Over 70% of real estate deals happen because of a personal referral.
This figure only goes up for the top 5% of Realtors.
The most successful Realtors out there are getting lots of referrals.
So what separates you from them?
You both ask for referrals, right?
The top 5% have found a way to nurture their referral sources so that they don’t have to ask for referrals.
They just get them.
So you need to ask yourself...
How much more $ could you be making from referrals?
Now, asking for a referral might prove fruitful once in a while, but it’s manual and unpredictable.
Here’s an analogy…
What are your favorite songs?
Kind of a tough one right?
If you’re like most people, you just sort of know em’ when you hear em’.
It’s the same when you ask “Got any referrals for me?”.
When people have to dig through the data in their brain, they instinctively try to find a way out.
You're probably familiar with the following...
Yup, we've all been there.
But the bigger problem is that most people don’t know anyone looking to buy or sell a property at any given time.
They actually can’t help you at that random moment in time.
And this is where most Realtors give up, thinking “Well, at least I asked!”.
No. NO. NO!
Here’s the thing… people are busy.
They go about their lives and 98.5% of the time they’re focused on their own stuff.
They have jobs, families, marriages, friends, vacations, errands, hobbies, etc..
Human attention spans are tiny, and they continue to shrink.
Even the kindest, most sincere people are not going to remember your polite hint to send referrals your way.
Especially days, weeks or months down the road.
Referrals are still your main source of client acquisition.
And this is without even doing it right (for 95% of you at least).
So if simply asking doesn’t work, how in the world do you get referrals?
It starts by creating a strategy that complements the characteristics of this channel.
I can't stress the importance of that last line enough.
But what are the characteristics of this channel?
Well, the channel is referrals.
The characteristics of this channel are:
Your strategy needs to be in sync with these characteristics, which means putting a system in place that addresses each one.
Personal - people are connected to you
Sporadic - people associate you with your industry
High Value - people want to send you ALL of their opportunities
Your system will include creating and running a Referral On-Ramp for your business.
When you have a Referral On-Ramp it means you have an easy, memorable, rewarding path for everyone in your network to send you referrals.
This methodology has proven successful with thousands of businesses in dozens of industries, but it works particularly well in real estate due to the relative value of each referral.
We can confidently guarantee that if you complete all 6 of the items in this checklist and have the right offer, you will generate at least two client referrals in your first week.
Now, if you want to automate and scale your referrals, make sure to check out our guide “How to Maximize Client Referrals With Referral Program Pros” at the end of this page.
But before you do that, here is the checklist you came here for:
1) Set your referral goals
2) Create your referral offers and instructions
3) Make a list of your potential Ambassadors
4) Invite your potential Ambassadors
5) Send your referral offers and instructions to your Ambassadors
There’s an old saying “What doesn’t get measured, doesn’t get done”.
I don’t know who said it, but it sure rings true in my experience.
In order to be successful, it’s important to establish some sort of goal so you can pre-define what success looks like to you.
That’s one important part.
The other part is simply knowing your capacity, because you don’t want to set the expectation with your referral sources that you’ll take amazing care of all the referrals they send your way, and then end up with too many clients!
So, set your referral goals for a given period of time and track them.
The first thing people think to themselves when they’re asked to do almost anything is WIIFM (What’s In It For Me?).
It’s just human nature.
This is why this step is super important.
By laying out your specific referral offers and instructions, you are clarifying the reward (WIIFM) up front.
You're also detailing exactly what your referral sources (we call them “Ambassadors”) should do when they come across a potential client they could send your way.
Your referral offer for your new clients should include exactly what reward they get, how they get it, and when they get it.
Is it straight cash?
A gift card?
A post-move-in cleaning?
How do they qualify to receive the reward?
When, exactly will they receive the reward?
Do the same thing for your Ambassador’s referral offer.
Providing these details up front does a few things for you.
It gives your Ambassadors confidence that you will fulfill your end of the bargain.
It provides a memorable incentive so that people actually remember to bring you up in conversation and it gives people something to talk about - a reason to do business with you.
Be generous when creating your referral offers - after all, this is new business that otherwise wouldn’t be coming your way.
You probably have well over 1,000 people in your social network.
If you include your family, friends, acquaintances, past clients and people on social media, the number is at least higher than you think.
Any and all of these people can be an Ambassador for your business.
Some people will do it because they love you.
Others will do it because they want a reward.
And others will do it because “hooking people up” is what they do.
No matter their reasons, you still get the referrals.
This is why your list should include everyone.
After all, you’re not asking them for anything.
You are inviting them to receive rewards by building your business alongside you.
Once you have your list ready, it’s time to send your invitations.
This is a crucial step as you are now priming your Ambassadors to send you referrals.
This is the difference between asking for referrals and creating a system that generates them for you.
You’re not asking for referrals at this point.
You are simply inviting people to earn rewards by carrying the flag of your thriving business and sharing in your success.
In your invitation, you will let them know that you will be sending them offers (the referral offers you already created) to earn exciting rewards when they have referrals to send your way.
Would they like to join up and earn with you?
Leave it at that, then wait for responses.
Most people you know will be happy about earning rewards to help grow your business.
They’ll hop on board in droves.
Now you just need to send them the referral offers and instructions you already created in step 2!
You can also create new offers every week/month to keep things fresh.
The key is to communicate with your newly minted Ambassadors on a consistent basis so they are always ready to send you that next referral.
Want more tips on referral marketing?