To build a business, you need to know how to get referrals, and a thoughtful strategy is needed to build up referrals and repeat business from current and past clients. We cover the top three ways for getting a lot of referrals (and money!) over time from your local area of influence.
Make The Most Out of Holidays
To get new referrals, go through your database and weed out up to 150 top group of people including past clients. Then offer them something of value for free. For instance, ByReferralOnly.com has a very good laid out plan for offering pies during the Thanksgiving and Christmas season. Creating in person opportunities is the most effective form of generating organic referrals.
Pie Giveaway (Cost $50-$100)
I tried this out this year and had almost 20% response rate from past clients. Not bad, huh? The festive season was the perfect time since most everyone is in a good mood.
It was fun and gave me a reason to call each person I invited to reconnect with them including those who didn't take me up on the offer. I rallied up a group of fellow agents and we ran the event together.
You could also provide hot chocolate and coffee to entice them to linger with you at the office. We had holiday music playing throughout the office.
Live Events
Inviting your clients to participate in events that they can't help but talk about afterward is a surefire way to get their friends and family talking about you. The most effective event is live. They can be as basic or as complicated as your budget will allow. An event can be as simple as a private screening at a theatre or a housewarming party.
Housewarming Event (Cost $500-$1000)
This works for real estate agents and mortgage lenders. During a real estate transaction, you get to celebrate small wins many times. During the time your buyer is past inspections and waiting for the clear to close, tell them you'll be running a housewarming party for them and commit them to a date/time. Don't take no for an answer.
Use this when you have a buyer under contract. This is the best time to demonstrate to your clients how much you appreciate them sharing their positive experiences with you through reviews and referrals when emotions are high. This strategy is a way you can guarantee new introductions.
- Host a house warming event to celebrate your clients purchase of their new home.
- Create an opportunity for your clients to act as your advocate.
- Puts you directly into a conversation with people and wow them!
- Have a conversation with client and letting them know why you are having a house warming.
- Your purpose is to be so happy to be able to help them with their purchase. Help them celebrate. Follow up with a house warming packet covering everything they can expect. Also provide them with a list where they can fill out. Your list should have only 15 spots unless they want to add 1 or 2 more.
- Let them know that I am the host and they can relax.
- Give them day & times to choose from. Max is 2 hours. Could be dinner or tea party.
- Ask them for a list of the people they would like to invite. You take care of sending out the invitations via email, text and postcard.
- You take care of the food and welcome the guests.
- After the event. Follow up with emails and hand written notes even to those who didn’t show up.
- Ask lenders to sponsor it to help pay for food.
- Consider hiring a caterer who will handle the menu, set up, serving and clean up. So you can spend time talking with each of the guests. Caterer should also take the trash with them.
- Follow up after the event is very important.
Free Analysis (Cost $0-$200+ for mailers)
As an agent, your client relationship does not end at the closing table. You can position yourself as a knowledgeable market expert who can expertly advise homeowners on the investment potential and performance of a property by sharing key market insights with them.
Create templated messages with your CRM or email marketing platform to send an Annual Equity Analysis to your past clients every year on the anniversary of their purchase.
Then, fill in the gaps by obtaining data from your market every two weeks. You could also provide a free annual mortgage analysis. Considering extending a similar invitation on social media.
Your Two Cents
We'd love to hear from you! What strategies have worked to generate new referrals for you?