All good comments. Ultimately the relo business model is driven by a buyer or seller's perception about the value of a real estate agent, which is in turn determined by the levels of service and expertise that we as agents deliver.
I was recently approached by an out of town buyer who wanted me to work with them on the purchase of a new home in an area in which I have quite a bit of expertise. They told me I would need to get registered with their relocation company. I was amazed to find out that the relocation company wanted me to pay them a 40% referral fee. After attempting to negotiate a reduced referral fee of 30%, I politely (and professionally) refused to take on the client. It left me wondering - are there agents out there who are willing to take on clients with this kind of referral fee? And do clients feel like they're getting an adequate level of service with these agents? Most of my business these days is generated through referrals or my web marketing. The idea of paying a 40% referral fee for a client just seems outrageous, but perhaps I'm in the minority??? Just curious to get other's thoughts on this.