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Discussion Starter · #1 ·
Thinking about trying a new marketing strategy for my company and was wondering what you all thought. I am connected with a local real estate company and offer new home build packages through them and also have a couple of agents that send me work when home inspections come back or people are looking to spruce it up before the sell etc. I do siding, windows, roofing, interior remodels, additions, etc. to fill the gap in new construction. The small jobs lately have been paying better than the new construction so I am trying to expand that part of my business.
When one of the two agents refers me I almost always get the job. With only 2 of the 60+ agents in the office sending me business I feel like there is room for expansion here, especially in the relatively small market I work in. Any of you have experience sending out a flyer offering a referral fee for work? Real estate agents are notoriously greedy so a little $$$ kick back sure wouldn't hurt their feelings I'm sure.
 

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Greedy? I'm not sure that the typical agent really makes that much money. Either way, they are definitely in a position to help
 

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Discussion Starter · #3 ·
Greedy? I'm not sure that the typical agent really makes that much money. Either way, they are definitely in a position to help
Maybe greedy was a bit harsh but I guess I was just trying to say I doubt they would mind a little kick back.
 

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Agents are paid via commission on sales so it's not unusual for them to see a sold lead as a potential commission. If you can manage to reciprocate good leads then I don't see the need for a "kick back" but if you're hoping to work with a lot of agents then reciprocity is going to become a problem. I follow the approach of taking REALLY good care of their customers and being available for advice or walkthroughs when it's appropriate.

Paying a commission can get ridiculous when you're talking about a lead that might just be a phone call with no groundwork done. You still have to land the sale so that lead isn't worth any more than a call from Angieslist or Service Magic. Those go for $10 IIRC. Tossing someone $10 for a $20k job might actually HURT your relationship. A nice gift card can be good but I wouldn't do it every time.
 

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Discussion Starter · #5 ·
I do find myself giving out alot of free advice and going on alot of walkthroughs and following up on home inspections that might not turn into work right away.

I was thinking about a referral fee only if the client ends up using our company to do the work. Gives the agent an incentive to sell us as the best instead of some "pickup truck chuck". Part of me thinks the quality of my work should do this naturally but the other part thinks some agents will respond better to an incentive.
 
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