Mark Lemmons Group

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Three Foolproof Ways to Build a
Business by Referral

Did you know that 74% of consumers say word-of-mouth is their biggest influencing factor in making a purchase? It’s not hard to believe. People easily trust a friend’s experience over an advertisement. This goes for real estate as well. 82% of all real estate transactions come from repeat and referral clients. Making up such a large portion of deals, it’s no surprise real estate agents are in the business of building relationships. How can you build and keep relationships to your advantage? In this post, we will discuss three foolproof ways to build a booming real estate business by referrals.

1.Show Evidence of Your Success

Friends, family, and acquaintances should know you’re in the business of real estate. Put yourself out there and let people know you’re in the business to serve them in whatever needs they have in the world of real estate. Carry business cards to always be prepared to share your information with a prospective new client. Don’t be afraid to boast about your successes in person and on social media. Share about the specific ways you have helped other clients. Everyone loves a great success story! Note appropriate details of negotiations you conducted, time spent with your clients, and the joy they have in their new home. With their permission, post pictures together with them closing the deal. Ask your broker for a fun prop to use to really stand out. Social media is a great way to keep a track record of your success and display for the world to see!

 2.Treat your Sphere of Influence (SOI) as People, not Transactions 

Your mindset matters, and people in your SOI can smell a slimy salesperson from a mile away. Don’t come off as aggressive or needy with clients when asking for referrals. Send a handwritten note, thoughtful text message, or email after closing a deal with a client. Let them know how you enjoyed working with them, and how happy you are to get them into the home they’ve been searching for. Do not make this a generic email you send to all your clients. Take time to reflect upon your experience with each client, and write with authenticity. The goal is not to write a novel that’s going to take up much of your precious time, but a genuine “thank you.” Include a sentence or two near the end about how much you would appreciate a referral. Here are two examples you can work from:

“Given the success we had working together, I wondered if you might know of any friends who are also looking to buy in the area. I would love to help them find another great deal!”

“I would love the opportunity to work with any friends you might be able to refer me to in order to help them achieve the same success we had in finding your dream home!”

3.Ask How You Can Serve 

Instead of thinking what can I get?, start thinking what can I give? What type of information would best benefit your past clients? How can you provide value while staying top of mind?  Here are three key ways you can serve past clients:

  1. Send market updates: Keep clients in the know with automatic emails providing market updates. This is sure to keep past clients up to date with the latest market trends, as well as demonstrate your knowledge of the market. This will also position you as a valuable resource they will likely share with others. 
  2. Provide the market value of their new home: Have a regularly timed email to send to individual clients on the current market value of their new home. Clients love to know this value, which is likely to have gone up since you helped them get into their home. They will feel special knowing you’re thinking of them and willing to provide them this information without their asking! 
  3. Help fight property taxes for free: Send out an email at the end of every year letting clients know you’re happy to help them fight their property taxes for free. Provide them with all the information they need to know in the email, and make it clear you are available for them to contact you directly with more questions. 


Bottom Line

Treat your clients as people, not transactions. Interact with them in such a way that you’re considering their needs before your own, and they’ll remember how well they’ve been cared for and be sure to refer you to friends and family. Don’t be too methodical about your contact with them. Don’t be afraid to send a personal text message when you’re thinking about them. One great way to connect with past clients is to share a recent success story with another client that may have reminded you of their journey with you!

With over ten years in the real estate game, I love helping real estate agents build their business from the ground up. And referrals are key to doing just that! For more information on how to stay top of mind with past clients, read my blog post here!

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