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Not easy..."by referral only"

By Nilton Lisboa

Real Estate Broker/Owner with Lisboa Realty

April 29, 2008 03:29 AM

Most of us understand that we are in the referral business.

Most of us work really hard for our clients (when we have them)...most of us work hard if we are just given direction.

I just finished the CRS "by referral only" course. WOW I have truly gained direction from those instructors. Its hard to use the "by referral only" business model because you have to have lots of patience (versus the traditional model of working the pipeline...big funnel concept). I am an introvert by nature and being friendly friendly with people ALL THE TIME is a true effort for me. I don't know about you but its often "Show Time" when I am meeting with clients and it sucks the energy out of me. Don't get me wrong, I am good at it but its hard work.

Today I was introduced to a concept of only really caring for 50 people at a time. This means dropping my other business models (expired, cancelled, open houses, geographi farming, etc). The model means that you take really good care of contacting, cultivating, and maintaining 50 people past customers for 1 year and you will be reward with your 2 deals per month after 8-10 months. This will pay the bills and allow for more "manageable" real estate time flexibility.

Valid points were made in not working with strangers...this is against all I have been doing (successfully I may add). In todays market condition, we have to be focused on a few different money making activities. I am all about systems and the by referral system is a great one. I am thinking about moving there and dedicating my "working" hours to building that model...any thoughts?

Be good and Do What You Say You Are Going To Do!!

Nilton Lisboa

Weichert Realtors - Ernie Houde Associates

Marlboro, MA

508-667-1439

nlisboa@weichert.com

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Emily Lowe

RE/MAX Homes and Estates, Lipman Group - Nashville, TN

Nashville TN Realtor

I like your post - I often wonder about the safety of working with total strangers and have set up a system of screening them. In today's market, though, that is a risky move. I believe in finding the niche and system that works best for each person. And then fulfilling all of your obligations with care, concern and advocacy with your clients. I think in the end if you do a good job with the business that you do acquire, it will come back to you ten fold.

Apr 29, 2008 04:51 AM

Michael Shankman

Award Realty - Las Vegas, NV

Selling Las Vegas 702-498-3383

great post- you gave me some good ideas...thanks

Apr 29, 2008 06:13 AM

Jeffrey DiMuria 321.223.6253 Waves Realty

Waves Realty - Melbourne, FL

Florida Space Coast Homes

Nice post. You always seen to have an easier transaction with clients the second and third time around.

Apr 29, 2008 07:28 AM

Anonymous

Good post. In a slower market you might want to keep working with both though.

50 People, contacting them even every week would leave you time to keep some of your other business up.

I would say do the program, but pick carefully the "Strangers" you work with.

If it is a non-referred client and motivated, sometimes they are even better.

All the best!

Apr 29, 2008 09:03 AM

#11

Elizabeth Cooper-Golden

Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL

Huntsville AL MLS

Great post and I am a FIRM believer in working my past clients, and cultivating that "garden" so to say. It is much easier to work with people that know us and trust us. I call clents weekly and put my FORD questions to use: Family, Occupation, Real Estate and Dreams....Helps me stay in touch and keeps me "in front" of them. The calls generally last less than 5 minutes.

I also do monthly mailouts to all my past clients, with something informative. (appreciation rates, abosorption rates, etc.)

Best of luck to you!

Apr 29, 2008 10:38 AM

Alan Robinson

PTE REAL ESTATE GROUP - Phoenix, AZ

This system never worked for me either. It's best to try out the others as well until you find what works for you.

Apr 29, 2008 11:17 AM

Paul McFadden

Responsive Pest Control - Seattle, WA

Pest Control, Seattle, WA.

Hi Nilton: I would argue that if you categorize yourself as an introvert, working by referral is a great way to go. A very good friend of mine comes to mind here. He is pretty shy yet has built a great business selling men's high-end apparel because his customers trust him so much. Plus, he's the antithesis of most salespeople. Good luck; working by referral works for me. Besides, who would you rather talk to? Someone who knows you or someone who doesn't? Take care.

Paul

Apr 29, 2008 12:19 PM

Paul Francis

Francis Group Real Estate - Las Vegas, NV

Las Vegas Real Estate Agent - Summerlin Homes

Hey Nilton --

Best way to go and you if you like the concepts get on board with the Buffini training to hone and enhance the concepts. You'll enjoy real estate more and have a "good life"...

Apr 29, 2008 12:41 PM

Pam Winterbauer

Pam Winterbauer Real Estate - San Ramon, CA

"Providing Blue Ribbon Service"

Nilton.....welcome to active rain and a new way of prospecting. Working by referral is a great way to go. 75-80% of my business is referral business. Great post.

Apr 29, 2008 01:07 PM

Anonymous

John Lockwood

I think the by referral only "method" is flawed in several key ways.

First, by referral only makes it impossible to get your first client by definition. So if you're new in the business, it's a complete non-starter.

Secondly, by referral only rewards being a good customer with a Realtor who then hounds them for life. A Realtor should not be like a case of Herpes that's with you for life. We should be more like a head cold -- unpleasant for the duration of the escrow at best, but ultimately not chronic.

The notion does sell a lot of by referral only mailer pieces for Brian Buffini. Here -- I'll send you a letter letting you know you should change your smoke detector batteries, can I have a client pretty please?

Not for me, thanks. I work by prospecting only. If I do a good enough job to warrant a referral, that's gravy.

Apr 29, 2008 02:11 PM

#17

Eric Egeland

RE/MAX SUBURBAN - Libertyville, IL

SFR, e-PRO, CDPE

Nilton...great post, welcome to AR

Apr 29, 2008 02:39 PM

Wayne B. Pruner

Oregon First - Tigard, OR

Tigard Oregon Homes for Sale, Realtor, GRI

It is absolutely important to keep in touch with past clients, but also essential to cultivate new ones. This involves going outside your sphere.

Apr 29, 2008 04:23 PM

Katrina Madewell

Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL

Tampa FL Homes for sale | Tampa Bay - (813) 777-1196

Hi Nilton, I have been in By Referral Only for 4 years now and I love that community. Brian Buffini used to work with / for Joe Stumpf years ago before he parted ways. Although I have never done Buffini, I know some that have and are now BRO members and prefer this community and coaching program.

To address John Lockwood above, I think he just doesn't "get it" If he had been paying attention, he would have known that they teach BEFORE (all the stuff you need to get prospects) DURING as well as AFTER systems.

A case of the herpes with you for life, WOW ... he just doesn't get it! You are working with people that you would see yourself befriending, not hounding anyone, ever!

Regarding the smoke detector batteries, then begging for a client please - ok that was someones idea, they shared, it may or may not use it. I personally do not, but there are millions of other ideas and strategies on their site.

All I can tell you for sure Nilton is this:

if it feels right for you, then its probabily a good match, if it doesn't, (like for John Lockwood up there) then it just ISN'T a good match.

I have no regrets, and have met some truely amazing people within that community all across the country (some of the best Realtors & Lenders) and they are always willing to share their best strategies at work... that alone my friend is priceless

Apr 29, 2008 04:25 PM

Joe Hayden Real Estate Team

RE/MAX Properties East - Louisville, KY

Your Louisville Real Estate Experts!

Interesting post. This is something new that I need to add to the "review" list...;) Thanks! It is a business of people, of course...

Apr 29, 2008 05:21 PM

Bob & Carolin Benjamin

Benjamin Realty LLC - Gold Canyon, AZ

East Phoenix Arizona Homes

Good points. Taking care of people often does come around where they help take care of you. Good post.

Apr 29, 2008 05:34 PM

Misty Thomas

Houston Realty - Crosby, TX

Realtor Crosby, TX

Great post and I love the idea of cultivating my past clients but I also am a firm believer in not "putting all my eggs in one basket" so to speak. I am always trying to make an effort to talk to strangers as well.

Apr 30, 2008 12:19 AM

Christy Powers

Keller Williams Coastal Area Partners - Pooler, GA

Pooler, Savannah Real Estate Agent

You have to find what works for you and stick with it. Good luck!

Apr 30, 2008 02:14 AM

Nilton Lisboa

Lisboa Realty - Marlborough, MA

Experience & Knowledge=Your Real Estate Advantage

Thank you very much for all of your input. Nice to know that people care and share!!

As suspected, its like anything else...It requires FOCUS and SYSTEMATIC WORK. I will pick 25 people and work them for 12 months. My understanding is that it takes about 1 year to put this to work. I am still in the process of designing the 12 month campaign but will implement it in a weeks time. Basically I am scheduling 12 hours per week to this system.

Its SHOWTIME for the ambitious introvert!!

Wish me luck and again, thank you for all of your input...

Nilton Lisboa nlisboa@weichert.com

Apr 30, 2008 01:38 PM

Cynthia Grimes 443-506-0359

BHHS PenFed Realty- Office 240-815-9040 - Frederick, MD

"With You Every Step Home!"

Great Post! I agree that being friendly all the time can be tiring especially for someone who doesn't "do the social thing" as well as someone else. My business has grown over the last 10 years mostly from referrals from my SOI. I am now thinking of joining BRO. I have done BB but some of it a little "fluffy" for me. Working for referrals has ALWAYS be cheaper and more rewarding then advertising in general. Good luck!

Jan 04, 2009 09:51 AM

Stefan West

West Realty - Murrieta, CA

Temecula-Murrieta-Menifee CA Real Estate

Thanks for creating an informative post. I am looking to add layers of marketing to my business and will be doing more research on this. Thanks again for the info!

Nov 10, 2010 02:42 AM