Reasons Why Real Estate Agents Become Referral Agents


Referral agents are real estate licensees who want to make money in real estate, but do not want to sell, show property, or pay desk, MLS, or Board of Realtors fees.
Referral agents make money by referring their friends, relatives, and others in their sphere of influence to a full-time real estate agent with who will service the client. Referrals can be prospective buyers or sellers of homes, apartment buildings, commercial properties, or land.

Referral agents are paid a percentage of the fee earned by the brokerage company.

The following is an example:

$600,000Average Home Price
x 2.5%Average Commission Received
equals $15,000Average Commission Received
15%Paid to Referral Agent
$2,250Paid to Referral Agent
85%Paid to and Full Service Agent

Referral Agents tend to be:

  • Real estate agents who have decided that sales are not for them;
  • Part-time real estate agents and brokers who find that paying MLS and board fees is not cost effective for them;
  • Real estate agents who are considering becoming inactive;
  • Real estate agents who are moving to another state;
  • Real estate agents and brokers who are employed in another field but want to use their license to earn commissions;
  • People who will obtain a real estate license so they can earn more money; and
  • Recently retired real estate agents and brokers.


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