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Getting Real Estate Agent Referrals - Developing a Strategy
If you are a real estate agent you know how profitable it can be to handle referrals from other agents.
Getting involved in two-way referrals with other agents is one of the most lucrative aspects of the business. But the fact is, most real estate agents are not exploiting this opportunity as much as they could.
I want to outline how a typical real estate agent can take advantage of referral opportunities that he or she would otherwise miss. As an agent you need a game plan for getting referrals, and here are some suggestions for developing one.
First, be aware that we are not talking about "regular" referrals here - for example, where a satisfied client recommends you to a neighbor, family member, friend or associate.
"Regular" referrals like this are extremely important, and every agent needs a strategy for generating those referrals too. But developing that type of strategy is not what these articles are about.
Here we're talking about agent-to-agent referrals. A typical scenario is where a long-standing client of yours is moving to another city and has no idea who to contact in that city to help them find a home.
Should they call around in their new city to find an agent? Should they contact a relocation company? Or should they talk to you - someone they have come to know and trust in real estate matters?
If they do come to you and ask you to make a recommendation this will very likely result in what we call an "outbound" referral. Your client comes to you to sell their home. They also ask you for advice on finding a home in their new city.
You say, "No problem. I can set you up with one of my associates..." You phone around, find an agent interested in handling the deal, and are paid a commission by the receiving agent.
We refer to the other side of an agent-to-agent referral as "inbound" referral. In this case you are on the receiving end of the referral.
An agent in another city sends you a client and you take care of helping them find a new home. You get the selling commission, and you give the referring agent a percentage - usually about 25%.
All agent-to-agent referrals have these two sides. It is outbound for the referring agent, and inbound for the receiving agent. It is a good deal for both agents, which explains why so many agents want them.
The receiving agent has a new client dropped in his or her lap, and the referring agent gets a handsome commission for making a few phone calls.
But developing relationships that result in referrals doesn't just happen. You need a strategy. So the question is, "What kind of strategy can you use to get referrals like this?"
In a word, it all comes down to "networking". Networking means first, developing a network of contacts in as many other cities as possible. Second, it means "working" your network to raise your profile and become known among as many agents as possible.
Third, it means doing business with your network partners as often as possible - helping them out and sending them new clients. And that means sending outbound referrals at least as often as receiving inbound referrals.
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