Earn money referral agent

In exchange for providing this service, you receive a portion of the commission earned by the agency. To complicate things a bit, there are two basic types of referral agent programs. One incorporates a multi-level marketing MLM component, whereby you not only receive compensation for signing up new agents but participate in the commissions generated through their activities as well.

To some observers this looks uncomfortably like a pyramid scheme. Consequently, agencies in this category have been attacked on legal grounds. Some have been outlawed in several states.

Others have gone out of business as a result of the legal actions taken against them, only to resurface after modifying their programs. Not surprisingly, they have been attacked vigorously by travel agents and the travel trade press.

In short, they have been unstable. Referral agencies of this sort are becoming increasingly rare. If you do encounter a referral agency using this business model, I would recommend extreme caution.

Being a Real Estate Referral Agent is Simple

Another type of referral agency has been more successful than the MLMers, at least in gaining the grudging respect of the travel industry.

They, too, have been controversial, although they have actually managed to get some good notices from the travel trade press if not from the rank and file travel agent. These are the kinds of agencies I will talk about here. Referral agencies have remarkable similarities. Here are some of the hallmarks of a referral agency:. A photo ID card. A big part of the marketing lure is the photo ID card they issue to their agents.

This card, you are told, will unlock the door to discounts and privileges available only to travel agents. Critics also point out that these ID cards are very often confusingly similar to IATAN cards. A bounty on new agents. Referral agencies are constantly looking for more agents. Most referral agencies encourage you to talk up the joys of travel in general, talk up their agency in particular, and pass out to all and sundry a business card which usually costs you extra with their number.

No commissions on airline tickets.

Or a least very low commissions. This is not too surprising since the airlines have stopped paying base commissions to travel agencies. Fixed commissions on everything else.

Most referral agencies offer special in-house deals to their own agents. These are deals you purchase through the agency, as opposed to deals you request from a supplier using your ID card.

Viewed strictly as a way to make money by selling travel, the answer is probably no. As I just explained, you are referring business to inside agents who do the actual selling. On the other hand, a five percent commission for simply referring a customer is not a bad deal at all.

And that appeals to a great many people. Of course, some referral agents no doubt refer far more business and do fairly well.

I suspect, however, that few people join these agencies to get rich. Even the management of referral agencies will admit, off the record, that none of their agents is making a living doing this. The few who join wanting to be full- or even part-time travel agents no doubt soon realize their mistake and seek out the more businesslike deals available to home-based travel agents, which I describe elsewhere on this site and cover in depth in my home study course.

Most people who sign up do so for the benefits — real, imagined, or a bit of both. So the question then becomes, just how good are those discounts?

Even then, the travel agent flying on a reduced fare is subject to being bumped if the flight fills up. What you might get from an airline with your ID card is a complimentary upgrade to first or business class on a flight for which you hold a paid-for coach ticket.

Because they complained so loudly, the airlines the domestic ones at least have been getting a lot savvier about travel agent ID cards. Most of them have declared that they will only accept the IATAN card as proof that the holder is a travel agent. IATAN is the International Airlines Travel Agent Network, an accrediting organization. Its procedures, while subject to potential abuse, tend to assure that the holders of its cards are actually employed in the travel agency business.

Because of the furor over this ploy, the referral agencies are very careful about how they position this benefit. Still, the anecdotal evidence is that it can be pulled off, by some people some of the time. At most, you can expect to be humiliated when a knowledgeable gate agent turns you down and gives you a piece of his or her mind. Still, a business class seat can be mighty tempting. My guess is that this potential benefit lures a lot of referral agents.

Also, the end of base commissions on airline tickets for travel agencies has made the referral agencies less attractive. Time was when you could book your air travel through a referral agency and get a modest discount. If you flew a lot, those discounts could add up. Rather, they are similar in nature to discounts given to travel club members.

In some case, however, the hotel discounts are real and very attractive. Some of these can be quite attractive. Typically they are for mid-market products in destinations most popular with the masses of American tourists — Florida, Colorado, Las Vegas, Hawaii, Mexico, and the Caribbean.

One of the major problems with referral agencies, in my opinion, is that their infrastructure sometimes has trouble keeping up with their marketing. In other words, they sign up so many agents that they have trouble answering the flood of phone calls that results. The agencies are aware of these problems and seem to make a good faith effort to solve them. Once you get through to the agency, the inside agents all seem to be well-trained, efficient, and reasonably accomplished at searching out the best fare.

If you have a straightforward ticketing request, you are likely to get good service. At least that has been my experience in researching these agencies. Clearly these deals appeal to a great many people. You travel a lot. Those hotel discounts do add up, although it may take you more than a weekend to recoup your investment. You are an upscale traveler. And if you regularly travel overseas in coach class, getting an upgrade on a single trip could make this deal worthwhile to you.

You are willing to sign up a few new agents. Just be prepared for some negative blow-back when people to whom you have sold a card find that they get less than they anticipated.

You are bold enough to try for the free upgrade every time you fly. If you are successful, you may find your investment paying for itself very quickly. So do I recommend that you become a referral agent? It is so easy to become a real home-based travel agent and get great deals on cruises and tours AND make some serious money, that becoming a referral agent makes less and less sense. Of course, you may not want to become a full-fledged home-based travel agent.

In that case, the referral agencies might look like a good deal to you. So why not give them a try? You have nothing to lose but your hard-earned cash and, who knows? To learn more about becoming a real home-based travel agent, CLICK HERE.

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What is a referral travel agent? Non-MLM Referral Agencies Another type of referral agency has been more successful than the MLMers, at least in gaining the grudging respect of the travel industry. How they work Referral agencies have remarkable similarities. Here are some of the hallmarks of a referral agency: Is it a good deal?

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Pluses and Minuses One of the major problems with referral agencies, in my opinion, is that their infrastructure sometimes has trouble keeping up with their marketing. Becoming a referral agent will make the most sense if: My recommendation So do I recommend that you become a referral agent?

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