I would spin the referral amount a bit differently. I believe that Rachael is correct in her answer with regard to license - non-license status. However, the 25% is not necessarily correct. I have always taken the position, that life is often 80%-20% in many things.
If someone gives me a really good lead and a personal introduction, I consider that as being 20% of the job done. The 80% work still remains and I take the 80% for doing the work.
This rule of mine can be adapted up-or-down based on the value of the real value of the referral and the complexity of the transaction.
You can see that my approach to referrals is different from Rachaels based on my personal philosophy of real estate.
Frankly, I cooperative broker deals whereby one broker has the property and the other has the buyer. Then again while 50%-50% is a general standard for coop transactions, that can also vary amongst brokers.
Under all conditions avoid “a daisy chain”. A transaction where someone thinks they can earn something by simply attaching non-personal names to a transaction.
Rob Baird (CA RE License #544165 - One of the oldest active RE Licenses in CA)
Jul 12, 2010