5 Guiding Principles to Building a Referral Business
When I first started in the real estate business (1987) I didn't really have a plan of action to 'build' a 
business other than take floor time, do open houses and create a farm area. And that worked pretty good for me as my office was located in a Country Club. We had good traffic and a lot of potential home buyers and sellers knew our brand. I actually did pretty well doing floor time and open houses, in fact I was in the 'million dollar' club which way back then was a big deal! Around year 3 or so in the biz I took a 4 day course from a national coach. I learned what creating a long term real estate business - really took. That's the day I started down a new path, focused on my new vision.
Fast forward to 2015 and I'm quite certain most new agents are NOT taught how to build a business in real estate school. New agents are pretty much left on their own to bumble and stumble along and try to figure it all out. Smart newbie agents look for a good mentor or two and are wide open for suggestions and ideas.
5 Guiding Principles to Building a Referral Business
1. Always treat people the way you want to be treated AND go over and above the expectations of each client. Tell the truth - always. Do the right thing - always. And if you don't know what the truth is or what the right thing is ASK your broker for guidance. I remember my broker suggesting to me when I had a client that was upset about keys not being right. "Just replace the locks if that's what the buyer wants - so what if it costs $100.00 - your client will be over the top pleased with your service and will refer other clients to you". He was so right and I'm glad I listened. My client was very pleased.
2. Consistency pays off - Start a 'keep in touch' program with your A clients and/or sphere of influence. Sure when you first begin building the list it won't be huge. But if you are continually adding to your list within a year or so you'll be well on your way to building a referral business. What do you send your A list? E-newsletter, snail mail with something of value enclosed, holiday cards, birthday cards, anniversary cards, postcards etc - there is a never ending source of ideas to stay in touch with your A list. But here is the kicker - you MUST be consistent! Don't bother to start any new program if you don't plan on being consistent. Harsh - but true words. Trust me, I know this one, as there were times when my consistency wasn't as good as it should have been and it showed up fast. If that happens to you - don't look back. Get back on track and focus on consistency.
3. Be the LEADER of YOU! Some new agents might say - huh? What does that mean? It means ACT like you are the boss and don't accept any stupid or lame excuses from yourself as to why you can't accomplish a task or project. It's up to you to create and hold the vision of what you want in your real estate business. You are 100% responsible for your successes or your not such great results. And for goodness sakes don't blame anybody else, including your broker as to why 'things' aren't working out for you! It's up to you to be the best boss of you possible! And if you're not a good boss of you - ask for assistance from a mentor and/or coach. Being the boss isn't that easy some days!
4. Education is important. It is critical to set aside time to educate yourself by taking classes such as GRI or CRS or other programs that will teach you how to build a sustainable business. Your clients will want to know that you understand your real estate market trends, that you know how to market effectively and that you know the real estate laws and customs in your state and area. Most importantly your clients want to know they can rely on you to give them the best possible advice and guidance. If you don't know something - ask your broker or mentor.
5. Build a Network of Referral Partners. When I first started in the business I didn't realize the value of building a network with agents around the country and Canada. When I worked for a big national chain I learned that referring my outgoing buyers was a great 'value-added' service to my clients. They wanted to know they would be taken care of, like I would take care of them and they trusted me to find a good agent for them. ActiveRain is a huge network of outstanding, professional real estate agents. I highly suggest you become a member (if you're not already) and that you start creating and building referral partners with ActiveRain Members. Keep in mind, building a referral network does take time and consistency!
There you go - these are my 5 Guiding Principles to Building a Referral Business. There are lots of other activities and things to do within a business on a daily, weekly, monthly and yearly basis that I did not mention in this post. These are guiding principles - not a nuts and bolts how to guide! If you follow these 5 Guiding Principles you'll be well on your way to building a solid referral business.
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