6.11 Referrals

Incoming Referrals

• Any incoming referral by another brokerage or entity must be approved in writing by the office manager (i.e. Broker must sign referral agreement).
• The signed referral agreement must be submitted with the ratified contract and noted on the transaction cover sheet.
• If possible, please have the referral fee noted on the ALTA/Settlement Statement and paid by the Title Company upon settlement.  

Broker to Broker Referrals (B2B) – Formerly known as Outgoing Referrals

B2B Referrals include any referral to another Company or a referral within our Company through the Relocation Department. B2B Referrals MUST be sent through the Relocation Department!  This rule applies to all Agents.

The benefits of sending referrals through the Cartus Network include better:

• Tracking – The Agent receiving the referral will be required to provide updates to Cartus.
• Accountability – The Agent receiving the referral is accountable for converting Cartus business.
• Experience – The Agent receiving the referral must qualify to be in the Cartus Network (i.e. experience, transaction count and background check).
• Inbound Referrals – Business received from Cartus is correlated to the amount of business we refer to the network.

Compensation for Closed B2B Referrals:

• Referrals sent to other Anywhere Member Companies
  • Typically, the total commission for settled B2B Referrals to the referring brokerage is 21% of the total commission paid to the brokerage which received the referral.
  • Referring Agent shall receive 100% of any referral compensation paid to the Company.
• Referrals sent within CENTURY 21® Redwood Realty
  • Typically, the total commission for settled B2B Referrals to the referring brokerage is 21% of the total commission paid to the brokerage which received the referral.
  • Referring Agent shall receive 100% of any referral compensation paid to the Company.

Comparison of CENTURY 21® Redwood Realty’s Compensation to a typical Non-Redwood Company (example used is based on a $300,000 Sales Price):

B2B Compensation for a $300,000 Sales Price, Agent at 70/30 Split (with no splits or franchise fee applied)

• B2B Referral to Non-Redwood Company (Typical B2B)
  • $300,000 Sales Price X 3% Commission = $9,000 Total Commission
  • 21% Referral = $1,890 CENTURY 21® Redwood Realty Agent Take-Home
• B2B Referral to a CENTURY 21® Redwood Realty Company (no splits or franchise fee apply)
  • $300,000 Sales Price X 3% Commission = $9,000 Total Commission
  • 21% Referral = $1,890 CENTURY 21® Redwood Realty Agent Take-Home

Comparison: Typical Compensation at Other Brokerages (non-Anywhere Leads Group) for a 25% Referral at a 70/30 Split (split and franchise fees both apply)

• $300,000 Sales Price X 3% Commission = $9,000 Total Commission
• 25% Referral = $2,250 
• 70/30 Broker Agent Split = (2,250 x .94 = 2,115).7 = $1,480.50 Agent Take-Home
• Agent Take under a Traditional Referral is $409.50 LESS than a B2B with CENTURY 21® Redwood Realty