Ask An Ambassador: What's the BEST Way to Make an AR Referral?

By
Real Estate Broker/Owner with KD Realty - 408.972.1822 CA DRE#01366594

For the most part, the ActiveRain Community is comprised of many top professionals whose focus is on their clients, and not self-serving. 

 

As with all areas of life and business, there are those who do not focus on their clients and are self-serving. Let's get real. Folks like that are everywhere - they are not isolated to the real estate industry or the ActiveRain Community.

 

So much of what we hear, read, and see in life is just noise. Marketing and Branding is just that. McDonald's sell a LOT of food. There is little disputing that although I am sure I could find some people that would dispute that statement. 

 

The real questions are:  

  • Is the food good?
  • Is the food good for us?
  • Do we believe it is good or good for us?  
  • Do we care if it is good or good for us?
  • What proof, if any, do we have to substantiate claims of "good", "goodness" or other claims such as "not healthy", etc.  
  • What is McDonald's selling?  Convenience? Low price? Satisfaction? Value? Service? 

 

If you are still with me, and I hope you are, I'd like to use the McDonald's analogy as the backdrop for making referrals to members of the ActiveRain Community. 

 

Making a Referral to a member of the ActiveRain Community 

 

What's the BEST approach?  Of course, this is my post and my opinion. I've made many referrals and received many referrals from members of the ActiveRain Community. I am 100% okay if you disagree with my "BEST" approach.  

 

ActiveRain is the FIRST place I look. I am aware of and acknowledge there is a referral board.  I choose not to use that board.  Never have. Never will. That feels to me like the Velcro technique. Just throw it up there and see what sticks. That may result in a first-come first served mentality.  Whoever responds first ... gets the referral. I happen to be of the belief that whoever I am referring deserves better than that. 

 

If I do not already know someone that comes to mind in the area I need to refer, I search ActiveRain.  Not the leader board. 

I search using the keyword for the area. If I do not find anyone that is active and posting, I then call other active members and ask them if they know of anyone in, Chula Vista, for example.  

 

Why Not the Leaderboard?

This takes us back to McDonald's.  Think numbers. Think Points. Think Perception.  Is someone at the top of the leaderboard in their state, county and city the best way to refer?  I suspect not. 

Let's go back to the questions we asked ourselves about McDonald's only with the agent referral in mind. 

  • Is the agent good?
  • Does the agent provide exceptional service?
  • Does the agent provide referring agent testimonials?  
  • What does the client have to say about the agents service?
  • Have they ever not paid a referral fee?
  • Have they ever had complaints filed against them?
  • Do we care if those we are referring are exceptionally taken care of?
  • Are we simply looking for the convenience of making a referral and collecting a fee?

 

Referrals for me are not about convenience.  I invest the time and energy to interview agents to determine if they might be a good fit for my clients or other party I am referring. I ask a lot of questions.  

Even that is not 100% fool proof.  90% of the referrals I have made to members of the ActiveRain community worked out beautifully.  Despite my best efforts to make that perfect match referral, I have made some bad ones. Bad in the eyes of the clients I referred. Some described as a nightmare.

 

 

About that Leaderboard:  Just so that no one feels singled out here I will use myself as the example. It only works because I happen to be #1 in my County and #1 in my city, San Jose. 

Does that #1 position automatically qualify me to be the best agent for a referral?  

NO. IT DOES NOT!!!!

 

If the person making the referral is not asking me a lot of questions to determine if I will be a good fit for the referral, then I am asking the referring agent a lot of questions so that I can determine if I am able to best serve the person  being referred. If I cannot - then I cannot take the referral.

 

I am working with a buyer referral from ActiveRain now.  When that referral request first came in I had to do some vetting.  That vetting meant getting that buyer connected with my lending partner, John Meussner. It turns out there was some some work that needed to be done. Four months later, John advised me that the client had taken care of XXY, and was approved.  

I advised the referring agent that I was unsure if I would be able to help and that I would do my very best. In full disclosure, my market is so tight right now, FHA buyers are challenged with competing with big down payments on conventional loans, and all cash offers. 

 

TRUST

I've actively been working with the buyer mentioned above for 6 weeks. I've written a few offers that were not accepted. The search continues. The referring agent knows the challenges we face.

The referring agent and I have completed referrals in the past. They know I will make good on whatever we agreed.  No. Matter. What. 

It does not matter if it takes me 2 months or 4 years to close on the referral. It does not matter that I worked exponentially harder and longer to serve the client.

The bottom line is this: I would not have the client if it were not for the referral. I am responsible for what I agree to do.  If something changes my ability to honor my own agreement, then it is my responsibility to renegotiate my agreement, or suck it up and do whatever it takes to honor my word, my agreement. Period. No Excuses. End of Story. 

 

I do not get the referrals because I am #1 on the leader board. I get referrals because my reputation of being service focused and doing the right thing, no matter what, precedes me. For that reason, I am a trusted referral resource. That is not me saying that. That is the agents who referred me saying that and the clients I have served saying that in their testimonials.  

 

I cannot caution enough that the position on the leader board is not enough to know if the agent will serve your clients well or if the agent will honor their agreement with the referral.  In the end, its a measure of what a referring agent is willing to do, by way of completing their own due diligence, to ensure the referral they are making, is a good one.  

Whatever is agreed, get it in writing, in detail and with crystal clear clarity as to the terms, and signed by the respective brokers. The rest is left to the integrity, ethics and honor of the agent accepting the referral. 

 

Be Careful Out There.

Don't believe all that you read and hear. 

Verify. Validate.

 

close

Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 06/07/2016 08:48 PM
  2. Ginger Harper 05/26/2016 12:22 AM
  3. Tony and Suzanne Marriott, Associate Brokers 07/01/2016 12:45 AM
Topic:
Real Estate Best Practices
Groups:
Addicted to Active Rain
Bartender, Make it a Double
The Lounge at Active Rain
Bananatude
Ask An Ambassador
Tags:
activerain
referrals
referral business

Spam prevention
Show All Comments
Rainmaker
1,675,986
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I've never gotten an agent referral/testimonial in my life! Customers are hard enough. I'd bet many good agents here don't have them either.

Last one that I received the agent sent me an email saying the sellers though highly of me.

May 25, 2016 11:30 PM #38
Rainmaker
2,595,020
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I used to work at McDonald's and raised my kids on that food. You had my attention. As to the this decent post and its point, thank you Kathleen Daniels 

May 25, 2016 11:59 PM #39
Ambassador
856,828
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

You won't find any disagreement from me on this one Kathleen Daniels !  Great post.  This is a community and one should really get to know who they are referring to or accepting a referral from for that matter.  Just like with anything, the referrer and referee need to do their due dilligence as much as possible so that at the end of the day, the client gets the best possible choice.  

May 26, 2016 12:16 AM #40
Rainmaker
680,255
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

The first referral I ever tried to give out here on Active Rain was a seller looking to list their home in a small town just outside of Tucson. I knew the seller from when I first moved here to Arizona back in the mid 90's but I don't know the area very well anymore and did not feel I could best represent my friend in the sale of their home. So I went to the leader board and called the top agent in the area who proceeded to tell me that the value of my friends home was not large enough for them to list and they would pass me off to one of their newer agents. I politely declined and found someone else myself. The person at the top of a leader board doesn't always equate to the best person at their job. 

May 26, 2016 02:36 AM #41
Rainmaker
104,859
Margaret Kapranos
Berkshire Hathaway Home Services - Novato, CA
San Francisco Bay Area REALTOR. 415-608-5070

Thank you for this.  It has made me realize I need to utilize Active Rain more for the referral source, than for blogging out to clients etc.  I've not heard of the Leaderboard on AR. Where is it?

May 26, 2016 04:12 AM #42
Rainmaker
1,561,913
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

The referral board is funny to try.  I've posted several referrals on that and what I get back is amazing . . . within a very short amount of time I get contacted from AR members who I've never heard of before.  No presence on AR, their profiles are thin, their blogs are weak -- if they exist at all.  They don't comment.  I have selected a few agents from the referral board and they did work out wonderfully for me and clients.  I won't eliminate that.  But I'm always amazed at the many folks that come out when it's referral time.

May 26, 2016 04:19 AM #43
Rainmaker
576,608
Martin Kalisker
Greater Boston Association of REALTORS - Boston, MA
Professional Standards & Legal Assistant

Excellent Post Kathleen. I'd still caution against using the most "popular" on any site. I'd still go for the friend of a friend anytime if I didn't know someone to recommend right off the bat. The only reason mwhy I say this is to help educate any "newbies" that real estate is not a popularity contest and we should not award the business to those who have no substance behind their spiel.

May 26, 2016 04:40 AM #44
Rainmaker
796,972
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Kathleen, I agree with  you regarding the Leaderboard. For me, a better indicator are the localism posts that are listed under individual states. I also interview the agents to get a better sense of their competence and style before I refer.

May 26, 2016 05:50 AM #45
Rainmaker
506,244
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I've used ActiveRain to refer a few clients ... in fact I just got my referral check from an agent I met on Active Rain.  He did an excellent job Rick Mullen in the Wausau, Wiscoonsin area -- taking care of my nephew buying his first house.  I really enjoyed reading this post.  Sooooooo true!  To just pick "anybody" is like throwing your client into a mosh-pit.  I appreciate all your points and agree 100%.

May 26, 2016 06:54 AM #46
Rainmaker
40,454
Diana L Faulkner
Romanoff Realty - Alamo Heights, TX
Alamo Heights Homes for Sale - Concierge Service

Thank you for the well defined points.  I like to practice what I preach; research the agent as I would want one of my clients to research me.  The leader board may not be the best fit. 

May 26, 2016 06:57 AM #47
Rainmaker
6,210,837
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

My scheduled blog and reblogs were not posted this morning. If you have scheduled blogs, you may need to check on them.

May 27, 2016 08:35 PM #48
Ambassador
2,166,874
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I'm with you 100%, and I must say, there are folks at the top of the leader boards who I would not refer clients to - mainly because our philosophy is so different. I am not "salesy" and my clients choose me because of it... 

At any rate, I'd be sure to ask around in the Rain too with trusted members - see if they have any experience to share regarding another member as a referral, or as a referring agent. D 

May 28, 2016 01:03 AM #49
Ambassador
5,073,710
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Excellent advice Kathleen, and very timely, hopefully this will help a few rainers to make wise choices when sending out referrals.

May 28, 2016 03:13 PM #50
Rainmaker
94,620
Alesha A. Wilson, M.Ed.
Buy and Sell Oklahoma LLC - Oklahoma City, OK
Buy and Sell Real Estate with Confidence

Good morning Kathleen (:  Just read your blog via Roy's reblog.  
Fantastic advice.  Bookmarking this post for future reference.  Still learning the ins and outs of ActiveRain ~ and posts like these are very helpful.

Have a wonderful day!

Jun 07, 2016 10:39 PM #51
Rainer
337,429
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Referrals in the Rain.  Seems to be a hit or miss thing lately.

Jun 07, 2016 11:45 PM #52
Ambassador
2,306,848
1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

I also check Active Rain first and vet the agents before referring to them.

Jun 18, 2016 05:33 AM #53
Rainmaker
3,069,284
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Kathleen Daniels Just came across this post from a re-blog by Roy Kelley .  Very well thought out!  I would not hesitate to send referrals to you having had the chance to discuss several AR "topics of the moment" with you!

Right on target - and - Re-Blog!  

Jul 01, 2016 12:45 AM #54
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Kathleen - Very well said. It comes down to trust and integrity. Anyone can pay to get higher rankings on sites, but that doesn't mean they are looking out for your best interest, and are truthful. You are obviously one of the good ones.

Jul 01, 2016 05:05 AM #55
Rainmaker
592,884
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

Hi Kathleen, just going through some of your archived posts.  Love the market reports!  Keep those coming.

Feb 15, 2017 06:25 AM #56
Rainmaker
742,982
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Hi Kathleen, just going through some of your archived posts.  Love the market reports!  Keep those coming.

Feb 16, 2017 07:26 AM #57
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
2,966,384

Kathleen Daniels, Probate & Trust Specialist

Probate Real Estate
An Independent San Jose Real Estate Brokerage
*
*
*
*

Additional Information