In real estate, referrals are vital. According to a new ReferralExchange study, 42 percent of agents earned $10,000-$50,000 from fees for referrals last year; as many as 5 percent earned $50,000-$100,000, and 2 percent earned up to $500,000.
“Referrals are one of the key drivers of business in the real estate industry,” says Scott Olsen, CEO of ReferralExchange. “If an agent can’t assist a client in buying or selling, a solid referral is crucial. Experienced agents rely on referral networks to provide additional resources for the clients they work with.”
- Eighty-three percent of agents belong to a network for referrals; 36 percent of those agents also attribute more than 20 percent of their inbounds to their network(s).
- Sixty percent of agents receive more than five referrals per year; 59 percent, however, sent less than five.
- Approximately 37 percent of agents had more than 20 percent of their referrals (either received or sent) end in a successful transaction.
- In 2017, the median number of received referrals increased to 8.5 percent; in 2016, the median was 6 percent.
In 2017, ReferralExchange facilitated over 215,000 referrals in the U.S. Of members of ReferralExchange, most have more than $15 million in sales and 20 transactions in the last year. Most have over 14 years of experience, as well.
“Reputation is everything in real estate,” says Lisa Fettner, VP of Marketing for ReferralExchange. “The agents and brokers we work with trust that their clients will be matched with an experienced agent with local expertise and a commitment to customer care.”
More than 1,700 agents participated in the study.
For more information, please visit www.referralexchange.com.
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