This is a comment that I get frequently.
Truth is, it's not at all about "let's send each other business".
That's like a lender or title company meeting me for the first time and saying, "oh, send me some business and see how wonderful I am". Sorry, No.
Referrals are wonderful - whether other agents, vendors, service providers, etc. But it's not based on just meeting someone. We have a duty to our clients. When we refer someone to them, we need to know they're not only good at what they do, but a good match of what our client needs and wants, and how they'll work together.
That's why link farms and referral groups don't work for me. It's all about the client.
Once I know you, how you think, how you feel, how you work - how you'll mesh with a particular client - then I'll be glad to refer you. But - my clients aren't guinea pigs. I don't use them to "try you out".
Many times I'll have occasion to work with an agent/lender/title company/carpet cleaner/dock builder because someone else has chosen them, or because they've sent me business so that I can see how they work. That's how business starts. Not by giving me cookies, or sending me lots of loan programs, or offering me a higher referral fee.
I just want to see my clients get the best. So - show me that you're the best for them, that you care about them, and that you'll treat them as carefully and professionally as I do.
It is and always will be about relationships to have an effective referral system, despite technology. My referral stats have not change one percentage point because of technology. You can develop relationships over the internet.....then you can experience referrals. So don't throw in the towel on technology as a referral source, just remember the relationship has to be created first as would be face to face.
I use to work as a loan officer with Bank of America. whenever I pre qualify a customer for a loan i will ask them if they need a realtor and if they say yes, i will give them two of my realtors phone number and advised my customer to call and choose whoever he or she likes. So i was not just getting my realtors business but giving it back whenever i could.
Sharon, when I recommend lenders I suggest one mortgage broker, one banker and one online lender. None have ever sent me a single customer, but I know that any one of them will take excellent care of my client...it's up to the interview process for the client to discern the best selection for themselves.
Tim - yes, whether it's face-to-face or over-the-internet, it's all about relationships.
Rafeeq - our best Bank of America loan referral started by sending us a few clients - since then, we've been referring him for years! He's the greatest.
Vickie - it's all about service to our customers.
Patricia - yes, it's all about knowing they're good at what they do.
Agree. Referrals relationship is built over the years, need to be solid and consistant. Not an easy task...
Sharon, I had some not very good experiences with referring agents several years ago. The experiences were soooooo bad that I had even quit referring as I feel like my name is on the line when I refer someone and they turn out to be a bomb. Thank God for Active Rain as I now can build a relationship and have had some WONDERFUL experiences in the last year!!
I have a services director that I keep. I tell my clients that it is next to impossible for a vendor to get on my list, but they can be knocked off in two seconds. Those vendors on my list I trust will take great care of my clients and make me look good.
Nothing worse than referring someone that doesn't to a good job... it's a sure way to lose a client.
Sharon, I wholeheartedly agree with your take on this. I just smile when I see lenders bringing trays of goodies to sales meetings and schmoozing agents - don't bring me cookies, show me that you can take care of my client! I have a very small list of people I am willing to refer to because I won't give out a name of anyone I haven't worked with personally or had a client work with successfully.
I have 3 lenders that I use and I send all three to clients, when they ask. (I certainly suggest, as well) Anyhow, I rotate who is first, each time I give their names out. That is the only way that I can feel comfortable that I am not playing favorites. Only one has ever given a client to me. and that was a relative of hers, so that was a positive for me.
Best of luck, all.
Sharon, I absolutely agree. I feel an obligation, first and foremost, to my clients. The last thing I would want to do is to refer them to someone that isn't good at what they do or who would not follow up and do what they say they are going to do. I also believe that you have to evaluate personalities and be willing to admit that sometimes there are people who are just not meant to work with other people because their personalities are toooo different.
Yes! Sharon It is all about the client.
I have an attorney that would recommend to everyone. He is amazing. We have a great relatlionship and I feel confident that he will be great for my clients. I agree with you.
I referred my sister to an accountant once and it was a distaster. I was in a referral group and I didn't know if he was good or not. That was a giant mistake. Lesson well-learned.
Sharon - Agreed. It's about the client and their best interests is an absolute necessity. Referrals are something that are earned, not exchanged like baseball cards at a flea market.
By the way Sharon, I have this wonderful batch of cookies in the oven for ya;)
Agreed Sharon. I want to know my client is well taken care of when referred to another agent.
"Once I know you, how you think, how you feel, how you work - how you'll mesh with a particular client - then I'll be glad to refer you. But - my clients aren't guinea pigs. I don't use them to "try you out".
Sharon I feel exactly the same way and it's the reason I joined Active Rain to learn more about people I would want to send business. It's so much more in depth than looking a t a list of agents in a book or on-line profiles. Excellent post and I am so glad it was featured. Best to you , Tami and your team!
Sharon, referrals can be good or bad. It is always tricky but when we give them we want to make sure they are cared for as would care for them. If not we have to eat humble pie.
I have had some lenders just say, I know you have your own lenders but if anything ever happens, just give me one try and see. So I have and it usually works out great.
You know, I've often wondered why it is that a person new to the Virtual Assistant field will often call me up or e-mail me and ask if I will send them any overflow work that I have. I think it is exactly the same principle. There is no way on God's great green earth I'm just going to give someone responsibility for my clients' tasks or the client themselves without some way of knowing whether or not I sould be afraid. Let's face it... I start off afraid because you are inevitably responsible - there is no "the subcontractor didn't do it correctly." It is YOUR name and reputation on the line. So, like you, I don't work or subcontract with anyone I haven't already seen how they work and what their style is. It just isn't going to happen and I really wish they would stop asking. Like on Jerry Maguire - Show me the money! (Read: Give me a good reason WHY I should first!)
~Renae
I have one lender that I have used and trusted for the past 5 years. I only refer Robyn Waugh. Robyn is bright, a hard worker and people person. It started off with her bringing cookies to my open house - Now that is a lot more work than stopping at one office hitting 45 agents. She has never missed a closing date and all clients refinance through her because she is so awesome and they want to work with Robyn again.
I also use one title company. Lisa Rotolo owns Diamond Title and will drive to the other side of Florida to get a signature if that is what she needs to close. Lisa will act as your assistant if you need her.
They are part of my team and I don't like to use anyone else because they are so good at their job. They will get the deal to close on time and they work together. I don't ask them for anything else - just do a good job! OK Lisa loves to bake and did bring my family goodies at Christmas.
Sharon - great advice - it is impossible to recommend another agent (or anyone else for that matter) if you have no idea how they function. When I send referrals back down to the Punta Gorda area, where I used to live and work, which agent gets the referral depends on who I think will best be able to work with the individual client.
This is such a great post! We don't expect someone to walk up, hand us a business card, and say "please send me people to put a perm in their hair - I'm good at it!" and just comply. It would never happen. So why do we expect the same from fellow realtors?
Kathy
I agree with you to a certain extent, but at the same time I work with client across the board. As long as the mission is accomplished does it really matter? My clients don't seem to care that I'm not similar to them...all that matters is that I competent. I refer clients out on a weekly basis and all of them seem satisfied...the most important thing is that the agents are competent, honest, and work hard for the client.
Claude - true, but we need a method for referring to areas where we don't have connections.
Marchel - my experiences have been much better since I started referring directly rather than through a relocation department.
Randy - as you know, it' so important to get feedback from the people we're referring - what did they like and dislike.
Colleen - so true. That's why we need to screen carefully.
Lisa - oh, yes! "don't bring me cookies, show me that you can take care of my client"
Laura - that's the safe way to do it. I generally try to match the lender to the client, though.
Vickie - true. There have been times when an agent has (with my permission) selected a team member to work with my client. When that doesn't work, I call the agent again and ask for a reassignment to another team member. That has worked.
Pat - that's why I've always avoided referral groups.
Jason - they smell like chocolate chip cookies ....
Bill - of course. We're putting ourselves on the line.
Russell - I've found that a great benefit of Active Rain, too.
Missy - it never hurts to have a backup. Often the "saviors" get to be "regulars".
Renae - yes, your business has exactly the same issues.
Edie - yes, it's great to have a team. I can tell you lots of tales about Julie Holt, who owns Anclote Title Co and does most of our closings - the one where a client put a snake in her lap, etc. Her title company gives awards for The Longest Closing, The Toughest Closing, The Most Interesting Closing, etc,. - 0ne year we took several awards!
Barbara-Jo - exactly. No one is right for everyone.
Kathy - and isn't finding the right hairdresser one of the most difficult parts of a relocation?
Tara - of course you don't have to be similar to your clients, but you do need to be able to relate to each other. In my opinion, competence alone isn't enough. The client neds to be comfortable and feel good about the transaction.
80% of my business has ALWAYS come from people I KNOW. I rarely if EVER get a referral from someone I don't know. Referrals are based on trust of the referred. There has to be a personal connect. This can be done on the internet as proven by internet dating services, but something is missing with AR that is helping connect personality types to insure referrals.
Tim - what is it you think is missing on Active Rain? Though I've been fortunate to meet in person many of the people I've met on Active Rain, there are others I haven't met that I'd be very comfortable referring to.
Sharon, You will get my referrals because I love and trust you!
You are such a success because of this " I want to see my clients get the best. So - show me that you're the best for them, that you care about them, and that you'll treat them as carefully and professionally as I do."
Hi Sharon - I've been reading the comments on your post and found it interesting that people are confusing "being just alike" in personality with "being professional." The two are completely unrelated. I don't look for people to refer business to based on whether they are just like me. If that were the case, I would never refer or outsource any work because I'm one-of-a-kind! Seriously, it is more about being just as professional in how you treat your clients than anything else.
~Renae
Margaret - we're a Mutual Admiration Society. You know you'll get all of our referrals for Baltimore.
Renae - of course we can't clone ourselves or out clients. As I replied to Tara, you don't have to be similar, but you have to be compatible. No matter how professional and competent you are, if you and the client raise hairs on each other's arms, it's NOT enough. You don't have to become bosom buddies, of course - but you do have to be able to relate to each other - in my opinion.
Sharon,
What a novel concept-placing the clients needs first.
If someone trusts you enough to ask for a referral, you have a moral obligation to provide the best reference possible, not because of a referral fee or obligation to a referral network, but because you have been placed in a position of trust.
Great post- I look forward to continued reading.
Larry McGee
Amen! The best luck we have had with gaining Realtor business is never with donut's and cookies. It is always with performance and referrals. Great post!
Larry - thanks for the response. Glad you're going to be reading more.
Hart - that's it. You're obviously doing the right things.
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