If you’re a licensed agent in Illinois who isn’t actively working in traditional brokerage, you might be wondering how you can still earn income with your license. The answer lies in real estate referrals—a low-risk, low-overhead way to stay involved in the industry without the full-time commitment. This guide will walk you through how real estate referrals work and how an Illinois real estate license holding company can help you make the most of your license.
What Is a Real Estate Referral?
A real estate referral occurs when a licensed real estate agent introduces a buyer, seller, tenant, or landlord to another active real estate professional—typically one who will be handling the actual transaction. In return, the referring agent receives a portion of the commission once the deal closes. This is known as a referral fee.
Real estate referrals are a common practice and a win-win for everyone involved. The client receives a trusted connection, the working agent gains a qualified lead, and the referring agent earns passive income.
The Role of an Illinois Real Estate License Holding Company
In Illinois, if you’re not actively practicing real estate but still want to maintain your license and earn income through referrals, you can place your license with a real estate license holding company.
An Illinois real estate license holding company is a brokerage that holds your license without requiring you to engage in daily sales activities. These companies are designed for referral-only agents—those who want to keep their license active for referral income but do not wish to handle showings, listings, contracts, or negotiations.
By affiliating with a license holding company, you can legally send and receive referral fees while avoiding the administrative and financial burdens of a traditional brokerage environment.
How Real Estate Referrals Work Step-by-Step
1. Identify a Lead
The process starts when you come across someone who is interested in buying, selling, or renting a property. This could be a friend, family member, colleague, or even someone in your extended network.
2. Connect with an Active Agent
Once you have a potential client, your next step is to find an active, full-service real estate agent who is qualified to help them. This agent can be local or out-of-state, depending on the client’s needs. Many referral agents maintain a network of trusted professionals across different regions.
3. Submit the Referral
Before introducing your client to the active agent, you’ll typically submit the referral to your current license holding company. The submission should include all information needed to service the lease such as:
- The client’s name
- The type of transaction (buying, selling, renting)
- The referral fee percentage (commonly 20%–35% of the commission)
- When the fee will be paid (upon closing)
Afte submission, the license holding company will ensure a referral agreement is executed by both sponsoring brokers. This agreement protects all parties and ensures proper compensation.
4. Make the Introduction
With the agreement in place, you introduce the client to the agent. This can be as simple as an email or phone call where you provide background information and facilitate the connection.
5. Track the Progress
While the working agent handles the transaction, you can check in periodically to stay updated. However, you are not involved in the actual deal—your job is done after the introduction.
6. Receive Your Referral Fee
After the transaction closes, the agent you referred the client to will send your agreed-upon fee through their sponsoring brokerage to your real estate license holding company. The fee is processed through them and paid to you according to your agreement.
Why Referral-Only Agents Choose a License Holding Company
There are many reasons why a licensed agent might prefer to work through an Illinois real estate license holding company:
- Flexibility: You can work from anywhere and on your own schedule.
- No Sales Quotas: You’re not required to list or show properties.
- No MLS Fees: Traditional brokerages often require agents to pay for MLS access. License holding companies do not.
- Low Overhead: You avoid the costs of active practice—marketing, office space, and association dues.
- Stay Licensed: You keep your Illinois license active and in good standing while you focus on other priorities, such as retirement, parenting, or another career.
Who Should Consider Becoming a Referral Agent?
Referral-only real estate is ideal for:
- Retired agents
- Part-time agents
- Agents transitioning careers
- Recent licensees not ready for full-time practice
- Agents relocating out of Illinois but maintaining licensure
- Brokers who no longer want the burden of active sales but still want to earn
If this sounds like you, a license holding company can help you stay connected to the real estate industry without the full-time grind.
Final Thoughts
Real estate referrals are a powerful way to earn income with minimal effort, especially when partnered with an Illinois real estate license holding company. Whether you’re winding down your real estate career, stepping back temporarily, or simply want a passive income stream, referrals allow you to monetize your network without being a full-time agent.
By understanding how the process works and leveraging the right brokerage setup, you can continue to benefit from your license and help clients find the right real estate professional for their needs.
Ready to earn passive income through real estate referrals?
Join our Illinois real estate license holding company and put your license to work—on your terms.