This week I want to talk about how referrals can help you build a strong referral business with other agents. Two of the questions I am frequently asked are, "What is the best referral that you have ever had? What is the best referral you have every given?" So, I wanted to share a couple of those stories with you to show you how powerful referrals can be in your business.
I often say, "Referrals are like having a wholesale business." You can work with the same agent over and over again and you develop a pipeline of clients that they have referred to you as part of your business. So, if their clients need something, you are there to help.
Can you imagine if you had half-a-dozen agents that you had a strong referral relationship business with? Developing this kind of relationship with other agents can really make a difference!
The Best Referral I Have Ever Received
The best referral that I ever received was from a gentleman that I had done a residential transaction with. One day, he called me and said, "I have a commercial building to sell and I need an agent!" At the time I didn't know anything about commercial real estate - back then I was only representing residential and investment properties.
So, I told him this and he came back to me and said, "This is not a problem. I know everything there is to know about commercial. I will teach you how to do commercial real estate business. I own commercial buildings and know all about it. I just need somebody who is trustworthy that I can work with."
I said, "Well, it's not really my area of specialty, could I bring in my managing broker to supervise how this goes?" and he said, "Absolutely! No problem." And that is how I ended up selling a very large commercial building. Wow, that was a very, very good referral. Not only was it great business, but it was great for my business because I really learned a lot about commercial real estate in the process.
After that deal I received another referral from a different agent who had seen that I had negotiated this large commercial listing. He called me and said, "Hey, I see you also do commercial real estate." And at point now I had really actually done it and I had learned a lot along the way - and I received a fantastic agent referral as a result.
The Best Referral I Have Ever Given
One of the absolute best experiences I have ever had, giving a referral to another agent, involved an agent in Vancouver, Canada. I gave her a referral for someone who was looking for waterfront or water-view property in the West Vancouver area. I already knew that she was an expert in that area, so I referred my interested client her way.
After that amazing experience I knew that if I ever had anyone looking for real estate in that area, that I had someone that I could rely upon.
I think we really have to be aware of just how important it is when you are sending out a referral, or receiving a referral, to show a level of appreciation for the service provided by the other agent.
Create a Referral-Worthy Reputation
It makes a big difference when you demonstrate that you are detail oriented and that you are tracking that referral. One of the ways that I would track referrals was with a referral form that I would send to agents if I was giving out a referral. And if an agent sent me a referral, I would make sure to keep them updated and give them status reports.
You have to have a system for your referrals. Having a system shows other agents that you care about the client, that you are reliable, that you can be trusted with their business. If someone sends you a referral, what do you do: do you send them a thank you, do you follow-up, what are the things that you do? If someone gives you a referral, then what does that process look like?
One great referral experience can then turn into strong future referral business. If you are going to add referrals to your business strategy and you want to be successful at it, then it's really important to plan for it as a part of your business and have a strategy around how you are going to do it.
When you start to become known as the expert in a particular area, a particular style of home, or a particular discipline of real estate like investment or commercial, then other agents will seek you out to care of their clients. The best way to develop that reputation is to provide a level of service that isn't normally experienced - really making each referral feel like they are appreciated and that you are paying attention to the details.
That's how I built a strong referral business of my own. It's another system to add to your business that can open up those opportunities for you and help you keep a business of steady leads coming your way.
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By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.