Would anyone have an idea as to what is the going rate for referral commission for corporate relocation companies? Let's say a corporation hires a national relocation company to handle all their employee transfers. The relocation company contracts with a brokerage to sell the employee's home. How much of a referral fee does the brokerage typically have to give the relocation company ? Thanks!
Thanks Russell. This seems well above the standard 25% rate that I see from one-off referrals. Is there a certain minimum number of deals or commission volume that the relocation company is typically on the hook for before the 35% kicks in? Have you also ever seen a higher rate for a high volume of referrals? I imagine brokerages actively bid each year for a piece of the business from the national relocation companies.
Relocation companies charge higher referral fees than agents. Ive seen some as high as 50%. 35% is the industry standard for relo, and its been creeping towards 40%.
Some are now like 45%....and if you're in the national brokerage ...even that might be on 50/50% split.
I've negotiated these down to appropriate levels....most of these come straight to me and I'll be fair to the company to keep them in the system, but I will not share that much...and just keep them out of the system if the relo company gets too greedy.