Referral Marketing Plan
Word of mouth is the most effective, least expensive form of marketing you have at your disposal. With a well developed referral marketing plan, other people are doing your marketing for you what could be better than that? The first step in creating a referral program that produces is to provide a high level of service. No one is going to refer you if they were not happy with the service you provided. Granted, things that are not within your control can sometimes go amiss and create client dissatisfaction. However, your clients will overlook some of those problems if they have a good relationship with you.
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Communicate…in a way your clients can understand. Save your realtor-speak for other real estate professionals. Keep them informed about what’s going on as much as possible. It IS their life you’re dealing with and they want to be part of it. Be selective – Some people are never happy, and no matter how hard you work or how well you communicate, they never will be. This kind of person is not likely to give you referrals. In fact, someone like this is more likely to tell everyone about all the “problems” they encountered while working with you. (Much of the time, the “problems” won’t even exist.) A person who looks for trouble and drama will really make you work, and in the end, even the commission may not be worth the trouble. Ask! We can’t guarantee that if you ask someone for a referral they will give you one, but it’s highly unlikely that they will just offer it to you without being asked. There is no substitute for picking up the phone and prospecting past clients. You will get a 3%- 5% return on a mailing, but you can expect a 12% - 15% return if you follow up that mailing with a phone call. That’s an extra 9% - 10% return on the same mailing. Do the math: If your average commission check is $3000, you will earn an extra $30,000 by following up your mailings to past clients with a phone call. If prospecting by phone is objectionable to you, it’s probably because you have issues with being rejected – we all do! But with a slight change in perspective, you might overcome this fear. If rejection is an issue for you (now, be honest!), read the Realtor Tribe article titled, Overcoming Your Fear of Rejection. Don’t leave current clients out! When someone is buying a home, and preparing to move, it becomes the focus of their life for a time. They will discuss it with everyone they know, and also with many people they don’t know! Next time you talk to a current client, ask them to give you a referral or two. Better yet, have special business cards printed for the occasion. A card that says, for example, “Home Hearth Realty is doing a great job for me – and they can for you, too! Call Mary Realtor at 585-555-3321.” Leave a place for the client to sign her name, and then offer her an incentive to pass out five cards during the course of your transaction, and then pass their names along to you. Be consistent – 80% of your referrals will come from 20% of your past clients. Create a program that keeps you in constant contact with them, and find creative ways to recognize and reward people who you know spend time and energy in generating business for you by referrals.
Now Plan It!
Identify two activities that you will engage in on a regular basis as part of your referral marketing plan. Assign length of time and frequency of each activity. Activity #1 Activity #2 For____ hours per ____ For____ hours per ____
Estimate expenses associated with this plan and enter them into the Expenses section of your Business Planning Tool. $__________________________ * Please visit www.IgniteListings.com/download.php for resources, articles and glossary of terms.