Referral fee business?

[Michael Gee]

Hi all! I have a question about receiving referral fees from other agents and brokers. From what I understand, an agent can pay a 20%-30% referral fee to another licensed agent. Are there agents who make a living/business doing just referral fees? It's almost the same as wholesaling as far as marketing goes but I'm curious to know if agents can just refer leads out for a fee.

[Cody Steck]

I work on a team right now with a guy who is generating all of our leads online. He still closes deals of his own (referrals, family/friends etc) but is focusing most of his time on SEO/lead generation. Our numbers have been increasing and last month we generated almost 1800 leads. You can reasonably expect to close 2-3% of these leads which means there is a good amount of money being made there. Our problem right now is that we have a lot of new/part time agents so we are not closing as many deals as we should be.

You can do the math and figure out what kind of money is being made there. Although a large portion goes back into the marketing to generate the leads, there is still a lot of money being made.