A great way to receive referrals is to give them. Become a referring machine. Be on a constant look-out for people who need referrals to other people.
Do you have the world's best hairdresser? Dog-sitter? Handyman? Spanish tutor? Knock yourself out building THEIR business through your referrals!
How does this help you?
Oh, let us count the ways.
- You become known as a resource among your SOI. Not simply as a fabulous real estate agent, but also as the Keeper of the Referral Directory. As they say, "no publicity is bad publicity" - every time your name crosses the mind of another person on this planet, the potential for receiving a real estate referral just increased, if only a wee bit. If the person actually contacts you to get the name and number of your dog-sitter, BAM! A rapport-building opportunity is delivered to you on a silver platter.
- Think about how wonderful it feels to receive a referral yourself. Don't you feel incredible warm fuzzies toward the person who thought enough of you to send their friend your way? Evoke those feelings in others and they WILL return the favor.
- What goes around... comes around. It just does.
There's not much to it. Simply keep your antenna up for people who are deserving of your referrals... as well as people who need your referrals.
Casually gather business cards of the people you feel good about referring, or simply memorize their website or phone number. BONUS! That way you can write down THEIR contact information on the back of YOUR business card!!
Get in the habit of sending business to others and they will quickly get in a habit of sending business to you!
copyright Jennifer Allan 2007
Well, I turned one down today. Agent in California wanted to refer a $350,000 buyer and wanted a 30% referral fee.
The poor agent on the road would wind up working for the agent in California.
Thanks but no thanks.
Well, giving referrals work on some people.
I gave 5 referrals in one year to ONE realtor. The last time I called she couldn't remember who I was.
Needless to say, I send my people elsewhere. She loses!!!
Jennifer,
Thanks for the post, it is definitely something I need to do more of.
Jennifer - Great advice. Establishing a relationship where referrals go both ways is always great.
Len - What is a customary referral in your area? In mine its 25%. I would assume your area would be similar? If so, why would you give up the opportunity to have another client for a loss of 5% which is nothing in the scheme of things? Is it because $350K is too low? The new client could be a potential source of more referrals. It seems short sited to turn away a relocation referral who in all likely hood will be buying something.
Excellent Post! I agree with you 100%!
Bob Mitchell
ValueList Real Estate Services, Inc.
jennifer, its so funny everytime I come up with a situation and get discouraged I look on this blog and you are always covering the topic. I just went through a similar situation with my own sister. I handed out business cards for my sister which does credit repair and she recieved tons of calls. On the other hand she said that she did not feel comfortable referring me to clients for realestate due to me being new to the business, and not knowing all the ins and outs.
What goes around comes around. Next time I will refer clients to someone that appreciates them.
Micky
Micky,
I've decided that Family SOI is a whole different animal from Friends SOI. While I don't think we should write them off... it's probably best not to count on them too much. Now, believe me, I think SOI should be the basis of every business plan, but in all my years of 100% SOI bizness, I don't think I ever got a referral from my family. And my family loves me and thinks I rock!
That said, your sister may come around - it just might take some time. Family is Funny...
You, know, really I love referring people to my handyman, hairdresser, plumber, insurance agent, inspectors, CPA, et al. I've been doing this for 5 years, but I never get any referrals back, which I find very weird. What am I doing wrong?
Robin - Hmmmm - there could be a lot of reasons, but I do know that in the last 18 months or so, referrals have slowed down a lot - why? Because there simply isn't as much business to refer. But in your situation... Do these people:
1. Know that you still sell real estate?
2. Know how to easily reach you?
3. Think you're a terrific real estate agent, or just a terrific overall person?
I don't get referrals from everyone I refer to and I'm okay with that. Most people aren't natural referrers anyway, so it's nothing personal. And I do believe it's somewhat of a karma thing - not a tit-for-tat, but if you're thinking of ways to help others, others will think of ways to help you. But not necessarily the same people!