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Jim, another great post my friend.  I like you have "Been there done that" and not only work on my own but have no assistants.  Still with this I have increased my commission each year in business and finished 2006 #8 in the state of Idaho for RE/MAX.   I too have learned the value of referring not only buyers and sellers to out of state areas but also refer within my company when I get overloaded.  Take care Jim and have a great day.

Good post. It's easy to think that we need to work everything taht comes in the door. For every opportunity taken another is lost... Working that one extra deal could mean missing your son's first home run...

Jim,  Unbelievable.  You and I are very much the same.  I do exactly what you are doing for the same reasons.  I lose the future business and referrals but it is so much easier and cleaner to just refer the excess leads out.

Thanks for all the comments!  It makes so much sense after you do it.  I think the hardest part is letting go of the business initially.  I've missed some of our childern's activity, and I will always regret it!  I agree with Larry, "When this market cools, a lot a lot will be in hot water!"  Referring out let's us have our cake and eat it too!  It brings others to the table, and also allows them to earn a good living.

Tim, it is all about common sense, stepping back and finding a solution that works.  It has also created many great friendships and associations in and around town!  Our personal business may be off this year, but dollar amount earned isn't.  We looked at the books the other day, and realized that even though we are not personally closing the business, we are still earing a very good income...minus the stress!

If a deal falls through, if someone does not qualify, if a promotion or relocation does not happen, or the buyer just disappears after weeks, it is not our stress.  It is someone else's.  If we get a check, fine, if we don't that how it happens!  Real estate is the greatest career anyone could ever hope to find, and if you can make it work it is better than hitting the lottery.  It is so much more rewarding, when you start doing things that really make a difference.

LOL--Adult Daycare!  I find that very amusing to say the least.  Everytime I think about adding a team member, I say to myself that if I can ONLY find find that doesn't need to be baby sat every day, it would work.  Guess we think along the same lines!

Love this post, too! I was a real estate paralegal for 10 years before becoming a Realtor, closing over 500 transactions a year. And do you want to know what the biggest complaint of sellers was about their agents...the "teams"! It actually surprised me because the team concept itself makes sense, but it is not for everybody. Many sellers felt that their agent was simply a figurehead that took the listing then they were passed off to others for the rest of the transaction. They didn't like it and felt like they were a transaction instead of a valued client. I made it my goal from Day 1 that I would personally take care of each and every client...no team, no other agents, no multitude of assistants. It's about personal care, referrals and happy well-cared for clients. Wow, we have something in common!!

Before any of you on teams get up in arms...there are many very good teams that also personally care for their clients...it just isn't for me...different strokes for different folks. Whatever works for you is what you should do!

OUTSOURCING REFERRALS

My Goodness Jim.  You are surely smarter than the average bear.

I just converted my brokerage to the same model as of December 31, 2006.  I have strategic relationships with a group of experienced brokers in MD and VA and a few agents.  They get all of my business with the exception of the few buyers I sell myself.  I'll sell about one a month in my one neighborhood. 

No pressure, no trouble shooting, greatly reduced E&O costs, and NO PAPERWORK or future files to store.  I'm so glad I finally made the change.  Five of my former agents have gotten their own broker's license and the remaining agents went with trusted brokers that I have worked with for years. 

I still have a few geographical areas where I have buyers looking for homes and I have to rely on agents with other brokerages, which presents a problem when it comes time for me to collect a referral fee.  It's sad when agents take advantage and don't pay.  But, I'll work that out too. 

I now have the time I need to work on web sites, SEO, attend seminars, preview, etc. on my own schedule.

I love it. 

 

Thanks Kelly, I share the same feelings.  It's about service!  I do not view clients as a unit.  Funny story, is that when I work as a buyers agent, I love to sell a home that is listed by a big tieam!  Why? They ahve so many of them they are not good negotiators, they just want it sold! I always end up getting great deals for my buyers when we do this!

LennI missed your post..You must have been posting when I was responding.  When you think about it E&O, and the liability of someone signing my name to a contract!  Yikes!!!!!  I cannot even imagine that!  It is so easy to fall asleep at night not having to worry about each and every deal and the liabilities...is the file in order, did I get that amendment signed, did I submit the inspection in a timely fashion etc!

 

We work exactly the same!

Jim, excellent post. Its all about compromise and balance isn't it. I'm only starting my 4th year in Real Estate after retiring from my first career so I don't have enough business to farm out yet. Your a wise man.

I tend to like real estate teams.  Kind of All in the Family, and it tends to give the buyer/seller a piece of mind and security, knowing that all is taken care of within the team.

Thanks George.  Common sense makes sense!

Awesome post as usual Jim, Although I have a few team members that help me with North Altanta, as you know, we get leads from all over the state.  Referring them out isn't a luxury, its a necessity.  I couldn't imagine covering the whole city of Altanta by myself....or state for that matter..lol

Thanks Jennifer.  We went into the office yesterday, and found we had a few checks waiting for us.  I was astounded by the amounts.  What was more astounding is what we had already closed for the month, and we have a few more due, and a few closings of our own coming up.  So even though it seems we are not doing as many sales, teh referrals are now making up the difference.  Referrals in real estate makes a lot of Cents!!!  It is a stress reliever, a money maker, and a very smart business strategy.  Agents we refer to, are very apreciative, loyal, and of course they want more referrals.

Having a team of my daughter, my son, and I gives us the best of both worlds - backup with a common goal. Our clients get to meet all three of us, know the team leader (me) is still involved, that they are getting The Expert in the price range and area they're looking for, and know that they can ask any of us questions, and each of us will know who they are, what their status is, etc.

I agree.  I know that working with my wife offers a lot of flexibility, and it does offer the best of both worlds.

I do work as an agent in a office environment but also get overloaded with leads. When that happens I do one of two things. I try to find an agent in the office that is struggling and needs the potential opportunity. I give the leads to those folks. All others I refer for a 25-30% referral fee.

Thanks Danny.  We learned some valuable lessons over the years in real estate. In our office they used to have a buyers division where they brought along and trained a lot of new agents.  There was a similar situation in the company I just left.  They had a lot of new agents.

The problem with new agents, it they have they enthusiasm, but cannot close the deal!  They cannot covert the lead.  I often had newer agents tell me, I don't work weekends, and don't call me after 5 PM.  They type of leads that I develop I need answered immediately.  They are Internet leads. If I went to give a lead out in the adjoining counties (which is only 5-7 miles away) they told me they do not work there.  They only work where I work. 

So let's think for a moment.  I work 7 days a week, I work well into the night, and start real early, and I do real estate business in all those counties. The new agents want the glory and prestige of real estate, but don't want to do the work.  I found out if I give it to the experienced agent in the office that is up against leaner times, and offer a reasonable referral fee 25%...I get a check.  We are grateful to God , and the agents appreciate it also. 

How did you come up with this idea for a blog?

CyberProfessionals will have a roundtable discussion on this subject.  Will use some if the ideas here to get discussion going if needed.

LOL!  Ed, in CyberProfessionals, we are a little bit ahead of the curve!