How to Stop the Natural Flow of Referrals
Your Professionalism can cost you referrals. Here the results of a study that caused me unease and that I disagreed with. See what you think.
The study found two things:
- “Consumers will not refer people or industries that have a poor reputation”.
- Consumers will make referrals to people whom they consider are of the same or lower economic position.
Regarding #1: Consumers will not recommend people or industries that have poor reputation. When is the last time you referred any business person that came off as the “used Car Salesman”?
Regarding #2: If consumers won’t make a referral to a realtor that they consider at the same or equal socio economic status – what does that mean?
Simply, people make referrals to people that they see as doing better financially then they themselves.
Note the word “consumers” in this. Business owners will recommended outside of these parameters… They don’t have the same hang-ups as consumers do… – Generally…
Meaning, we need to do something to cause someone not to refer us. So, what causes people to not recommend us?
- Show up late. When you are lake you break trust, and demote yourself in their eyes. Never be late, it will cost you referrals.
- Let them walk all over you. Allowing a client to take advantage of you will ultimately make working with them harder… Have a set of ground rules and stick to them. Tell your client up front how you work, what you are willing to do and not do. Having boundaries will enable you to promote yourself as a professional in the client’s eyes, and will prove you are worthy of a referral.
- Allow them to talk you into a price reduction on your commission. Every workman is worth his wage… says the old prophet. Still as true today as it was yesterday. Most agents allow commission reductions, when not necessary, and many times Realtors® are the ones that bring that up… Get that out upfront and deal with it. You can start that one off with a quick “OK if I understand what you are telling me you want me to cut my commission. You seem like the kind of client that would like me to work 100% for you. If I’m going to cut my commission… what part of my services would you like me to cut as well?
- Dress poorly… this one is likely touchy with my folks, bit you will rarely catch me in no less that a suit and coat… It makes people realize that I mean business.
- Allow unordinary drama in the transaction. 74% of the average family’s net-worth is in their home. They should take the transaction seriously, and so should you. But, all too often I hear stories about how a Realtor is actually causing the drama in the transaction, or inciting a riot on the behalf of their client to prove their worth… Be the calming force of the transaction… when adversity strikes the flow of the closing.
- Adversity, is natural being the calming force will build your reputation.
- No one likes to be hounded. A gentle reminder is so much more effective than hounding someone.
People have a natural inclination to give you a referral, if they like you. I know that, and so do you.
Everyone likes to recommend someone.
Contact Referrals Matters today to arrange a 15 minute discussion to discover a system that effectively generates Real Estate Referrals. Ninety-eight percent (98%) of Realtor® and Lenders that see this program agree that this system will generate at least 1 Referral per year (more by completing the action steps), per client per year, and sign up…
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