Real Estate is, has, and always will be predominantly a referral business. Yes, I know that with Internet technology, real estate agents can mine hundreds of leads every month, of people they have never met. In fact, my team, The Colorado Dream House Team, has invested heavily in Internet leads. About three percent turn out to be real buyers or sellers. While we appreciate this newfound source of business, nothing compares to a lead that is a good referral.
We spend a ton of time trying to make sure that each and every client has a good experience with us, just like I know so many Realtors do in their business. If a buyer or seller has a positive experience with an agent, then there is a good chance that there will be future business from that client, or a referral from that client. No matter how many Internet leads one receives, nothing replaces a referral. It’s the very lifeblood of so many real estate agents. In fact, I know many who do not get their leads any other way. Their business is a 100% referral business.
We put a high priority on referrals not only because it’s good business, but it also makes the person who is giving the referral look good. I know, I don’t have to spell out to anyone how this works, but I cannot underscore enough how important key referrals can be. Once more, they have an overflow impact into other areas of the economy. Let’s say Bill Jones introduces me to Tom Smith who happens to own a new hip restaurant in the Highlands. I sell Tom a home and in the course of getting to know him, start to frequent his restaurant. In this case, both the real estate and restaurant industry benefits from the new relationship that formed because of a referral. Both parties are contributing to the local economy. This is the way business has operated for years, once again proving the theory that referring business to one another is the best solution for helping spur economic growth.
In our office, we make sure that we ask for referrals in everything that we do. We ask on every piece of printed material that we produce. We have every person in our office use the following statement at the end of his or her email signatures: “Your Personal Referral Is the Best Form of Flattery.” We ask for referrals on our social networks like our Facebook page and through our monthly newsletters. We ask for referrals at the end of our phone calls, when we are out for a dinner, buying something in a store, or even playing in recreation events with friends.
Are you beginning to understand the power of referrals? I hope so! By the way, do you know of anyone that can use a good real estate agent?