There are some massive headwinds facing the real estate industry such as fee compression, ibuyers and inventory shortage. All these headwinds can be the wind in your sails as a Referral Agent.
The economics of being a real estate agent
In a time where more and more of the real estate transaction is being automated, the importance of the relationship manager who nourishes meaningful friendships with clients is critical for the overall sales process. Why continue to toil away for reduced compensation as a full time agent when you can be a Referral Agent?
The average agent earns $42,000 per year and the cost to be an agent is $33,000. The net revenue to the agent is less than $10,000 per year.
The average Referral Agent earns $27,000 by making 1 referral a month. The referral agent is ahead of the selling agent by almost $20,000 per year!!!!
The referral agent is ahead of the full time agent!
The role of the referral only agent in the team
Teaming is the big focus in real estate. Zoom out to see the big picture of teaming and the roll of the Referral Agent. The referral only agent becomes the relationship manager and sends the business up to the top sales agent who handles the legal responsibilities of closing the transaction. This is the classic definition of teaming, just with new labels.
In a time where more and more of the real estate transaction is being automated, the importance of the relationship manager who nourishes meaningful friendships with clients is critical for the overall sales process.
If referrals of the lifeblood of real estate, then theReferral Agent is the backbone of the referral process. The relationship management skills of the referral only agent are the glue that binds the clients to the brokerage.
How do I position my role as a Referral Agent with clients?
Referral Agents shine when telling the story to their clients correctly. Here are some sample scripts of how to position yourself as aReferral Agent in the best light.
"I work with the top team/brokerage in this area."
"We have sold xx listings, and gotten x number of listings over asking price with the fewest days on the market."
"My team represented x amount of buyers in the past year and gotten them the best deals with the fastest closing and beat out competitive bids."
"XYZ brokerage has the best market insight and technology to get you the best real estate at the best price."
These are some compelling talking points! Think about how powerful these stories are for positioning yourself as the trusted advisor. You get to focus on the relationship with the client, the top agents focus on the heavy listing and you get to share in the sales glory!
It's paramount that Referral Agent are careful to not practice real estate. Be sure to follow all your broker's rules about discussing real estate sales with clients. In most areas, actually be involved or named on a transaction triggers dues to the brokerage and local, state and national boards.
Handing off your golden treasure
Think of the referral as your gold coin. Your asset needs to be protected and handed with the utmost love and care. Here are the steps to a warm handoff of the referral:
1. Notify the client that you will be making the referral to your most awesome broker and colleagues.
2. Call / text / discuss the referral with your broker and the sales agent who will be working with the referral. Disclose all the client's most important wants and needs as well as any funky concerns the client might have about the upcoming transaction.
3. Enter your referral details into reconsortia.com. The Real Estate Consortia referral tracking system tracks your referral from start to close. For the first time ever, you can see the progress of your referral as it moves through the sales process. And, Real Estate Consortia checks in on the recipient agent as well as constantly sweeps public records to see if the deal closed and you're due a referral commission. Real Estate Consortia also provides commission advances on referrals that enter escrow. (We were first EVER to provide a commission advance for referrals!)
TheReferral Agent is the hero the hero of the story. The referral only agent is the glue to the community and the one bringing smiles to the clients, brokers and sales agents. And at the end of the day, isn't that what it's all about? ;)
Your Best Friend in Real Estate
CEO, Real Estate Consortia
PS. If becoming a Referral Agent makes sense to you, join reconsortia.com today!