How to generate your own real estate leads and referrals
How to get real estate clients in 2022 and 2023...
As a real estate agent, it's important to have a steady stream of referrals coming into your business. Referrals are valuable leads because they're targeted. In an ideal referral relationship, both agents involved get a commission and build their networks - so everyone benefits.
If you're looking for ways to get referrals, check out our 2022 Guide to Real Estate Agent Referrals. This guide covers everything you need to know about how agent referrals work, and how you can make the most of them. You'll learn about:
- The best practices for referring other agents
- What steps to take when it's time for your subsequent referral
- How referrals can benefit you and your business
By following the tips in this guide, you'll be able to get the most out of your referral relationships and grow your business.
How to generate your own real estate referrals
As a real estate professional, you're not supposed to pay non-licensed individuals for referrals.
BUT, with your own REFERRAL FUNNEL, you can motivate and reward anyone you want to get tons of prospects sent your way.
For example, you can offer a $50 Amazon Gift Card reward for generating 50 unique visitors to your prospect page (that's a lot cheaper than facebook ads!).
Or if you don’t want to use a cash reward, and maybe you ONLY want to reward upon closing a deal, here are some other effective rewards:
- Offer a donation to their favorite charity for every qualified referral.
- Offer credit for your future services for every qualified referral.
- Offer an entry into a vacation raffle for every qualified referral.
All automated and tracked within your own REFERRAL FUNNEL
What is a Real Estate Referral?
If you're in the real estate business, referrals are a common practice. But what exactly is a referral? A real estate referral is a lead that you've spoken with and determined that you won't be the best agent to help them get to their desired outcome. This situation arises when the real estate agent sending the referral client isn't familiar with the buyer's desired area or if it's out of their licensed state.
As the referring agent, you can expect to pay a fee for referring the seller or buyer to another office. Referral fees can range depending on local market conditions and the specific needs of the client.
So why would you want to refer a client if it means giving up a commission? There are a few reasons:
- You want to build relationships with other agents in your area. By referring a client to another agent, you're building goodwill that could come back to you in the future.
- The referral fee is often lower than what you would make on the sale. In some cases, it may be worth it to refer a client and earn a lower commission than try to work with them directly and risk not making a sale at all.
- You're not able to help the client. If you can't help the client, it's better to refer them to someone who can rather than trying to force a sale.
If you're thinking of Referring a real estate lead, keep these things in mind. Knowing when and how to refer a client can help you build relationships and grow your business.
What Are the Different Types of Real Estate Referrals?
Are you looking for ways to get more real estate referrals? There are a few different types of referrals that you can get, and each has its own set of benefits. Here are a few of the most popular types of referrals:
-Community and local business referrals. These are an excellent way to get your name out there to more potential sellers and buyers. The Local Mayor Strategy involves meeting and staying in touch with people in your community, which can help you build relationships with local businesses.
-Online referrals. With the rise of the internet, online referrals have become one of the most popular types of referral sources. You can use online directories or platforms to list your business and services, making it easy for people to find you when they need a real estate agent.
-Referral networks. There are also a number of referral networks that you can join, which can put you in touch with potential clients who may need your services. These networks can be a great way to get more exposure for your business and connect with new clients.
Agent to agent referrals
As a real estate agent, you always want to be generating new leads and referrals. Agent-to-agent referrals are a great way to get new business. These leads come from agents who have already spoken to someone in another market who is ready to buy or sell a property. The referring agent will work with you to find the best fit for their client.
There are several benefits of getting an agent referral:
-The lead has already been vetted by another agent.
-You know that the lead is serious about buying or selling a property.
-The referring agent can provide you with valuable information about their client.
If you're looking for new leads, focus on getting referrals from other agents. This is a great way to get high-quality leads that are already interested in working with you.
How do agent referrals work?
-As a real estate agent, it's important to have a good reputation within the market. This will help you get referrals from other agents.
-It's also important to speak with the agent you're referring your client to, to make sure they're a good fit. Make sure they're familiar with the type of property your client needs and that they have the support staff needed to provide a great client experience.
Why is getting referrals from other agents so important?
As a real estate agent, referrals are essential in order to continue providing quality service to your clients. Here are a few reasons why:
- Referrals provide motivated clients who are more likely to work with you.
- The level of service provided by referral agents is usually higher than average.
- Referral agents have a wealth of knowledge about neighborhoods, schools, and local transit.
- They can help guide the search based on what’s essential to their client, ensuring they won’t be wasting time visiting properties that are just marginally similar or “good enough.”
- Excellent referral agents know the local real estate market as no one else does and use that knowledge to help their clients find the best opportunity based on their needs.
By providing an amazing customer experience, you’ll be able to get more referrals over time and continue growing your business.
The right referral agents to partner with
-As a real estate agent, how can you get referrals from other agents?
-One way is to search online for agents in the same way a homebuyer would.
-However, this can be time consuming and you may not be able to verify all the information.
-An alternative is to use an agent to agent referral network. This can give you the tools you need and ensure that you're only sending clients to trustworthy agents.
How does an agent get paid when sending a real estate referral?
As a real estate agent, it's important to know how to get referrals in order to continue growing your business. Here are some tips on how to get referrals from past clients:
- Offer a standard referral fee of 25% of the commission on the referring side (buyer or seller, or both).
- Be open to negotiating your fees depending on local market conditions and the complexity of the real estate transaction.
- Provide excellent service to your past clients so that they're more likely to refer you to their friends and family.
- Depending on the situation, you may be able to earn a higher percentage of the commission.
- By understanding how to request the right amount for your referral fee, you can maximize your earnings.
There is no right or wrong way for an agent to refer another agent, but some are better than others.
Some have a higher likelihood of success than others, and others charge exorbitant fees in addition to the referral fee you’ll be paying the other agent.
When agents are the primary parties involved, the customer experience is better.
Agents who prefer to work by referral say the primary factors they look for in an agent-to-agent referral partner are responsiveness and reputation. If that aligns with your ideals, too, this is probably your best route.
Both you and the other agent will be earning a commission from this client, looking for a positive review after the transaction, and probably staying in contact to get future referral business.
When everyone’s interests are aligned, it makes a transaction flow smoothly.
As a bonus, there’s no 3rd party taking a piece of the commission check, so you and the agent both keep more money in your pocket with agent-to-agent referrals.}
What are the Best Ways for Agents to Refer Each Other?
Here are a few tips on how to get real estate referrals:
- Directly contact other agents and introduce yourself. Let them know what you're looking for in a referral partner and see if they're a good fit.
- Check out online directories of agents, like Zillow or Realtor.com, and find agents in your area that you may want to work with.
- Ask your friends, family, and acquaintances if they know of any good real estate agents in your area. They may have someone in mind that you haven't thought of yet!
- Once you've found a few potential referral partners, reach out to them and set up a meeting so you can get to know each other better.
We hope that helps you on your path to building a bigger and better business through referrals!
And if you want help setting up your OWN referral funnel, visit us HERE!
