If you are a solo agent working on passing your broker license exam or a team lead spearheading a group of agents, the chances are you most likely heard of the term real estate leads paid at closing. It is a very common speaking point in lead generation. More specifically lead generation using referrals. Which is single-handedly the most powerful way to generate leads. But it is not a perfect science and there are downsides, but most of these could be sidestepped with the right innovations. Innovations that NuOp provides. In this blog, we will talk about what lead generation using referrals is. As well as the most need-to-know information regarding leads you only pay at closing. Then talk about how NuOp can help you do all of this with ease, and literally give you free leads.
What Is Referral Lead Generation?
Simply put referral lead generation is when you or your business is referred to by someone else. And this is our jam at NuOp. Sometimes someone may not be able to help their client in the best way possible, so they send them off to you. This can be because of a few reasons. Maybe the client is in a different market in which the sender is not specialized or the sender is overloaded with so many referrals they can not possibly close them all. Secondly, the referral sender can be a friend, someone you met at a conference, or an agent apart of a larger brokerage. Or a team looking to offset some leads and gain a payout in hefty referral fees.
Sounds great right? An easy way to gain work. Well, sadly it’s not all sunshine and rainbows. Most senders will require a high referral fee between 25-50% to be exact. And depending on how much work you put in to close the lead, when you finally get that payout, watching half of it vanish can really suck.
A lot of third-party networks also charge a large middleman fee as well. Or charge a heavy fee to get into their network and offer a “white glove” service. But there is no guarantee of ROI. Most of these places as well will be super selective in agents they pick to refer leads to, as they will want their referral fee. So if you are a new agent you are very limited in your options.
But with all of that said, this is still the number one way to grow as an agent. But with a seemingly hard wall to dig through why is that? Once you find a groove referrals can act as rocket ship growth. And that’s why ‘ real estate leads paid at closing ‘ is such a hot topic. But now that you know about referral gathering what are paid at closing leads?
Real Estate Leads Paid At Closing
These leads are exactly what the name sounds like, leads or referrals that you only pay if and when you close them. A lot of agents and agencies enjoy these kinds of leads since there is no worry about the upfront cost. This is different from paid leads in which you pay the broker or network to give you leads. And these can feel rather unfulfilling since you made a financial investment, what if it does not close? With leads that only require you to pay at closing, there is no need to worry about this. And you can focus on the customer and getting them the best service possible.
Is it bad to pay for upfront leads and other referral generation? No, not at all. In fact, according to agentlegend.com, “The majority spend between $500 and $1000, while some (more than 10%) spend more than $10,000 a month.” Paying for advertising or a high-end referral-generating network or brokerage is not invalid by any means. It just requires a lot more experience in the industry and grit in order to be accepted into such an environment.
Depending on the exclusivity of the lead, the conditions and selectiveness of the provider will increase as well. Adding conditions and maybe even increasing their referral fee at the end of it all. For example, the provider may want more fees if that referral partner becomes a regular customer.
NuOp And Referrals
As I mentioned at the very start of this blog, NuOp is a new professional solution that can sidestep a lot of the common issues that lie with referrals. Or lead generation. For starters unlike how many high-end referral networks make you pay a fee in order to join, NuOp does not require payment to sign up. You can also pick from a growing list of high-end leads that you do not have to pay to get access to. And every lead is only paid at closing so you can really focus on closing the lead and making that person happy. In that case, they are more likely to become a repeat customer or refer you around to their own network. Making another source of business for yourself.
Let’s go a little deeper into that example. What happens when that one person starts referring others to you and so on and so forth? Before you know it you will be drowning in a sea of referrals. That’s great, isn’t it? Well, in a perfect world where we are the best agents it would be. But sadly we don’t live in that world, you will eventually buckle under the pressure.
NuOp acts as the rescue boat, letting you send these referrals to others on the platform in minutes. You are able to select from three referral exchange methods to find the perfect fit and you still get your referral fee in full. So at the end of the day, everyone involved is happy. No more wasted referrals and you are growing yourself and your online presence with each referral you send out. So even more people can find you naturally. Soon you may find yourself in a powerful current of growth and success. And with tools like NuOp on your side, you will soon be a star agent.
And guess what, it doesn’t cost a dime! That’s right, you don’t have to spend a penny if you just want to offset some leads and collect some fees and grow your business.
Hopefully, now you have some more insight into this type of referral term. And how NuOp can help you turn from drowning in referrals to managing them like a pro. And even if you are not overloaded with referrals you can still be the person that takes one off someone else’s chest. No matter if you are a creator or a taker NuOp can help you in your career all for free.