Are you searching for an inexpensive way to grow your real estate business? Look no further than referral marketing!
Referral marketing is when one of your existing clients raves about you to their friends, family, acquaintances, etc.
Why Do People Refer Realtors?
As people, we love to share our positive experiences. This leads us to tell our friends and family about them because we want them to have positive experiences as well!
Clients will refer your services only when three things are present:
- They have to like you
- They have to like the person who is asking for a referral
- They have to think of you when they see an ongoing conversation about real estate
You need to establish great relationships with your existing clients in order for them to want to refer you to everyone they know who is in need of buying or selling a home.
“80-90% of clients would work with their realtor again if they could remember their name. What steps do you as a realtor have in place in your business to remain top of mind? 3 Touches a month. Email, Mail, Text, Email, Social,” explains Elite Group Director of Sale, Josh Niehaus.
Now that you know the basic process of referral marketing, let’s outline some statistics.
- Referral marketing is the #1 source of business for realtors
- 74% of clients will give you a referral if you stay in touch
- 42% of new buyers come from a referral
- 75% of sellers use social media to find their agent
Knowing this information, you need to utilize this form of marketing.
Grow Your Business with Referrals
Waiting around for people to talk about you isn’t enough; you need to ask them to talk about you!
If your relationships with your clients are strong, there is no harm in asking them to refer their friends and family.
If you’re not completely comfortable asking people outright to recommend you, offer an incentive! This can include gift cards to local restaurants or even a fun t-shirt!
“Some Agents will throw their clients a home warming party and invite all of the client’s friends and family members. At the party…referrals happen,” says Niehaus.
Another way to try to get referrals? Become an expert within a community! By doing your research on a common issue in your area and providing answers that no one else can, you’ll get referrals.
Referral marketing is a powerful way tool. Try your hand at it today so you can grow your business!