Are you finding it challenging to keep up with the digital trends in the real estate business and attract quality prospects? I know what it feels like to get caught up in the chaos as a real estate agent, investing a...
Did you know that customer referrals may be the most effective tool in your marketing bag?
As a matter of fact, 42% of home buyers were referred to their real estate agent by an existing or previous client, and 74% of clients will provide a referral if their agent has stayed in touch with them. Referrals are inexpensive, produce results, and helps generate an incredibly powerful network effect. Your network, therefore, becomes critical to your success, and with the help of a smart strategy you can create an ever-growing network that will deliver a continuous supply of high quality leads.
“I’ve come to believe that connecting is one of the most important business—and life—skill sets you’ll ever learn. Why? Because, flat out, people do business with people they know and like.”
-Keith Ferrazzi, Never Eat Alone
The importance of networking
Consider that networking is the single biggest source of leads for real estate agents; 34% of all actual closed business comes directly from an agent’s network. The second most impactful lead source is from paid digital advertising, but that only delivers 19% of all leads.
What’s especially compelling about these types of leads is that they are among the highest quality ones you’ll ever get. People in your network either already know you, or they have a connection with someone who does and can validate your credibility. That immediately breaks down the awkward part of having to sell yourself and go through the back and forth dance of proving yourself. You always need to deliver for your customers, but referrals are a core part of your network because they get you closer to actual business than almost any other marketing tactic.
By definition, networks are always growing. That growth delivers you more connections and strengthens your reputation among people you already know and vouch for you. This is an especially important thing to understand in an environment where people are busy and are constantly seeking ways to reduce the burden of assessing and interviewing potential service providers. Once inside your network, the hassles of vetting a Realtor® are essentially solved for them, which gives them even more affinity for you.
Referrals are your network proof-point
According to the National Association of Realtors®, 62% of all home buyers choose their agent based on some form of referral. That statistic speaks volumes about the need to service clients, maintain a connection with them, encourage them to promote your name, and continue to deliver such excellent service that you are THE go-to person to help with real estate needs.
Growing your business and brand obviously takes a lot of smart marketing, but a vibrant, growing network will deliver referrals at a much faster paced and with overall greater consistency than any other method. Most importantly, these leads will be high quality and more prepared to buy.
Verse has created an impactful solution for lead generation and sharing called the Agent-to-Agent Referral Network. It enables agents to refer qualified leads and receive a payout for every closed deal. Major real estate firms like Coldwell Banker, Century 21, Berkshire Hathaway, and others are currently using it as a way to help their agents get greater impact from their networks. It’s also a roadmap to help agents generate better leads and be rewarded for providing others who are likely to close.
We encourage you to try our Referral Network to see how the power of networks can not only deliver qualified leads, but can begin to generate a sustainable, growing channel.