it simpler?
New School –
It’s a massive amount of time. Calling a firm, setting up a meeting, and maybe even more if the first fails. Wouldn’t it be awesome for there to be a way for this to go faster? Great news, there is! And it’s with NuOp. Here you can browse a list of open referrals posted by other agents and Members and pick what you think is best for you. And for those that want to send referrals, you can pick from three different referral types to best fit what you have in mind. You can get going in a few clicks over a few hours or days.
Follow-Up and Communication
Old School –
After you set up your agreed-upon terms now you want to make sure you set the grounds for communication. As mentioned before if it’s a rather fast-moving and high-quality referral you may ask for daily or weekly updates to make sure it’s all going well. Or if it’s a bit slower and casual you may ask for monthly or just milestone updates like when it reaches the MLS. Also, you should let your refer-ee know that if they do not like the agent to tell you.
There is no shame in seeing a certain agent does not work for you, and if there is a lot of money on the table this becomes more important. If you ask a veteran agent they will tell you there is nothing worst than watching your client or good friend make a horrible decision and lose a lot of money because they were too scared to let them know it was not working. Finally, there is nothing wrong with letting your refer-ee know you are getting paid to do this. That should make it easier for them to get back to you if there is a problem. The end goal is to make sure they have the best experience, right?
New School –
Communication can be hard to maintain, especially if the agent you are trying to keep in touch with, is far less than commutative. Once again NuOp can make life so much easier here as well. On every referral posted there is an attached chat room so both the sender and the claimer can stay in touch. But want to keep in touch with all parties once the referral is finished? You can message them directly with the direct message chat feature. With a bunch of options at everyone’s fingertips, there are no more excuses for not communicating as per the terms you set prior.
Finally, the last step and the most exciting for a lot of agents, getting your well-earned fee. Hopefully, at this stage, everything went well and you can easily cash in your real estate referral fee. This is meant to be the simplest step, or that’s the hope! But sometimes the agreement can go wrong and maybe payment does not come. Or the firm meant to pay it forgets. That means more phone calls and more time. With NuOp, blockchain instantly creates a legally binding document between all parties. Meaning that when you agree it’s set in stone and no one can forget.
NuOp – The Referral Solution
Throughout the section, you would have seen that we went over NuOp as ‘New School’. This is because NuOp is changing the referral game and any referral-based industry forever. You can save hours and days worth of time that it would take to do this the old way, and with new tools coming out all the time. NuOp is the best option for your professional growth. And better yet it’s free to join for life. Here are some other highlights for just joining for free:
- Instant ROI.
- High-value referrals.
- Fluid communication from support and ease of access.
- High level of security. NuOp uses blockchain to make sure you and your info are safe.
- The “My Ops” tool allows you to see your history of referrals.
- A growing list of blogs to help you along your day-to-day.
- Plus lots more!
Make sure to learn more here about why NuOp is your option for professional growth.
Real estate referral fees are sought after by many agents. Though this process takes a very long time and has not been the most rewarding. What happens if it just falls through? It’s a bunch of wasted time. NuOp is reinventing the old way of doing business and making it peer-to-peer and quicker. If you want in on this new platform make sure you sign up today for free. Soon you will be swimming in opportunity.