If your real estate income isn’t what you’d like it to be, you need more referrals! Inman News recently published a great article about a survey of 1,435 high-producing real estate agents, who were asked about the impact of referrals on their real estate business.
The survey found that over 40% of the agents received 1 to 5 referrals per year. Another 20% received 6 to 10 referrals a year. Referrals became closed deals about 50% of the time.
Here’s how referral activity broke down by source and volume:
40% of referrals came from the agent’s own sphere of influence, including past clients, personal friends and family members. Of this group, past clients provided the vast majority of the referrals.
About 37% of referrals came from other real estate agents.
22% of referrals came from referral websites and the agent’s own brokerage.
Agents who put consistent effort into their referral business can reap the benefits for years to come! We have some tips for you about improving your referral business, based on our own experience with top producers!
1. Learn as much about your client as possible. Make note of important dates; birthday, anniversary, date of home purchase, ect.
2. To get referrals from prior clients, they need to remember you! Stay in touch with your clients though a mix of emails, newsletters, and the occasional postcard. Send a hand-written card in the mail in recognition of birthdays, holidays, or home purchase anniversary.
3. Reach out to others in your sphere of influence. Share a little real estate news with them. Ask them if they know of anyone who could use your help buying or selling a home, now or in the near future.
4. Step up your networking. When is the last time you handed out a business card to a new contact? When is the last time you made small talk with a neighbor, or a local business owner?
5. Reach out to industry peers. Advise them of your specialties and markets. Ask for business. If you are willing to pay a referral fee, let them know!
6. When you are provided a referral, follow up with the referring party, and thank them! Even if the referral does not become a closed transaction, someone thought enough of you to send business your way. Show appreciation.
7. Treat your referrals like gold. Learn you can about them. If a referral does not become a closed deal, that’s ok! Let them know you’ll stay in touch. Add them to your contact database. Just because something didn’t work out this time, doesn’t mean you can’t help them in the future.
RealSupport can help you with customized email campaigns, direct mail marketing, newsletters and more! We provide eye-catching marketing and copywriting that helps you stay top-of-mind with leads and prior clients. Contact us today for your personal consultation!
Copywriting & Marketing Specialist