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Mumbling Out Loud

Referral company warning

By: Ron Tarvin
Saturday, August 18, 2007 12:04 PM

When is a REFERRAL company NOT a referral company?  When they charge an up front fee to do business with you and not a REFERRAL fee.  Right?

 Take for instance, Peter with www.recr.com.  This man emailed me on my site this morning: 

Hello Ron, I am in need of one very special agent for multiple referrals targeted to Harris County Houston / Gulfgate immediate purchase pre-qualified for financing Houston / Northside purchase 90 days pre-qualified for financing Tomball sale $ 100-200,000 Katy purchase 3-6 months for rental income.

 I called Peter immediately upon getting notification of the email (a great POINT2AGENT feature!).  He asked if I took referrals.  I said absolutely.  I asked him if he was with a lead generation company and he said no, we are a referral company.  So I asked if he was an agent, making referrals.  He said he was not an agent and went on to explain his company.  I told him I only had one question and he got huffy and hung up on me.  My one question was if they actually work on a referral basis.  Had I gotten that answer, I would have known that it was a lead generation company and not a "REFERRAL" company. 

I went to Peter's company's website after I got off the phone with him and it clearly states:

You keep 100% of your commission - no referral fees or commission splits!

So how can a company be a referral company without getting paid referral fees? 

A little truth in advertising goes a long way, Peter.  So does a lot less hostility and antagonism on the phone.

Their site is listed above, and I would highly recommend NOT doing business with them just on my personal encounter with this companies employee, Peter.  That is ONLY my opinion.  Perhaps I can help the 100,000 plus members of Point2Agent not make a mistake with their money!  Now, on to the other blogs and message boards I love to talk to other agents on! 


 

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Comments

Anna Horton
Member Since '07

Anna Horton said:

Hi Ron, haven't seen you in a while  - good to see 'ya

As far as lead generation or "referral" companies. I have a policy that has saved me untold thousands of dollars. Just say no. I have heard a lot of chatter through the years, but no real success stories. I'll just generate my own leads through hard work and ongoing education. By making that investment in myself, I know I can eventually turn it into a profit.

August 18, 2007 11:46 AM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

Ron, Thanks for the warning! Unfortunately, darn, my county is already taken!

August 18, 2007 11:51 AM
Howard Arnoff
Member Since '03

Howard Arnoff said:

Ron, welcome back. No need to comment, you said it all.

August 18, 2007 12:34 PM
Lonn Dugan
Member Since '05

Lonn Dugan said:

Ron:  Welcome back.  Long time no see.  

Hope you are well and have been away selling houses!

August 18, 2007 1:22 PM
Mary Welch
Member Since '04

Mary Welch said:

Thanks for the heads up. Also, it is so good to see you back.

August 18, 2007 1:43 PM
The C Team
Member Since '04

The C Team said:

Thanks, Ron.  Have used a lead generation company once (paid upfront for the info.)  I basically ended up breaking even and had to fight because the client walked into the office and didn't ask for me even after I had spoken to and emailed them.

Darcy

August 18, 2007 5:57 PM
Gloria Losie
Member Since '06

Gloria Losie said:

Ron:

So glad you are back in the P2 saddle again.  Thanks for the info.  

August 18, 2007 6:44 PM
Norm Fisher
Member Since '06

Norm Fisher said:

"Very special agent." Translation: Any sucker who will pay me up front for this lukewarm lead that I got off of a form on my website.

August 18, 2007 8:58 PM
Allison Fisher
Member Since '06

Allison Fisher said:

This is true!  I got a similar email...

Good Morning Allison,

I am in need of a dynamic agent for a local client wanting to

Purchase a Co-op or Condo on the Upper East Side of Manhattan with

2 BR, 2 bath, any age with a View.

The client is pre-qualified for financing and is

Budgeting to $1 – 1.25 million.

Please CALL me…406-532-3733…if

You are the right agent for this client.

Your immediate response and consideration are appreciated.

Peter Crago

Referral Agent

I smelled a rat from the beginning and went to their website based on his email.

The only loser is him...bet he's searching the agents sites on homes.p2.....

August 18, 2007 10:10 PM
Cathy Gerke
Member Since '07

Cathy Gerke said:

Hi Ron, I will admit to using a service, they made more money off me than I did off them.  I must second Anna's comment; just say no.

August 19, 2007 8:39 AM
Rochelle Walker
Member Since '06

Rochelle Walker said:

Thanks Ron for reminding me of the problem.  But here is another one for you just in case you haven't seen this one.  You get an email of the following nature:

Hello Rochelle EMBEDSTR[Last Name],

We need an aggressive agent to work with our relocating-families. We've helped thousands of families over the past 5 years with their long distance relocation. Recently, we've been getting bombarded with inquiries about your area. People are moving in and they have to live somewhere.

If you are serious about making this year a growth year, we'd like to hear from you. Our dominant positioning gives one agent in your area a distinctive edge. It could be you. Find out how the winners are getting it done with the help of the internet. This is an exclusive position for one agent. Time is of the essence, please call 800-900-8207 or register for free to receive information if you'd like to be considered. www.relocation-buyers.com

Sincerely,

Sarah Miller

800-900-2807

eRelocation Professionals

535 Encinitas Blvd.

Suite 111

Encinitas, CA  92024

http://www.relocation-buyers.com

After you register they call to tell you what the fee is for the referral leads!  I don't remember what the fee is but it is way more than my budget can take on.  Beware...

August 19, 2007 10:05 AM
Beth Larsen
Member Since '05

Beth Larsen said:

These come in all flavors, and they all taste bad! If they have to scam you, it's because their "product" (usually unvalidated leads) is worthless.

I will take true referrals from actual agents happily. Hopefully this means an agent who has qualified their clients and has informed them of and secured their cooperation with the referral. Imagine that ;^).

August 20, 2007 9:16 AM

Guest

Relocation Professionals said:

The Relocation Professionals has been in business since 2004. We are a 4 time registered business with the Better Business Bureau. With thousands of Realtors on board with our program, we are one of the largest real estate lead generation companies on the internet.

We maintain over 1,100 informational websites and have over 155,000 indexed webpages, just on Google.com alone.

We only sell: Exclusive, Scrubbed, Fresh, Matched Home Buyer Leads. We are a "Marketing Company" that exclusively works with Realtors.

Yes, there is an up front fee... and yes.. you keep 100% of the money you make from home closings. For more information check out www.eLeadMarketing.com.

September 2, 2008 4:38 PM

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Ron Tarvin
Keller Williams Realty Katy @ Cinco Ranch

Ron Tarvin
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