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Are You "By Referral" or "Word of Mouth"?

Reblogger
Services for Real Estate Pros with Marte Cliff Copywriting

Thomas Nelson's explanation of the difference between "by referral" and "word of mouth" outlines a marketing plan that fits equally well for past clients, people in your sphere of influence, and your geographic or niche farm area. 

When it comes to past clients, you may have planted the seeds with spectacular service, but unless you nurture them, your crop of referrals from those folks will wither and die. The others don't already know what to expect from you, so the materials you send need to show them your expertise and reveal what great service you offer.

A second point is that sometimes you do need to ask for referrals. I have no idea why, but I read an article a while back saying that some people are reluctant to send referrals because you might be too busy; might not like it; etc. It sounds crazy, but that's what I read. 

Beyond that, some people just don't think to do it. So remind them. Ask in a "soft" manner, almost as an afterthought when you're sending them good information. You don't want to sound needy or make it appear that the only reason you got in touch was to ask for that referral. 

Original content by Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets CA BRE# 01261476

Are You "By Referral" or "Word of Mouth"?

 

Sounds the same, what's the difference you ask? It's a big difference actually ...

 

 

What many folks I come across in networking thing is working by referral, is really just word of mouth. Word of mouth is very random in practice and in results. Conversely, working by referral is very on purpose and produces predictable results. When you have predictable results, you have a business!

 

Here's what I learned in Buffini %& Company's Peak Producers Training:

Word of Mouth      Working By Referral    
Fishing Hunting
Waiting Finding
Unpredictable Certain
Inconsistent Predictable
Drifting Set of the Sail

 

Brian Buffini teaches us that "Working By Referral is a consistent level of contact with the people and care for the people in our databases. This care leads to a steady stream of referrals to their family, friends and associates."

sow & reap

I like gardening references & metaphors so here's how to grow your Referral Business:

Did you know, (per NAR), that over 80% of Real estate transactions come from repeat clients and referral customers? Doesn't knowing that fact get you excited about working the database you already have vs. the "spray & pray" approach of leads on Zillow or other online sources and leads solicitors?

 

1. Till the Soil

Just like turning over the dirt in your garden, you have to till the soil of your database. You have to get your hands on it and get a little dirty interacting with it. (dirty because along the way you'll find not all are the referring type, just like not all seeds will take root that you plant). The priority of your day is those past clients you served so well and the current clients your working with. Cultivate relationships you already have and reignite their advocacy for your business.

2. Plant your seeds & water them.

Just like your seeds need water, so does your database. Nourish your relationships with monthly & quarterly calls, video-e-mails and mailers. Items of value, mailed regularly with current information on the market, home ownership or lifestyle, etc.

3. Fertilize & Nurture/Defend.

The care that goes into your garden, feeding, weeding and pest control, is the same care that goes into your database. The feeding: Once in a while write them a personal note or plan a pop-by for a quick face to face get-together or even a coffee or lunch together. The weeding: You have to occasionally pull someone out of your database like a weed, to make room for a better fit, like a plant. Sounds harsh, but it's your choice; a garden of weeds or a garden of fruit bearing trees & plants? Defend: loyalty comes from care and just like the pest that would eat or damage your plants, there are outside forces ready to attack your database. Left alone without your contact too long, they could be slowly taken away by others trying harder to gain their attention & business. Don't neglect your garden (database), you've put too much work into it at this point.

4. Grow

Your clients may like you but you need them to trust you & respect you first. This comes from your expertise they rely on. Just like you need your garden (database) to grow, you need to grow your skills to keep up with the demands of the market & the ever changing market conditions. Coaches, mentors, classes and training: continue to sharpen your skills that pay the bills.

5. Harvest

The harvest for you is the referrals & business you reap from tending to your database consistently and with purpose. The harvest for your clients is a well executed sale that got them a home of moved them on to their next one. Just like the farmers do, we need to celebrate the harvest. Host a client (and service provider) appreciation party at least once per year to celebrate and thank those that contribute to your annual harvest! These are fun and referral generating events that other peoples' Realtors don't do; why not be the one who does!

Comments (9)

Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Very good!

Thanks for sharing this gem Marte, I always enjoy it when people share the gems that they learn at seminars like this.

 

Sep 08, 2015 04:21 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Marte Cliff excellent post for a re-blog! And yes, big difference between the two!

Sep 08, 2015 04:43 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Marte, thanks for the re-blog. Buffini sums it up well! Enjoy your day!

Sep 08, 2015 08:31 PM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Great choice for a reblog.  There is always more we can be doing w/ our database.

Sep 08, 2015 09:50 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have been a Buffini-ite for many years and a certified mentor for Buffini's Work by Referral system, as well. I am very deliberate about generating referral, but I'll take the word of mouth referral as well whenever they want to come in.

Sep 08, 2015 10:16 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Thanks Bob Crane - I thought it was good advice. 

Praful Thakkar - although at first glance they seem the same. 

Wayne Martin I thought so too. Thanks!

Debbie Gartner Yes... always something more. 

 

 

Sep 09, 2015 06:51 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Nina Hollander - Absolutely! Never turn down a great lead! 

Sep 09, 2015 06:52 AM
Dan Derito
Success! Real Estate - Brockton, MA

Thank you for sharing this Marte.  When a friend refers a Realtor to another friend or family member, that Realtor is usually the only one the new client will interview. 

Sep 09, 2015 12:37 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Dan Derito Yes, why should they take a chance on an unknown agent when someone they trust has made a recommendation?

Sep 09, 2015 01:34 PM