More Details

The Power of Real Estate Referrals

| Jan 12, 2017

Agent-to-agent referrals are a foundational piece of the real estate industry.

Download the report here: The Power of Real Estate Referrals

They are a source of passive income for those who send them. They are a key source of sales volume for those who receive them. By all accounts, they convert far better than the online leads with which the industry has been obsessed for the past 20 years. And yet, we don’t know a lot about them. There is a huge and active Referral Economy that remains all but unaccounted for.

First of all, what is a referral versus a lead? Both are terms used in customer acquisition, but many agents will immediately get the difference. Referrals are a subset of leads. While a lead could come from any sort of “cold” channel like an online form, a referral sits in a very warm spot at the top.

A referral comes from another person.

A referral tends to be serious and ready to act.

A referral will not waste time.

Behind the referral is a cooperative system among real estate brokers and agents that generates revenue for both the referring and referred agent, but also enables agents to build their sphere and reputation simply by providing a successful connection. The numbers tell a story about the details and flow of the agent-to-agent Referral Economy. Beyond the data, what became evident with this study is that an agent’s reputation is the foundation upon which any referral business is built.

Referrals aren’t purely important to agents for their monetary value. Many agents’ primary concern when referring out business is maintaining the reputation they’ve worked to establish with current and past clients.

Here are some key findings from the report The Agent-to-Agent Referral Economy: A Study of the Power of Referrals in the Real Estate Industry, by Referral Exchange and The Council of Real Estate Specialists (CRS).

The close rate of a typical referral, whether inbound or outbound, hovered around 50% for the majority of respondents.

Outbound referrals, according to this study, make up a median of 12.5% of total transactions per agent per year. The majority of respondents (75%) make $10,000 or less annually by referring business to other agents.

Over half (58%) of outbound referrals are generated from past or current clients. The rest come from a combination of family and friends, other agents, referrals companies, and raw leads.

Most respondents expect to receive 25% of the total commission when they refer out and prefer to pay around 25% when they receive a referral.

Nearly 40% of inbound referrals come from the agent’s sphere with a majority of those coming from past or current clients. Another 40% of inbound referrals come from other agents.

- Posted by Tracey Velt from REAL Trends, which provides news, analysis, and information on the residential brokerage industry.


Leave a comment
  1. Our Service | May 26, 2018
    I Loved The Way You Discuss The Topic Great Work Thanks For The Share. Our Service
  2. Dissertation Writing Help | May 24, 2018
    Things Are Very Open And Intensely Clear Explanation Of Issues. Was Truly Information. Your Website Is Very Beneficial.   Dissertation Writing Help
  3. Help With Electrical Engineering Project | May 21, 2018
    John Arnold Is An Academic Writer Of The Dissertation-Guidance. Who Writes Quality Academic Papers For Students To Help Them In Accomplishing Their Goals.  Help With Electrical Engineering Project
  4. Write My Civil Engineering Project | May 17, 2018
    I Loved The Way You Discuss The Topic Great Work Thanks For The Share Your Informative Post.   Do My Civil Engineering Project
  5. coursework online writing service | May 16, 2018
       This Site And The Resources You Provide Is Really Nice Keep It Up.    coursework online writing service
  6. coursework online writing service | May 16, 2018
    This Site And The Resources You Provide Is Really Nice Keep It Up.
  7. priya | May 10, 2018
  8. AllAssignmentHelp reviews | May 08, 2018
  9. Assignment help | May 08, 2018
    We are the best in Online Assignment Help . Taking help our high expert's professionals who have extensive experience in writing assignment will not only make you avail with the quality assignment, but you will also get plagiarism free assignment within the given time. 
  10. Jorge Pollich | Mar 14, 2018
    by visiting this site I found cool stuff here keep it up. Assignment Help Australia
  11. kayona | Mar 14, 2018
    Really i appreciate the effort you made to share the knowledge. This is really a great stuff for sharing. Keep it up . Thanks for sharing Restaurant Management Database Assignment Help
  12. miahaljhon | Mar 14, 2018
    Good way of telling, good post to take facts regarding my presentation subject matter, which i am going to deliver in my college Oracle Assignment Help
  13. Rafael Turnbull | Mar 14, 2018
    I genuinely appreciated understanding it. Sitting tight for some more incredible articles like this from you in the nearing days Zynga and the Launch of FarmVille Case Study Solution
  14. Wilson Larrie | Mar 14, 2018
    I personally like your post, you have shared good article. It will help me in great deal Django Assignment Help
  15. Robert Gray | Mar 14, 2018
    Science Channel’s are giving a complete knowledge to its viewers about every thing students write done dissertation on this subjects and show its importance. Java RMI Assignment Help
  16. Robin | Feb 28, 2018
    This is a very excellent article for real state business. Different developer has attached to the britishassignmentwriters service for taking the information of the different location land and home price. Mostly developer is buying the land very economical rate and then sale out in the future is very expensive.    

    Leave a comment