Whatchu talkin' ‘bout Jennifer? You can't be serious!
Yes, I am.
If you're asking the question "What is the best way to ask for referrals?" that tells me that something about doing it bothers you.
And if it bothers you, don't do it. Your discomfort will be crystal clear to the person you're asking, which is probably worse than not asking at all.
(If you don't mind asking for referrals, it probably comes naturally to you. Keep up the good work and ignore the rest of this blog.)
Do YOU like being asked for referrals? I don't.
When a friend asks me to refer business to her, I feel uncomfortable. What was five minutes ago a friendship suddenly feels like an obligation. If she asks me twice, our friendship may very well be in danger. I don't want to have to explain to her why I haven't referred anyone to her lately (or ever). I don't want to listen to her sales pitch... again. And, frankly, if I haven't referred anyone her way, there may be a reason. But I'd hate to lose a friendship over it.
When a business professional asks me for referrals, it lowers my respect for them a notch. Right or wrong, I assume everyone is as successful as they wanna be. So when I receive a marketing letter from my insurance agent or my accountant asking for referrals, I suddenly question their level of success... and therefore, just a teeny bit, their competence. Where five minutes ago, I perceived them to be a prosperous, crazy-busy professional... now they're a ... salesperson. Ick.
Don't get me wrong, I love to refer. I'm a referring madwoman when I find someone I believe in. You don't have to ask me to refer, I'm all over it! Aren't you the same way? If you have the world's best hairdresser, dog trainer, chiropractor - don't you tell everyone you know? Do these people have to constantly ask you for your referrals?
Here's a better way.
Be a friend first. If not a friend, then a reasonably competent human being. Be happy, excited and enthusiastic. Act as if your career is everything you always dreamed of. Practice saying "I'm a real estate agent and it's the coolest job in the world!" with a huge smile on your face. Or how about "I had no idea how much I would enjoy selling real estate, I'm having a blast!" Followed up by a sincere "How are YOU doing?"
To ensure that every potential referrer in your life knows you're a reasonably competent human being, make sure your self-promotion materials are professional and error-free. Return phone calls promptly, even social phone calls. Show up on time for appointments and lunch dates. Do what you say you're going to do, when you say you're going to do it. No excuses. Dress appropriately. Watch your language.
It really is that simple.
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Good stuff. I agree that I don't like being backed into a corner about referrals. I talk with Account Execs every day who are starving and getting desperate. I send my business to those who I hhave a relationship with and whom I know will get the job done at a price reasonable to my client.
The same with professional referrals. There needs to be trust first.
I like your approach!
If you provide exceptional service, you WILL be noticed and you WILL be referred to others. I agree that there is an element of desperation when you ASK for referrals. If you are constantly BEGGING for business people will avoid you.
The key is to I keep in touch with clients so when they have the friend that is moving or when they are ready to move again, THEY WILL REMEMBER TO CALL YOU.
Build relationships, don't beg for them.
Richard... I LOVE that quote. Love it love it!!!
BUILD RELATIONSHIPS, DON'T BEG FOR THEM. Beautiful.
I have a similar one...
"Stop Marketing Yourself... Start Building Relationships... Watch Your Business Explode."
Betty & Keith - go for it! Like I said, if you're comfortable asking for referrals, then more power to ya. My business was also 90% or more SOI, but I used a different tactic for generating business and referrals. I like Keith's approach of saying "I enjoy working with you and so I know I'd enjoy working with your friends."
That's good.
Jennifer, Only ask if "your invited in" which means if the subject is brought up ( and not by you ) then really do not ask but let them know that referals are part of your business model. If they know of anyone .... well you know the drill. There are a lot of non offensive ways to ask that respect the people you are talking to. Besides if you are wearing a badge or the logo shirt etc. The people you are talking to know what business you are in. Probably thinking to themselves, I bet this clown will ask, So don't and surprise them.
Of course unless they bring up the subject.....
Good points, Jennifer. I have never asked for a referral, yet over 65% of the business I did last year was from referrals and past clients coming back to me.
I focus on servicing my clients to death both during and AFTER the transaction. I want them to know that I will never forget them for helping me to get to the level of success that I enjoy. One note: YOUR level of success is different from everyone else. Success may mean more money than you could ever spend, while for the next person it is just enough to allow them to do the "fun" things in life that they want to do.
I mail birthday cards and anniversary cards and CALL them on their special day to wish them well. I have many times been told I was the ONLY person to call them on their birthday. You can't put a price on that goodwill.
Simply put, treat your clients as well as you would lilke to be treated and it will pay the biggest dividends.
I can't believe what you are saying? First of all they wouldn't be asking you for referrals if you were sending them some. If they are asking perhaps they are in a coaching program that tells them this is what to do. I took such a program and the way we were told was to ask "If you or a friend or family member needed a real estate agent, do you have someone you refer them to? If they said no, you said, I'd like to be that agent.
Now that does let people have an out because it does give the person a chance to tell them they have someone whether they do or no. I don't like to call on my past customers in person or on phone but I stay in front of them with regular mailings, at least one a month, newsletter, tip, or personal note.
If I overhear conversation in beauty parlor, drug store, or grocery, etc... and it feels right I ask if they need a great real estate agent or if they already have one. I have lost business not asking for referrals, but everyone knows someone who does most jobs in the world, so if they pick the neighbor down the block instead of me because I haven't spoken with them about referrals, its my fault.
And one final point, don't you ever have a slump? Or choose to push your business to a higher level? Maybe someone needs to start paying college tuition for their kid and wants to make more, and in addition is maybe feeling a little empty nest and needs to get out and work more. Or someone whose property taxes skyrocketed and need to earn more. Or maybe just someone who feels their retirement account balance will have them eating cat food in their golden years (if they are that lucky) and feels the need to increase their income.
There are many reasons to ask for a referral. You can always say, I'll keep you in mind, but I don't get those requests often.
Nearly all my business comes from referrals; past clients or professioanls I do business with (title companies, mortgage officers, home inspectors, etc.). I can honestly say I have never asked for a referral! I make myself approachable, my clients and associates become friends and I leave myself open as a resource to my clients long after closing. A first time home buyer recently relocated to AZ hasn't a clue which pool cleaniing service is realiable and delivers good service for the price. They may need an exterminator, roofer, landscaper, interior designer, chiropractor, or veterinarian closeby. They feel comfortable asking for referrals. My clients know that I know and work with area services. I have used many of them and my past clients trust my recommendatons. They have seen how I do business so they know I can be trusted to give them the objective info they seek. You'd be amazed how good it feels to have a newly relocated client call you and say "thanks for telling me about......I had no idea who to trust." Same goes for info. They call me to ask all sorts of questions; they have no one else to ask. "who can I talk to about..."
I agree completely with Richard, Let your level of service speak for itself and referrals follow you. You won't need to ever ask.
Jennifer,
In my opinion I would be careful to say that one should not ask for referrals. Yes, it's true that many feel uncomfortable asking for them. Usually it is because they did not do a great job with the client to begin with. I personally think it's ok to ask tactfully for referrals when someone is extremely pleased with you and your services. But it's not the act of asking for the referral itself that can become a problem it's the way you go about asking for it. Just my opinion.
Good Luck with the book. :)
Regards,
Jeff Wilhems
President
Top Agent Toolbox
www.TopAgentToolbox.com
Jennifer,
In my opinion I would be careful to say that one should not ask for referrals. Yes, it's true that many feel uncomfortable asking for them. Usually it is because they did not do a great job with the client to begin with. I personally think it's ok to ask tactfully for referrals when someone is extremely pleased with you and your services. But it's not the act of asking for the referral itself that can become a problem it's the way you go about asking for it. Just my opinion.
Good Luck with the book. :)
Regards,
Jeff Wilhems
President
Top Agent Toolbox
www.TopAgentToolbox.com
How about a compromise?
Instead of ASKING point blank for referrals, what if we come up with a way to tell people we prefer to work on referral without putting them on the spot? Maybe by telling a funny story about a referral (make one up if you have to!) you received? Or how about this one (a true story from my days): "I do almost all my business by referral, but one day I was sitting at the office and {Famous Person} just walked in off the street and asked me to help her find a house! I was too star-struck to answer her intelligently."
Any other ideas?
Jennifer I really don't think anything is wrong by asking...As long as its done in a tasteful manner.
I used to work in a very high end car dealership in west palm. We used to get a lot of famous people in. Funniest thing happened to me when Jimmy Buffet walked in and I did not recognize him... (Talk about embarrassing) But you try it he was wearing a big baseball hat and ray bans. By the way he was very nice.
Funny!
Well, as I said in the original post, if you're comfortable asking for referrals, knock yourself out! But a lot of us aren't and we beat ourselves up because we can't bring ourselves to do it. If we DO ask, we're so uncomfortable that we make our "target" uncomfortable too. It's like any form of prospecting - if you like it, you'll probably be good at it. If you don't, you'll probably suck at it.
I'd be the world's worst cold-caller. But I do a fantastic elevator speech.
Oh I hate cold calling. Introduce me or bring me on the close and I am all in....
Jennifer I agree with many of the things you pointed out and I also believe in asking for referrals. If you feel uncomfortable doing it that may work against you, but there are more subtle ways to accomplish the same thing.
I spent 15 years in the stock brokerage industry before becoming a real estate agent and in that business most of the business I did was from referrals. I think it comes down to building a good relationship based on trust. At the same time, when people are talking to their friends and clues are dropped about getting ready to move etc. you want people to keep you in mind. A subtle way is to make sure you keep in contact with all of your past clients every so often. I would send out articles of interest and periodically call to check in and see how things are going. This may prove to be a great way to keep in their radar and it is showing that you are thinking about them.
The other thing I learned through the years is that the more you ask for referrals the more comfortable you become with it.
I honestly do not have a problem referring, as long as I know that the person is credible. In my case, I'm very lucky to have a good network of business partners in different areas. They've never done me wrong. If one of my customers need something and I can't help them, then I have a friend, who will. The same thing, occurs with my business partners.
The flip side. I've had 2 VERY CLOSE friends/clients tell me about their friend or family member that was buying or selling something (without me)! I was awestruck!! When I finally found my voice, I politely asked why in the world were they working with someone other than me.
Here were their responses:
1) I didn't think you worked in "that" price range. It was just a little condo.
2) Wow... I would've never thought you had time for "new" clients.
You see... as I was out making sure everyone knew how fabulous & busy I was, I somehow gave them the impression that I had "moved on" past a certain price range or was "TOO" busy to take on another client.
Well.... I have learned my lesson. I try to ask for referrals now any chance I get. I'd rather lose someone because I asked - rather than lose them because I didn't.
By the way... I would love your referrals for LAS VEGAS!! <wink>
Sue - wow what a revelation! I guess in my world, I would rather talk about my business and let my friends & family know how I work and how excited I am to get new clients, rather than to pointedly ask for referrals.
But that's just me.
JA
Maybe we can come up with a business card blurb that is unique (instead of I heart Referrals!) that gets the point across in a cute, fresh way...
Hmmmmmm
After reading all the posts I feel that all of the points have been addressed. That being said that my sole purpose of my business is referral. Obviously the more you become comfortable asking for referrals the less needy it will sound. A great way to ask for a referral is after you have solved a problem for them. 90% of the time our clients have no idea what value we have for them so why not let them know?
As an example in the course of a recent buyer transaction I negotiated and saved them $15,000, saved them an additional $150 from picking the wrong inspector, and saved them an additional $800 from catching a mistake in their settlement statement at closing. I called my client and gave him the good news of the money we had saved for him. Then I asked for his help only if he was comforatble. If you ask permission for their help it takes the pressure off the person you are asking for the referral and you have shown your value before asking. He was very receptive and I asked if there any friends, family members or people at work that were looking to do what he just did. I asked very specifically and he answered " My daughter's friend is looking to buy a home." At that point it was just a process of asking additional questions and scheduling a specific time to meet.
I agree with Jennifer and the other posters that if you aren't comfortable or ask at an awkward time then it is detrimental to your relationship with that client. However if you clearly orchestrate those moments by showing your value and having them acknowledge your value then ask for their help then it becomes a different dynamic. Just my 2c
I definitely prefer my clients/friends that refer me because they think I've done a great job. But, wow was I shocked to learn that I had somehow given the impression that I'm "too busy" or "don't work in a certain price range".
I've been told that it's not so much how we perceive ourselves as it is how others perceive us. I guess that it's pretty true!!
Here's hoping we all get all the personal referrals and repeat business we can handle!!
NOW WAIT A MINUTE! If you saw a great movie or went to a fabulous resturant, wouldn't you want your family and friends to know about it? Would you keep a great electrician a secret?
QUIT hiding your light under a bushel basket and let your friends and family know you are a good real estate agent/Realtor and would always have time for them OR their referrals.
Brian Buffini has a good training program for using the referral system. If you aren't too stuck in your ways, it is very good and will help.
Yes..Melissa and others, you have hit it on the head...we spend hundreds if not thousands of dollars on lead generation. Your Past clients Love you and think you're wonderful.
I used to be a sales manager, and I recommended to my Realtors to go and have a coffee with their last Sale's clients, they'll be in the mood to tell you about people they know who are buying or selling. The best time to ask is be with clients.... is right after a sale, you know everything about each other and are now New Friends. Most of my clients are my friends and I make reference to them talking with new clients, it helps with relationship building.
Stay out of the office, go have a coffee with your last sale, they think you're wonderful and may still need input from you, gently say, if you hear of anyone thinking or buying or selling I would appreciate your referral...They'll gladly say.... oh course we'll refer you to our friends and family...Now keep in touch with newsletters, drop by and say high, keep past clients informed about houses values(very effective), and keep a smile on your face when you greet then in person or on the phone !
Need help, sign up for Brian Buffini, he has built an empire of coaching Realtors how to build a referral only business,...just think what would happen to your income if 25 people referred 2 clients to you every year...do the math...in my world that's $5,000 Average Commission x 50 = $250,000 not bad for just getting 25 clients to send you 2 referrals. Possible Goal ?...go have a coffe with your last sale!
Cheers, have an awesome day!
Thanks for the suggestions Jennifer, however don't you believe you should at least as for testimonials?
Jordan M. Mackey
http://www.jordanmackey.com/
Your Overland Park and Leawood area real estate specialist...
ok I must admit you got me with the headline but after reading the post in it's entirety I see the point you're making and I agree with it to the degree that yes, a professional who exudes confidence, success and enthusiasm and has a track history of past success and competence will automatically continue to get referrals because people who had a great experience with him or her will share that with their friends etc. But here's where I disagree...I don't think asking for referral business makes someone a lesser successful professional. At KW a lot of the training material as well as other real estate coaching material centers around the theory that you have to ask for the business. I have and since I have I've enjoyed an increase in my business and that was well worth asking friends, associates, networking groups, past clients and when the referrals came in to me automatically without asking for it I've been humbled.
Cheers,
Uzi Husain
Arizona Realtor, serving Goodyear & The Phoenix metropolitan area
Great post Jennifer!
Referrals come when you are; trusted and respected.
Folks should spend their time acquiring the trust and respect needed to be worthy of a referral.
Then and only then will they come...and they will come without asking.
Look at all the commenters here "referring" this Brian Buffini guy. Somehow he got your trust and respect and you're doing his promotion.
Did he asked you to?
I didnt' think so...
Save your time and money on the next great "Generate Referrals On Autopilot" seminar and put it back into ways to gain more trust and respect from your client base.
Hey I've got an idea, write a book like Jennifer did and give a free copy to all your bast clients.
Oh, that would take a lot of time...time reserved for seminars, eh?
Hi Jennifer.
Great post, I agree. Referrals will come pouring in as long as you present yourself well.
Family is tough!! Sometimes your family can be much harder than friends. I'm not sure why, really.
My best advice would be to include them in your general SOI campaign. It might take a little longer for them to feel comfortable referring you, if they aren't doing it upfront. Don't push, don't ask, they'll come around.
Jennifer, I'm not sure I entirely agree with you. The best time to ask for referrals is after you have done something good for your clients, for instance, right after a good settlement. If you don't tell them then that your business depends on referrals from good folks like themselves, then you have blown an opportunity that is not likely to come again.
Sue, I have also had prospects, even friends tell me that they listed with someone else - "I thought you were too busy", or "I didn't think you worked in that neighborhood." The lesson I took from that is, you don't get what you don't ask for (and not always then, either).
Thanks, Jennifer. I never really thought about it that way, but you make a lot of sense.
Regards....Jay
Thanks for a great post. I ask but don't ask.. sort of kind of. I'll send out a hand written card with some cards... just saying don't be strangers... I think thats as passive as it gets... when asking for referrals
It's a complete picture that has to all come together.
Then you have earned the right to ask for a referral and no one will feel awkward.
Joe Stumpf of By Referral Only and Brian Buffini are masters at this.
I like to remember to always say "Don't keep me a secret" after I have done something worthy of a referral.
Many people really want to help. If they already think that you have all the business you need, they won't bother you with new business. If you tell them that a big part of you staying in business is getting referrals from satisfied clients, then they'll begin to think of ways that they might help you.
Jennifer: When I think of you I think "QUEEN OF SPHERE" in the very best way! I love your tips to th enth degree! I love your technique and I do it similar to you. Just being who you are and keeping in front of them without being pushy will give you repeat business like you have never imagined.
Selling with soul is a great concept and someday when I get my stuff together I need to get your book!
Jennifer... I haven't read any of the comments as of yet and I will do that later.
But on another note, I will have to disagree for several reasons:
1... yes, I don't always like asking for referrals, but does that mean I am not as good or successful even if I do?
2. If I don't sound aggressive or confident when asking for them, does that mean I am not deserving of them or that I now sound like a sales person? My take on this... gee, I am actually sincere and genuine when asking, because it doesn't sound natural. Natural to me sometimes could be that sales person that sounds too good, who is just that good at selling themselves. I would rather have the person that is real and I can sense this.
3. Last reason.... even if you are very good or great at what you do....many people are either not loyal or just don't think about passing your name around as you and I do or put ourselves out there. I have found this out also. Some people just move on. It's the me me syndrome. And if you don't ask or send them a card or a newsletter asking... you will never know. I would have to bet that your percentages tend to be better if you ask, if they really thought you were that good from the beginning. If by asking is going to deter them from sending you a referral, then in my opinion, you weren't as good to them as you thought you were. To me, that is reality.
Now... when you have a friend that has asked you several times and you don't want to ruin that friendship. What I would want is honesty and someone to be upfront and not just say... well, maybe... or when I get someone....or I'll think about it. Gee... get to the point. If they were your friend, they would understand this.
My conclusion... do you sit on the one side of the fence and just not ask? Or do you attack the bull by the horns? Remember, there are different ways of doing this. Maybe it was just a few ways that others that went about it, that rubbed you the wrong way? Just curious....
So...overall, you make some valid points. It's a good post and I am curious to what the other comments have mentioned. But I am on the other side of the fence.
Jennifer, I can understand where you and many others are coming from.
I do this...I send out a personal note to my buyers, sellers, and those on the opposite side of the deal (of course once it is all over). I do this every other month. It is just a "Hey, thinking about you. I hope things are going well. Should you ever need me or know someone who does, please give them my card."
In each card is another business card. People appreciate the cards, and it works.
Those on the other sides of the deal, enjoy them as well because their agent has been long gone and never heard from again. You get those referrals too.
Hmm, reminds me it is time for some note writing.
I LOVE all the differering opinions!
What I hoped to accomplish is to offer a fresh perspective on the business of asking for referrals. It's OKAY if you don't want to! It's OKAY if it makes you uncomfortable! You can stop beating yourself up!
I sold a heck of a lot of real estate in my career and I never asked for a referral and at least 90% of my business was SOI.
There are many paths to success!!! Take the comfortable one - it's waaaay more fun!
Yet another excellent, bookmark-able post. Thanks for sharing your insight with the rest of us. :) Sometimes I feel comfortable asking folks to refer me, but sometimes I feel awkward too - and I have found that if I am feeling awkward it's probably because i'm reading the person right: they are going to be weird if I ask them for a referral...I ignored that feeling and "stepped out of my zone" anyway and asked her to remember me if she has any friends needing a REALTOR, and she had the classic "deer in headlights" look. who knows why...maybe it's cause she doesn't know me all that well yet, maybe it's cause she has a close friend who is a realtor...whatever it was, I disobeyed my instinct and then made a comfortable situation "strange."
Other times I have no problem saying "here's my card!" and it seemed like the "right" thing.
I think that a lot of times we do not like to listen to our senses, which I believe are truly built in warning systems, trying to alert us to the "danger" ahead.
Hello. I must say that I was very taken aback by this particular post. Rarely do I ever respond to blog spot, so this one must have set me on fire inside. The notion of not asking for referrals ever, I think is ludacris. Mainly because if you "appear" to be doing so well in whatever your job is, then people will say to themselves more times than not "Oh, she doesn't need my business or my referral." or even worse, they simply won't think about giving you one at all( if they haven't had the chance to work with you personally).
Of course, I'm speaking from the other side...the side of the table where someone has asked me for a referral. Instantly when they do that, it re-solidifies in my mind, how important it is to ask for what you want. Ask and you shall receive. Also, in my neck of the woods (the Nation's Capital), referrals and networking are almost an inate characteristic for every business person that lands here. If you are not one to network or set up and ask for those referrals, one of the many other 50,000 agents (literally) and millions of other service providers will capture your business instead.
Sure, I've had a chiropractor who I've absolutely adored and referred to everyone who needs chiro work (www.dkdc.com) because I was pleased with my results. But imagine, how many other people I do business with who I never think to refer.
Another interesting story, was a gift shop owner I met. It was my second stop into her store in the 3 years I've lived here - which I told her. And she politely and quickly told me, that she can't stay in business if I only come in once every 3 years (that was after we'd established some rapport). Now, as a customer, I probably would have thought "why should I care?", but as a business woman, a light bulb went off inside and it totally made sense. We have to let people know, clearly and honestly, what we need from them to remain successful in business, in addition to what we can do for them to make sure they remain successful in their life.
But what do I know. I'm just speaking from the viewpoint of a business woman who makes every attempt to connect with and support other local business women so we can build mutually-referring businesses and all be successful together.
Renee - Thanks! I call myself the Master of all Things SOI - but I like Queen too!
Tami - I love it when my blogs "take people aback". Much more interesting that way. Thanks for your comments - you make very good points.
Karen - You gave me something to think about. I wonder if I DID "ask for referrals" during my career, but didn't realize it because I intuitively knew the other person was open to my request. So, it didn't feel awkward or uncomfortable. I bet I did. VERY perceptive observation.
Keith - Bingo! Being a real estate agent doesn't mean that you should abandon the Do Unto Others idea.
Brande - that's exactly what I did, too. Worked beautifully.
Jeff - Happy to agree to disagree. Regarding my friend who I don't want to refer to - I don't really WANT to tell her why I wouldn't refer - it's not relevant to our friendship. I have plenty of friends who haven't ever referred me and I'd rather not know why (if there's a reason). I enjoy their friendship and I know they enjoy mine.
Great Responses means a Great Article. Congratulations, Jennifer!
My Thoughts:
Unless you are NEVER doing follow-up with past clients...you're asking for a referral.
Every contact with a client post-transaction...you're asking for a referral.
Any time you cause your name to be brought up in thought or conversation w/ a past client...you're asking for a referral.
Basically, "asking for a referral" doesn't mean sending a postcard that reads, "I welcome your referrals". (Even though that is, indeed, one way)
Post-transaction contact/actions are meant to keep you in the forefront of a client's mind...that's why we do it...for future business and referrals.
QUOTE:
"Family is tough!! Sometimes your family can be much harder than friends. I'm not sure why, really"
If the family member does not perform to the friend's expectations, it is far more difficult to complain about it. So, if the friend can not vent to you about your crappy realtor/mortgage broker/home stager because they're family....well, makes things awkward and the undercurrents are potentially damaging to friendships.
It's far easier to commiserate & join in on the bashing if you've made a referral of someone who didn't perform...when they're not family.
Great article - and I agree with what you wrote.
However, there is one time I make sure I do ask for a referral - right at the time of closing. After the last signature has been completed, I always turn to my customer and say something like - can I ask you for a favor? Since they've just received their keys and/or check, they're very happy and ready to oblige. When they say yes, I ask them to please remember me and refer me to their friends as I want to make them as happy as they are feeling now.
That is generally the only time I really ask for a referral. It sets the idea in the customers' head at the exact moment they think you are wonderful, in a completely non-threatening manner.
Very good counsel. I have a related question. I usually communite with my friends and family using by real estate cards. It is a silent reminder that I am in real estate. I have thought of returning to another type of card that just has a giant first letter of my last name (like I used to do before I ran out). You have a thought on this?
a folded 4x5 card stock with our company's logo on the front.
Does it work for you?
I think you can probably do better. An SOI campaign needs to be personal and about YOU, not about your company. So, yeah, a notecard with a big letter would be cool, but not enough (unless you write personal notes in all of them - that would be terrific).
Switch it up... send a newsletter one time... a Mother's Day card (next week), a personal email. Don't get so caught up in "communications" that you forget to communicate! The personal touch wins hands down.
I completely agree. People who are good at what they do get referred without asking for it.
I've never liked the conventional wisdom that says you should ask anyone you're talking to who else you should talk to. And when someone calls me and says, "Joe said I should call you," I'm usually left feeling that "Joe" had better stop doing that! Which is why I don't like the BNI thing... their members who know me are constantly giving out my contact information and I end up feeling spammed by sales pitches.
I couldn't agree more. Pressuring people, whether friends, family, business associates or past clients, into referring business to just just doesn't work. The fact is some people are customer evangelists and other people are not.
Some individuals absolutely love telling other people about the book they just read, the restaurant they just ate at and the real estate professional they just used. For other people, making such a recommendation never crosses their mind.
If you provide customers with premier customer service, the evangelists will spread the word.
Richard - you said that really well! Can I steal your term - "customer evangelists"?
Barbara - I agree that the general public doesn't know how we work, but I think there are better ways to let our friends and clients KNOW how we work without "begging" for referrals. Just a casual conversation about how you got a referral from someone you only met once... or maybe you could say "Because most of my business comes from referral, I never have to cold-call anymore". Use the opportunity to demonstrate your success and professionalism instead of ... well... asking for business.
2 proven referral techniques:
1) Its all about timing. Ask for referrals after the client expresses satisfication with your services. With the right script, it's a breeze.
2) Forget about asking them for business referrals. Instead ask them who they use for their other financial needs. "I am creating a strategic network of financial professionals, and I was wondering who you use for...." ( RE agent,LO,CPA, RIA,insurance agent,etc.). They will be happy to share with you these names. The next step is to contact these other professionals, to create an alliance.
It works very well!
If you do it right it's the only marketing program you will ever need. There is too much to cover here. If you want to know more about this technique and the scripts, let me know.
leverage is the key!!
Dear Jennifer,
Your last paragraph really sums it up well. I agree, with the idea that if they like you'll they work with you and tell others to work with you. It does feel car salesman-ish to constantly ask for referrals. Offering things of value, like a monthly newsletter for my neighborhood works so much better than going door to door and asking for business.
Thanks for your insight.
Sincerely,
Jennifer Shannon
One amazing guy in our office is overrun with referrals. And yes, he is the top producer! Yet I made the observation he never asks for referrals, even when he sends his client a letter. How does he do it? He GIVES REFERRALS all the time to anyone and everyone. He is a walking, talking referral source. This must train his potential clients to return the favor.
Thanks for an interesting dialog.
Janet - OR, perhaps, just gives evidence that the old adage is true..." What Goes Around, Comes Around!"
Great observation.
I agree wholeheartedly that my trusted service providing professionals (I.E. my hair dresser, restaurants, etc...) don't have to ask me for referrals. These people have given me excellent service for years and the referrals do just come naturally.
The other day I was having my hair cut and talking to my hair dresser when the topics of growing our businesses through referrals arose. The woman who has cut my hair for years has already helped me by displaying flyers of mine in her lobby. Today was different though. As the topic of referrals was fresh on her mind, she immediately began asking customers around the room not only how their mortgage situations were but also about those of their friends and family....
I was being advertised, in a powerful way because these customers trust this woman as much as I do, and she is touting my abilities and character! Obviously this woman knows the type of person I am and has her trust in me but....bringing up the topic of referrals served as a catalyst for what then became the best type of advertisement I can recieve.
So the moment was made possible because of our trust in eachother, but it only took place because our discussion of the power of referrals lit the fire...Remember to cultivate those relationships where the trust is already established, you may be overlooking a valuable resource you've already worked hard to develop!
Wow, great comments.
I believe it depends on the individual agent and the relationship you have with your clients. I have clients who often send me referrals without me ever saying anything.
I do not say to my clients, do you know of anyone who may be buying or selling a home. I am not saying you should not, but it is not what I do.
Now, I will often let my clients know that I am never too busy to share my advice and assist anyone that they feel could use some professional guidance about real estate or simple have a question about real estate. I will say this to my clients, because many times when I have received referrals it sounds something like this: I know you are busy, but do you mind helping my co-worker? She is thinking about selling her home or my aunt has a question about purchasing a home and is curious about the current market, could you take a moment to give her a call?
Also, on a few occasions, referrals have told me, I know my house is not an expensive home and you will not make much money with the sale, but would you consider helping me sell my home? I reply, of course I will help them. (Believe it or not, this is how some of my investor clients have approached me).
When you work with a high volume of clients or you are an agent who simple puts their heart and soul into helping their clients, current clients may sometimes perceive you as too busy to take on a referral. I do not want my clients to think I am so successful and busy, that I have no time for additional clients. So I always remind them, do not be afraid to call me or share me with others that have a question pertaining to real estate. I am here to help you or anyone that may need some assistance with real estate.
Wow, great comments.
I believe it depends on the individual agent and the relationship you have with your clients. I have clients who often send me referrals without me ever saying anything.
I do not say to my clients, do you know of anyone who may be buying or selling a home. I am not saying you should not, but it is not what I do.
Now, I will often let my clients know that I am never too busy to share my advice and assist anyone that they feel could use some professional guidance about real estate or simple have a question about real estate. I will say this to my clients, because many times when I have received referrals it sounds something like this: I know you are busy, but do you mind helping my co-worker? She is thinking about selling her home or my aunt has a question about purchasing a home and is curious about the current market, could you take a moment to give her a call?
Also, on a few occasions, referrals have told me, I know my house is not an expensive home and you will not make much money with the sale, but would you consider helping me sell my home? I reply, of course I will help them. (Believe it or not, this is how some of my investor clients have approached me).
When you work with a high volume of clients or you are an agent who simple puts their heart and soul into helping their clients, current clients may sometimes perceive you as too busy to take on a referral. I do not want my clients to think I am so successful and busy, that I have no time for additional clients. So I always remind them, do not be afraid to call me or share me with others that have a question pertaining to real estate. I am here to help you or anyone that may need some assistance with real estate.
This is the first Blog I've read since joining and if they're all like this, I may not get any work done anymore! Thanks for some great insight Jennifer (and all other posters).
I mention to most clients when we first meet that the majority of my business comes from my clients and, therefore, it is vitally important to me that they are very pleased with our relationship. This seems to imply enough that if they are happy, then they should refer me because that's how I stay in business. After 20 years, it's the only "script" for asking that I am comfortable with and it works pretty well.
Kevin - that is a great suggestion!!! Thanks for sharing it. I'm adding it to my list now....
Hi Jennifer..Sorry I have to disagree, asking for referrals is good business and giving our clients a chance to be involved plus helping them, They may need a Realtor to help a family member or employee moving. If you call your Database a couple of times a year(Past Clients and Sphere) they do not mind, in fact many times you are helping. I suggest be right up front when you call and ask these :
PS: Once a year offer a short CMA of their home , mail them. Clients like to know what their home is worth even if they are not planning on selling, Stand out as their source of Real Estate information.
Again Jennifer..I responded earlier above. It's a Good Idea to Ask For The Order, see Zig Ziglar's books and tapes on sales. It's how you ask that makes us look professional or not. There is nothing wrong with asking for referrals, people love to Help. Say Can You Help Me...I am expanding my business, and I'd love to have New Clients Like you as Customers if you hear of any friends or family members that need a great Realtor to Help them Find or Sell their Home, Call Me I'd be pleased to call them and look after them for you.
People love to Help and People Love to Refer you to their friends, it how you do business, nothing gets you more business like referrals, work on how or what you are going to say, be sincere when talking to clients...ask them if you can help them with anything, like refer a good painter or carpenter etc to help them.
Make a Goal of have 25 Clients send you two referrals a year...do the math, here it's $250,000.
Cheers, have a great day!
Excellent points...serve, don't ask!
Agree with you. We recently were invited to a "party" where we were asked to bring our Rolodexto send out some post cards to our contacts for the person throwing the party -- huh? honesly we don't need a BBQ hamburger that badly.
OMG - that's hilarious!!!!
OK, a different perspective.
I agree wholeheartedly - communicate and the rest is best on your credibility and reputation in my opinion.
I know you posted this article a million years ago but I am slow to read these things. Just wanted to chime in. AMEN. Referral-begging agents are pests. It is smarmy to beg your friends and clients for referrals. I do think it is important to stay in front of them and available to all potential referrals, however, constantly reminding them that you need their help in growing your business is annoying. Thank you for the post.
-Brian
Tons of comments on this one! Too many to read. Like you, I don't like asking too agressively and I find that people will tell you what you want to hear just to get rid of you. But I do think it is important for people to know that referrals are important to our business and many people need to get our permission to promote us due to their self-confidence too so we need to do that too.
So, at the least, I would share your enthusiasm like you do and use the 'herd behavior' by mentioning some recent successes and throw out a story about a referral you got from another friend that you really appreciated. This indirect way might help your referral base send more leads your way.
Also, always mention the good news about the market when talking to people like the low mortgage rates, 1st-time buyer tax credit and great home values. This prompts people to think about real estate and might help them tell you about people in the market...
This post caused me to think about the people I do business with and how I react when they ask for referrals. I hate it. Strangely enough, no matter how great I thought the service or product was I am less likely to refer them once they ask. But every person is different. Some people react very well toward being asked to give referrals.
I don't ask for referrals out right. I let my enthusiasm and work ethic sell me, myself and I. If I hear a friend say that they know of someone needing a realtor I will let them know that I would love to talk with that person and see if I can help them myself or refer them to someone else for their needs.
That's it EXACTLY!
Jennifer, I am so enjoying your insight and perspective. I have been indoctrinated with asking for referrals. I need to re-assess. Thanks and I will continue to enjoy your writings.
Nanette Bauer
Hi Jennifer~instead of saying "I HEART Referrals" I say "PLEASE DON'T KEEP ME A SECRET!" It is just another version of the same ol' thing...I usually get a comment about it....anything to be remembered right?
Cindi Evans