As a Realtor or Lender, do you know the optimal time to ask your client for a referral?
Not an "OK" time, or a "good" time, but - the optimal time to ask for referrals?
The optimal time to ask for referrals is when you're in the process of helping someone buy, sell, or borrow. This is when you're in the most frequent contact with your client, and this is when you're dazzling them with your world-class service.
During the transaction you're acting as their:
Consultant: You lead the process, ask important questions, and offer expert guidance and advice.
Negotiator: You utilize your experience and skill to evaluate their options and help them make the best choices.
Overseer of Transactional Details: You manage paperwork, electronic communications, telephone calls, and hundreds of details to bring their transaction to a successful conclusion.
On a daily basis you're anticipating problems, finding solutions, and sometimes working miracles. You've been known to leap tall buildings with a single bound. So right now, as you're performing these feats, is the optimal time to ask for referrals.
The goal we aim for at By Referral Only is a 50% return on clients in process. That is, one-half of the people you help buy, sell, or borrow introduce you to your next client before the transaction closes. So let's say that right now you're working with four clients. If two of those clients introduce you to a new client, you've increased your business by two transactions. Let's also say that your average commission is $3,500. That's an additional $7,000 in your pocket because two of your current clients introduced you to your next client.
And did you notice that it didn't cost you anything?
But here's the catch: Your clients don't know that you want their referrals because you haven't told them. Do not - repeat - do not assume that your efforts will prompt your clients to connect the dots and say, "World-class service like that deserves a referral!"
No. That does not happen.
Fortunately, it's easy to let your clients know - right up front, in the first few minutes of your first meeting - that you want their referrals, and that you intend to earn them. Here's the language you use:
"Mr. and Mrs. Client, my goal is for you to be so happy with the help I provide that you'll gladly introduce me to at least two people you really care about before your transaction closes."
With this one simple sentence you've:
- Demonstrated your resolution to provide world-class service.
- Clarified your commitment to the client being happy with their buying, selling, or borrowing experience.
- Let the client know that their introductions are crucial to your business.
Then, in the days and weeks ahead, as you're anticipating problems, finding solutions (and perhaps leaping a tall building or two), when your clients say "Thank you," gently remind them,
"You'll remember that at our first meeting I said my goal was for you to be so happy with the help I provide that you'll gladly introduce me to at least two people you really care about before your transaction closes.
"The next time you're in a conversation with a family member, friend or coworker and they say they really want to get out of their apartment and into their own home, or perhaps they're expecting a baby and they need a larger home, or maybe they're empty nesters and they're ready to sell their house and get into a condo - please give me a call so we can discuss how I can help them."
Delivering world-class service is how you earn referrals. Using this language is how you get them.
Generate more real estate leads and turn those leads into contracts, closings and commission checks using the By Referral Only real estate dialogues and marketing tools.
www.mybyreferralonly.com. For more than 20 years I have trained and coached the most successful real estate and mortgage professionals in North America on the systems and strategies for building a highly profitable referral-based business. My company, By Referral Only, provides you with expert coaching, turnkey business systems and revenue-generating marketing strategies so you can absolutely dominate your market.
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