Summary
Systems for generating referrals.
Purpose
The main purpose of generating referrals is to create more closed sales for the team while decreasing time and money spent on marketing. This works because:
Referral business is more likely to close than a cold lead.
Referral clients are often like our past clients, which is a great thing.
Referral leads are “warmer” than other leads, and are predisposed to like us.
Thank the action, not just the result!
We must always recognize and thank those that refer us. A personal contact (phone call at a minimum, best followed up with a handwritten note or an email) goes a long way, and so does a gift. It doesn’t need to be expensive. For guidelines on gifts, see our how-to section. Be sure to:
be genuine in our thanks
let the referrer know whether you’ve connected successfully with the person they’ve referred
thank them for their trust and confidence in our team’s skills
Best Times of Asking for a Referral
Working by referral should be baked into the process of working with us from Day One. Here are some tips and times to keep referring top of mind that aren’t pushy:
Buyer Clients
At the first meeting: “At the end of this, you’re going to be so happy with the process that you’re going to want to tell your friends. At that point I’ll be unemployed again, so if you know someone else who’s looking please tell them about me and the team.”
At a conditionally accepted offer: “I may be unemployed again soon. Don’t answer me now, but before the inspection see if you can think of anyone else who might appreciate my services. Is it alright with you if I ask you at the inspection?”
At a home inspection, talking about what comes next: “once conditions are fulfilled, the firm stage of the purchase seems quiet by comparison and most of the work happens in the background with the professionals. If you don’t mind, one thing that you can do is tell friends and family about us when they’re asking how the story of the purchase went.”
In “what’s next” emails along with a link to our Google Review page or “How to Review Us” on the website.
If you’ve solved a problem for a client and they mention thanking you with a bottle of wine or other gift: “No gift required, I’m happy to do it. If you’re happy with how this went, tell the story to everyone who asks about it. I would be very happy to work with more people like you.”
Seller Clients
At the first meeting: “At the end of this, you’re going to be so happy with the process that you’re going to want to tell your friends. At that point I’ll be unemployed again, so if you know someone else who’s looking please tell them about me and the team.”
At a conditionally accepted offer: “I may be unemployed again soon. Don’t answer me now, but before the conditions are fulfilled, see if you can think of anyone else who might appreciate my services. Is it alright with you if I ask you at then?”
When the sale goes firm.
In “what’s next” emails along with a link to our Google Review page or “How to Review Us” on the website.
If you’ve solved a problem for a client and they mention thanking you with a bottle of wine or other gift: “No gift required, I’m happy to do it. If you’re happy with how this went, tell the story to everyone who asks about it. I would be very happy to work with more people like you.”
When NOT to ask for referrals
When the deal is going sideways
At a client event (these are about giving thanks to our clients without expectation)
When dropping off a gift
Other notes
Our marketing and service copy is peppered with mentions of working by referral. If you think of an opportunity that can be better used, let me know.
Ways of Asking for Referrals
Direct - Asking
Do not be afraid to ask a client directly for a referral! There are many ways to do this, but it needs to be direct enough to be clear that this is your goal. You have worked hard, delivered a great result and you are doing your client a favour by making them look good by referring you. This is not hyperbole, this is truth.
Some best times to ask for a referral (adapted from SOLD by David Greene). These are all high-emotion, positive moments for our clients:
Right after they sign the buyer representation or listing agreement.
After the first time you show them homes, or after debriefing them following their first showing.
After I tell them the offer was accepted on/for their home.
When the last condition is removed from their offer on/for their home.
When the house closes.
Best practices for asking directly:
Practice the ask with a friend or team member if it helps.
Tell clients during the listing or buyer presentation that your goal is to receive a referral and impress them so much that they refer you for life, and that you will be asking them several times during the home search or sale process. This makes it a lot less awkward for both of you.
Don’t ask when bringing a closing gift. The gift is a gift, not payment for a referral.
Indirect - Sharing Success Stories and Challenges
People will ask you about Real Estate all the time. Share your stories, but focus on the human element. No one wants to hear how much commission you made. They do want to hear stories that show that you’re excited, knowledgable and work with people just like them or people that they know.
Indirectly - Staying Top of Mind
There are ways that we stay top of mind for our clients that help generate referrals. Some examples:
Calling to check in, from a position of service. What I mean is calling to offer something of value, such as a market report, to see how someone is doing, to genuinely offer help, or invite them to a client event. Be giving without the expectation of receiving. If someone asks about Real Estate, respond with a positive story but redirect to being interested in them.
Circulating and visiting at a client event. They are at the event to have fun, you are there to work and make sure that they are having fun.
Following up a call or an event with a thank-you card or note.
Popping by with a small item of value.
Creating valuable content online.
Related to the Purchase or Sale
Posting a success story and tagging the clients (with their permission)
Writing a “how they did it” blog with the clients’ help
Helping out on Moving Day
Catering a housewarming party
Unexpected Extras
Little, memorable things that are easy for clients to talk about make a great “Talk Trigger” for clients to remember an refer you. For example:
Memorable client gifts (harder than it seems)
Volunteering or donating to a cause close to their heart
Flowers and a card to celebrate a milestone or achievement (a good reason to be connected on Social Media).