COACHING: Transactional or Relational? Commentary by Brian Buffini
As Realtors, we are taught to generate leads by any method possible—personal marketing, farming, advertising, etc.—all to chase the next deal. Then, during the transaction, we are immersed in concerns about the sale and little else. Closing day finally comes along; we celebrate with our client and commit to staying in touch, but we get busy and pretty soon it’s a distant memory. Closing a deal is bittersweet—you receive a commission check but you are also back at square one, managing your marketing campaign with little knowledge of what’s working and what’s not. If and when the market slows down, you must pour even more time and money into chasing fewer leads.
Look around you. People’s homes have become their castles. They are surrounded by defense mechanisms like answering machines, caller ID, refusal of mail and now the Do Not Call legislation—all designed to keep you out. Despite this, you sit in your office and try to reach people in their cocoons with circulars, cold-calling, Web ads, etc. If society continues to shut out the world, where does that leave the real estate professional? To me, this is the perfect time to make the change to a business based on relationships. When you work by referral, the systems you put in place to provide clients with consistent value mean that they are genuinely glad to see you.
There are compelling reasons for working by referral. First, you get to work with people you like. Added to this, satisfied clients help build your business by establishing your credentials with others. The difference between self-promotion and having others promote you is significant. If a friend tells you about a restaurant, you’ll probably visit it. If, however, you receive a flyer from that restaurant, chances are you’ll throw it out.
There are also huge cost-savings when working by referral. Most agents spend randomly on various marketing methods without measuring the return on those investments. These may produce sporadic results. If you focus your effort on building relationships, however, you will not only reduce costs, but guarantee a steady stream of referrals.
When looking for a service, we always look for a referral. How many women find hairdressers by asking “Hi, are you any good?” If a referral is sought for a $100 haircut, isn’t it likely consumers would rather deal with a professional they know and trust to help them buy a home?
I built such strong relationships that I could take a vacation knowing I would come back to referred business. If you do a great job for someone they are likely to refer you again. Our referral systems are self-perpetuating. Pour yourself into your best clients and let them know you want to work with others like them. The key is to find those who want to be served by you and gracefully let the others go.
This business is a lot simpler than we think. It’s all about relationships. In our coaching program, we have to spend a lot of time reeducating adults not to talk to strangers! Take someone you know to lunch and ask them if you are the professional they would refer. Our referral systems are design-ed to heighten people’s awareness of the fact that you’re open for business and you’re excited about serving their needs. Random, passive referrals are like volunteers, but there are simply not enough volunteers for you to make a significant income. You have to organize them with a plan. People will be glad to help you, but you must implement systems to ensure it happens. When I got a lead, my goal was to serve the clients in such a way that prior to the close of the transaction they would have referred me a couple of times. I would say: “All I ask of you folks is that you refer me to others. That frees up my time so that I can provide you with exceptional service.”
Buffini & Company exists solely to help you succeed. I don’t want to see people fail in this business. That’s why I am so passionate about our systems and tools. They are the nuggets that will build you a fortune and help you live an extraordinary life. It’s hard to believe that something this simple can be this profound, but if you are diligent, you’ll reap the rewards.
I would advise you to get a coach. On my success journey, I’ve had many people who have helped me at different junctures. In fact, I’ve never known or met a successful person who hasn’t had help from others along the way. I believe it is impossible to achieve greatness and reach our potential by going it alone. I happen to believe that people are capable of great things once they have the encouragement and support necessary to achieve that. It’s why I have a coach in every area of my life.
The transition from a transactional to a more relational customer orientation is the next step to building a business of significance.
Brian Buffini is the chairman and founder of Buffini & Company. |
