Create a network to help your company weather market storms.
Real estate brokers work in a difficult and dynamic industry where short-term success does not always translate into a long-term and consistent career.
Changes in interest rates, changes in the economy, and unpredictable government policies are all challenges that both new and experienced brokers will face.
Creating a referral network is an essential component of any successful real estate agent’s business. Regardless of external factors, as an agent’s referral network strengthens and grows, so do prospects for consistent and long-term success in real estate. As you add more referral members to the mix, you will gain clients in new ways that do not necessitate you directly providing those ancillary services.
What is a referral network?
A referral network is a group of past customers, real estate agents, and other business professionals who refer interested leads to your agency. A referral network’s primary goal is to consistently bring in new business by encouraging referral partners to share your brand and skill set. A referral network, when done correctly, provides a very high ROI and a self-perpetuating cycle of new and repeat clients.
Working with other real estate agents allows you to acquire or be exposed to a larger client base. If you specialize in residential properties, working with a commercial real estate client will provide you with referrals without requiring you to work directly in commercial real estate!
It’s a good idea to collaborate with companies that provide ancillary services to the real estate industry. By collaborating with a roofing company, you may receive a referral for a customer who would prefer to relocate rather than deal with repairs.
Building a solid referral network
Here are strategies that will help you start or strengthen your referral network:
1.Show gratitude for referrals
When developing a referral network, it is critical to consider what your referrers gain from working with you. It is critical to add value to your network; doing so ensures that your network consistently returns value to you!
It’s a good idea to come up with a variety of approaches to engage your audience. Different rewards may be wisely given depending on their role. Sending sports tickets is a good idea if you want to network with similar companies or other agents. Tiered profit-sharing plans are also a feature of some referral networks.
Finally, you can send the referrer gift cards to a home improvement store. It could be a percentage of your commission or the sale price. It’s a small gesture that expresses gratitude and reminds your former client of your relationship. Small gestures are a natural way to foster an ongoing relationship.
Even if you choose not to have a referral rewards programme, it is highly recommended that you find a way to show personal appreciation for any referrals. Even if the referral does not result in a sale, simply send a “thank you” note! This maintains the referral relationship. Friendly communication channels are a healthy way to provide feedback and updates.
2.Never stop networking
A body at rest will stay at rest, and a body in constant motion will stay in motion. There is no reason to stop networking in today’s interconnected world.
There are numerous virtual networking events for stay-at-home agents. Some of these virtual networking events include live components. In-person conferences provide an opportunity to travel outside of your home base and significantly expand your client base.
The above list is not exhaustive, but it should help you understand that there are numerous conferences you can attend, either in person or virtually, to expand your referral network.
3.Use cloud-based services
You can track and streamline your referral network using a variety of paid tools. With a quick search, you can easily find these!
We recommend using Google’s cloud-based products instead of a paid service. Using Google’s services is an excellent way to take your agency with you wherever you go!
Create a spreadsheet in Google Sheets to track members and the clients they’ve recommended. Include pertinent information such as business, relationship, location, contact information, and referred clients.
Google Drive can serve as a central repository for all of your documents and agency-related information. Sheets and Drive both allow you to view and edit files from anywhere and share access links with anyone.
You can use Google Forms to create referral sheets that collect important information ranging from name and contact information to price range and desired neighborhood. Your form can include bulleted options, multiple-select answers, text input fields, date selection, and other features. The information entered into a Form is placed in a spreadsheet, allowing all of this information to be checked in a single digital file.
4.Use social media
If sending out timed newsletters or using software to manage your referral network does not appeal to you, consider using social media. While LinkedIn, Twitter, Facebook, and Instagram may not always result in sales, they do provide an efficient way to post updates and stay in touch with previous clients and your network.
Another advantage of using social media on a regular basis is that you will develop a public portfolio. This portfolio allows new clients and members of your network to easily reference your previous work and envision what you can do for them.
Setting up a Google Business Profile is a fantastic idea. Your agency will appear in search results and on Google Maps, and reviews will be public. You can provide an incentive to boost review traffic! A profile takes minutes to create, is free, and serves as a great resource. Some lead generation companies will also assist you in obtaining reviews and referrals from previous clients to post on your social media.
5.Nurture your network
It’s natural to have top-referring members and others who only refer on occasion. It is critical to consider how you will communicate with and reward top performers. Most real estate agents find it beneficial to cultivate a closer relationship with their network’s top performers.
Reaching out to your more reserved members may be a risky but beneficial option to consider! These members may be unsure of what sets your agency apart from others, or they may be so busy that they’ve forgotten to send you referrals.
It’s wonderful to share your accomplishments with your network. Being able to guide your network, on the other hand, may add even more value to your agency.
6.Just do it
It may appear strange to request referrals. Don’t be afraid to ask for referrals!
Every real estate agent wants to expand their business. Most businesses want to keep their customers happy, and connecting them with reputable partners can help them do so. In addition, previous clients would be delighted to assist their friends and family in finding their dream home or office.
It is natural to extend a good professional relationship to others if you have one. Remember that you are providing a service that benefits others.
7.Keep it simple
At the end of the day, you’re creating a referral network for your real estate company. A successful referral network should, for the most part, self-perpetuate; you should be in a position where managing your network feels like a natural process of your real estate sales channel.
