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Different Types of Real Estate Referral Companies

Posted by flparkplacerealty on September 22, 2016 at 5:20 PM

There are several different types of real estate referral companies. Learn the different types as it can get confusing in today’s real estate market.


Lead Generating Referral Company


This is the type of Real Estate Company that you receive a lot of calls and emails from trying to sell you on their service. They are a lead generating business. This type of Referral Company does not typically have active real estate agents. Usually they will have one broker that way it is labeled as a Real Estate Company. You will typically have an upfront cost in order to receive leads from this type of Referral Company. The leads that you get from a lead generating Referral Company are usually internet leads. Their main focus is producing real estate leads through the internet and then selling them back to you. You might also have to pay a percentage of your commission once the transaction closes like you would with a standard Referral Company.


Leads from the internet usually have around a 12% closing ratio.


Local Broker Real Estate Referral Company


This type of Real Estate Referral Company is what a real estate referral company is originally about. Most full-time Realtor companies like to have a secondary company which is a Real Estate Referral Company. They use this secondary company as a place for their agents in their Realtor Company to place their license in case they do not want to sell full-time and avoid having to pay the Realtor/MLS dues. This company is usually not a member of the local Board of Realtor/MLS that way their agents are not required to pay the dues. When an agent places their license in this type of Real Estate Referral Company, they will now have an active real estate license. When they have a friend or a family member who is looking to buy or sell, they can then refer it back to their brokers full-time Realtor Company, one of the Realtors will handle everything and then pay back the agent a referral fee through the secondary company. A broker in this type of company typically focuses on local real estate. There is usually no upfront cost except for a low annual administration fee.


Leads from friends & family usually have around a 70% closing ratio.



International Real Estate Referral Company


What we do at Park Place is different from the local Real Estate Referral Company above. You will also not have to pay for a Realtor/MLS membership as we are not members. Our main focus is on our referral business and referrals all over the world, not just in a local market. Referrals can be placed worldwide legally as the person in that area that we are referring to is handling the actual sale, not Park Place. We have over 500+ agents who are active with us and live as far away as Japan. When our agents know of anyone who is looking to buy or sell any type of real estate, anywhere in the world, we do the research and refer it out to a top agent in that market who will handle the entire transaction. We have their company in a contract to pay out a referral fee. Our agents will basically make 22.5% of the total commission as a referral fee once it closes. Our main focus is 100% referrals, all over the world.


Go to our website www.ParkPlaceNetwork.com to get more information on how Park Place can help you expand your real estate business internationally.

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