Are you in the real estate business but aren’t making enough money? You must be not realizing some of the top producer business strategies.
Here is one of the best methods to sustain the real estate agent business ups and downs. If you did not experience benefits of referral networking and its benefits, you are on the right page to enhance your knowledge.
Why agent referrals over other leads?
Agent-to-agent referrals are undoubtedly the foundation of the real estate realm, enacting as the source of passive income for both the referral agent and the referred agent.
Every real estate professional will agree by now that online leads, which are much hyped in last decade perform poorly and become buch of waste of time for agents.
On the other hand, agent referrals, the most qualified leads, convert far better than any other type of leads.
These referral clients are motivated, serious and ready to act, without time wastage which comes via unvetted online referrals.
Understanding real estate agent-to-agent referrals
Agent to agent referral is a cooperative system existing amongst real estate brokers, Realtors and agents with the primary motive of earning revenue for both the referred and referring agent.
Under referral networking, agents get the chance to build their goodwill and reputation by establishing a successful connection between the two parties: another agent and the ultimate referral client property buyer or seller.
In real estate agent-to-agent referrals, networking agents’ reputation is the based of the business they close together, service they provide to clients and monetary gains they benefit along the way.
According to the statistics available, referral fees earned have gained a substantial foothold in the real estate business.
Vast number of agents are reported earning more than $20,000-$50,000 as a referral fee from overall outbound referrals.
In another survey, several agents have reported that they received a referral from partner referral agents and their networks, almost certainly resulted in a successfully closed property transaction.
Even the real estate gurus promote real estate referral agent networking being the best channel to grow the real estate services business in the least timeframe.
Win-win proposition of agent to agent referrals
With real estate agent-to-agent referral, act of sending referral client lead by one licensed real estate agent to another licensed real estate agent, by vetting the receiving agent properly, matching agent well to the referral client, networking happens amongst highly professional and qualified agents.
These motivated real estate professionals convert leads to deal closing, utilizing their area of expertise and in-depth domain knowledge.
Moreover, agent referrals have an additional benefit, incentive of no upfront cost involved for referral receiving agents.
Agent to agent referral vs social media marketing
Even in the year of 2021, with peak digital marketing hype, social media marketing comprising recommendations, reviews, testimonials, video promotions, and social chatter has not been able to win real estate clients’ trust to work with stranger agents, as industry once predicted.
Clients still trust family, friends or even distant relatives when it comes to getting introduced to real estate agents. People don’t feel like trusting advertisements and brands over personal references.
Referral marketing, still a king of all marketings, stands out from its industry alternatives, if it is coming from the trustworthy sphere of influencers quarter.
Your fellow agent can spread the word about your brand, company in the most effective manner than any other social media marketing.
In other words, referral marketing, agent to agent referrals, not only help both agents with referral money, they also help increase the brand awareness to customers better.
Why is referral marketing the future of real estate in 2021 and beyond?
As we all know, real estate presents many business opportunities and a single real estate agent, located in particular area can’t take care of all kinds of client needs; they require an agent to agent referral strategy to make sure not missing out on low hanging best channel for the business success.
Here are some of the considerations of why referral marketing is the best:
- Word of mouth customer impressions have been found to induce five times more sales and purchases of the real estate, than any other mode of paid impression could do.
- Customers who acquired the property through word of mouth persuasion are likely to make 2x more client referrals themselves, for no added advertising cost.
- In the survey conducted, it has been found that referred leads convert many % better and higher than over the leads acquired through social media or any other channels.
- Most real estate buyers and sellers trust word of mouth as the best source for information while making purchase or sale decisions.
- More than 60% of the agents disclosed that chances are much higher of closing when it comes through other agent references.
- Referral marketing, leads from past clients, from other agents provides those are vetted and ready to close vs online leads, leads purchased from big portals.
Turn agent referral into cheerleading customer for your brand
Agent to agent referral marketing is cost-effective, long-lasting, robust, and one of the most proven business strategies.
It helps to develop happy, satisfied customers, who will in turn become cheerleaders for your brand bringing even more windfall through client referral leads..
In general business marketing strategy, a satisfied customer of your product, service will always automatically become a strong selling pillar point for others. They tend to become self feeding lead machine to take your business to moon with sky is the limit.
Why joining social media, Facebook referral network groups is not ideal for agent referrals?
Facebook groups, WhatsApp groups, Yahoo groups, Google groups, Forum boards work well for social discussions.
They allow group of people come together, post something for everyone else to see, comment, discuss about and share with whole community.
Joining public group was a solution when no other better alternative existed. But soon agents realize, these are not at all ideal for agent-to-agent referrals.
Imagine posting something like “Looking for French speaking buyer agent to help first time buyer in Miami, FL” in a large facebook group.
Your intention is to target agents in Miami FL, not the whole world. You want to find French speaking agent, who is ready to accept referrals and who can help first time buyers.
Posting in these boards come in flash and disappear. Its noise for others who don’t need to see it.
Not everyone wants to share everything in public. These groups don’t allow to pinpoint target the perfect one or few agents and broadcast the referral.
Moreover, administrators of these groups have complete control over what happens in the group. You don’t want to publish referrals in public in these groups.
Real estate software tech company, referrals.io developed tool kit specifically for real estate referral agents.
It enables agents to build a solid, personalized their own referral agents network, create referrals, share with one agent, broadcast to multiple agents for multiple offers, publish referral ads for attracting more inbound referrals and many more referral agent business related functionalities.
Software tool kit helps automate otherwise manual tasks and helps avoid lost referrals.
An edge above the rest
Agent to agent referrals are the key to real estate business success.
Be smart like top agents, and do not waste money on advertisements which yield lower results and doing manual tasks which can be automated with easy to use systems.
Using solution like referrals.io , tool kit for referral agents; does not charge % fee like big players; does not waste time like social media Facebook groups; but yield great results for both outbound and inbound agent referrals exchange.
It’s time to learn the right things to do with agent referrals, boost your real estate business; while saving the time and increasing the peace of mind.