Quid Pro Quo? Oh, No!

A few months ago, I got a phone call from a fellow real estate trainer-type who had a wonderful opportunity for me.

Apparently a bunch of trainers were getting together to cross-promote each other's products. If I were to sign up, I would agree to send out a newsletter to my (precious) mailing list recommending the other participants' products. So, say, in November, I'd tell you all about Joe Schmo's FSBO-Gettin' Package, and encourage you to buy it. If you do, I get 25% of your purchase. Then in December, I'd send out another newsletter raving about Jane Schmane's SEO Program and encourage you to buy it. If you do, I get 25% of your purchase. And so on.

By being in the program, I have to agree to do this for every one of the other members of the program, whether or not I actually know anything about their product. Of course, they'll be doing the same for me.

So... I'm supposed to commit to abuse my mailing list and risk losing subscribers to promote products I know nothing about just so I can make a few bucks and help other trainers add to their mailing lists?

You've got to be kidding me. Uh, no. Not gonna happen. I'm just not that much of a team player, I guess.

If you get a recommendation from me, you better believe I believe in that product. And there's not a chance in hell I'm going to mess with the trust my readers have in my recommendations.

But anyway, here's how this might apply to you and your business.

A lot of real estate agents use the quid pro quo ("something for something") approach to choosing their service providers. In other words, they require referral reciprocity from their lenders, inspectors, insurance agents or hair-dressers. I see this most often in the Realtor/Lender arena.

I think it's a really bad idea. From a practical perspective, I want the very best lender on the planet handling my buyers and guess what? That guy or gal probably has relationships with another real estate agent or two (y'think?) and he'd be nuts to agree to a quid pro quo with me. And frankly, I don't WANT someone who is hungry enough to promise such a thing handling my buyer business; I want someone with a track record of getting mortgages done! To recommend a lender because he or she promises to send business my way is a lousy thing to do to my buyers who trust me.

Philosophically, I'm just as opposed. I don't want to feel obligated to anyone, nor do I want anyone to feel obligated to me. And what happens if your "favorite" lender starts dropping the ball? Are you still obligated?

Your thoughts? Please share!