If you’re a licensed real estate agent who’s not currently active, you might be looking for ways to keep your license active while still earning money. A great way to achieve this is by putting your real estate license on referral. This strategy allows you to maintain your license and generate passive income by referring clients, without needing to engage in the full-time responsibilities of traditional real estate work.
What Does It Mean to Put Your Real Estate License on Referral?
When you put your real estate license on referral, you’re opting to function as a referral agent. Instead of handling transactions directly, you connect potential buyers, sellers, or investors with active real estate agents. In return, you earn a referral fee once the transaction is successfully completed. This approach is perfect for agents who prefer to stay connected to the real estate industry but don’t want to deal with the day-to-day demands of the business.
By putting your license on referral, you can keep earning money in real estate while enjoying the flexibility to focus on other interests or careers.
Advantages of Referral Status
- Unencumbered Earnings: A paramount advantage of transitioning your real estate license to a referral status lies in the ability to accrue passive income. This approach liberates you from the daily rigors of managing listings, conducting home showings, or navigating intricate negotiations. Instead, your role is distilled into its essence: linking prospective clients with active agents, thereby securing a portion of the commission with minimal exertion.
- Autonomy: Adopting a referral status endows you with the autonomy to explore alternate vocations or passions while maintaining your real estate credentials. Whether your current focus is on a divergent career, family responsibilities, or relishing a well-earned retirement, this option keeps you tethered to the real estate sphere sans the onerous time demands.
- Economical Maintenance: Retaining your real estate license under a referral status is generally more economical than sustaining it within a conventional brokerage environment. Referral agencies often present lower annual fees and negligible ongoing expenses, rendering this a cost-efficient strategy to preserve your professional standing.
- Cultivation of Networks: Remaining engaged within the real estate domain through referrals allows for the continued cultivation and expansion of your professional network. Over time, this can culminate in an augmented volume of referral opportunities, ensuring a sustained flow of passive income.
How to Put Your Real Estate License on Referral
To put your real estate license on referral, you’ll need to affiliate with a referral brokerage. These brokerages specialize in managing referral agents and will handle the legal and administrative aspects of your referrals. Here’s a simple process to get started:
- Find a Referral Brokerage: Research and select a reputable referral brokerage that aligns with your needs. Look for one with a straightforward fee structure and a strong reputation.
- Transfer Your License: Once you’ve chosen a brokerage, you’ll need to transfer your license to their referral network. The brokerage will guide you through the necessary paperwork and legal requirements.
- Start Referring: With your license on referral, you can begin connecting clients with active agents. Build relationships with agents you trust to handle your referrals professionally and efficiently.
- Earn Your Referral Fees: Once a referred transaction closes, you’ll receive your referral fee, which is typically a percentage of the commission earned by the active agent.
Is Referral Status Right for You?
Putting your real estate license on referral is an excellent option for agents who want to maintain their license without the full-time commitment of traditional real estate work. It’s also a smart choice for those who enjoy networking and connecting with people but prefer a more flexible and low-cost way to stay involved in the industry.
If you’re considering this path, weigh the benefits and find a referral brokerage that suits your needs. By putting your real estate license on referral, you can enjoy the best of both worlds—keeping your license active and earning passive income while pursuing other passions.
Whether you’re stepping back from the real estate business temporarily or looking for a long-term solution to keep your license active, putting your real estate license on referral could be the perfect strategy for you.
