5 Secrets to Great Referrals

When it comes to referrals, I often hear the argument that it's too hard to depend on referrals for business, because they are completely out of your control. I disagree.

There are a few "secrets" you can add to your real estate business that will help groom your clients into creating a steady stream of referrals you can depend on.

1. Give and take or "I'll scratch your back if you scratch mine" - Society has groomed us to feel obligated to return favors. Someone holds a door open for you, you open the next one for them. It's in our nature to try to give back to someone if they have given us something. So get in the habit of offering value (no-obligation information, a gift at the beginning of your client relationship, a simple card on their birthday) and you'll find many people are happy to return the favor in the form of a referral, if you just ask.

2. Recognize your clients - People are busy these days, and rarely take the time to recognize and appreciate those that are important to them. So be different! Use an ad space in the newspaper, and thank everyone that did business with you this month. Then, clip it out and send it to them. People love seeing their name in print, and they'll definitely remember you in the future!

3. Forget the "next best thing" - I see too many agents pass on potential leads because they're too far out. I know that an immediate income is important, but you don't just drop them and move on to the next guy. Add these folks to your contact list, and stay in touch with them regularly. Send them the occasional free report, or tips list, or simply a "Thinking of You" card. Even if they're not ready now, they might be in 6 months or a year. And in the meantime, who will they think of if a friend is looking for a home? That's right, the agent the stayed in contact with them, instead of dropping them for "the next best thing."

4. Develop a viral campaign - Anything that gets passed along from friend to friend or neighbor to neighbor can be considered viral. So spend a little time and come up with something helpful or clever and let your clients help you spread the word. Ideas: Sponsor a block party, then spread a YouTube video (branded with your name, of course) with "best of" moments from the party. Or, an email or flyer with curb appeal tips that can help increase the value of an entire neighborhood.

5. Last but not least, when they do send you a referral, thank them and ask for more! - Send out a thank you gift, along with a note. Thank them for thinking of you, and encourage them to do the same in the future if they hear of anyone else that could use your help.