05Oct 2015



The Rise of the Performance Based Model for Real Estate

Uncategorized by Kelsey Green

Let’s start by defining what “performance based” means: Basically, the amount you pay for a service is proportionate to the value you get from it. It’s time this came to real estate, and there’s no better way than Referrals. Most companies today sell “leads” which are cold, un-vetted, un-screened, unqualified, un-everything “name and emails” that you’re supposed to call and hope for the best.

Stop buying leads right now. You should start partnering for referrals.

A referral is different because it’s a warm introduction by a human being, not an auto-email. Referrals are screened, vetted and motivated buyers and sellers that are introduced by phone or in person and have a far higher conversion rate. With referrals, you never have to worry about fake contact info, or clients already working with an agent, or wondering who you are and why you just called them. Referrals are ready to start working with you right away, and are loyal.

In a referral partnership, you also pay a standard 25-35% referral fee, so the compensation is tied to the success of the referral. Agents would much rather pay a % of their commission at closing than to pay up front for a bunch of unscreened leads.

Referral performance based business models are the future of real estate marketing.

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