How much of your real estate business comes from referrals? If you’re anything like the many Agents I speak with, it could be 60-80% of your business. That’s a massive amount of your livelihood coming from one source!
While I happily sing the praises of prospecting phone calls and social media marketing, it can’t be denied that real estate is a business built on relationships, and your strongest relationships, or your Sphere of Influence (SOI), are your most reliable referral source.
Ready to increase referral business? Start by increasing your Sphere of Influence. Here are 4 foolproof ways to further build your SOI and get more real estate referrals.
1- Consider a new ABC of sales
In sales, we often hear the phrase ABC, standing for “Always Be Closing.” It’s a strategy that encourages persistence and focus on the end game. What I suggest is in addition to focusing on closing sales, you also consider that ABC can stand for “Always Be Connecting.” Before you can close someone on anything, you need to establish a connection with them, so be mindful of building relationships everywhere you go. You never know who will turn into a major advocate for your real estate business!
2- It’s all natural
Sometimes new Agents feel awkward bringing up the topic of referrals to their friends, family, and acquaintances. It doesn’t have to be! Acknowledging your appreciation for referrals can flow naturally in conversation. It’s especially easy to mention when you’re saying goodbye, try something like, “Nice to see you again and I’m so glad you’re loving your new home! If anyone you know is looking to buy or sell a home, I’d be happy to give them the same caring and professional service I gave you and Adam.” Assess the conversation and choose the best way to mention referrals, you’ll be pleasantly surprised by how natural it can be.
3- Capture information ASAP
I know better than to rely on my memory when it comes to names. A few embarrassing experiences have taught me that it’s best to record information as soon as possible so I don’t misplace or forget names and important contact details. As soon as you connect with someone who has the potential to become a member of your SOI, enter their contact information in your real estate CRM. It’s a good idea to include some notes on where you met and what you discussed, that way you can refresh your memory next time you speak to them.
4- Stay in touch
All relationships need some attention in order to thrive. Simply meeting a new person and then never communicating with them again doesn’t make it likely that they will refer your real estate services. Add your new contact to a drip email campaign or to receive your monthly e-Newsletter and/or direct mail, and set up some reminders in your CRM to give them a call in a couple weeks and every few months thereafter. Staying in touch means your new friend will remember who you are, and will be more likely to refer you.
Your Sphere of Influence can be one of your most valuable lead generation tools. Remember to Always Be Connecting and use a real estate CRM like IXACT Contact to maintain details and keep in touch with these important contacts.