Referral Marketing in Real Estate: What You Need To Know

Referrals: everyone knows they are the lifeblood of every realtor. But referrals are needed, yet what are your options when your pool’s run dry or the referrals or you’re getting aren’t going anywhere?

Your options are thus:

  1. Content Marketing
  2. Referral Marketing

Both are required to run a profitable business, but sometimes your friends and other colleagues just simply aren’t cutting it. This is when you would employ these two tactics to acquire more referral sources for real estate agents.  

Content Marketing

This would include every piece of content that you could use in your own marketing efforts. This includes a blog, a vlog, podcasts, various articles, and all the things that go with it. The key here, though, is not simply to create it and wait. Spoiler alert: that’s not a good approach.

You MUST spread the word about your content. I’ve created an infographic about using which platforms you can use to spread your content. Sites like Quora, Reddit, Google+, Pinterest, LinkedIn, and a whole host of others would be the best place to have those. Does it take work? Of course, but this is your business. You’re either paying time or money.

I mentioned in the video the possibility of using podcasts instead of video. Mind you, it’s not the same as the video, but it still has a similar touch to it. It still gets your knowledge out there and in front of others. If people come to know you as a resource and help to spread your content via all avenues (INCLUDING TWITTER), this will only help. For more on content marketing and how it can work for you, visit any of these other pages that I have written before:

Referral marketing

This is likely one of the most useful techniques you can use for your business. The basics are using a sort of incentive to get others to refer your services to another. This has been documented as one of the most viral tools to use to extend your reach farther than other methods. However, the things that you must know before employing this are:

  1. Survey people to get their pain points using Typeform or Survey Monkey to gather data. This will be imperative later on.
  2. If you should employ a monetary prize or gift for referrals, you must configure the campaign with the number of referrals it will take to achieve the prize, how, and when this will run.
  3. Use either a free or paid referral marketing software. They’re relatively easy to set up. These are usually set up with special codes you can hand to people to make their mark in your business.
  4. Reward those referrals in your real estate business with a small gift, no matter whether the referral is good, bad, or neutral. After all, they are your advocates. Thank them. Even a small thank you note works. If it worked for Grandma, then it would work for anyone else.

Once you have the data set from the surveys or what you’ve been noticing on Facebook, Twitter, and IG, use that data to see where the variables lie most. This is as much about science as it is about business.

What else can you do in concerns with referral marketing?

Get in contact with your previous and past clients

People that you have done business with you before are going to be your best advocates as well (unless they just didn’t care for you, which happens to everyone) – so get in contact with them ASAP. This also goes for those business to business referrals as well. Ask them how they’re doing and how things are panning out with their house. Taking care of them even after the sale shows that you are a human who cares about them past the dollar signs.

Real Estate Express has a ranking system that they suggest that realtors employ to their advantage. They used it as simple as 1, 2, 3 (1 being your staunch supporters), but you can treat your business with whatever rankings you prefer.  

Whatever ranking system you utilize through your referral marketing software, make sure it’s compatible (or easily transferrable) to your CRM. If you don’t already have one, get one. This will be one of the most useful tools to have in your arsenal as it keeps track of everyone you have met in your real estate journey. Within the CRM and ranking system, you can see who needs a phone call and who just simply needs an email or text. It’s a fast and free way to get more referrals.

Have your team put together

The team here doesn’t necessarily mean a team of real estate agents. It means any and all people that are involved with a home or house. Do you have a pest person? Roofer? Attorney? These are all people that you will want to keep close to you and trade referrals consistently. It’s helping one another’s business in the local community. Plus with this form of referral marketing, it’s more or less free (apart from paying for their lunch every once in a while) and will help to create a small virality in your community where people will hear your name. Because of that WORD OF MOUTH, people will be more likely to trust you and your services.

Do be wary of those bad reviewers that are hiding out online as well as the positive reviews that imply something completely contrary to what’s been told.

Have client appreciation events

These are basically thanking and thinking of your most important and powerful referral source. When you have your team brought together and your past clients, throw a party for them and see what happens. Have them invite friends, and just have a grand time. This is the best way for your advocates to bring people that would otherwise be unknown to you — and in turn widen your sphere of influence.

What other things do you think would work best? Comment below with your thoughts! We would appreciate your input on what has worked for you! 😉