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What I Recently Learned From Some HUGE Producers!

By
Real Estate Agent with Simple Listing Solutions LLC

An interesting thing happened to me recently when I attended a two day event in La Jolla, CA to sit and learn from some HUGE producing Realtors and Lenders - it's called a paradigm shift.

The event was sponsored by By Referral Only Inc ( http://www.byreferralonly.com/ ) and was called the 2006 Strategic Leadership Forum. Most of the agents and lenders here have anywhere from 70% to 100% BY REFERRAL ONLY business - literally. Talk about quality clients and great life style! Many earn big 6 and 7 figure incomes in 30 hour work weeks, ALL referral.

Theses B.R.O. members have been taught to segment their business into three categories called: Before, During and After.

Before is everything they do to get a new client and would include running ad's, signs, whatever. These are referred to as the BEFORE systems.

The  During unit is all the systems they have set in place to generate a referral while in the process of working with a client, since this is the time most people are thinking about buying and selling, this is when they most notice it and are most likely going to be able to refer someone to you.

The After unit is everything they do to stay in touch with past clients in a meaningful and valuable way to generate referrals and repeat business.

Here's the interesting thing; having spoken to dozens of these agents at length, I was stunned to learn that all of them bar none were getting the bulk of their business from their AFTER unit. Past clients!

They didn't need to run ad's - they simply needed to stay in touch with their past clients. They had all sorts of creative ways to consistantly "wow" these valuable past clients and generate consistent business from them.

Imagine not having to spend money on marketing. Imagine only working with people who knew you, liked you and trusted you! Imagine your work day consisted of doing drop by visits to people who were happy to see you, invited you into their places of business and handed out your business cards while singing your praises as they did it?

The question that begs to be answered is, am I showing up and serving people in a way that would make them want to help me? If I am, am I asking for help from these people and then taking it one step further and showing them how they can help me?

Interesting to think about isn't it? How about if every single client generated you one piece of new businss in the DURING process and then referred a minimum of two people a year to you through the AFTER systems?

I went home, sat down and wrote a humble apology letter to all the people I'd abandoned and was surprised to learn that many were very happy to hear from me. This month, I've been referred a $2million home buyer, some first time buyers looking at $300k condos this weekend and perhaps a $7million commercial listing - waiting to find out on that one still.

Meaningful newsletters, personal notes, drop by visits, phone calls - amazing!

I know many of you are doing this already and can probably contribute some fantastic idea's to our community and I truly look forward to hearing your replys!

Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans
Chris Elizabeth makes an excellent point...
Dec 14, 2006 10:31 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Yes it is important to stay in touch with past clients, I do this rather well and benefit from the referrals.
Dec 14, 2006 11:05 PM
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert

I'll also echo your message too, Christopher. It is a good practice to stay in touch with all your customers. Even the one that you thought might have been a difficult customer to deal with. I've not sign up for the BRO system however, I do receive their e-mail and have pick up on tidbits that have benefitted me. Keeping in touch with customers is the key. I generally tend to call them over the phone. If I have any suggestions to share with them, I'll do so.

Dec 14, 2006 11:25 PM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Christopher is absolutely correct about By Referral Only.

I was a member for 5 years.  It was the best investment I have ever made.  I stopped because I thought I had learned enough and that I could apply the money better elsewhere.

It's the most honest and uplifting way of aquiring business.  The basic method they teach is once a month send out a "letter from the heart" which isn't any different than  a lot of posts that I see here on Active Rain.  Then once a month you send out a "success story".  Again, nothing different than what I read here.  Just a simple post card on how you solved a problem for someone.

If you don't have ideas, no problem.  They have a huge library of samples collected from the thousands of members who willingly share some of their best stuff.   Whatever marketing item you can think of, someone else has done it and it's ready for you to copy and implement. 

The key is the discipline to keep at it consistantly. They used to hold a three day training seminar "The Big Event" and I would recommend it to everyone.  Joe Stumpf is a real genuine nice person.

Two things that stick with me.  He asks whether you would feel comfortable having your clients be here with you learning this stuff?  You just sit there and think that that would be the most incredible thing there could be to show your clients how great of a service you are trying to provide for them.   No secrets or tricks to hide.

The other point that sticks with me is to start with the end in mind.  Picture the most perfect experience from the perspective of the client.  What special touch points can you provide to make the client experience special and memorable.  After you clearly see the picture of the puzzle on the box, you can now begin gathering all the puzzle pieces and start creating the picture.

Simple stuff.  But it's worth millions.

Dec 14, 2006 11:38 PM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management
Christopher, Thanks for the post. As has been stated it is all about systems and Joe Stumpf does a good job of helping you to put them in place. I enjoy a referral business as well. Every occasion you have to stay in front of a"Past Client" is invaluable. I use market updates, birthday greetings, anniversary of property purchases, just listed & sold in their areas, hosting seminars (1031 exchange, foreclosure investing etc). I got my company to host a dinner dance every year, for past clients who have referred someone who makes a purchase. All of these activities give you extra mileage in maintaining the relationship.
Dec 14, 2006 11:50 PM
Russell Rosencrans, ePRO, GRI
Century 21 Fridley Realtors - Branson, MO
This wa sthe first thing I was taught by a vet. She was a great person and always had something going. I asked her where and how she gets her business. Stay in touch and always be ready. I have applied and this is where my business comes from. The relationships I have built is the foundation of  all of my business. I am amazed what that consistent contact develops. Great post and thanks for the information.
Dec 15, 2006 12:27 AM
David Jones
Equity Bank - Destin, FL

I hear so much about CRM that it actually becomes common knowledge.  Or at least we all think it is common knowledge and so we discount it.  The value of any business is the systems you can put in place that will make your business grow.  Taking care of your past customers and developing your centers of influence is a hard job requiring lots of discipline that most folks talk about well but do poorly.  

A great assistant or excellent software program (there are a couple out there) is what keeps you on top.  Newsletters, drip email, direct mail, phone messages, press releases and timely articles drive this animal and you must work at it everyday.

 

Dec 15, 2006 01:35 AM
Terri Collins
RE/MAX Greater Atlanta - Cumming, GA

I have a question about the pop-by's.  I am not comfortable popping by someone's home simply because I'm in the area.  Personally, I am a very private person and I don't want someone just stopping by my house (even if they have a small gift...which I would probably end up throwing away).  I'm not being ugly or cynical, but show needs more clutter for their homes?  (Right, Staging Professionals?)

Through my communications with past clients I have been INVITED back to the home..."You must stop by and see what we've done with the place!"  Absolutely, I'm there!

Comments?

Dec 15, 2006 01:40 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS

After reading all of the positive comments, I feel like I'm missing out on BRO. I stopped doing just about everything I'm hearing here, because I was getting no return (Drip marketing, newsletters, postcards, etc). Now I just concentrate on touching base by phone, catching up and having pleasant conversations, and I actually get referrals that way. All the other stuff sounded good, but didn't work for me. 

Dec 15, 2006 02:11 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
So very, very true.  It is so often overlooked.  I had my best year to date in 2006 and looking back I concentrated heavily on the after.  Early in March, I closed a loan for a guy on a refi and he referred me two people instantaneously.....closed their loans as well.  Something went off in my head saying, Gee.....let's explore how to do more of this.  Very relevant blog Christopher!
Dec 15, 2006 04:28 AM
Christopher Sylvada
Simple Listing Solutions LLC - Encinitas, CA

Just wanted to send a quick reply to concern about pop-by visits as I to am private and wouldn't neccesarily appreciate it.

Here's a story about how Lexus kicked the pants off Merceds Benz in customer satisfaction.

Ninety days after a sale, Lexus dealer calls to offer free tickets to opera, sponsored by Lexus.

120 days after sale, Lexus dealer calls to invite you to drop car off for full interior/exterior detail.

12 months after sale, Lexus dealer calls and invites you to stop by dealership to p/u new floor mats since yours are likely worn by now. BTW - check out the new models while you're here!

18 months later, tickets to the ball game....

The point is not the giving of a gift. The point is creating "touch points" along the way that keep the customer attached to you through a series of positive interactions.

The strongest form of communication is a face to face visit, next is phone call or personal letter, last is email.

So, the question is - what can you do that will allow you to create ideally, a face to face visit with past clients in a way that makes them say, "wow - nice to see you and thanks so much for the thought!" This gives you the opportunity to then say, "thanks for noticing. By the way - I need your help with something really simple...could you not keep me a secret? I really rely on referrals from great clients like you, it's literally the lifeblood of my business". Oh you would like to help? Well, what can we do together to let the people at your church, work, gym, country club know about my services?"

Hopefully that helps!

Sincerely,
Chris Sylvada

Dec 15, 2006 04:31 AM
Yael Warman
Right About Real Estate - Dania Beach, FL

Great post Christopher (and follow up explanation of BRO)!

There are truly wonderful systems out there to help Realtors be constant and guide us through the process and save us time with ready-made-materials, so we don't have to invent what has already been invented. However, it's not really rocket science, I mean, it's in people's nature to want to refer something good (a good restaurant, a good movie), we just have to be good so we are "referrable" and help people remember we are Realtors. This days, with so many tools available, there is no reason we should not be in touch with our past clients. And if money is an issue, you have no excuse either, because with e-mail you can be just as effective.

Dec 15, 2006 05:45 AM
Suzanne Marriott
Keller Williams Arizona Realty - Anthem, AZ
Associate Broker, CLHMS, e-PRO
Referrals are excellent incremental revenue streams....but I think it would be an error to rely on them for 100% of your business.
Dec 15, 2006 08:11 AM
Teri Isner
Keller Williams Realty at the Lakes - Orlando, FL
GRI, CRS, CIPS
Have done his programs too, very inspiring, but the coaching side left alot to be desired for me.  Past client networking is a must all around always...especially this time of year letting them know their referrals are so appreciated.
Dec 15, 2006 10:26 AM
Nima Rezvan CT Lender CT Senior Mortgage Broker
Nima Rezvan Prosper First Funding Corporation NMLS#110681 - Fairfield, CT
First Time Home Buyer Expert - CT FHA Loans - FHA
Christopher, excellent blog.  I always look to veterans in the business field to learn something new.  Very nice written blog.
Dec 16, 2006 09:59 AM
Anonymous
Anonymous

Chris sent me the link and I have had the pleasure to look at many of your thoughts on referrals.

My name is Joe Stumpf; I'm the passionate founder of By Referral Only.

For the past remarkable 23 years, I have been teaching and training the principal providing the turnkey tools and modeling the behavior of referability.

I’m curious if you know the difference between…

Proactive Referrals

Reactive Referrals

Orchestrated Referrals

This thought might bring some clarity to how to build a BY REFRRAL ONLY business. Yes, that means 100% of your business comes from referral, repeat, friends, family and neighbors. 

After 23 years of study and application, here are my findings.

You can do about 1 transaction a month from a proactive referral process.

Meaning sending out letters, postcards, drop by visit and a dozen other things and ask for referrals in a non-specific, random way.

For example – a random, non-specfic request would sound like this…”Do you know anyone who would like to enjoy the same level of service that I provided you?”

Again, this method is good for about a deal a month, if you do it consistently.

You can do 2 to 3 transactions a month from a Proactive, plus Reactive Referral approach.

Reactive means when the occasion presents its self, you ask for referrals. You don’t send…….

Meaning you react to the situation. This is an important skill to develop: to know when to ask and how to ask in a reactive manner.

You can do as much business as your structure can handle if you’re Proactive, Reactive and Orchestrated.

What I teach at by Referral Only is that the big opportunity is in an Orchestrated Referral process.

Meaning, in the During Unit of your business, there is a referral moment that you create.

It is the perfect moment to ask for exactly what you want, the way you want it.

So, here is a simple technique to practice the next time you call your seller or buyer with good news.

In an Orchestrated Referral process, your purpose is to create an experience that every time you have good news for your client, you have an orchestrated referral moment.

Here is a sample script; you can find many more at joesjournal.com.

You: “Mr. Client, I have a few things to update you on. Is this a good time to talk?”

Client: “Sure.”

You: “When we first got together, you shared with me how important it was that we close this transaction by the 15th of the month, do you remember that?”

Client: “Yes.”

You: “Because that is so important to you, here is what I have been doing for the past 3 days to make that possible.”

“The home inspection came back on Tuesday afternoon about 3pm. Normally, what I would do is wait until the morning to pick it up, but because it was important to you that we close by the 15th, I drove down to the Home Inspectors office, which is about a 45 minute drive for me. I waited for about 25 minutes until they could print and collate the report. Quite frankly, it caused me to rearrange most of my schedule for the rest of the evening, but because I was able to get the report on Tuesday, then I hand delivered it to the title company on Wednesday morning. Your transaction is now scheduled to close on the 15th at 9am, just as you wanted.”

What I am doing when I deliver good news is tell the full story so the seller or buyer can understand my value. Value is received only when value is recognized. What I like to teach is that an Orchestrated Referral process is asking for referrals only when the clients see, hear or experience your true value. This is called a referral moment.

In this moment, you ask for a referral in an intelligent, effective way using my magic words technology.

 

For example:

After the client says, “Thank you so much for the work you have done to make the 15th possible.” You would say, “Sounds like you’re pleased? I know how important the 15th is to you for a closing date. I am delighted that you can count on me.”

“I was wondering if I could ask you for some help?”

“Over the next few weeks you may or may not come across friends, family members or neighbors that mention that they would like to buy a larger, more spacious home like you are doing, and when you are in a conversation with them, I would like to ask you to give them a special business card that I have created for people who are moving up in the market place. On this card it has a toll-free number with a recorded message that tells your friend exactly what they can do in today’s market place to own a larger, more spacious home.”

“Could I count on you to give this card to the people you care about who are like you, who mention they would like a larger, more spacious home and simply ask them to call and listen to the message?”

Now of course, you will need a great message talking about your process of helping people get a larger home, keeping their payments low and being in a great neighborhood.The nice thing about this strategy is that you can monitor how well it is doing by how may people listen to your message. You can change your request to be ‘first time home buyer’ or whatever target you want to attract.

 

Got to go now, come over to joesjournal.com for more referral insight.

Dec 20, 2006 03:35 AM
#34
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

We wish you a merry Christmas! We wish you a merry Christmas! We wish you a merry Christmas And a happy New Year! Glad tidings we bring To you and your kin! Glad tidings for Christmas And a happy New Year!

Broker Bryant and The Lovely Wife (pretend we are singing it works better like that) ROAR!

Dec 23, 2006 02:16 PM
Anonymous
Mike Perdue

Joe, you are an impressive man. I look forward to the main event.

 

 

Mar 21, 2007 06:55 PM
#36
Anonymous
Katrina Madewell - KMADEWELL

Christopher

I started a group here on active rain quite some time ago called BY REFERRAL ONLY ACTIVE RAIN MAKERS!!

and Yes I have been a BRO member for nearly 5 years now and YES I can tell you that Joe is a very intelligent man, he knows this business, and every 1:1 experience I have had with Joe has been well worth the time and money spend.

Katrina Madewell

Tampa FLORIDA

Sep 17, 2008 02:25 PM
#37
Katrina Madewell
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196

here is my logged in comment

Sep 17, 2008 02:26 PM