Common Mistakes Referral Agents Make (And How to Avoid Them)

Being a referral agent offers freedom and flexibility, but like any business, there are some pitfalls that can prevent you from reaching your full potential. At Send Realty, we’ve seen what works—and what doesn’t. To help you stay on track and grow a thriving referral business, we’ve put together a list of common mistakes referral agents make and, more importantly, how you can avoid them.

1. Failing to Follow Up Consistently

One of the biggest mistakes referral agents make is not following up consistently with their clients and agents. Just because you’ve made the introduction doesn’t mean your job is done. Failing to check in can lead to miscommunication or, worse, a lost opportunity.

How to Avoid It:

Create a simple follow-up system. Use reminders in your calendar or CRM to check in at key points in the referral process. A quick message asking how things are going can go a long way in showing both the client and the agent that you’re involved and care about the outcome. Follow-up ensures a smoother transaction and strengthens your reputation.

2. Not Vetting Agents Properly

One of your main responsibilities as a referral agent is matching clients with the right agent for their needs. Sending a client to an agent who lacks experience in their type of transaction or doesn’t fit their personality can backfire. If the match goes wrong, it reflects poorly on you and can lead to distrust and a damaged reputation.

How to Avoid It:

Take the time to properly vet the agents you refer to. Look into their track record, reviews, and areas of expertise. Ask questions like: How many transactions do they close each year? Are they familiar with the property type and area? How responsive are they? Ensure you’re setting your client up with an agent who is not only capable but a good fit for their specific needs.

3. Overpromising on Referral Outcomes

Another common mistake is making guarantees that you don’t have control over, such as promising clients that the process will be quick or assuring them they’ll get a certain price. As a referral agent, your role is to make the connection—not to manage the transaction.

How to Avoid It:

Be clear about your role in the process. Let clients know that you’ll connect them with a trusted agent who can handle their needs but avoid giving specific outcomes. This keeps expectations realistic and reduces the risk of disappointment if things don’t go exactly as planned.

4. Underestimating the Power of Relationships

Some referral agents fall into the trap of thinking their job is simply to pass along names, forgetting that real estate is, at its core, a relationship business. Clients want to feel like they’re in good hands, and agents appreciate working with someone who values ongoing partnerships.

How to Avoid It:

Focus on building strong, genuine relationships with both clients and agents. Stay in touch, be helpful, and show appreciation. Remember, people refer business to those they know, like, and trust. A quick follow-up after a deal closes or sending a thank-you note can help cement long-term relationships.

5. Relying Too Much on One Source for Referrals

Relying on a single method or source for referrals can limit your business growth. Some agents get stuck relying only on their immediate network or fail to branch out into other potential referral sources like social media, community events, or business partnerships.

How to Avoid It:

Diversify your lead generation methods. Engage with your community, attend local events, and build a presence on social media platforms. Expand your reach by networking with different groups—local businesses, lenders, or even social clubs. The more sources you have for referrals, the more opportunities you create for your business to grow.

6. Ignoring the Client After the Referral is Made

Once you’ve passed your client to an agent, it can be tempting to consider the job done and move on. However, ignoring your client after making the referral could lead them to feel neglected or undervalued.

How to Avoid It:

Stay involved throughout the transaction process by checking in with your client and the receiving agent. This shows your client that you’re still invested in their success, and it allows you to catch any potential issues before they become problems. Plus, it helps maintain a positive relationship, increasing the likelihood of future referrals.

7. Setting Unrealistic Referral Fee Expectations

Many agents assume they can request a high referral fee on every deal. However, setting your referral fees too high can discourage agents from taking the referral, especially on lower-value transactions where the effort required outweighs the reward.

How to Avoid It:

Adjust your referral fee based on the transaction type and agent. While a 25% fee is common, it may make sense to lower it for smaller transactions, such as rental deals, or negotiate higher fees for larger, more complex transactions. Keep flexibility in mind, and be willing to discuss terms that work for both parties.

Avoid These Pitfalls and Thrive as a Referral Agent with Send Realty

At Send Realty, we equip our referral agents with the tools and resources they need to avoid these common mistakes and build successful, sustainable referral businesses. Whether it’s providing follow-up strategies, helping you vet agents, or supporting your relationship-building efforts, we’re here to ensure you thrive.

Join Send Realty today and take the first step towards becoming a referral agent who avoids these pitfalls—and excels in their business.