ReferralExchange is a service offered to real estate agents that promises to provide them with vetted leads, but is it all it’s stated to be? We’ve looked at the data and reviews and here are the pros and cons for you to decide.
All real estate agents know how important referrals are to their business. Referrals previous clients are one of the most effective ways to get new leads, as the lead is coming from someone that you already have established rapport with.
Building your sales referrals is the key to generating more sales and closing more deals, but this takes time and effort. Many agents feel uncomfortable asking their clients to advocate for them. One option for referrals that agents might consider is ReferralExchange.
What is ReferralExchange?
Launched in 2014 by Flywheel Networks Inc, ReferralExchange is an online-based referral service for real estate professionals. They advertise their service as a way for real estate agents to pass on their extra leads or leads that they do not wish to pursue, and pay you if another agent closes on one you pass along.
As a way to ensure that no dead leads are passed on, ReferralExchange "scrubs" leads with the help of their 45 full-time employees. They then send the most qualified leads to their pool of agent members across the U.S. If the agent can convert the lead into a closed deal, ReferralExchange collects a referral fee that is also split with the original referring agent.
How does ReferralExchange work?
ReferralExchange is open for any agent to sign up for, and there’s a one-time fee of $495 to partake in the service and begin submitting leads. From there it’s $95 a month and a $3 per lead charge. ReferralExchange also pays referring agents a referral fee of 15% of the commissions if one of their leads closes with another agent.
ReferralExchange gives its members the option to choose their referral partners, through a refined search for the preferred brokerage and brand. Depending on the search option results, ReferralExchange’s search algorithm then offers the three most suitable agents to receive the referral.
According to the ReferralExchange, it’s partnering algorithm ranks agents according to their productivity, the property type and location, and price point. To receive leads from the service, agent members must have at least three years’ experience, and at least 20 transactions or a sales volume of $5 million in the previous 12 months.
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Clever Partner Agents receive quality leads for no upfront costs.
What are other agents saying about ReferralExchange?
We have taken a look at some of ReferralExchange’s online reviews and compiled a list of common pros and cons listed by agents who have used their service.
Overall, a lot of agents have had a positive experience with ReferralExchange and were able to make money from leads that they were unable to work themselves.
Some of the commonly listed pros of the service include;
- Agents have received leads that resulted in a closing.
- It is an easy way to pass on leads you cannot work.
- There is a nationwide network of 22,000 agents to exchange leads with.
Some of the commonly listed cons of the service include;
- Agents must pay a one-time set-up fee as well as a referral fee to join the service and exchange leads.
- Agents must compete with two other agents for the leads they are given.
It is also important to note that to receive leads from ReferralExchange, you must first provide their service with a lead of your own. This has been a bone of contention for some agents who did not read the fine print and paid for the service without realizing this. According to the Better Business Bureau, there are currently 15 complaints again ReferralExchange.
What Is the Alternative?
If you are a real estate agent who is interested in increasing your leads and growing your real estate business, become one of our Clever Partner Agents.
Clever Partner Agents benefit from vetted and qualified leads, and all you have to do in exchange is to provide the same excellent service that you do now. If you would like to know more about joining the Clever Real Estate team, fill out our online form and find out how so many other agents are growing their business with Clever for no upfront costs.