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Are you a good referral partner or bad referral partner?

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Mortgage and Lending with Bay Equity, LLC 770-634-4021 NMLS #206275 GA 25689

Are you a good referral partner or bad referral partner?  This question reminds of Glenda, the witch of the Kathy Sheehannorth in the Wizard of Oz when she asks Dorothy, " Are you a good witch or a bad witch?"  In business, we may not be witches, but we can still be good or bad.  

A definition of a good referral partner would be - two or more business professionals that support each other's business by sharing resources, contacts and potential customers.

In contrast, a bad referral partner would be - two or more business professionals that are only focused on their own business and what they can get out of the relationships.  

While both types of referral partners may lead to closed business, typically a good referral partner relationship will last far longer and be more profitable.  

For my business, the best referral partners I have are real estate agents, financial planners or CPA.  Throughout the years, I have always supported those individuals that have supported me.  Let me tell you a short story.  About 6 years ago I met a husband and wife real estate team at meeting.  I followed up with them and about 3 months later I received a referral for a client that was relocating to Georgia.  They were so pleased with my knowledge, follow up and professionalism that was the beginning of a great business relationship and friendship.  About 2 months later, I had a buyer that needed help finding a real estate agent.  Of course, I recommended this team.  To my surprise, they told me I was the FIRST loan officer that ever offered them a referral after being in the business for more than 10 years.  We are still referral partners and when someone needs to be pre-qualified, I know that my name and contact information will be given to that prospect.

I make a deliberate decision to only work with good referral partners.

So, are you a good referral partner, or a bad referral partner?

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comments (38)

Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Edward and Celia, those are the ones I break away from as soon as possible!

Gene, you are so kind.  Thank you for the compliment.   I suspect you too have surpassed "good".

Kathleen, I wish all agents had your philosphy.  I actually referred a buyer to an agent then they tried to ge them to switch lenders!!! Can you believe that?  Guess who won't be seeing any more referrals from me?

Melanie, it is part of my business plan too.

Jerry, when I find a good agent I always try to find a way to help their business.

Tammy, perhaps we can be referral partners??

Gary, it is all about the relationship!

Jun 08, 2013 06:03 AM
Ann Samuelson
Suntree Inc. - Astoria, OR

Great post, whatever I do, I'm as good as my network...important to not just think what you are going to "get" from a referral but focus on "giving" it, not always, but more often than not you receive.  If the intent is to just take, well it just doesn't work that way.  Being a Referral partner is actively contributing to that relationship.

Jun 08, 2013 06:04 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Bill, that is a great percentage!

Kimberly, good luck with that referral!

Ronald, absolutely!

Chris and Dick, let me know if I can help.

Mark, it is never too late to change.

Jun 08, 2013 06:06 AM
Lori Bowers
La Quinta, CA
The Lori Bowers Group

It is interesting how many vendors do not understand to return referrals.

Jun 08, 2013 06:22 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Kathy, I feel it has to be a two way street if it is to work. If it is all out going referrals and nothing in return the partnership will not survive.

Jun 08, 2013 06:23 AM
Bill Pohl
Tetra Homes, Inc. - Loveland, OH

Good story....I wish this type of cooperation would happen more often

Jun 08, 2013 06:35 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I'm a good one, and since I don't take listings I look to those local agents that do very seriously.  Some don't follow through, unfortunately.

Jun 08, 2013 06:44 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I am a good referral partner. My lender, however, is a bad referral partner. He has never sent me a lead. Even though, I refer much of my business to him.

Jun 08, 2013 09:09 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

A referral network is the best thing that can happen to any salesperson. They are worth there weight in gold & can make or brake a successful year. I do work hard at it

Jun 08, 2013 09:39 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

One step beyond this is if you're a good referral partner, you report weekly to the referrer so that they know exactly the care that you're showing that referral client.  Means all the difference in the world when it comes to referring business to other agents!

Jun 08, 2013 10:16 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Kathy, not only do I consider myself a good referral partner, I also, on occasion, have been a good witch.  Nothing wrong with that, in my opinion.  Why... a few of my good friends might actually be good witches.  Ya just never know... <smile>

Jun 08, 2013 10:30 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It's a good question:

Are you a good referral partner or bad referral partner?

I often refer people to mortgage pros, and yet rarely receive reciprocal ones.

Jun 08, 2013 10:34 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

A good idea for the future would be to ask potential partners to read this article and respond:

Are you a good referral partner or bad referral partner? 

Jun 08, 2013 10:45 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I try to be a good referral partner.  Developing a reciprocal relationship is key!  Good referral partners are Priceless!

Jun 08, 2013 12:08 PM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Ann, it is all about giving!

Lori, it never ceases to amaze me!

Debbie, exactly!

Bill, you have to make it happen.

Carla, that is sad.

New referral partners needed for Tammie!

Jimmy, I have been in good groups and bad groups.  You have to be with the right people.

Jan, I always send a thank you and follow up as soon as I make contact and throughout the process.

Karen Anne, you are so funny!!!! 

Michelle, that is a great idea.

Joan, it is.

Jun 08, 2013 12:28 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Kathy,

I always start a relationship trying to help that partner.  I am particularly grateful for a referral and I keep the partner in the loop, thank that partner, and work extra hard to return a referral.

Jun 08, 2013 01:33 PM
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

It's so true, when you first get into any business that people are in the "what's in it for me?" mindset. If you want lasting results, you have to put others before yourself.

Jun 09, 2013 12:23 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

I wonder if folks just don't think about referring, because I just don't see many and the excuse is usually that they don't want to offend

Jun 09, 2013 05:26 AM
Roger Stensland
Keller Williams Realty Puget Sound - Maple Valley, WA
Let's Move!

Good point.  I have worked and an still working with a lender - referring her business because she is very good, but I have never and probably will never get a referral from her as she sends them to Realtors in her church.  I guess that is is about time I found a good referral partner instead of just a good mortgage professional.  Thanks for the post.

Jun 09, 2013 07:05 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Grant those are the traits I look for in a referral partner.

Suzanne, I try to stay away from that type.

Charles, that is an interesting question.

Ok, new Loan Officer for Roger too!

Jun 09, 2013 10:46 AM