What is a broker referral network?
Some national internet websites aggregate the MLS data from across the country and allow potential home buyers and sellers to search the database.
After the potential buyer or seller has searched the information online and is ready to visit a home in a particular area or sell their own home, the website refers him or her to one of its participating local area brokers or agents.
This broker or agent then pays a referral fee (typically a portion of the commission) to the internet website that aggregated the MLS data and referred the consumer. The internet website may then rebate a portion of its referral fee to the consumer, if state law or regulations do not prohibit rebates.
Other internet websites do not display aggregated listings, but use internet marketing to advertise their referral services and rebates to consumers.