{"id":297,"date":"2022-06-08T20:29:31","date_gmt":"2022-06-08T20:29:31","guid":{"rendered":"https:\/\/referralcloud.co\/blog\/?p=297"},"modified":"2022-06-08T20:32:36","modified_gmt":"2022-06-08T20:32:36","slug":"how-does-referralcloud-work","status":"publish","type":"post","link":"https:\/\/referralcloud.co\/blog\/how-does-referralcloud-work\/","title":{"rendered":"How Does ReferralCloud Work?"},"content":{"rendered":"\n
\"how
ReferralCloud Flywheel<\/figcaption><\/figure>\n\n\n\n

How Does ReferralCloud Work?<\/strong><\/h2>\n\n\n\n

ReferralCloud<\/a> is an agent-to-agent referral coordinator.  We simplify the process for agents passing referrals to each other, keeping them aware during the process, and also making sure that the agent that gave the referral gets paid.  Agents get paid 25% at closing when they use ReferralCloud to place their outbound referrals and pay a 30% referral fee when they get an inbound referral from ReferralCloud.  They also are placed at the top of the list for future referrals since they are actively using the platform.<\/p>\n\n\n\n

Why would an agent not just place the referral themself, maybe for a higher fee?<\/h3>\n\n\n\n

When agents  place referrals directly with other agents, they lose the ability to get an inbound referral from ReferralCloud.  So here\u2019s an example:<\/p>\n\n\n\n

Molly and Sam are agents in the same office and each has a client to refer in another market.<\/p>\n\n\n\n

Sam decided to start calling agents until he finds one that is willing to accept a 40% referral fee.   The gross commission is $10,000 so Sam collects a check for $4,000 at closing.<\/p>\n\n\n\n

Molly decided to use ReferralCloud to place her referral.  At closing she collects a $2,500 referral fee.  Because she used ReferralCloud to place a referral, so moves to the top of her market for an inbound referral.  A few weeks later she gets a seller referral for a listing.  Assuming the gross commission is $10,000, Molly pays a $3,000 referral fee to ReferralCloud at closing, of which $2,500 goes to the originating agent, and Molly keeps $7,000 of commission.<\/p>\n\n\n\n

Sam has collected $4,000 for placing his referral directly at 40%.<\/p>\n\n\n\n

Molly has collected $9,500 of commissions.  $2,500 from ReferralCloud for her outbound referral and another $7,000 net from a ReferralCloud listing she got.  Molly also has placed herself in a great position since she\u2019s had 2 closings with ReferralCloud, she will continue to get assigned referrals in her market.<\/p>\n\n\n\n

Sam never got an inbound referral because he doesn\u2019t know about ReferralCloud.<\/p>\n\n\n\n

At the end of the year Molly finds out that she was the top agent in her office and gets the Top Agent award from her Broker.  It turns out that she beat out Sam by one sale, and $5,500 in gross commission total because she used ReferralCloud to help her generate more business.  <\/p>\n\n\n\n

What if agents don\u2019t have any referrals to give?<\/h3>\n\n\n\n

The best option is to create a free account and get verified, so that when an agent has the opportunity to send a referral, it can immediately be placed in the platform and assigned immediately.<\/p>\n\n\n\n

Why is it important to place referral clients with another agent quickly?<\/h3>\n\n\n\n

Each day a client isn\u2019t put in touch with an agent in a market they are either buying or selling in, there is a change they select their own agent.  The highest probability for a client to use an agent they were referred are those which make contact with the new client within 24 hours.  Every 24 hour period after that the chance that the client finds an agent on their own increases substantially.<\/p>\n\n\n\n

If I want to just use a specific agent already, can I still get credit with ReferralCloud?<\/h3>\n\n\n\n

Yes.  If the intent is to place it with that agent regardless, then just place the referral in the portal with the information about the agent that you are requesting to use.  If they do not have a ReferralCloud account we will reach out and explain the system to them and have them create a new account and assign it.  This way both agents will get benefit of \u201cusing the system\u201d and be placed at a higher priority.  The standard referral fee amounts (30%\/25%) remain in efficient.<\/p>\n\n\n\n

How is ReferralCloud different from Opcity and Zillow Flex?<\/h3>\n\n\n\n

Opcity<\/a> and Zillow<\/a> are lead generation sites. Those companies send out leads that contact them for a referral fee paid at closing. Only about 2% of all leads actually end with a closing.<\/p>\n\n\n\n

ReferralCloud isn’t a lead generation site. We coordinate actual client referral from other agents to agents that are a part of our network. Agents can create an account to join the ReferralCloud network.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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While both appear to do the same thing, give clients to real estate agents for a referral fee, there are\u2026","rel":"","context":"In "Blog"","img":{"alt_text":"Opcity vs ReferralCloud","src":"https:\/\/i2.wp.com\/referralcloud.co\/blog\/wp-content\/uploads\/2022\/02\/opcity-vs-referralcloud.png?fit=940%2C788&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":276,"url":"https:\/\/referralcloud.co\/blog\/what-problem-does-referralcloud-solve\/","url_meta":{"origin":297,"position":3},"title":"What problem does ReferralCloud solve?","date":"April 10, 2022","format":false,"excerpt":"what problem does referralcloud solve? ReferralCloud is a referral coordinator for all real estate agents.\u00a0 We assist in the selection of the referral agent, draft referral agreements, and the tracking and payments of the referral fees between agents in a transaction.\u00a0 What is wrong with the current way Referrals work?\u2026","rel":"","context":"In "Blog"","img":{"alt_text":"what problem does referralcloud solve","src":"https:\/\/i1.wp.com\/referralcloud.co\/blog\/wp-content\/uploads\/2022\/04\/Screen-Shot-2022-04-09-at-6.25.24-PM.png?fit=556%2C364&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":321,"url":"https:\/\/referralcloud.co\/blog\/getting-more-referrals-with-referralcloud\/","url_meta":{"origin":297,"position":4},"title":"Getting More Referrals with ReferralCloud","date":"October 13, 2022","format":false,"excerpt":"Getting More Referrals with ReferralCloud You give a referral.\u00a0 It closes.\u00a0 You get a 25% referral fee.\u00a0 Then what?\u00a0 Do you get a referral back from the real estate referral gods?\u00a0 Not likely.\u00a0 Would you like to get a referral in exchange for the one you gave? Most agents certainly\u2026","rel":"","context":"In "Blog"","img":{"alt_text":"Getting More Referrals","src":"https:\/\/i1.wp.com\/referralcloud.co\/blog\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-12-at-10.11.18-PM.png?fit=850%2C562&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":242,"url":"https:\/\/referralcloud.co\/blog\/agent-referral\/","url_meta":{"origin":297,"position":5},"title":"We Want to Pay you $100 for each Agent Referral","date":"March 3, 2022","format":false,"excerpt":"We are excited to announce a program where you will earn $100 for each agent referral you give to ReferralCloud! 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