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What is the standard real estate referral fee from broker to broker?

Posted by flparkplacerealty on March 12, 2015 at 3:35 PM

The standard referral fee is typically 25% of the total gross commission on either the buy or the sell side of the real estate commission. This could vary however from the quality of the referral or lead. A 25% referral fee is standard for a typical internet lead but the closing ratio on an internet lead might only be 10%. Whereas a referral from a real estate referral company might charge a referral fee that is 25-40%, but the quality of the lead is usually much better with a 50%+ closing ratio. Leads from a real estate referral company are typically friends and family of the referral agent who is an active real estate licensee. 

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