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The Importance of a Good Referral

In the age of the internet, we all love to offer online advice, give our take on an experience, and aid in the general knowledge of the community. We offer our insight into the latest restaurant, shop, or experience in order to assist the next customer/client/buyer in making the right decision.

But would you do the same for your Realtor?

You should.

If you liked their service, that is. And if you did, referring them to your friends, family and colleagues is the best thank you you can offer. And maybe not for the reasons you think...

"We obviously already share the same awesome hair dresser... we should share the same Realtor!" 


Obviously referring someone to your agent helps with their business - its potentially another commission check in their pocket and obviously that's a major gift you are sending them.

But the importance of referrals goes way above that.

Referrals are a way of reshaping an agent's business.

Most people don't know how real estate agent's get their business. Many people assume agents just randomly get calls from people looking to sell their home, or better yet, that they are employees for their brokerages and are handed potential sellers and buyers from all the inquiries that the brokerage gets.

Nope.

Think about it. Is that how you chose your agent (or is that how you would if you haven't yet needed an agent)? In today's day and age, probably not.

When polled, most people get their agent by some type of referral - either they have personally used this agent before, got the agent's name from a friend, or searched online and chose by online reviews, a type of indirect referral.

So that means in order to be a successful real estate agent and get in one of those top categories with the highest chance of getting a sale, you have be referred in some capacity.


Giving your agent referrals can literally bring their business out of the dark ages.
And by dark ages, I mean cold calls, calling expired listings, and generally being forced into unsolicited sales tactics.

Getting clients by referral means the agent doesn't have to search for their buyers and sellers - it means they don't have to perform the sales pitches, advertising campaigns and uncomfortable elevator speeches that no one likes hearing.

If you liked your agent and they weren't sleazy, they probably loathe the idea of having to make a cold sales pitch to someone who may not want to hear it.

Real estate agents get a bad rap for being money-hungry and sales-y for our cold-calling history. Wouldn't it be nice if no real estate agent ever had to contact someone unsolicited again in the hopes of furthering their business!?!

Well, that probably won't happen (I mean all agents have to start somewhere!) but it would be wonderful if you didn't have to make your agent do that for their next sale.

Also, when an agent bases a large part of their business of referral and repeat business, it means they can spend less time on prospecting and more time on actually assisting their clients! That means an extra hour or more a day on making sure their current clients and past clients are well taken care of.

It could potentially mean they have to spend less money on advertising. Less money on advertising could mean more money for clients, even if its just a more lavish closing gift.

Finally, if you are referring a friend, what a wonderful gift to your friend as well! A lot of people refer their agents not just because of the agent's professionalism, but because they liked their agent, because they got along with their agent and enjoyed the process with them.

Often, your friends, family and potentially even colleagues are similar to you and thus may also mesh well with this agent's work habits and personality - an important facet when going through the process of buying or selling. How wonderful it would be to give your friend that direct line to a good agent instead of leaving that relationship up to chance.

Any real estate agent will tell you the importance of referrals to their business and making their business what they want it to be. If you were happy with your agent, let them know it by giving them referral business!


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