Ep. 93: How to Build a Referral Generating System in Your Business

Have you ever looked at a top producer and thought, “I work so hard— how does this person close more deals than me?”

Today on Stay Paid, Luke and Josh talk about how you can build a system that will get you more business as you work smarter, not harder.

Key Points:

• Connect consistently with your database.
• Create impact and advocacy with your clients.
• Brand yourself in order to capture mindshare.

Most people focus on cold lead generation. What they should be doing is asking themselves an important question:

“Where do transactions come from in my business?”

NAR’s 2018 Home Buyer and Seller Generational Trends Report from 2018 says 54 percent of buyers and 64 percent of sellers worked with an agent who was referred to them or whom they used in the past.

Top producers understand the secret: devote much more time, energy, and money to nurturing the relationships that drive referrals and repeat business than on generating cold leads.

Of course, relationships take time. People have to know, like, and trust you in order for you to have an opportunity to get their business. That doesn’t happen right away for larger transactions, like real estate, insurance policies, or financial investment.

For more than 15 years, ReminderMedia has been about focusing on core relationships, and what it takes to build a tribe of people who know, like, and trust you.

Consistently connect with your most valued relationships.

Success is driven by consistency. You don’t go to the gym once or eat healthy once and then end up in amazing shape. Everything worth doing takes consistent effort.

Think about how many times you’ve spoken to your connections in the past 12 months. Would you talk to your close friends once or twice and expect to remain close?

How can you connect consistently?

• Call/text
• Email
• Social media
• Handwritten notes and greeting cards
• Invite people to have coffee

Regular connections translate into mindshare, which is the name of the game in business. You don’t have to have the best product—you just have to be the most well-known.

Provide an impact that leads to results.

Impact is created by marketing that is relevant to people’s lives. Your clients are exposed to thousands of pieces of marketing a day. When you focus your marketing entirely on your product, you lose people.

What people need to understand is that relationships are more valuable than individual sales. This philosophy should drive your marketing. What you should focus on is adding value to someone’s life. Provide something that’s thoughtful, funny, or entertaining—something that’s viewed as a gift. When you do this consistently, you’ll be remembered.

You can use the F.O.R.D. Method to guide conversations and build rapport.

Family

Occupation

Recreation

Dreams

How does your marketing resonate with people on those levels? When you personalize your messaging, you’ll always get more impact.

Personalization gets 5 to 8 times the return on investment and can lift your sales by 10 percent.

Brand yourself in order to capture mind-share.

People think branding means a logo and a headshot. Effectively branding yourself gives customers a perception of what your success will bring to their lives.

When someone thinks of a product or service, they will almost always use the very first business that pops into their minds.

See how a 38% referral rate can change your business.

Your branding needs to focus on you.

• You’re more than just a real estate agent.
• You have altitude and authority in your field.

The 80/20 Rule: 80 percent of your marketing shouldn’t be focused on promoting your business (e.g., community events, recipe cards, and other value-driven content). 20 percent of your marketing should be focused on presenting you as a subject matter expert.

You build mindshare by having passion for the subject matter. When you passionately display your knowledge, your customers will take notice. For example, you can record a video on your local real estate market once a month and share it with your social media subscribers.

What have you done lately to create awareness of what you do and your subject matter expertise?

Resources:

Watch our free webinar: Why Relationship Marketing Works

Action Items:

Ensure you have a referral generating system that follows these three principles.