I pay a 35% referral on my REO's and some agents turned down the opportunity to list with the same asset company. 2 years later I have sold over 200 REO's and my opportunities are endless. I also pay a 50% referral for relocation leads from my company....the referrals that are generated from those clients are free and my business keeps growing. It should not always be about the money you are making on that deal, but the opportunities it will bring you.
I think 30% is too much, especially when they are really doing nothing other than referring. I mean heck, our company generates the business/referrals, screens them, discuss the short sale process with them, follow up throughout, and only charge 25%. Heck, we even offer training and resources for our agents.
Agreed, something is better then nothing. REO's bring in many other money opportunities than the commission.. In this game it's quantity not quality...
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I think 30% is too much, especially when they are really doing nothing other than referring. I mean heck, our company generates the business/referrals, screens them, discuss the short sale process with them, follow up throughout, and only charge 25%. Heck, we even offer training and resources for our agents.
Maybe we're not charging enough!