New research study digs into real estate referrals: They still dominate

How the referral system is working among top producing agents
  • The close rate of a typical referral (inbound or outbound) was around 50 percent for the majority of report respondents.
  • The majority of respondents (75 percent) make $10,000 or less annually by referring business to other agents.
  • Most respondents expect to receive 25 percent of the total commission when they refer out and prefer to pay around 25 percent when they receive a referral.
  • Nearly 40 percent of inbound referrals come from the agent’s sphere, with a majority of those coming from past or current clients.
  • Another 40 percent of inbound referrals come from other agents.

In a world where some brokerages’ heads may have been turned by paid-for internet leads from portals, the agent-to-agent referral system still dominates agents’ lead generation and is the foundation of many top producers’ businesses