In a Changing Market, Referrals Stay the Same By Brian Buffini
Over the past year, I’ve talked about the benefits of working by referral. In my real estate career, I was able to weather any market fluctuations because I had put in place systems that ensured a steady supply of referred leads. My database was a list of relationships—not a mailing list.
In America today, people are shutting out the world with gated communities, Caller ID, and the Do Not Call laws. Thirty-year-old marketing systems do not work in today’s environment. An answering machine in the ’70s was for catching calls. Now it’s to screen calls. The market has changed. Have you?
On a local level, your real estate market may be healthy, but this nation now has more than one million agents. Recent studies suggest that nine out of every 10 new agents will leave the business in the next two years.
A referral-based business ensures peace of mind, but you must examine what will set you apart. Building relationships based on character and competence demands that you go to work on these areas. Why should others refer you? It’s not enough to assume clients sit around wondering how much business you are getting. You need a systematized approach to guarantee you are in the forefront of people’s minds.
As the market changes, so must you. Let people know you are never too busy for their referrals. Working by referral is about building a system that will impact your life and business. Implementing a Client Appreciation Program to stay in constant contact with your clients is a map to business success. By not doing so you are literally kissing revenue goodbye.
Around the nation, I now hear things like, “I’d love it if my Realtor would’ve stayed in contact with me.” When was the last time you connected with past clients?
This is the time to attend training seminars where you can learn systems for success and go to work on your business. This market is not new. I’ve seen this before, and now is the time to look to others for help. It’s easy to think we should do everything ourselves. It’s what we’ve been taught, but it’s time to shift focus. What can you do differently? Are there experts out there who can offer you advice? Are there systems you can implement to radically alter your business?
With discount pressures, you may start to feel like a commodity, but learn to communicate the difference in what you do. For example: “I don’t knock on doors or cold call. I focus my energy on serving you, and all I ask in return is that you refer your friends to me.”
Giving to people makes it easier to ask for help. When you provide them with value and a great level of service, you create a situation where you can ask for their referrals.
This is a great time to be a professional because the market will demand excellence. In the last five years of my career, I never cut a commission. I knew my value, and I didn’t want referrals from someone who wanted to shave costs. We can see the evidence of service all around us. With convenience store coffee you get a plastic cup. With designer coffee, you get a java jacket. One has plastic chairs, the other designer furniture. One is a commodity, the other an experience. Which one are you? Create an experience for your clients and they’ll be advocates for life.
To be successful, you must be consistent. Regardless of how your day or week is going, having a personal business standard will keep you on track. If you decide five notes a day is your number, then hit that.
Success also requires prioritization. “ABC” your database and your daily activities. Cleaning your desk, doing a flyer, etc. can busy you right into bankruptcy. Maybe some of the things you are doing now are not useful. Look at what you are doing and ask yourself, “Is this providing value to my clients?”
I don’t believe a real estate bubble is imminent, but I do believe we’ll see a real estate agent bubble. Those who provide great service will thrive. Many of you have never been in business in anything other than a hot market. Non-producing, unfocused agents will start to disappear from the landscape, and some of the sloppy practices we used to get away with will need to go away.
Those who track and measure—using accountability—will win. My hope for you is that you win today. It’s how you’ll win the year. |
