5 Things Every Agent MUST Know Before Choosing a Referral Company......www.RECR.com

By
Services for Real Estate Pros with Real Estate Pipeline, Inc.

Every agent knows that services like HomeGain and HouseValues are still licking their wounds after being crushed (in the form of a $900,000+ profit loss) in a recent lawsuit.

But many agents still rely on services like these to help them add to their existing business. And rightly so - because when done right, online referral efforts really DO pay off. 

So what should an agent know before they choose a "lead generation" company?

1. Know that no service, not even referral generation, will be 100% perfect all of the time.  Like other forms of business, real estate lead generation follows the 80/20 rule - in that 80% of the clients, no matter how well-scrubbed, verified and ready-to-act, will simply waste your time.  It's an unfortunate fact that not everyone is ready to business right when you contact them.  BUT, 20% of them will be what increases your business and your commissions. Knowing this will save you so much frustration, time and effort in the end.

2. Know that not all homeowners are going to buy or sell immediately.  Every person is at a different step in the buying or selling process. Some are just getting started and doing research on "what's out there". They really don't need or want to work with an agent yet. Some are just curious to find out how much their home is worth and aren't ready to sell -- yet.  For these prospects, just being there to answer their questions will help put you at the forefront of their minds when they are ready to take action

3. Know what you're really getting - and getting into.  Ask yourself these questions:

  • Are you paying a fee every month but not receiving leads?
  • Are you paying a commission split (sometimes 30% or more!) with each successful closing?
  • Are you being charged for multiple areas you service?
  • Are you locked into a long-term contract or have to pay a cancellation fee if you terminate early?
  • Are you getting "junk" leads with names like John Doe and numbers like 555-1212?
  • Are you finding that you're spending more than you're getting out of lead generation services?
  • Is there a money back guarantee if you're not satisfied with what you're getting?

If so - DON'T SIGN UP . These services drain your time, money and effort and give you little - if anything - to show for it.

Fortunately, you don't have to give up on lead generation - you just have to refocus how you look at it.  Instead, consider referral prospecting, which is a service wherein referrals try out free real estate services (like a CMA or get home listings via their local MLS each week). When this happens, they are directed to ONE and only one - select agent who owns that territory.

That means the prospect isn't getting bombarded with calls from real estate agents, and you're not forced to compete with a dozen different other agents to get the prospect's business.

A referral prospecting service like Real Estate Client Referrals helps put you in touch with qualified, personally verified prospects - with no "referral recycling" or sharing of leads - ever. In addition, Real Estate Client Referrals actually GUARANTEES you'll make money, in the form of 1-4 guaranteed closings within a year.  No "lead generation" company can guarantee that.

There are also no monthly or annual fees, no commission splits, and no other hidden fees - you pay only when you get referrals.  Plus, you can grab as many territories as you feel you can reasonably handle - at no extra charge.  The more areas you lock in, the more referrals you could get!

These are referrals with real names, real numbers and a real interest in working with a real estate agent. Go give Real Estate Client Referrals a try today. There's a full 30-day money back guarantee if you're unsatisfied for any reason.

 

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Show All Comments
Ambassador
785,847
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
I have used Homegain and now use house values. I was not aware of anty ;lawsuit . What was that about ? EWouold like to know if you can tell me
November 23, 2007 11:13 AM #1
Ambassador
785,847
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
I have used Homegain and now use house values. I was not aware of anty ;lawsuit . What was that about ? EWouold like to know if you can tell me
November 23, 2007 11:15 AM #2
Rainmaker
479,876
Steve Glose
Keller Williams Classic Group - Orlando, FL
TRC, CIPS, 407-616-7286, Orlando Real Estate, Orlando Medical City
While a referral company "might" be an option for a new agent, a seasoned Realtor should be generating their own leads without using these types of companies. I personally don't want to pay a referral company for something I should be doing myself.
November 23, 2007 11:15 AM #3
Anonymous
Anonymous
Anonymous
I am going to look over your site and have been burned by many of these programs.  The last one was Reply Real Estate.  You talk about a mess!  What really gets me is I had asked all the questions about the leads and they told me different.  They sold the leads to four different people in the first palce after telling me I am the only one to get the lead.  That is just for starters.  It goes on!
November 23, 2007 11:18 AM #4
Rainmaker
188,968
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Hi Charlie,

You can read about the House Values / Home Gain Lawsuit here:

House Values agreed to settle the lawsuit with a monetary payout. Apart from paying $51,000 in costs and attorneys' fees, the company agreed not to misrepresent the quality of its real estate leads to subscribers in the future. Further, according to the settlement, it agreed to waive any fees owed by consumers who complained to the Attorney General's Office, and credit or refund those subscribers who got an invalid or bad lead.

HomeGain's own employees are suing HomeGain for millions of dollars in California Superior Court for failure to pay overtime wages and denying meal breaks for several years.
Can HomeGain's valuation tool estimate HomeGain's legal bill?

To view the PUBLIC documents concerning this major class action lawsuit against HOMEGAIN please go to:
http://apps.alameda.courts.ca.gov/fortecgi/fortecgi.exe?ServiceName=DomainWebService&TemplateName=index.html
click on Case Summary and enter the case number: RG05246985.

 

November 23, 2007 11:23 AM #5
Rainmaker
188,968
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Steve,

Yes, a seasoned realtor SHOULD be generating their own leads - and Real Estate Client Referrals wholeheartedly endorses that practice - but moreso what we do is add to the leads you're already generating on your own by helping attract buyers and sellers online who are actually looking for a real estate agent to help them.

In fact, the Century 21 International Realtor(r) of the Year made $5 million in sales this year alone using our service. Her name is Amanda King. You can hear her video testimonial here 

If you want to sign up - head on over to http://www.realestateclientreferrals.com/news/

 

November 23, 2007 11:26 AM #6
Rainmaker
188,968
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Gary, WOW! That's a shame they told you one thing and then started recycling referrals to other agents. We never, ever do that. In fact, our company was founded by a former Re/Max agent. He became the Top Producer in his office after just one year in real estate - by doing the very things he has founded our company on.

In other words:

  • ZERO referral sharing - you are the exclusive agent in the areas you choose. No competition
  • Personally (not computer) verified referrals. We don't put them through a computerized filtering system where fake names and numbers go through. We call each and every one of them up and verify their interest in the service they want to receive.
  • No commission splits or monthly fees at all. You keep 100% of your commission.
  • We guarantee you closings - if you don't close within a year, we'll keep sending you referrals until you DO!
  • Full 30-day money back guarantee if you're unsatisfied for any reason

We'll also credit you for bad leads. Many lead gen companies will NOT. That's because they KNOW their leads are BAD!  If you call on a referral we send you and their number has been disconnected, or they don't remember signing up for the service - we'll give you a referral for free.

Simply put, we want agents to succeed - that's all we're about.

November 23, 2007 11:31 AM #7
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Rainmaker
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Clint Miller

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