We Stopped Paying Zillow and Gave That Money to Clients

I used to spend a significant amount of money acquiring leads from real estate portals. Over the years, I started thinking differently about how we could use that money better. As a result, I started redirecting that advertising budget toward buyers and sellers who come through referrals.

Instead of paying Zillow and Redfin for leads, I offer eligible referral clients a documented compensation discount. The benefit is discussed upfront and reflected in the transaction paperwork, rather than simply promised through marketing.

The Decision to Stop Paying for Portal Leads

The thought first came to me during a showing with a military family, when I found myself thinking about my father and son. Both had served in the military, and I decided to offer the family a credit toward closing costs from my commission.

That experience led me to reconsider how we were spending our advertising budget. Over thirty years in the business, I had built relationships with clients who returned, referred friends, and recommended me to colleagues.

Those relationships generated business, while I spent between $3,000 and $5,000 a month on portal leads. I was competing for buyers and sellers with no prior connection to me, and they could easily contact another agent.

I eventually stopped buying portal leads and redirected that advertising budget toward clients who came through referrals.

"I was throwing $3,000 to $5,000 a month away, and I would much rather give that to the people who entrusted me with their biggest purchase, generally the largest one they will ever make in their lifetime. I'd much rather give it to them than to Zillow and Redfin." – Jennifer Mitchell, Broker / Founder, JM Distinctive Properties LLC

Putting the Former Portal Budget Toward Clients

Buyers and sellers who come through referrals may qualify for a compensation discount, documented in the applicable transaction agreements. For eligible buyers, the discount may appear as a credit toward closing costs, depending on the transaction and financing requirements. For referred sellers, the benefit may take the form of a negotiated reduction in brokerage compensation.

I explain the available discount early so clients understand the potential savings before making decisions about representation. This is an extension of my belief in transparency and that the money is better spent helping the people who trust us.

The Consumer Financial Protection Bureau provides resources explaining closing costs and other expenses buyers should consider when purchasing a home. A documented compensation discount can help eligible buyers manage some of those expenses while receiving professional real estate representation.

The Same Professional Marketing for Every Listing

We maintain the same marketing standards for every listing, regardless of price point or how the client found us. Our approach includes professional photography, video, and drone coverage on properties it would benefit.

My team will not reduce the marketing package to offset a referral compensation discount offered to an eligible client. We hold ourselves to a higher standard because we believe marketing quality directly affects the seller's results. That commitment remains the same for referred clients and those who contact her through other channels.

The Referral Client Experience

Most people who come to us through a referral haven't been offered a compensation discount upfront. We typically discuss the benefit during the first call, before buyers tour a home or sign a representation agreement.

The applicable discount and compensation terms are then documented in writing as part of the client agreement and transaction process. Clients are often surprised when we explain how the discount works and how it may affect their closing costs.

Title company closers have even paused during closing to ask whether we intended to provide the documented credit. I confirm that the discount is intentional and reflects her appreciation for the trust behind each referral.

If you are unsure about your eligibility, start a no-obligation conversation with the JM Distinctive Properties team to discuss the available referral benefits.

Building a Business Through Referrals

Referral-only growth can be a path to building a larger business long term. For example, a single client led to a referral chain that reached six generations.

"Over my 30 years in the industry, many clients return to me as purchasers again, or they refer me their friends, family, colleagues, and so forth. I wanted to show my gratitude for the trust of the person referred to me by a past client. So I extended that credit to them, and that's where it really developed." – Jennifer Mitchell, Broker / Founder, JM Distinctive Properties LLC

When a sale comes through a chain of referrals that leads back through several clients, it says something. The compensation is a bonus, but these people wouldn't refer us to friends and family members if they didn't trust us.

The Benefit of Reaching Us Through a Referral

Our business relies heavily on repeat clients and personal recommendations rather than purchasing leads through real estate portals. That approach allows us to redirect money previously spent on portal advertising toward eligible client discounts.

For someone referred by a friend, family member, or colleague, the benefit begins with an early conversation about compensation. We can explain the available discount, discuss the client's goals, and outline the services we provide.

The referral relationship also means many clients start working with someone who has already earned the trust of someone they know. If someone you trust recommended us, a short conversation can help you understand your options before moving forward.

Common Questions About Referral Compensation Discounts

What is a referral compensation discount in real estate?

A referral compensation discount reduces the brokerage compensation charged or provides an eligible client with an agreed-upon financial benefit. Depending on the transaction, the savings may appear as a closing credit or a reduction in the seller's brokerage costs. The specific amount and terms should be documented in writing, with any applicable lender and closing requirements considered.

Do I need to know you personally to qualify for the referral discount?

You do not need to have worked with me personally before being introduced through a past client. Our referral discount is intended to thank clients who come through trusted recommendations from people we have previously served. I can explain the eligibility requirements and available terms during your first conversation.

Does the referral discount reduce the marketing quality on a listed home?

Our professional marketing standards remain the same regardless of whether a seller qualifies for a referral compensation discount. Photography, video, and drone coverage, where appropriate, are part of her approach to presenting listed properties. The compensation discount does not change the marketing services we provide for the home.

How is this different from a standard commission negotiation?

Real estate commissions are negotiable, and buyers and sellers can discuss compensation terms with their agents before signing agreements. Our referral discount is different because we discuss the benefit with eligible clients during their first conversation. The discount reflects our appreciation for the referral, and we document the agreed terms as part of the representation process.

What price points does our team work in western Broward County?

We work across a range of western Broward properties, including homes around $750,000 to $900,000 and higher-priced residences. My experience also includes entry luxury properties around $1.5 million to $2 million and multimillion-dollar estates. I work with first-time buyers, repeat purchasers, and luxury clients, adjusting my approach to their needs and budgets.

Does a referral-only model mean we take fewer clients?

We focus on building lasting client relationships rather than generating a high volume of leads through paid advertising. A referral-only pipeline produces fewer total leads than portal advertising, but those clients arrive with an existing layer of trust. That trust shortens the path to a good outcome and reduces friction throughout the transaction.

What markets does JM Distinctive Properties serve?

Our core service area includes western Broward County, with Coral Springs, Weston, Davie, Parkland, and several surrounding communities. We also work in Pembroke Pines, Miramar, Tamarac, Margate, Southwest Ranches, Fort Lauderdale, Boca Raton, and Boynton Beach. My knowledge of these markets helps clients compare neighborhoods, property values, and available housing options.

Start a Conversation About Your Referral Benefits

If someone you trust recommended JM Distinctive Properties, that introduction reflects a relationship built through personal service and past experience. Our team relies on those relationships, and we offer an opportunity to discuss your goals at your convenience.

Schedule a conversation with us to learn about the referral compensation discount and how it may apply to your transaction.