What are Referral Brokerages?
Referral brokerages are real estate firms that focus solely on referring leads to active agents in exchange for a referral fee. These brokerages do not require agents to hold an active real estate license or pay MLS dues, making them an attractive option for agents who are looking to maintain their license but are not actively involved in buying or selling properties.
With a referral brokerage, you can earn a commission by simply referring clients to active agents within the brokerage. This allows you to capitalize on your network and earn passive income without having to take on the day-to-day responsibilities of a traditional real estate agent.
The Benefits of Joining a referral only Brokerage
- No MLS Dues: One of the biggest advantages of joining a referral only brokerage is the absence of MLS dues. Traditional real estate agents are required to pay expensive MLS fees to access listings and market properties. By joining a referral brokerage, you can eliminate this cost and maximize your earnings.
- Passive Income: Referral brokerages offer a way for inactive or retired agents to earn passive income by simply referring clients to active agents. This is a low-effort way to leverage your network and continue earning money in the real estate industry.
- Flexibility: With a referral only brokerage, you have the flexibility to work on your terms. You can refer clients as often or as little as you like, allowing you to focus on other endeavors while still earning commission from your referrals.
- Maintain Your License: By joining a referral brokerage, you can keep your real estate license active without the pressure of meeting sales quotas or taking on clients. This allows you to stay connected to the industry and continue earning income without the stress of traditional real estate duties.
How to Get Started with a Referral Brokerage
- Research Referral Brokerages: Start by researching referral only real estate brokerage in your area. Look for reputable companies with a track record of success and a strong network of active agents.
- Reach Out to Potential Partners: Once you have identified a few referral brokerages, reach out to discuss potential partnership opportunities. Be prepared to share information about your network and explain how you can add value as a referral partner.
- Negotiate Referral Fees: When partnering with a referral brokerage, be sure to negotiate the referral fees upfront. Typically, referral fees range from 20-35% of the commission earned by the active agent. Make sure you are comfortable with the terms before moving forward.
- Start Referring Clients: Once you have established partnerships with active agents, start referring clients to them. Keep track of your referrals and stay in touch with your partners to ensure a smooth transaction process for your clients.
In conclusion, referral brokerages with no MLS dues offer a lucrative opportunity for inactive or retired real estate agents to earn passive income. By leveraging your network and partnering with active agents, you can continue to earn commission without the stress of traditional real estate duties. Consider joining a referral only brokerage today to start maximizing your earnings in the real estate industry.