Category Archives: Referrals

Do You Get Referrals Back From Other Real Estate Professionals?

  Realtors getting referral fees from Mortgage Brokers

 

I recently read a post where a Realtor inquired that, after working with my Mortgage Broker, they were feeling that the lenders were not keeping up with them in the “Referral Trade”.  Realtors have expressed the same of me, and this is exactly why I created Referrals Matters… 

There are an estimated 27 related transactions that surround a Real Estate Closing.   Many vendors that realtors ‘feed and water’, and few of these related industries can return the same level of referrals or business that a Realtor can. 

In fact, many Realtors are trained to deter vendors soliciting the Realtor for referrals with this dialog. 

PERSON SOLICITING REALTOR FOR REFERRALS:  “Mr. Realtor, I’d like you to refer my business as part of the Real Estate transaction, would you consider using my services with your client?”

REALTOR: “Sure thing, sounds great – tell you what.  How about we do a one-for-one trade?  Since you came to me… you start the trade”

Many realtors consider that common etiquette would be, if a realtor refers a client to a mortgage broker then the mortgage broker should refer clients back to the realtor.

I’ve tried several mortgage brokers around here and found that they are always the ones that ended up with the candy cane, and I end up with a good ol’ boy slap on the back. I’m sorry, but an “At-a-boy” doesn’t put groceries on the table.

Today I had yet another referral for a mortgage broker. I called him up and told him I wanted 25% of the loan origination fee or $250, whichever is greater. The mortgage broker was really defensive about it, but after a lengthy confrontation agreed to fax me a written agreement detailing as such.

How do you guys feel about it? Is there anyone else that is tired of putting groceries on the mortgage broker’s table and only getting a slap on the back in return?

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… 

We cannot get your clients set up on Your Referral Program until you call us.. Call Now (817)723-7223.

 

Are You Stopping the Flow of Your Referrals

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:

  1.  “Consumers will not refer people or industries that have a poor reputation”.
  2. 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?

  1. Show up late. When you are lake you break trust, and demote yourself in their eyes.  Never be late, it will cost you referrals.
  2. 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. 
  3. 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? 
  4. 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.  
  5. 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. 
  6. Adversity, is natural being the calming force will build your reputation.
  7. 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… 

We cannot get your clients set up on Your Referral Program until you call us.. Call Now (817)723-7223.

 

 

Are You Soliciting Referrals or Building Relationships?

Referrals based on a Relationship?  Or is it a Solicitation for Referrals?

 

I was flying home last summer from a training class and talking with a younger agent about what he learned from the training.  I had earned this trip and the 4 day training, the company paid for the trip, and I being self employed took the 4 days off to get this “Advanced Training Class”. 

As a coach and trainer, in training…  I was curious what everyone was going implement when they got home.   The young agent excitedly showed me the marketing piece he was happy to start using for his past happy client family. 

It was beautifully done.  This type of scene is done professional actors and models.  …But enough like everyday people that they could almost really be the standard Happy Past Client.

In this beautiful scene Mom, Dad, and the laughing Children are huddled on their couch being… You guessed it…  Past Happy Client Family.

 For full effect, I hope you are imagining this in your mind now, should be easy as you have seen this same type of photo before.  

This picture takes 1/3 the page, and just below this beautiful happy family including kids is a company written blurb about referrals, that should inspire any client to fill in the name and numbers of all his close friends..  

After the patriotic paragraph about how you and the company made them just that Happy Clients the best part…

Company Initiated, Company Sponsored…. 

Bold Lines and (Thank goodness for the truly enthusiastic) there are 28 spaces for the names and numbers of their best and most successful friends.

It’s a Solicitation.  Bummer… it started as relationship.

So, how do you actively generate referrals without the above formula?

No secret most companies have a formula for referrals

That formula usually is… Pester, Pester, Pester, Beg, Beg, Pester, Pester, and repeat…

What can we do instead? 

We recommend that you have a system for reminding clients (and friends) that you are in the Market for Referrals.   Remind them, that you respect them and value their relationship. And that you are a valuable resource and professional in your field. 

Then be that trusted advisor in your field, so that when they naturally run across people whom could use your services… 

  • They will call you…  
  • Because they have heard from you frequently enough that they remember you. 
  • We have just this type of system here at Referrals Matter…

We have a marketing system designed to get you referrals

Then you are notified:

  • What market piece when out…
  • To whom it went out…
  • When it went out…

… and your clients –phone number, so all you have to do is pick up the phone and make a short phone call.. 

And get your referrals!

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… 

We cannot get your clients set up on Your Referral Program until you call us… Call Now (817)723-7223.

 

 

 

Calling all 60%’s! Are you following the laws of marketing? For Referrals?

Market yourself or perish!  According to NAR (in Texas), 88% of buyers will use the same realtor again, but only 14% do! Here’s why!

Many  Real Estate professionals are great at marketing, but many times, they forget that someone else is marketing  them, and unintentionally not really for them. 

What does that mean?  What do the laws of marketing have to do with Realtors® – and Real Estate Referrals?

  • ·         Simply put the laws of marketing say that you MUST market a person at least 8 times a year!
  • ·         Marketing a Brand only requires 4 touches a year.  
  • ·         Company based marketing markets the Company Brand.  
  • ·            You have to Market yourself for Referrals

Don’t believe me yet?  Look at the top line again!  Repeat if necessary.  Read on when you are ready for the solution. 

Marketing a brand only take 4 touches a year.  Marketing a person is more in depth and takes at least 8 touches a year…  When you look at a business card of someone that you don’t know your focus naturally moves toward the branding.   Always.  Everyone is looking for company LOGO, not the actual person.  Marketing machines have trained us to do this.  To market the person (Realtor®) you have to draw attention away from the company branding to the actual person.  

This is one of the reasons that Realtors® subconsciously know to put their picture on their card.  The focus is successfully drawn away from the branding, and toward the Realtor®.  

I’m not placing blame on the company, their job is to market the brand (Brokerage), and you want them to do just that.  But let’s be honest with ourselves the company is doing very well.  

  • According to NAR, the Mammoth Majority – 85% will definitely (69 %) probably (16%) use or refer their Realtor® again.  
  • 79% will use the same company again. -NAR 
  • Only 14% use the same agent.  -NAR

Another NAR stat reminds us that 88% of people cannot remember the name of their Realtor® after just 3 years in their home.   But they can remember the company.  

Unfortunately, too many realtors are ONLY using the company’s marketing systems. 

Highly Productive Realtors® actively generating referrals have at least 1 system that is:

  • Not Company Generated
  • Not Company Sponsored
  • Not Company Oriented. 

Here is why.  They know those systems, by themselves, come off as a solicitation for the company. 

If these systems worked, all Realtors® would be rich by now, but they are not.

Many companies have great systems in place specifically designed to generate Realtor referrals while solidifying the relationship between client and realtor.   Ours takes the best aspects of the greatest of these, and brings them in a way that they:

  • Have Continuity and Consistency, so they are effective.
  • Affordable, so the Realtor® will actually use them – talk to us – you will be surprised.
  • Hands free, so the Realtors® don’t have to think or act upon anything.

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… 

We cannot get your clients set up on Your Referral Program until you call us…
Call Now (817)723-7223.

 

Why Past Happy Clients WILL NOT Refer You.

Why do people send you referrals?

 According to John Jantsch, it’s because people are physiologically prewired to refer one another.  Happy clients refer Realtors® because they HAVE to.  His (August ’11 Texas Realtor article) meeting someone’s needs for a recommendation to a good movie (or Realtor®) is ‘Social Currency’.  

This suggests that YOU have a NEED to help people find their way.  So a referral to a good restaurant may be human instinct and may extend from when a good recommendation in the past would lead someone to a good hunting ground.   So, would Real Estate Referrals be linked to life or death reflexes? 

 So when is your ‘Social Currency’ no good?

According to Gary Keller, Lead Generation is every Real Estate Agent’s first priority.   Without Plenty of Good Leads your Real Estate Business is defunct.   He teaches you to develop Referrals as a course of business.  That certainly sounds right…  Systematic Referrals for lead generation.

 When does systematic lead generation Break down?

What about all the fads, distractions and lack of follow through?  When do the high-tech talking Signs, and other similar Real Estate and Lending distractions actually COST you effective generation of Real Estate Referrals? 

They will NOT send you referrals for a Couple Reasons.

    • they forget to
    • they dont remember who you are
    • they lost your contact infomation
    • aren’t reminded to refer you

By the way… the above teachings are all true.

But, if you stay with me for a minute I’ll share with you a couple epiphanies to referral generation. There is nothing new under the sun.   Everything has already been developed.   I’m not trying to tell you that cold fusion already exists.  But there are no ‘New’ ways to do the fundamentals.

 

Past happy clients will continue, or (again) start to refer you for several reasons

    • You remind them
    • you help them remember who you are
    • they have your contact infomation
    • they know you can help someone

 

But, the Chief Reason past happy clients will refer you.  — RELATIONSHIPS.

Yes.  All the teachings of the greats above are about relationships.  But, here is Protein of this lesson.    The things that clients are energized and stirred by are the same as they have always been.   

They will refer you, because of your relationship.  They remember to refer you because you remind them of your relationship.   …I’m betting you are thinking of the ways that you know

Successful Lead Generation comes from

    • Calls (outbound) to past clients.  (Call as a friend, think relationship).
    • Hand written correspondence (you have heard this before)
    • Breaking Bread with Happy Past Clients (You eat with your friends right)

Unfortunately,  NAR Surveys have always indicated that Past Clients have intention to Definitely or probably refer their Real Estate Agent  (shouldn’t we say the same for mortgage Lender Referrals ) but the actual results are less than stellar.. Why?

Could it be that you know the things to do, but fail to have a system in place to follow through?

Realtors are busy looking for new clients, to pay next month bills.   And they forget to do the activities that generate consistent referrals.   Most Realtors, but not you Right?

Here is where Referrals Matters comes in our systems:

    • remind them who you are
    • how to contact you
    • remind you to call them
    • send hand written corrpondece from you
    • consistantly without your involvement

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… 

We cannot get your clients set up on Your Referral Program until you call us..
Call Now (817)723-7223.