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The people I see making the most money are the agents with a book of business that is decades old; they have "sold" their business to another agent or team, then stayed in the business for a while afterward working with that team, before gradually phasing out, making residual commissions from them. If you don't have a huge book of business, then I think an agent can make the occasional commission but not a lot. Still, it is something...
New Rochelle, NY
White Plains, NY
Tammy Adams ~ Realtor ...
Debbie Reynolds somehow, I am not happy with that model! May be, I may change my own mind later on but for the time being. this is what I think.
Everyone has a different idea of what "good money" is. I think that they might make a few hundred $ or a few thousand at best...
It the referral agent is truely making "good money" than they need to be IN the real estate business instead of the sitting on the sidelines.
Debbie Reynolds, C21 P...
Debbie, it may work for a while, especially if the person has many connections to a large client base. Though, I feel that eventually these sources will begin to dry up and the referrals will become less frequent.
It can be a wonderful business for the referring agent for a while. As to those receiving the referrals, as long as you are comfortable with giving part of your commission to the referring agent, I see no reason why it shouldn't work.
I would be careful about which referral network to use as there are some that charge way too much just to be the middleman in these deals.
Debbie Reynolds, C21 P...
Here you dont need to be with a broker if you want to be a referral only agent, and I know a few people who do this.
If you plan on leaving the business, there is no downside to keeping your license active, and getting the occassional referral. You probably won't make good money, but it is certainly something!
There are a handful of agents in our area who were in the business a very long time who've done this and probably made some money at it. But I think the trend is more the "sell" a good book of business these days.
I haven't had any experience with this, but I had to check in to see what other members thought. An agent in our area is taking some time off, and she referred her clients to another agent. She seems to be doing well from this arrangement.
Most do make little money in a referral only status, but I've heard of the very rare professional referring agent that ONLY refers out making six figures.
Referral company licensees get the best results if they are continually referring good quality prospects to agents who like to work with them. Team leaders and rainmakers are accustomed to the generation of prospective home buyers and home sellers.
I too have friends that have done this, and keeps a few dollars coming in from their sphere.
I have seen this also, and most don't really make much money. But it lets them reap at least some benefit from past clients.