What It Means to Work by Referral A continuous and predictable stream of referrals doesn’t just happen; you must have a system in place
By David Lally
In the real estate industry, relationships are the cornerstone of a successful business. However, the methods employed to generate leads are often non-relational, i.e. cold calling, door knocking, etc. If you are in a service business, building relationships is the number one way to increase business.
Brian Buffini reached a turning point in his real estate career when he realized that clients who appreciated the service he provided would actually help him build his business by referring others to him. He became one of the top agents in the nation by developing a sophisticated, yet easy-to-use system that generated a predictable number of high-quality, referred leads. Referred clients already trusted him and didn’t try to cut commissions. He built a fortune and started Buffini & Company™ to share his revolutionary systems with others. But what does it mean to work by referral? Do you already do so if you receive occasional leads?
A continuous and predictable stream of referrals doesn’t just happen; you must have a system in place. Clearly there is a difference between random, passive referrals and proactive, intentional lead-generation. It boils down to a simple equation—waiting versus finding. You may say, “I already get referrals.” Everyone may get some passive word of mouth business, but not everyone knows how to guarantee that those referrals remain consistent. Thousands of real estate and service professionals across the country are part of Brian Buffini’s ClubNet™ coaching program. They learn how to grow a referral-based business and work more with clients they like. Based on Buffini’s referral systems, a personal business coach helps them to systematize their business and accelerate revenue by:
• Building their database with past and current clients, along with those in their sphere of influence
• Sorting the database to help them be more intentional about where they spend their time
• Qualifying that database with targeted dialogs to provide a core client group who would be willing to do business with and refer them
To find gold, a prospector must sift through ore to find the gold nuggets. Consider your database as the ore ready to be refined. Building your database lays the foundation for what type of gold—or referrals—will result.
Whether you currently have 20 or 2,000 people in your database, you always need to add “ore” to produce the right kind of new business growth. You don’t need to market to everyone; you just need to market to your most responsive audience. Concentrate on providing first-class value to your best referring clients. Building relationships helps to sustain momentum when the market changes. Without a system in place, you can find yourself either thriving or surviving by the volume of business that comes at you. If you are active in building relationships and a network of referring clients, you will not find yourself at the mercy of market forces outside of your control. Receiving consistent referrals is dependent upon delivering excellent service and implementing what Buffini terms a “Client Appreciation Program” to reward those who refer you.
Most Realtors and service providers “forget” about their customer after the sale is made. They may keep in touch initially, but before long they have moved on to the next prospect and have forgotten about the client they served. Buffini & Company teaches a 3-pronged communication system designed to stay in contact with clients after the sale is made. This system is based on making calls, sending personal notes and doing “Pop-By’s” (visiting clients with a small, meaningful gift). When building his business, Buffini regularly visited clients with ‘items of value’ such as movie tickets, restaurant gift certificates, etc. He kept in constant contact with past and present clients and always focused on providing value. It is important to let clients know that you do not spend time prospecting for business—you instead devote your time to serving their needs. Buffini based his system on the principle of “Give, Ask & Receive.” He focused his efforts on giving outstanding service and providing regular items of value to his customers. He would always follow-up each conversation with a request for referrals, and because he delivered first-class service, the referrals poured in.
If you are continually delivering top-quality service, clients will want to refer you. So let them! At the end of every conversation it is important to remind them that you appreciate their business and would be glad to provide the same level of service to any friends or family members who might be looking to buy or finance a home. Buffini never missed an opportunity to remind people that he worked by referral. He became known for TV detective Colombo’s unique way of signing off— ‘Oh, by the way…’. Being consistent with his communication, as well as how he conducted himself, helped make him one of the top producing Realtors in the country—100% by referral.
The dialogs now taught in Buffini & Company’s coaching program are designed to get people thinking about you. There is no need to reinvent the wheel or use marketing gimmicks. Implementing a system to generate referrals will mean that you get to do business with people you like. Instead of prospecting for new clients, provide value to your existing ones. This is about being intentional. It is a proven system based on principles that stem from the heart of sales: building relationships.
Why you should work by referral is answered by the fact that referrals sell you better than you can sell yourself. The challenge for any business is to be able to replicate itself in the marketplace. Clients become your advocate in a referral based business—you are essentially duplicating yourself. This translates into more free time, less stress and clients you consider friends—a revolution in how you conduct business and ultimately how you live your life.
The referral process is a system, and one that requires direction, perseverance and consistency. Getting a business coach will help you stay consistent, inspired and motivated—challenges we all face. Don’t get caught up in a transactional mindset. Learn how to build a relational business that will help you grow a fortune and live an extraordinary life. |
