I have met agents that do a referral almost every week and some that never do a referral. Most top producing agents rely on referrals for most of their business (60-80%). Why cultivate referrals? It is easier and lest costly than finding new customers.
So where do referrals come from and what do I have to do to increase my referral business?
1.) Create or maintain a comprehensive list of contacts.
2.) Contact the list, repeatedly! Emails, phone calls, direct mail, doesn't matter! Just contact them!
3.) Every person on your contact list knows of 7 people per year that will buy or sell real estate! So ask! "Who do you know who is thinking of buying or selling real estate" (even if it is in a different state or country). Ask them to give you their phone number and you will contact them.
4.) Reward them! Once they give you a referral, give them a gift (thank you, or better?).
5.) If the referral is local (wanting to buy or sell in your local market), work with the customer like your own family; they will report back to your referring contact. If the referral is out of your area, find the best agent to refer them to and get regular updates and report back to your contact. It is all about communication!
6.) Follow-up. Follow-up. Follow-up
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