Are you sick and tired of fighting for leads with your competition? Referrals tend to be very easy to work with because they are already sold on working with you. In order to maximize the amount of referrals you receive, you need to learn why people refer Realtors in the first place. Once you understand this it should help you with your marketing efforts towards your database.
When people refer Realtors, it’s almost always because there is an ongoing conversation about real estate occurring. Suddenly, someone jumps in and says, “Hey, I know an agent, you have to call him/her. They are great!” Then, a referral is born. The question everyone wants to know is: why did someone refer the client to that agent?
Referrals take place at work, dinner conversations, or even parties. They take place anywhere people are having conversations. Real estate is a highly referred profession for two reasons:
- Moving is an exciting time in someone’s life and people naturally want to talk about it.
- Buying or selling a house is a major financial move to make so people want to make sure they are in good hands. There is nothing more trustworthy than a referral.
But how do you get people to refer you more?
Referral marketing is all about training your audience to associate your name with real estate. If you do it correctly, they will remember you when they need assistance for their real estate needs or share your name with others they notice talking about real estate. Think about the last time you referred someone something or someone.
Ask yourself, why did you refer that person or thing?
When people refer services/professionals to others, they do not get any type of award, big shiny trophy, or anything monetary. There really is no tangible incentive to refer anyone to anything if you think about it. However, we as humans are genetically programmed to refer our friends, co-workers, and family to things we like.
Why do you think that is?
Everyone always “has a guy”. Everyone always wants you to use “their guy”.
You can make a post on Facebook right now and ask for any type of service provider and people will respond with several of their “guys”, but the question is why do they care? What’s in it for them?
People refer others when the following three things are present:
- They have to like the agent they are referring them to;
- They have to like the person that is asking or suggesting for a referral for an agent; and
- The person referring the agent has to notice that an ongoing conversation is taking place (about real estate) and they have to THINK OF YOU (this is the key).
Who doesn’t like to be thanked or acknowledged? If you are wondering why people refer others to things or services they like, it is only because they feel like they helped someone they liked solve a problem and are looking to be thanked later.
That’s it. People refer others because it is embedded in our DNA to be natural problem solvers and we LOVE being acknowledged for doing a good deed. Don’t you like solving problems for others? Of course you do, we all do. It’s part of being human. Think about the last time you referred someone something. In the back of your mind you were already thinking:
“I am awesome and now they owe me something because I gave them a great referral. I should get a free trip to Hawaii out of it. I like them so I will settle for a thank you”.
People do not refer for anything other than their own self-satisfaction.
You must look at your career as a popularity contest. Let’s face it. Everyone knows a Realtor, but how do consumers decide who to hire as their realtor? Did you know that when a consumer is looking for a realtor, roughly 75% of people use the first person they come into contact with? The question is, how do you either become the first person they talk to or be the agent that is given the referral? BE REMEMBERED.
Just in case you are thinking…
So how do I keep my name in front of my database? Check out my referral marketing library on my site. There are tons of FREE Tips to show you exactly how to market your brand without having to feel like you are “selling” something. No sign up needed!
One More Thing…
So now that you know people want to refer you business, it’s your job to keep your name in front of them. There is one more thing that helps with referrals. it’s when you kick ass at your job. If people are going to endorse your services to someone they personally like, you need to be good at your job. Having great customer service is what will turn past clients into fans.
Kicking ass in your job requires effective Transactional Marketing systems. I also put together a FREE library of information here so you can see if your level of service matches up to what your clients are expecting.
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Want to know more about building a real estate business based on referrals? Then check this out…