Referrals are the best source of leads for your real estate business. You are endorsed by the referrer, there’s no competition, and referrals are basically free.
A Referral Business Takes Effort
Referrals and repeat clients have been 60 to 70% of our sales every year since 2012.
This is not a “set it and forget it” lead source. You have to invest time, energy and some money to GROW your business with referrals.
Below you will find strategies to run and grow a referral-based business compliments of three of the most recognized real estate coaches in America.
6 Modern Referral Strategies by Tom Ferry
Tom Ferry promotes different tactics for lead generation. In this video he talks about 6 modern referral strategies – some you probably never heard of. Check it out …
The Buffini Referral System
Brian Buffini leads a huge coaching organization for Realtors and small businesses. His system is completely based on referrals.
The approach is simple: “A consistent level of contact with and care for the people in your database will lead to a steady stream of repeat business and referrals to their friends and associates.”
Buffini’s system uses a combination of direct mail, email, phone calls and Pop-Bys along with targeted dialogues and hand-written notes to create a stream of high-quality referrals.
Michael Maher’s Generosity Generation
I recommended Michael Maher’s book “The 7 Levels of Communication” many times. It tells the story of a mortgage broker who helps a real estate agent rebuild his business through strengthening relationships.
Watch this video interview to learn more about his book and the philosophy behind the Generosity Generation.
Should You Rely Exclusively on Referrals?
Many agents tell me they rely on referrals only. That may be true, but most struggle to grow beyond $2 million in sales a year.
I don’t believe you should build your business exclusively on referrals. If your livelihood depends on a single source of leads you put all eggs in one basket. And if that basket goes away you are out of business.