How to Increase Real Estate Referrals
Referrals are the lifeblood of a real estate agent's long-term business strategy.
But if you're a new agent, starting out, you might be at a loss as to how to get referrals. They don't happen by accident. You need to build a referral strategy and then execute it regularly.
Below, you'll find the fundamentals for building a thriving referral-based business.
Step 1: Consider All Potential Resources
First, let’s consider where you’ll get more real estate referrals from.
Existing friends and family are logical targets for referral requests when you’re just starting out, but you won’t get very far without expanding your referral pool fast.
The other common advice is to ask past clients to recommend you to their friends, and it’s a worthy goal to build client relationships in real estate that will last decades.
Beyond these staples, there are actually a ton of real estate agent networking options for cultivating referrals.
Other Real Estate Pros
The real estate industry is full of self-employed professionals who also rely on client referrals. This includes inspectors, appraisers, lenders, mortgage brokers, and many others, but it can also mean real estate agents with niches outside your area of expertise.
Networking and building relationships with other professionals can generate leads for you both.
Hone your networking skills. Forge connections with the pros you encounter on the job, especially those who are great at their job. Go to trade shows and industry events and establish yourself as an authority with other professionals. Consider who might interact with potential clients for your target base and go from there.
Reputable Contractors
Every property owner is going to need repairs, upgrades, and remodels at some point. Sometimes, that work begins right away. Building relationships with people who provide services to existing homeowners can be valuable for both of you.
Local Entrepreneurs & Businesses
Networking with local businesses or vendors outside the real estate community can bring a whole new source of business and referrals. They're plugged into your community in different ways than you are, and you can build mutually beneficial relationships.
Other People In Your Day-To-Day Life
If you have kids, hobbies, or volunteer in your community, you have access to more potential referral pools. Just tread lightly here – unlike the other groups on this list, you aren't offering direct reciprocation.
You're asking for a favor, so a light touch is best. Wait until they know you and trust you or they mention someone who might benefit from your services.
Continue Expanding Your Reach
As you can see, there are a lot of angles you can take to build a referral network. The more of them you work, the better.
That said, if you're just starting out, it can be less overwhelming to pick one or two pools to focus on and build a routine. You can expand your referral plan into other areas later. We suggest starting with existing clients and other real estate professionals because those are natural connections (and, therefore, the most likely to yield business). Additionally, building those relationships will have many other benefits for your career.
Step 2: You Have to Ask!
This should go without saying, but you can't go without saying! You won't get real estate referrals if people don't know that you need them.
Of course, there's a time and a place. You'll have more success if you ask the right people at the right time in the right way.
Ask The Right People
Don’t ask clients who aren't happy with your services. You want to target people who know and trust you, value your judgment, or have seen your expertise at your job.
Ask At the Right Time
With clients, wait until a bow has been tied on their transaction or they bring up just how amazing you are.
With professionals and business owners, you can bring it up fairly early but make sure to build a rapport first.
With others, wait until it comes up organically. Maybe they ask how the business is going or mention their friend is getting married.
No matter who you’re asking, you don't want to push or bring it up too often.
Ask The Right Way
Be direct. Don't hint or beat around the bush. You want to be polite and respectful, but you do need to come out and ask.
It doesn’t have to be complicated. Try, "If you know anyone who’s looking for a real estate agent, I would really appreciate you recommending my services."
Provide The Right Resources
If you have a particular niche, let them know what kind of clientele you can help.
And always leave behind one or two business cards. Don't give them a whole stack unless they ask – you don't want them to feel like you expect too much from them.
Show Your Appreciation
When a referral does come through, thank the source with a quick text or email. Even if the lead doesn't work out, you should express appreciation that they thought of you and passed your name on. Otherwise, they won't keep doing it.
If someone sends multiple referrals your way, consider giving them a token of your gratitude or doing something nice in return.
Encourage Reviews & Testimonials
Not everyone is in a position to increase your real estate referrals so directly – this doesn’t mean they can’t be of value in driving new business.
After all, what are reviews and testimonials but a type of referral provided to a stranger?
Ask clients to write one or two specific remarks you have their permission to use in marketing materials. Good testimonials can be leveraged across multiple platforms to support your business.
Step 3: Keep In Touch & Provide Value
You don't want to be the schmuck who only calls when you need a favor. Nurture your relationships and check in periodically. How you do so will vary by relationship.
You’ll need to use your best judgment on who warrants a casual face-to-face, who rates a phone call, and who can simply be part of your email marketing strategy. No matter what medium, you should always provide value with every communication.
Sometimes, this value is just a human connection – texting to say you heard they were sick and wishing them well, for example. Holiday cards are another classic example. More often, though, it should be something more tangible, as we’ll discuss below.
Cross-Promote
All those professionals you've built relationships with? Send them referrals when it's appropriate. This provides value to both the pro and the person you're referring to, which makes them each more likely to refer a friend to you as a resource.
Drop a note after you refer someone so they know who might reach out and that you're actively sending them business. It’ll help them be prepared, plus you’ll get “credit” even if the referee doesn’t follow through.
Note that you should focus cross-promotion on individuals whose work you know and trust. Referring people to someone that disappoints them will damage your credibility.
Provide Helpful Information
People will learn to open your emails or texts if you consistently provide quality information that is relevant to them. You can write the content yourself or simply link to other sources.
For the most success:
- Divide clients by criteria, such as where they are in their homeownership journey.
- Divide professional contacts by career.
- Cultivate content that will be helpful or interesting to each group. Some things will be of interest to multiple groups, but make sure you’re targeting your communications thoughtfully.
When we talk about providing helpful information, we’re not suggesting you give valuable services for free. Examples of value-add communications include:
- Sending past clients articles on things like seasonal maintenance, how to preserve resale value, or which upgrades will improve the value of their home.
- Sharing information about community events or professional development opportunities.
- Recommending podcasts or YouTube channels that might be helpful.
Whatever it is, build a schedule that allows you to remind people you’re still there without coming across as a pest. You can accomplish this with a regular schedule, like a monthly newsletter, or with random-seeming emails as you find good information.
If this "providing value" business sounds like a lot of work…well, it is. It's also incredibly effective. Regular communication keeps you at the front of people's minds so that they remember you when someone needs your services. Providing value keeps them positively engaged (and keeps them from sending you to spam). Quality content builds you up as an expert in their minds. You aren't just in it for the sale; you're a source of advice.
The Real Secret: Be Excellent At Your Job
Of course, the best way to build your referral business is to provide high-quality service to your clientele.
Let your clients know what to expect from you, and then follow through. Provide perspective to temper any unrealistic expectations and provide advice in any area they need it. But don't bluff on what you don't know – you'll damage their trust. Instead, keep up-to-date on your continuing education, read up on relevant topics, and become a Googling master.
Clients who see your dedication will want their loved ones to benefit from your expertise, too. Head to our website to view our continuing education courses and enroll today!
