Being referred to another professional can be beneficial. Let’s create an example using Bob the Broker and Alice the Agent. Bob is going to refer Alice a new seller because he the property is 60 miles from his office. Before Bob contacts Alice to ask her if she would be interested in working with the Seller. He looks up her history to see how active she is. He analyzes the deals she has done to make sure she is a solid agent. Evidence shows she is a great fit. He contacts Alice and they discuss the prospective clients. Alice expresses interest so Bob sends her a standard referral agreement and Alice signs the referral agreement. If Alice is successful in selling the property, Bob will receive a small referral fee.
Agents like receiving referrals and don’t mind the small referral fee because a referral is a hot vetted lead. Referrals are great for sellers because the broker is going to send them to someone they believe can do a good job. The Agent receiving the referral doesn’t want to disappoint the referring broker so they put in the extra effort. They want to be considered for the next referral.