According to a 2014 report from the National Association of Realtors, the typical REALTOR® earned 21% of their business from repeat clients and customers, and 21% through referrals from past clients and customers. That’s almost half of their business generated through referrals and repeat clients. This is why it is so important to take advantage of referral marketing
Start by narrowing your marketing focus from a mass audience to a highly targeted one – your past clients – you will immediately realize a number of benefits. Here is why you should grow your real estate business with Referral Marketing:
1. Higher productivity
The more targeted your marketing audience is, the less people you need to communicate with, and the less time you will have to spend communicating with them. Having a narrow database of highly qualified contacts is a much better use of your time than having a larger database of low-quality contacts, most of which probably will not generate business growth.
2. Better qualified leads
There is no need to waste time marketing to leads that are highly unlikely to turn into clients. With referral marketing, you are focusing on those who already know you, have turned to you for business, and have had positive experiences with you. These are the individuals who are most likely to refer you to others who are ready to buy or sell.
3. Fewer issues regarding commission
You probably haggle over commission on the regular, right? With referrals from past clients, this is far less of an issue. Because they come recommended, they will be more interested in working with you. They will believe you will do a great job for them and therefore care less about negotiating commission.
4. Fewer issues regarding working hours
Again, when an individual knows the value you can bring to them, they will be more likely to work with you and be flexible regarding your schedule. This makes your life easier because you do not have to worry about pleasing clients through hectic working hours that work for them, but not you.
Real Life Example
A Referral Marketing System customer Dave Roach, of Keller Williams Golden Triangle Realty Inc., had this to say about his experience generating referrals for business growth:
“I have been using The Referral Marketing System for almost 10 years, and it has generated 17 or more referrals per year. I strongly believe this is the best system to get more referral and repeat business.”
Takeaway Point: Real estate agents, by optimizing and targeting your marketing to your past clients you will increase your productivity, generate better qualified leads, reduce requests to lower your commission, and enjoy better working hours. Referral and Repeat marketing to past clients and trusted contacts, is the best way to secure more referrals, leads, and sales.