Windmills in the Desert with Mountains in the Back

What is the favorite type of business that every real estate professional always talks about that is their favorite? Think about it before you answer. Think about what is the nicest, easiest, and best part of real estate that you like or a friend of yours likes. Is it referral business?

According to studies by NAR (national association of Realtors) and other associations well over 40% of clients find the real estate agent that is going to help them by asking a friend for a referral.

So how do we ask for more referrals in this new Internet age with websites, forums, and social networking websites? We have a few more options then we used to in the past so let’s explore referrals for just a little bit and figure out how to get a few more.

The Problem with Referrals

The issue with referrals, for most agents, is they can’t create enough “Raving Fans” fast enough in their business. The vast majority of agents just keep working and helping and “hoping” that people will refer them and they never take an active role in asking for referrals. They continue to be helpful but they never ask.

Asking for Referrals

So if you don’t ask do you receive? The answer is probably NO. With referrals it truly is “Ask and ye shall receive”. Agents who have referrals as a consistent part of their business make an effort to ask for referrals many different ways and at different points in a relationship with a client. Some places to consider asking:

  • When are you meeting with a client after signing a buyer or listing agreement
  • In your monthly newsletter
  • In your e-mail signature
  • In your fax signature
  • In follow-up conversations with your clients
  • In any hand written communication

Agents can be left to feel that they are always asking for something and this feeling sometimes leads them to not ask. This of course only causes the problem of not receiving referrals. There is an option though.

Have Others Ask For You 

This of course is always the preferred way. You know you have a few clients who will stop at nothing to make sure you help as many people as possible. They are your top referring clients and they will make sure that everyone possible knows about you and your business.

These people are the rarest of clients and it would be great if you could only work with these people but they are rare and as such should be treated better than all other clients. Optimally you would add as many of these clients as possible. This can be done with social networking. You can create a consistent wave of referrals through your online social network.

Use Social Networking to Your Advantage

 The future is in social networking and having people who know you mainly from the Internet refer business to you because you participate in their network and they are part of your network. So how do you do this with your facebook, myspace, and linked in network? You do this by sharing in your network first without asking for anything in return. The thing that every real estate agent must realize is that to be valued in a social network you must contribute and you bring your local real estate knowledge or referrals of people who can be of service to home owners to the table.

Some things you can do to take advantage of your social network:

  • Participate in your social network
  • Offer referrals for handyman, plumbers, carpenters, lawn care professionals
  • Comment on the happenings of others
  • Tell stories about clients you helped (don’t be too over the top)
  • Use your blog or website to let people know you are in social networking

The real key is that it is still “working” in order to get business out of social networking. You must make sure you have an end goal in mind. If you keep that in mind you will create thousands of raving fans.

Members of the online real estate success coaching program have an entire course on Social Networking complete with instructional videos on how to build their social network to be profitable and rewarding at the same time. Have you checked out the coaching program? Take a look at www.OnlineRealEstateSuccess.net and make sure to get your free copy of our guide “Internet Marketing for Real Estate Agents” while you are there.

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