If you’re a new agent, the majority (if not all) of your leads are likely purchased ones. This may seem fine when you’re just getting started, but it’s a costly expense that won’t benefit you in the long run. To achieve long-term success, you must generate a steady stream of high-quality leads – leads that you don’t pay for but, instead, obtain by utilizing your sphere of influence and by gaining referrals.
The best way to do this is through working by referral. This method focuses on building lifelong relationships with your clients and then asking them for referrals. It’s the best way to ensure you never have to worry about where your next lead is coming from!
Here’s how you can go from costly purchased leads to enjoying a sales pipeline that is always full of top-quality leads.
Nurture Your Paid Leads
Although you shouldn’t rely on paid leads to run your business, don’t just drop the ones you already have. Make the most of them by nurturing them instead. This will also allow you to put the work by referral principal into practice! Reach out to these leads with a personalized message expressing your enthusiasm in doing business with them. If you have their address, send this message in a letter to really stand out. If not, a phone call works great as well. Just avoid making the initial message through email as it feels impersonal and can easily get lost among all their other emails.
Don’t just reach out once and think you’re done. Follow up a week or two later via phone or email without being pushy by providing them with valuable information and resources on topics such as market updates, finances and time management. This helps develop and deepen your relationship with them, significantly increasing your chances of a good ROI.
Build Upon Your Sphere of Influence
Now that you know how to reach out to your paid leads, apply those same principles to your sphere of influence. Your sphere of influence is simply everyone you know both personally and professionally. This can be friends, family, colleagues, social media contacts, your favorite barista, past clients and more. Create a list of all these people and reach out to everyone on it by sending a letter and then following up with a phone call a couple weeks later.
After reaching out, you should be able to determine if you are their go-to agent as well as how likely they are to refer you to others. Once you’ve figured this out, rank your contacts accordingly and make sure to keep in constant contact with your top people. Mail or email them useful information, write them personal notes or deliver small but thoughtful gifts. This will ensure you stay top of mind and deepen the connection between you. Your clients will be so impressed by your incredible service that they will stay loyal to you for all their real estate needs and refer you to their friends and family. This is how you start working by referral and really get ahead of the competition!
As you can imagine, it can get tricky keeping track of your client list, all their rankings and how and when to contact them. That’s why it’s vital to invest in a relational real estate CRM (customer relationship management). Look for one that helps you stay on track of your work by referral activities. Buffini & Company Referral Maker® CRM, for example, is designed to let agents rank their database right within the program. It also creates customized action steps based on your business goals, so you know exactly who to contact and when in order to generate your next lead.
When you take the time to really nurture and build your client relationships, you no longer have to rely on expensive, low-quality paid leads. To learn more about how to work by referral and how to enhance your lead generation skills, 100 Days to Greatness® has everything you need and more. This step-by-step real estate training program will give you the tools, principles and information needed to launch your real estate career and set you up for long-term success.