Michael Hellickson was asked by Top Producer Systems to create a six-part series of the most important aspects of real estate. In this, part 4 of 6, Coach Michael explains referrals and how you can implement the systems needed in your business to virtually compel past clients and people in your sphere of influence to search for and send you the contact information of everyone they can find with even a moderate interest in buying or selling a home.
Forty-one percent (41%) of the average real estate agent’s business comes from referrals! It is thus important to know how to utilize and master the systems to create a steady and predictable stream of referrals!
Some of the things you can do to create referral systems are: phone calls, handwritten personal notes, pop-bys, client events, evidence of success postcards, thank you notes with gifts, social media, and newsletters.
All of these actions are great ways to get referrals, but you need to be consistent in your efforts, or they won’t work as well as they could.
If you are sending a monthly newsletter (if you haven’t done so already, check out our “Perfect Real Estate Client Newsletter” post), you want to send it at least every month, otherwise your clients will notice that you have stopped! In some cases, they may even think you stopped sending it to them on purpose. Sending it less than once a month also is too infrequent to ensure that your clients will receive the latest news from the industry and your company.
Client events are a fantastic way to spend your time, effort, energy, and money! Check out our blog on Client Appreciation Event Marketing.
Client events are great for showing past clients that you remember them and you appreciate them. After you host an event, people start to tell their friends and family about you and your event, and eventually (especially when combined with the other strategies discussed in this blog) that turns into referrals.
When planning your client event, use our 14 Points of Contact checklist. (Check out the download on this page for the full checklist!) When you follow this checklist, you are very likely to make a great success of your client event.
Each of these referral systems is a system INSIDE of a system.
When someone sends me a referral…
CALL THEM! When someone sends you a referral (check out our “10 Things to Do When You Receive a Referral” post for a step-by-step breakdown), personally call them and thank them.
You should also be sending a handwritten personal note with a gift to reward the act of sending a referral. (It’s their job to send you the referral and YOUR job to get the referral to do business with you!)
See the download on this page for a full list of Club Wealth® VETTED companies we’ve used for gifts for our clients!
Make sure you name the referral in your newsletter. Add their name to the “Friends Referring Friends” section. Give credit to both the person doing the referring and the person being referred.