Realtor Referral: How to Get and Give Leads

A real estate referral agent is a licensed professional who connects a buyer or seller with an active agent.

For many agents, working with a referral agent can be a great way to get motivated leads without spending time or money on marketing. The trade-off is that you’ll share a portion of your commission in return.

Referral fees vary depending on the agreement, and the quality of leads can range widely.

That’s why many agents turn to a referral network like Clever, which charges a standard referral rate and consistently provides ready-to-covert leads. Get consistent, high-quality leads by joining Clever's referral network.

What is a real estate referral agent?

A real estate referral agent is a licensed professional who connects prospective clients with other brokers. A referral agent has an active real estate license but doesn't represent buyers or sellers in transactions.

The role of a referral agent is focused entirely on networking and guiding leads into the right hands. Unlike traditional agents, they don’t conduct showings, manage negotiations, or write contracts.

While the exact requirements vary by state, you typically need to get a license and join a brokerage firm to become a referral real estate agent. It's possible to have your license in a referral-only status, so you can earn your referral fees without having to practice day to day.

How do realtor referrals work?

Here’s a step-by-step explanation of how real estate agents’ referrals would typically work:

1. A referral agent connects with a buyer or seller. The referral agent may meet a buyer or seller through their personal network, online marketing, or a referral service. Since they’re licensed, they’re allowed to discuss real estate needs and help match clients with an agent, even though they won’t represent the client themselves.
2. The referral agent finds a qualified real estate agent. Next, the referral agent identifies an active agent who’s a good fit for the client’s needs — for example, a local buyer’s agent who specializes in first-time home buyers, or a listing agent with experience selling luxury properties.
3. The agents sign a referral agreement. Before moving forward, both parties need to sign a referral contract. This document specifies the referral fee (either a percentage of the agent’s commission or, less commonly, a flat fee) and the responsibilities of both agents.
4. The client works directly with the active agent. Once the referral agreement is in place, the referral agent steps back. The client then works exclusively with the active agent, who manages showings, negotiations, contracts, the closing process, and so on.
5. The transaction closes. If the client successfully buys or sells a home, the active agent earns a commission.
6. The referral agent gets paid. At closing, the referral fee is deducted from the active agent's commission and paid to the referral agent’s broker, who then passes it on to the referral agent.

What is a typical realtor referral fee?

A standard real estate agent referral fee is 25% of the active agent’s gross commission income (GCI).[1] However, this fee is negotiable and tends to range from 20% to 40% of GCI, depending on the property’s price, the lead quality, and other factors.

Real estate referral fees are usually based on a percentage. However, there are rare cases where agents can negotiate a flat fee agreement.

Here’s an example of how much a referral agent and an active agent would make on a $400,000 sale based on typical commission rates, commission splits with the active agent's broker, and realtor referral fees.

In this scenario, the agent who closes the transaction receives $6,300, while the referral agent earns $2,100 for connecting the client.

Should I work with a referral agent?

Generally, working with a referral real estate agent can be a good idea if you want to receive quick leads without investing heavily in marketing and ads. Many of the referral agent’s leads are pre-vetted, which can lead to significantly higher conversion rates compared to traditional marketing efforts.

Working with referral agents is also a great way to grow your professional network and share industry knowledge.

One of the biggest drawbacks of working with a referral agent is the significant dip in your final profits—around one-fourth of your commission would go toward paying the referral fee. This may be worth it for agents who are new or have a high volume of transactions.

Should I become a referral agent?

Becoming a referral agent can be ideal if you’re already involved in real estate on a daily basis and looking for side income. Also, it may be a great chance to earn extra money if you’re a retiring real estate agent or relocating to another area and have a vast network of clients to pass along.

However, it may not be the right fit if you want to use referrals as the only source of income. The life of a referral agent can be unpredictable, and to make some real money, you need a strong contact network.

How to become a real estate referral agent

If you want to become a real estate referral agent, you need to obtain a real estate license in your area. The exact requirements vary by state, but you’ll likely have to complete pre-licensing courses and pass a state exam.

Another important step is to become affiliated with a brokerage that allows a referral-only licensing status. In fact, some brokers specialize exclusively in managing referral agents, so that may be your best bet.

Finally, you’ll need to join reputable referral networks and build a trusted list of active agents you'll refer clients to. This will ensure your referrals are handled well, which will benefit your reputation and long-term income potential.

Bottom line

Real estate referral agents play a crucial role by connecting buyers and sellers with the right active agents.

For many realtors, working as a referral agent provides an opportunity to earn extra income through their existing network — and for some, it can even become a full-time career.

For active agents, partnering with a referral agent is a simple way to generate new leads without additional marketing spend. It’s one of the most efficient and consistent ways to grow a pipeline of motivated clients.

If you want a steady source of qualified leads, consider joining the Clever Partner Agent Network. Clever connects top agents with buyers and sellers who are ready to move, helping you focus on closing deals rather than searching for new clients.

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