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.

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

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.

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

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!

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

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.

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.

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

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. 

I would be gone in a heart beat!!!

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.

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

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.  

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.

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

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

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.

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...

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. 

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

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

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.  

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

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.

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.  

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

Whatever all parties agree to in writing in advance

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.

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 ?

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