Brokerage behemoth Compass is leaning into the agent-friendly “your listing, your lead” mentality with a new Listing Agent Lead and Referral Program that rewards listing agents with a 10 percent referral fee when they send inquiries on their listing to other Compass agents, the company has informed Inman.
Buyer inquiries for listings on Compass.com go directly to the listing agent so that they have the first opportunity to work with buyers themselves, Compass said. But now, with the new lead program, if Compass listing agents do not want to work those buyer inquiries themselves, they can still benefit from referring inquiries to a Compass buyer’s agent when the transaction closes within 24 months.
After that period, agents will not be eligible for the 10 percent referral.
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Robert Reffkin | Compass
“We believe listing agents should own and benefit from the leads generated by their listings,” Compass International Holdings Chairman and CEO Robert Reffkin said in a statement. “For too long, platforms that do not represent the seller’s best interests have removed listing agent information and sold buyer inquiries to the highest bidder. This program creates a better system — one that rewards the real estate professional who did the work to win the listing and generate buyer demand.”
The program stands in contrast to popular referral programs on major portals like Zillow, which send homebuyers who have questions about a listing, not to the listing agent, but to partner agents who pay for those referrals.
Zillow is currently the subject of litigation over “deceptive” tactics with its program formerly known as the “Flex” agent program (now “Preferred” agent program) by a homebuyer who alleged that agent fees to enroll in the program artificially inflate homebuyer costs.
Typical agent-to-agent referral fees in the industry sit at about 25 percent.
Neda Navab | Compass
“Winning a listing reflects years of relationship-building, trust and hard work,” Neda Nevab, president of Compass, said in a statement. “This program recognizes that effort by giving listing agents greater flexibility in how they handle buyer inquiries, while opening a new opportunity to earn passive income.”
Compass clarified that the Listing Agent Lead and Referral Program is only applicable to Compass brokerage-affiliated agents, and not agents affiliated with any other brands that are now housed under Compass International Holdings.
The firm said that the idea for the new program was generated from Compass real estate professionals, and reflects the brokerage’s commitment to helping agents grow their businesses while creating better experiences for homebuyers and sellers.
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