Let's say house is $100,000 and the buyer or seller agent side is 3% or $3000.
We normally take or give 25% of that or $750.
The broker then would split the remaining $2250 with the agent at their normal split.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
So if an agent in, say, Missouri sells a property and the gross commission is $4,000, each agent may end up with 25% of the gross, or $1,000. If you asked for 25% of the gross commission, you'd really be asking the agent who received your referral for 100% of his/her commission.
Hope that helps.
Thanks for all the answers.
For example, if one were to refer a short sale, and it's under $100K, the receiving agent may not want to give a referral fee greater than 20% because of the amount of work involved. Heck, some agents may not want to give a referral fee at all!
Some agencies are part of a network of agencies and among them, they may charge 35% referral fee. They have their in-house referral and relocation specialist who do the searching for the best match for the referral.
There is no real standard --- but it does seem like the most often negotiated fee is 25% of the gross commission before the broker split with the agent.