Tip Tuesday: 8 Ways Real Estate Agents Can Generate Referrals for Free
In real estate, referrals are the name of the game. Ask most agents and they will tell you that 95% of their business comes from past clients or referrals. So how can you get referrals for free?
Start by considering the motivation of those who generate referrals. Referrals will most likely be satisfied clients or other agents you know and respect.
Important: These people don’t really care so much about promoting your business. Instead, the best kind of referrer wants to solve a problem for a friend or mutual customer.
Concentrate on creating your real estate business that unique and reliably delivers results that people need and want.
Here are 8 ways to elicit (not solicit) referrals:
1. Offer a service that is unique. Think about your specialty – what type of report or article could you write that would help you stand out? What type of signature piece could you develop that is unique you? Take the time to write it – and then put it on your website, hand it out at open houses, email it to your clients. Show them that what you do is ‘one step ahead’ of everyone else.
2. Be reliable, even if you can’t be unique. Make it your mission to be the most reliable person you know. You call people back and answer emails quickly, you go above and beyond by passing on leads to others (what goes around comes around), you are always on time (better yet early), and most importantly you do what you say you are going to do!
3. Truly understand and convey your specialty to potential referrers - such as current clients, colleagues and others in complementary businesses, and even competitors with whom you are friendly. They will be aware of the very specific problems that you aim to solve.
4. Build relationships with industry colleagues. This is a no-brainer but make sure it is part of your marketing plan to attend one face-to face networking event each month. Mixing that in with a strong social media plan is a great way to network and build referrals. Once you get a new contact – treat that person like gold! Send a personal note or email, do something to help them before you ask for help. Make your contact with them 95% building rapport and 5% or less ‘pitch.’
5. Be easy to find and contact. Do the obvious: have business cards handy for customers, run a search-engine-friendly website, engage in social media. Put your email and phone number all over your website – not just a ‘contact me’ form! List contact information prominently on every social network, on your email signature and your website, making it simple and fast for customers to get in touch with your business.
6. Be an approachable expert. Stay on top of industry trends but spend just as much effort talking with potential clients, learning about their needs, and gaining new insights from others. Make it a point to attend a few training events a year. Look to your local and state associations for this! Also make it a point to come to at least one Inman event a year (shameless plug!!) – who comes to the Inman Connect events? The people who want to stay one step ahead of their competition – FOREM readers, you should be there – next one in 2 weeks! Your knowledge will grow exponentially and you’ll continue to refine and expand your business in a way that matches demand, even in changing conditions.
7. Find ways of doing business with those outside of your original client target. Expanding your horizons may mean adding service options that you provide for a client or going outside your regular community for a listing.
8. Thank everyone who attempts to make referrals (not just the ones who produce them) and let them know how much a referral base really means to the success of your business. Showing gratitude will encourage referrers to keep spreading the word. Send a personal note – not an email!
Do you have tips on generating referrals? Leave us a comment below!
Written by: Katie Lance, Marketing Manager, Inman News
Tom Meriam | Jun 29, 2010 | Reply
Nice article, Katie. You’ve offered some great personal brand and brand development tips; the foundation of productive referral and marketing programs.
Sophia | Jun 29, 2010 | Reply
I agree with a lot of things in here…especially building relationships with industry colleagues, I set up a facebook fanpage and my connections have sky rocketed, I know have contact with investors and brokers in both the US and Canada I never would have had before…I also agree on the focused approach but also think you need to get your properties out there, my friend (on facebook!) sent me this link today for a leverage property listings software thats free for the day, usual cost $90…http://ht.ly/23rN6…anyway felt I should pass the tip on !
Reno Real Estate | Jun 29, 2010 | Reply
Katie,
#1 (offer a unique service) and #6 (be approachable expert) is what I’ve been trying to hit the past 3 years. This has helped a quite a bit in my business..
And I can say you’re list is spot on! Though there are some things in the list I need to work on (#4 build relationships with colleagues).
I was hoping that I can build enough credibility and reputation that instead of just being one of the participants and I could come to their meetings as a “helper” maybe even a speaker…
I think the ROI would be better because I’m helping someone instead of “looking for help.”
Nevertheless, this is an awesome list Katie. Keep up the good work, you guys are a great help to us agents!
-Joe Salcedo
Holly Scwartz | Jun 29, 2010 | Reply
So true. I think it is important to get back to people quickly and technology makes it so much easier when you deal with tech savvy clients!
Alex Cortez | Jun 30, 2010 | Reply
Tip Tuesday is one of my favorites (pretty close to Taco Tuesdays at the local pub).
Great post. Many agents need to step back to basics, sure all the bells and whistles of fancy websites can get leads, but being a true, well-respected member of the community will go much further. Some of the top-earners in my market don’t have much of an online presence, but their referrals just keep on bringing in business.
Missy Caulk | Jun 30, 2010 | Reply
Be easy to find. You have no idea how many times I have searched for agents to refer in cities I am not aware of.
I live in Ann Arbor, only ONE city named that. But, so many Beverly Hills, etc.
Then the phone number is not front and center so you have to go digging, and send an email from their site to get to them.
James Chai | Jun 30, 2010 | Reply
Or you can join the largest Real Estate around (Active Rain)and Network. They have countless postings about their successes … the proof is in the numbers – and you can join for FREE!
Real estate syndication | Jun 30, 2010 | Reply
What about leveraging the power of social media to do that? Everybody loves to be the one hooking up friends when they are searching for a home. Use social media tools and leverage tools like this one http://ht.ly/24rK3 to be found everywhere simultaneously
Real Estate Land | Jun 30, 2010 | Reply
Real Estate Land
Katie Lance | Jul 1, 2010 | Reply
Tom – thank you so much!
Sophia – thanks for the tip!
Joe – thank you so much for the nice comments – I appreciate it so much!
Holly – agreed!!
Alex – you rock! I love Taco Tuesdays too LOL – so glad you like Tip Tuesdays!! Thanks for your nice comment!
Missy – 100% agreed!!
James – great point – AR is a great tool as well!
RE syndication – good tip, thank you!
Katie
@katielance on Twitter
Keith Bennett | Jul 1, 2010 | Reply
Ah great post. Many times I think that we focus on the routine, and we need to think out-side-the-box, so to speak. Great reminder!
-Keith
Ken Becker | Jul 2, 2010 | Reply
I recommend not being a secret agent. People will not approach you for information or advice if they do not know you are in the business. Wear a company logo shirt or ID badge anywhere it is appropriate. You never know when a random contact will lead to new business or a referral.
Philip Hulme | Jul 2, 2010 | Reply
Excellent reminder, Katie.
I tell my Appreciation Marketing clients it’s all about being consistent and sticking to the basics. Develop the Know/Like/Trust factor. Then nurture your “Top Of Mind Today” status so that YOU are the first name on their lips when the referral opportunity presents itself.
Be a good friend. Offer help. Remember birthdays. Send unexpected notes and gifts just to express appreciation.
What are you doing to ensure that you are http://TopOfMindToday.com ?
A referral can just as easily come from your fellow yoga student, your kid’s soccer coach or your old next door neighbor.
Katie Lance | Jul 4, 2010 | Reply
Keith – 100% agree – thank you!
Ken – I love that – “don’t be a secret agent” – so true!
Phillip – so true – people do business w/ those they know, like and trust
Thanks everyone -
Katie
Juliet Okafor | Jul 7, 2010 | Reply
This article clearly captures all the points management and staff continuously share with Llewellyn, Realtors agents. As a brokerage, we thrive because we truly value the relationships we have with agents and their clients. Every meeting and every handshake is another opportunity – may not be today, but you have an opportunity to give something of value to the people you meet.
As your article pointed out, make referral relationships about what you can offer, not what you can immediately get in return.
Great article!
Jason Vonn | Jul 9, 2010 | Reply
Use any and/or all web resources that are AFFORDABLE such as another website from http://www.agentwebaccess.com $15/month. Many website services can be quite expensive. Google for other ways to spread YOUR WORD!
Kimberly Cameron | Jul 11, 2010 | Reply
Great article Katie!
We adjusted our business in 2008 to include exactly what you have suggested above. Our business has grown substantially as a result (even in a down market).
Our motto is “value add” in everything we do from quick response time, prompt availability and short notice to show a home to being paperless, actively engaged in social media and networking with agents around the country.
Positioning my team as the “experts” in lieu of farming neighborhoods and image driven marketing has proven to be a great success (and we have spent countless hours on education to become real experts on our market as a result).
Thanks for sharind, great stuff!
alexandra | Jul 11, 2010 | Reply
use single property websites….its a great way to get refferals.
Evan Davis | Jan 17, 2011 | Reply
Thanks for the great advice. I like to send a referral email newsletter to all my top clients.
Simon from real estate investing | Jul 14, 2011 | Reply
Offering helpful tips to potential, existing and old clients also goes a long way in keeping your name out there.
An automated autoresponder “newsletter” that goes out say, once every 2 weeks reminds potential buyers and sellers that you are still on the market. Such tips could be how to prepare their home for sale, settling down in a new home, integrating with the new community, etc.
Great article Katie!
Jeff Morris (Real Estate Agent) | Jul 18, 2011 | Reply
Hey Katie, it would not be wrong to say, you always write the nice info. Appreciable always, such a nice info. Build relationship is the most important part of any business.