Referral Marketing for you Real Estate Business
Advertising your real estate business is a necessary evil but it can be an expensive affair. It can cost you 15% or more of profits. Is there a cheaper alternative?
Yes, have you thought of referral marketing? With referral marketing, your real estate business is marketed to others and in some cases you do not even have to pay for it.
Referral marketing works by relying on others such as your clients, business partners, friends, or family to market your business for you. Anybody who knows about your business or your service can testify to the services that you provide can be a part of your referral marketing program.
Referral marketing can only work when your referral partners know that you want referrals. If you do not highlight what you want, most others will assume that you have an effective promotion program that brings in stream of new customers. They would likely assume that you do not need referrals. Even your clients who are referred to your services may assume that you do not need referrals
To make referral marketing work for you, you must first let all your clients and contact know that you welcome referral. You might even offer some kind of discount for clients who refer new clients to you. Some of the seeds you plant may fall to the way side, but many of them will grow into new clients. Whenever someone ask you about your business, let them know that you are working with a new client that was referred by another client who was please with your work. This will allow people to know that you are practicing referral marketing.
A critical success factor with referral marketing is the client’s confidence with your services. Your clients should be comfortable enough to refer business to you. If not, they will be hesitant to refer others to you. This is true even when the client had a positive experience in working with you. One effective way is to tell the clients that you are working with the many success stories that you have. The client will then get the idea that you are good at what you do.
You will of course need to accentuate your professionalism by displaying a sense of integrity. You should also make sure that you are always punctual for meetings and in returning phone calls. Inform the client as soon as possible for commitments that you will not be able to keep and if you have to back out of a commitment, offer something in return for the client’s troubles. Doing these things will create a sense of trustworthiness with the client. When clients are pleased with your work, they will be a willing participant in your referral marketing program.
For a newer real estate business, it can be difficult to spend on advertising. Referral marketing can be an effective alternative or a supplementary technique. All it takes is effect to create awareness among your clients and conducting a business in such as way that would encourage others to refer your real estate services to others.