Creating a Healthy Referral Ecosystem
An ecosystem is how a community of organisms interact with each other. It is mostly used in describing various aspects of nature, but a healthy referral ecosystem is critical in real estate and relocation. A large part of how agents secure new clients is through referrals. Referrals from friends, family, past clients, their relocation department, affiliated businesses, internet exposure, advertising, etc. make up the ecosystem that keeps business flowing.
But oddly enough, real estate agents don’t do a great job of marketing and staying in touch with their past clients and sphere of influence. According to NAR, 91% of people say they liked their agent and would use them again, but only 13% actually use the past agent again. That’s a crying shame. It all comes down to having the mentality that a client or anyone you know for that matter, is always a client, not someone to be tossed away once the deal is done. Repeat opportunities live inside of lasting relationships.
Become the center of their real estate universe
Creating an ecosystem that puts you in the center means that when people you know or have worked with in the past have a real estate need, you immediately pop into their heads. You are an integral part of their thought process regarding a real estate need, no matter where the need is.
Nothing worse than finding out your neighbor just listed with a competitor. Or they allowed someone else to refer them to their new destination. There may be a couple of reasons for that. Either they didn’t think about you as a real estate professional, or they think you are too busy or they don’t want you knowing their personal business or financial status. There are ways to work around these objections. Communication is the key to building lasting relationships and that doesn’t just mean pushing out information, it involves listening and engaging with them.
Have the hard conversations
If you have a candid conversation with someone you know, and they seem hesitant about using you as their agent, it’s ok to say “if you are uncomfortable with me knowing your finances, etc. then I am happy to refer you to a trusted colleague of mine who will keep everything confidential”. That way you can at least collect a referral fee on the transaction while respecting their privacy.
It’s important to ask for the order, but it doesn’t mean drowning your social media feed with constant real estate information or the most current listings. There are many sophisticated automated systems available to drop your name in front of contacts with very little effort. I am not suggesting to set it and forget it, as it should be peppered with customized content and personal interactions, but creating a framework ensures you stay in regular contact and makes staying at the center of the ecosystem easy.
Sometimes, it’s the small stuff
A Realtor acquaintance of mine, always drops off little gifts around various holidays. A small poinsettia at Christmas or a clover plant at St. Patrick’s Day with her card attached with a note about referrals. I have never bought a house from her nor do I have a need to buy or sell at this time. But I did just refer someone to her. I know lots of agents, but she popped into my head because she has created a tangible presence in my memory bank through a very inexpensive, but consistent, gesture.
Wise relocation agents stay in close contact with their past relocation clients. You never know when a coworker may be making a local move or participating in a relocation where they could request their own agent. By becoming the go-to real estate person for your sphere, means also making sure they know you can assist with out-of-area referrals. Your expertise and help can reach far beyond your local market through a high-quality network. Paying referral fees is less painful when those past encumbered referral clients generate referrals for you, thus expanding and creating a healthy referral ecosystem.
“The greatest form of flattery is a referral.” ~Said every real estate agent
