Paying referral fee if referral contract expired 6+ months ago

Milwaukee, Wisconsin
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Paying referral fee if referral contract expired 6+ months ago

Julie Hilleshiem
Member since 2018 · 3 posts · 0 votes

Would you pay an out of state agent a referral fee when the referral agreement expired 6+ months ago? I didn’t even recall that the buyer had been a referral until the agent contacted me after the sale had closed.

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
Quote from @Julie Hilleshiem:

Would you pay an out of state agent a referral fee when the referral agreement expired 6+ months ago? I didn’t even recall that the buyer had been a referral until the agent contacted me after the sale had closed.

 YES....absolutely.  How would you feel if you referred your mother, brother, friend, relative or whatever to another agent....that's the only way the connection was made and that agent earned a fee, but then said, well that agreement expired yesterday, or last month, or even last year.   So sorry, love to help you, but we no longer have an agreement.   I think most people would be hopping mad.   I shouldn't have to follow up with you, to remind you of where that referral came from or that you have agreed to take it and pay a fee.   You should be giving me status updates every so often as to how things are going.   That is if you or your broker ever want another referral from me.  Sorry to sound harsh, but do the right thing.  You know what that is.

Some people disagree with me, but I also think that referral is for a lifetime, not just what is on your six month agreement.  Want more and more referrals?   Remember people.  Remember who sent them to you.  Call them, thank them, reward them.   Typically that's just about the easiest business you ever get and want.   So when that client wants to sell or buy investment properties, reward the agent that sent them to you, without asking, without an agreement.

Think long term....this is not a one and done business.   You have the chance to build a reputation.  Want the seller referral when they move next time, or do you want it to go to someone else.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    Yes

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    3y
    Quote from @Julie Hilleshiem:

    Would you pay an out of state agent a referral fee when the referral agreement expired 6+ months ago? I didn’t even recall that the buyer had been a referral until the agent contacted me after the sale had closed.

     YES....absolutely.  How would you feel if you referred your mother, brother, friend, relative or whatever to another agent....that's the only way the connection was made and that agent earned a fee, but then said, well that agreement expired yesterday, or last month, or even last year.   So sorry, love to help you, but we no longer have an agreement.   I think most people would be hopping mad.   I shouldn't have to follow up with you, to remind you of where that referral came from or that you have agreed to take it and pay a fee.   You should be giving me status updates every so often as to how things are going.   That is if you or your broker ever want another referral from me.  Sorry to sound harsh, but do the right thing.  You know what that is.

    Some people disagree with me, but I also think that referral is for a lifetime, not just what is on your six month agreement.  Want more and more referrals?   Remember people.  Remember who sent them to you.  Call them, thank them, reward them.   Typically that's just about the easiest business you ever get and want.   So when that client wants to sell or buy investment properties, reward the agent that sent them to you, without asking, without an agreement.

    Think long term....this is not a one and done business.   You have the chance to build a reputation.  Want the seller referral when they move next time, or do you want it to go to someone else.

    3Reply
  • Julie Hilleshiem
    OP
    Member since 2018 · 3 posts · 0 votes
    3y

    Thank you!

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  • Julie Hilleshiem
    OP
    Member since 2018 · 3 posts · 0 votes
    3y

    Thank you!

    0Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 546 posts · 457 votes
    3y

    Looks like you received a consensus on YES.  I agree.  It would be very short-sighted to focus on this single deal/referral.  Maybe the referring agent will have many more clients in the future that will help fill your sales funnel.  Always consider the long game.

    Also, I would have followed up when the initial referral agreement expired to ensure the agent didn't decide to refer the client to another agent.

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