88% of home buyers say they would use their real estate agent again, but only 11% ever end up following through.
It’s common knowledge that repeat and referral business is the best way to build and grow your business. Building and converting your database is the only way to get you out of the rat race of having to pay for (and chase) leads around the clock.
No matter if you’ve been in the business for decades or just starting out, there are hundreds of thousands of untapped dollars sitting in your database, and if you’ve ever driven by a former clients’ house and saw another agent’s sign on their lawn, you know that there’s no guarantee that anyone will actively seek you out or recommend you to a friend in the future, unless you actively do something about it.
Contrary to what most agents believe, repeat and and referral business does not happen organically. It takes nurturing, keeping in touch, and adding value, even when your client is not on the market. We found the top 5 mistakes that agents make that can be costing them thousands in commissions:
#1 – Vanishing after the sale
The deal never ends at the closing table and your relationships with buyers or sellers shouldn’t either.
Because the industry’s bar has been set so low, your clients may not expect you to keep in touch with them after a deal is signed, but if you’re dropping the ball, you’re not only missing a huge opportunity to get future business and referrals, but you’re also leaving them with the impression that you just got paid and ran off. Not a good thing!
Here at MoveSnap, we advocate keeping in touch with your clients at least once a week from the time the deal is signed, to they move into their new home. Just a simple “checking in” call or occasional assistance with their move preparations go a long way.
#2 – Only thinking about referrals when you need them
Generating referrals can’t be an afterthought when your lead pipeline runs dry. Remember that leads don’t just happen organically. They need to be nurtured and you always need to be planting seeds by making every interaction with your clients special and memorable.
You can’t wait until your pipeline is dry to begin trying to drum up repeat and referral business. Instead, have a system where you ‘plant the seed’ for referrals starting with your very first interaction by giving them an incredible client experience and make referrals a normalized expectation in the ways you communicate with current and past clients.
#3 Providing a cookie-cutter experience
You sell dreams, not cookies. Ever had a really great experience with a brand that you couldn’t help but tell all your friends about? Millions of people share their stories every day, without being incented or paid. How does that happen?
You have to turn each client into your raving fan. Saying you have satisfied clients isn’t enough. Everyone has satisfied clients, but very few companies and brands have raving fans like Apple or Starbucks. When you deliver an unforgettable experience, you’re giving clients a meaningful way to talk about you.
At MoveSnap, we’ve developed an effortless system that’s used by thousands of top agents to deliver an unforgettable experience that clients really appreciate. Check it out
Here are some examples:
- Show up with food and drinks on moving day
- Pay a cleaning crew to make your client’s new home spotless
- Hire a handyman for a few hours each year to help your client complete odds-and-ends
#4 – Not giving referrals back
Networks are the essence of business and every one of your clients, whether they work in a corporation, or run their own business, can benefit from your network. Reciprocity is an extremely powerful force. When you help your clients and partners achieve their goals, you’re building an extremely fruitful referral network that you can legitimately build your business on.
#5 – Not asking for referrals
You can’t assume referrals will come unless you explicitly ask for them. But before you send out a generic email or postcard asking if your clients “know anyone who might be buying or selling”, there’s a specific technique that can help your clients
Get the Checklist!
If you want to start stacking your business with repeat and referral opportunities, but don’t know the easiest way to get started … look no further!
We’ve created a checklist to help you start crafting a strategy around driving repeat and referral business today!