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Jim McCord, #1 Best Selling Author & Real Estate Coach (Keller Williams Pinnacle Group)

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Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

I don't think it's a matter of right or wrong.  

If an agent agrees to accept the type of lead you describe, they are accepting the terms that go along with it.  

It's hard to imagine that a 30-40% fee in addition to the existing split agreement would be worth it to most agents.

Jun 12, 2015 05:40 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Just another reason I left the big box and opened my own doors.

Jun 12, 2015 06:33 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

It is what it is and an agent has the choice not to take the company generated leads.  Since the company is spending the time, money and resources to generate the leads, while the agent is spending 0, I can see the company's point.  If an agent does not wish to pay the referral fee, then they should spend their money generating their own business.  I do not think there is a right or wrong answer.

Jun 12, 2015 05:50 AM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

People can ask what they want.  I choose not to participate.

Jun 12, 2015 10:00 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

The generation of leads is very expensive for quality leads. If the agents don't like it; they don't have to accept the leads. It is sometimes better to get $1.00, than no dollars!

Jun 12, 2015 07:14 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I agree with Silvia, if you take the leads, you expect to pay.

Jun 12, 2015 05:15 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

I don't know.  I think that if you decide to work for one of these brokers, you are agreeing to their fee structure. And I guess it would be easy to avoid the extra fees by just not accepting these type of leads and generating your own.

Jun 12, 2015 05:05 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

The nice thing about real estate is that if you dont like the way things are being run you can always go onto the next office down the street.  Sometimes you need to remind the brokers of this fact.


Jun 12, 2015 04:47 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

My broker does it and I just don't take the leads.  I think the fee is too high. 

Jun 12, 2015 04:23 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jim - I guess the broker feels that they are paying for the leads and providing the agent the prospects, so they are entitled to more of the commission when the transaction closes.

It seems as though we are seeing many more independent brokers in our area these days, just as Sam Shueh has mentioned. 

Jun 12, 2015 03:06 PM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

I would be gone in a heart beat!!!

Jun 12, 2015 01:15 PM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

The big companies take a large chunk of what the agent makes, so I think that compny needs to do something to earn that money, not to see how much more they can get.  That's why there are more agents leaving the big companies.

Jun 12, 2015 09:02 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jim McCord You have to pay to play. I don't think it is right.

Jun 12, 2015 08:03 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

That depends on the contract.  Most agents leave for similar reasons.

Many chose to work for themselves. In Calif we have probably more brokers than salesmen these days.  

Jun 12, 2015 05:26 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Every broker has a business model and it is up to the agent to decide what model is right for them. An agent w=should always be looking at brokers expenses from the point of view of evaluating the value proposition.

Jun 12, 2015 10:30 PM
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

That is so corrupt I can't bring myself to comment more.  They need to pack their bags and move elsewhere.

Jun 12, 2015 09:41 PM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Good morning Jim. It has nothing to do with right or wron. It is what you agree to when you sign the contract.

Jun 12, 2015 06:52 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

It is up to you to agree or not when you take that lead. They can charge whatever they want as long as agents are willing to pay.

Jun 12, 2015 04:54 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I worked with Prudential when I was brand new and did not know any different.  I think since the broker gets half my money (as a new agent) they should provide me with leads and help me develop.  It's in THEIR best interest because, AGAIN, they get half the money...

Jun 12, 2015 02:59 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

If the fees structure is in writing and made clear up front, then it is what it is. The agent has agreed to that fee structure and should accept it. 

Jun 12, 2015 11:42 AM
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

It is their brokerage, to be run however they like.  The agents allow it by hanging their license there. 

Jun 12, 2015 09:20 AM
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I agree with Susan Haughton. No right or wrong, just a decision the agent needs to make. 

Jun 12, 2015 08:53 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Right?  Hmm -- that's an interesting choice of words to use.

When I was new I participated in some of those types of transactions -- not worth the time, effort nor opportunity cost anymore.  

Jun 13, 2015 01:13 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is greed pure and simple. They already get "THEIR" cut and now want referal fees or what ever fancy new term they use. Banks are starting to do this with REO listings as well

Jun 12, 2015 11:13 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I don't like the practise and fortunately work with a company that does not do this--no split in general (just monthly fees) and no charge for leads.

Jun 12, 2015 10:59 PM
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

I have a real estate colleague when he refers a buyer or seller he requires 50% referal fee for himself.   He thinks his leads should bring him a larger fee.  

Jun 12, 2015 08:06 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It's right if the agents are willing to go along with it.

Feb 16, 2019 08:25 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Whatever all parties agree to in writing in advance

Apr 23, 2018 05:15 AM
Kristi Roberts
Kristi Roberts Group/Premier Estates & Homes, Inc. - Temecula, CA

It's the same when another agent sends me a referral.  I have the choice to accept the referral or decline it.  I've paid 40% to RELO companies for their referral and it's a choice I made.  I like Sharon's comment.  Life decisions.

Jul 06, 2015 07:41 AM
Jim McCord
Keller Williams Pinnacle Group - Cincinnati, OH
#1 Best Selling Author & Real Estate Coach

This business about the broker paying a fortune to generate these leads is ridiculous!  The leads are generated mainly from the amount of listings, which are agent generated, not company generated.  All listings are on the broker's site.  The brokers actually spent more on advertising before the internet because they had to advertise is so many different venues.  At that time brokers GAVE leads to their agents.  Now, many of them are charging their agents for "company" generated leads... Of course whatever agents agree to with a broker is legal... My question is, do you think it's right?  My opinion is it's greed gone insane!  Amazes me that anyone works those leads!  Thanks for your contribution to the question, whatever your thoughts are!

Jun 15, 2015 12:39 AM
Martin E. Kalisker, Esq.
Natick, MA
Real Estate Law From A Practical Perspective

There should be a clear differentiation between company-generated and agent-generated business. Taking 30-50% off the top before splitting the residual with the agent is not uncommon. I don't understand why people are up in arms about why brokers do this. How much would an agent have to pay to develop the branding, advertising, marketing, lead capture, CRM, incubation, drip marketing, SEO, etc to obtain their own leads? How much do they have to pay Market Leader or Reply to sell them raw leads ?

Jun 13, 2015 01:44 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Life presents a series of decisions and this is one of those decisions!

Jun 13, 2015 08:26 AM