New Construction Sales Training - Networking and the Art of Developing a Referral Network by Saying "Yes" to Business Opportunities

Recently, Anne Marie Malfi posted an inspirational article suggesting five great ways to "tune-up" your real estate business.  It was a fine post.  However, when she used the phrase "program your brain to see opportunity", it really resonated with me. 

In new home sales, I often see sales associates who have a myopic focus on their builder's inventory and often do not see business opportunities when they present themselves - particularly when they act only as the on-site builder sales representative.  Too often, we focus only on immediacy (ie. buy now) aspect of a sales call and not on the opportunity to cultivate long-term leads, seek referrals, or develop our referral netowrk.

For example, an on-site sales representative receives a call for a rental or a single family home or some other housing product that they don't offer or have available.  Instead of viewing this telephone call or interaction as a business opportunity, they simply dismiss the caller with an answer like "sorry we don't have any rentals" or "we only have condos and lofts for sale."

If the call stops with a simple "I can't help you" type statement, the on-site sales representative has missed multiple opportunities to capitalize on this contact.  Here is my suggested plan of action:

Step 1 - Engage in Conversation:  The first step requires you to engage the prospect in conversation.  In doing so, you have an opportunity to "peel the onion" (ie. remove the layers) to see if the person has considered or is interested in purchasing the product that you offer.  The simple fact is that some renters haven't considered purchasing, don't understand the costs and benefits of owning versus renting, or wrongfully believe that they can't or won't qualify for a loan to purchase a property.  Step 1 is equal parts of qualifying the prospect and educating the prospect. 

Step 2 - Provide Information:  The second step is to provide the prospect with additional information to assist them with their search.  In some cases, this could be as simple as directing them to the local multiple listing service or other website portal to search for properties.  It can also entail providing them with information on local neighborhoods, schools, businesses, etc.  Even if the prospect is not going to purchase a home from you now, you have added value and have acted as a valuable resource.  With periodic contact, you may be able to cultivate the prospect as a long-term lead.  In the alternative, you are enhancing your stature as a trusted advisor and have laid the groundwork to ask for referrals from the prospect's friends and family.

Step 3 - Make a Referral:  The third step is to refer the prospect to another real estate professional who handles the types of properties of interest to the prospect.  By doing so, you have provided assistance to the prospect.  More importantly, you have created a referral relationship with another real estate professional.  By creating a referral relationship, you now have created a bridge with that agent and that agent's office.

Instead of saying "no" to business opportunities, it is a better approach to recognize the business opportunity and say "yes." 

• Yes, I will try to educate the prospect on the benefits of home ownership and will make a sales presentation.
• Yes, I will provide assistance to the prospect, cultivate the prospect as a long-term lead, and ask for referrals. 
• Yes, I will develop a network of real estate professionals to whom I refer prospects that I am unable to assist. 

With one call, you have at least three opportunities to sell, seek referrals or develop a referral network.  In 2009, say "yes" to each and evey business opportunity.

 

PREA Signature Realty is a full service brokerage and consulting firm in Saint Louis, Missouri, providing sales management services to real estate developers and owners.  For more information on our sales management services, please contact Ryan Shaughnessy at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.