People who refer business to you are gold bars. While panning for grains of gold with uncomfortable and inconsistent prospecting methods, most agents are letting the gold bars sink to the bottom.
If someone thinks enough of you to refer business to you without the motivation of compensation, they are telling you something important. Pay Attention. If they have one person they trust to you, they will undoubtedly have more, unless you fail to appreciate the gift.
I send out between 2-5 real estate referrals per month. I don’t receive any compensation on these as I am not a broker. Money isn’t my motivation or the reason that I am making the referral. I want the consumer to have an exceptional experience and to achieve a great outcome. I want the agents who have taken the time and effort to be good at what they do, to get the business they deserve.
In over 80% of the cases that I send a referral to an agent, I hear nothing back.
I have to make an effort to follow up and see what happened. It’s disappointing, and those agents don’t get more referrals from me. If I’ve taken the effort to make a referral, I care about the outcome.
Sure, we have privacy laws in Canada, but that isn’t what is going on here, and we all know it. The agents got busy and didn’t follow up with me. I didn’t matter enough to them.
People who refer business to you are taking a risk on you because they like and trust you. Don’t disappoint them.
I wrote a series of blog posts on referrals in 2017 that are our most read and most shared. They explore the depths of the psychology behind why someone will or will not refer or recommend you. They are linked here for your convenience.
The best real estate businesses are built on a solid foundation of excellence, connection, and trust, leading to a consistent flow of high-quality referral business. Be sure to appreciate the people who help you along the way.
Building a culture of Referrals – Part 1: How to Talk about Referrals
Building a Culture of Referrals – Part 2: Earning the Referral
Building a Culture of Referrals – Part 3: The Positive Effect of Referrals on the Industry