How do you deal with conflicts of interest or competition when making referrals?

One thing I have found helpful is to talk it out and follow their lead. Being open and honest upfront without giving out information about either client is crucial and usually tells the tale of whether or not you should move forward and represent both sides. Each situation is different and each client is different. Keeping both sides happy isn't always easy but it can be done as long as you follow all the rules and stay true and honest to everyone involved - including yourself.

I always offer more than one person when making referrals to give them options and let them make the choice of who they want to use. I think it’s really important to cultivate relationships with many other professionals in our industry to be confident in making those referrals to my clients.

Your fiduciary is with your client; referring that client to another agent in another should only happen following a discussion with the client and what is allowed to be shared. In most cases in my business (real estate broker), we do the interview process with multiple agents, selecting the one that best suits the client. The AGENT'S contact information is then given to the client - the client makes the call and shares what they are comfortable sharing. This avoids any misunderstandings, disputes and certainly any ethical dilemmas.

Making a referral to a 'competitor' in the case of real estate brokerage should not be a consideration. Here's why - When I am making a referral to a broker/agent, it is because I have vetted multiple agents to find the perfect match for the CLIENT. Where a lot of agents make a critical mistake, is thinking that they must refer to a 'parent brokerage.' An example of that would be ONLY making referrals to other national brokers who share your brokerage's same name. As a broker who refers a lot of business to other agents, my PRIMARY mission is to find THE BEST agent/broker - not one within my brokerage! When that is done, the client fiduciary goes out the window; it becomes all about YOU and your brokerage, not the client.

I can only add that this statement is spot-on and should be followed to a 't' by every real estate agent or broker making referrals!

Asking for feedback always helps in understanding the gaps and work on the improvement areas. Always try to connect with the referrer or the recruiter who connected for the initial conversation and understand what went well, where is gap, what needs to be improved/ prepared, how is the overall status. This way we can have transparency also share and learn about our thoughts.

I believe the biggest mistake real estate agents & brokers make is not keeping the referring broker updated. If you are the referring broker, it is also great practice to follow-up with the client who you have referred. Because you performed the initial interviews and made the recommendation to your client, it's imperative to remain involved - not overly involved - basically, know what is going on. Check in periodically and offer any assistance you can throughout the process. I can't tell you how important it is to be 'helpful' and not demanding or pushy when you've made a referral. It's important to know that you simply cannot step over the line with your helpfulness either! If you don't know where that line lives, ask a mentor!

There's nothing I can add to the 'celebrate & appreciate' statements other than, YES! It makes a world of difference. In our business, we talk among ourselves - for some agents, that is quite often. If you've referred a valued client to a great agent in a specific city/area, you share that name with every agent you know looking to refer to someone in that destination city.