Compass Launches Referral Program For Listing Agents’ Buyer Leads

Compass, the brokerage owned by Compass International Holdings, has launched a new program it says will help agents generate passive income while retaining control over how they manage their business. On Friday, the brokerage launched its Listing Agent Lead and Referral Program. 

Under this program, every Compass real estate agent maintains their contact information on their listings on Compass.com, enabling them to receive buyer inquiries first. If the listing agent decides to refer the inquiring consumer to another Compass agent, they will earn a 10% referral fee. 

While the brokerage said buyer inquiries from listings on its site have always been sent directly to the Compass listing agent, the new program provides Compass agents with the flexibility to choose whether they want to work with that buyer themselves or refer the inquiry to another Compass agent and earn a 10% referral fee if the transaction closes, for up to 24 months.

“Winning a listing reflects years of relationship-building, trust and hard work,” Neda Navab, the president of Compass, said in a statement. “This program recognizes that effort by giving listing agents greater flexibility in how they handle buyer inquiries, while opening a new opportunity to earn passive income.”

Compass said they have set the fee at 10% because they feel the listing agent who creates the value of a prospective buyer should always benefit from this lead. Additionally, the company noted that typical agent-to-agent referral fees for warm leads is 25%, while listing agents receive a 0% referral fee from online portal when their listing generates business for another agent via a contact agent button on a site. 

“We believe listing agents should own and benefit from the leads generated by their listings,” Robert Reffkin, the chairman and CEO of Compass International Holdings, said in a statement. “For too long, platforms that do not represent the seller’s best interests have removed listing agent information and sold buyer inquiries to the highest bidder. This program creates a better system – one that rewards the real estate professional who did the work to win the listing and generate buyer demand.”

The firm noted that the program was “inspired by ideas from Compass real estate professionals and reflects the company’s continued focus on building tools and programs designed to help its real estate professionals grow their businesses and create better experiences for buyers and sellers.”