One of the things that I find fascinating in the real estate business are referral fees. I hear REALTORS upset about them and always trying to lower them. I know, with the financial pressures of today’s market, this may sound weird, but I LIKE THEM.
Before you throw something at the screen, let me explain.
In today’s buyer’s market, EVERY buyer side that you have is a result of someone or something. It is the result of a marketing channel that you have invested in. Maybe it is your internet presence. Maybe it is HomeGain. Maybe it was the time you spent on a press release that attracted a buyer or investor. Maybe it was a radio ad.
Whatever it was, you invested in it in one way or the other. I find it amusing that REALTORS often do not pay THEMSELVES a REFERRAL FEE and use it to build up their market presence.
Even if you invested time instead of money into your lead that turned into a buyer, the only way to get more time is to eventually use some of that money to buy back the time either in that market channel or in another one that you deem will generate more ROI.