Increase Your Revenue: Be Proactive about Referrals

 United Relocation & Referral Network


The United Relocation & Referral Network was created at the request of and as a benefit for those affiliates and associates who want to send and receive referrals. Presently there is some incorrect information circulating about the program that I hope this article will clear up. If you still have questions after reading it give me,  Richard Thompson, a call at 972-567-4249 or email me at

What Is Causing the Mis-Communication?

The misunderstanding is largely due to differences in terminology and practice in urban and non-urban markets.  In urban markets referrals are part of daily business. Agents work both outgoing and incoming referrals aggressively and love referrals.   Most urban agents use a referral company to save time and increase the success rate of their referrals.  Referrals are a significant part of their income.

Why is the URRN Referral fee more than the 25% I Usually Pay?

It is a different kind of referral.  Some agents in rural markets only send a referral when the customer asks them to.  Since they only work referrals occasionally most don’t have a systematic process. Usually one broker simply calls another direct and places the referral.  The agent gets a contract signed (or sometimes not) and monitors the referral as well as possible to see it through to closing.

That’s a 25% referral.  Over the years I’ve helped with many disputes over 25% referral fees.  One affiliate referred two properties to a broker who later decided he didn’t owe the referral fee because the original listing agreement expired and he had to relist the property. Another referred to a company that sold and the new owner was not aware the listing was a referral and did not want to pay.  I could give many more examples but in short it is worth it to have someone place, document and monitor the referral for you. Plus it frees the agent to spend more time listing and selling.

While 25% is common is areas where the agent handles all the work their self the referral company
earns their additional 10% by:

Finding the best company to handle the referral.

Getting an agreement signed

Monitoring the process through to closing

Aggressively working and marketing to generate referrals for you

Do I pay Royalty Fees In Addition To The Referral Fee?  

On referrals of $150,000 or less no. So at 35% it’s the same as if you paid a 25% referral fee and a 10% royalty.  Remember you only pay the referral fee on the referred side.  So it’s actually 35% of the side which is 17.5% of the gross commission. If you do both sides of the sale you pay a normal royalty on the non-referred side as always.

Why Is The Referral Given To A Competitor If The United Country Affiliate Rejects It?

URRN does not own the referral. The referral belongs to the referring agent or the company that places the referral.

Put yourself in the shoes of the agent who originated the referral. United Country gets first chance but they have to place it if the United Country office rejects it.

Why Are Some Rates As High As 50%

The difference in rates is determined by the client.  URRN aggressively pursues corporate clients with
large numbers of referrals. Corporate referrals are often 50% of the side, 25% of the gross.  Corporate
referrals are highly sought after because they send large numbers of referrals and they are an ongoing stream of revenue.  I know an agent in Dallas who does very well and he only works 50% corporate referrals. He has minimal marketing expense, no prospecting just handles those referrals. Corporate referrals are much more common in urban areas.

Commission breakdown for a Referred Sale   

Example #1    $10,000 commission on a sale for which one side is referred. $5,000 commission on the side X .35 =   $1,750 referral fee. The referring agent gets $1250. URN gets $500

Example #2    $10,000 Commission 50% Referral Fee

$5,000 X 50%  =  $2500 referral fee

Referring Agency Gets $2,000

URN Gets $500

What Are The Benefits of Participating with URRN Other Than Referral Commissions  

 You can list all the companies that you handle referrals for in your market in your listing presentation.

In our market we get both sides of the deal more often than those in urban areas. But we pay only on the side that was referred. 17 ½ of the gross for a good listing or buyer referral is not bad.

You can give your agents deals to work on they would not have had.

On listing referrals it’s one more property with your sign on it rather than a competitor.

URN has leverage through the possibility of more future referrals that improves collection of fees.

If you decide to participate consider becoming proactive and looking for referrals to originate.   We
included a referral form in our Listing Presentation Kit for a reason.  The listing presentation is the time
to ask the sellers if you can help them find an agent in the town they are moving to. Tell them their
buyer may originate the same way through another United or United Country office.

There are other creative ways to build your referral business. I once flew to convention with an agent
who generated three referrals on the plane, in restaurants and other places during the event.

Becoming more intentional and proactive about referrals is one of the best ways I know to add significant revenue to your bottom line without increasing expenses.

To learn more about using United Relocation & Referral Network watch your email for upcoming webinars on using United Relocation & Referral Network to increase your profitability or contact Patricia Pollard at 713-454-9170  or

You may also like