Property ManagementCreate Residuals in Networking
Referrals are still the number one method of acquiring clients through friends, family, and satisfied clients. But another source of great referrals - other Realtors - is often overlooked.
Brampton/Toronto broker Carolyne Lederer says that networking through other Realtors is an important cornerstone of her business.
"When you are so fortunate as to find a good "referral" Realtor, one to whom you can whisk away a few lines in an email and receive a prompt reply (within hours - not days) - be sure to stay in touch with this person," says Lederer. "It may be months, or even years, before you have the opportunity of working together again, but in the interim keep that name in your active contacts list."
Lederer suggests sending a note or an e-mail every once in awhile. I know what you"re thinking - you don"t have time for that, but no one is too busy to do this. "You are building a life-line for your business," says Lederer. "This is your future. If you don"t do this, you won"t have a future in real estate. The industry is just moving at a relentless rate, and at the best of times, it is time-consuming work just to be in this business."
Just the same way that you ask your satisfied clients to refer your name to their friends, relatives and business associates, ask your "referral Realtor" to pass along your name to others in their offices, she says. She offers incentives for brokers and agents to remember her.
"My company offers a special "Referrals for Life" program, that I implemented a few years ago. It is a two-part program which works like this. You send me a referral. The people buy or sell a house. You get paid. But what happens after that? If the family moves again, you get paid again," explains Lederer.
"This happens frequently. You refer a client and they buy a home. Two years go by. The phone rings. The buyers/sellers have been transferred again. You already got paid your referral fee, right? In the normal workings of the real estate business, you are history, but not with the Referrals for Life program. When you send me a referral, you get paid again, and again, and again... no matter how many times this buyer/seller moves, and uses my services."
Lederer doesn"t stop there but continues to pay the trail that may lead to referrals. "Now for the second part. Let"s say that you got my name from another Realtor in your office. The first agent receives a small cheque (or gift certificate) which equals 5% of the amount that the referring Realtor received.
How does that work? "Let"s say the referring Realtor receives a cheque in the amount of $800. (Canadian)," outlines Lederer." Now the colleague who gave over my name gets a cheque or gift certificate in the amount of $40. (Canadian)."
Although the amount of the second referral is about the cost of a tank of gas or a lunch out with friends, it is a dividend that keeps on giving. "Believe me... Realtors remember," enthuses Lederer.
Since implementing this program, Lederer has seen other agents employ it, too, and has been the beneficiary of a good deed come back to roost. "I sent a buyer to Rod Doris who serves the Bowmanville, Pickering areas in Ontario, Canada. a couple of years ago. I got my referral fee promptly. Then, a few months ago, I received a surprise referral cheque.... those people had just sold their home with Rod - the one that they had purchased through him a couple of years ago!"
As a further incentive to participate in Lederer"s Referrals for Life program, Lederer keeps track of her Web site visitors who fill out contact forms. When she knows of a referral Realtor in their area, she sends them a signature file to help put them in touch with the appropriate referral Realtor.
"I forward the request-for-help form and the job gets done," says Lederer. "They get paid. We get paid. And the surfers are thrilled that someone took the time to answer their mail."
Lederer pays a 25% referral fee, and outlines the fee and receivables information with the forwarded referral. All communication is by email, and Lederer clips a copy of the referral Realtor"s email acknowledgment verification to the government paperwork, rather than faxing copies back and forth. Upon consummation of a transaction, Lederer requires a copy of your office trade record information sheet, in order that her office may complete the files.
Now that"s networking at its finest.