Rating Your Referral

Implementing a strategy to upgrade your referrals can really accelerate your business, but when most real estate practitioners get a name and contact information passed along to them, they try to get on the phone immediately to call the prospect. That is a significant mistake.

First, if clients come to you with a referral, assure them of the quality service their referral will receive. You are giving them your personal guarantee. Before the close of that business day, write out a handwritten thank-you note at a minimum.

To increase your conversion odds with the referred individual, try to get five to 10 minutes with the referral source to go over these questions:

• How do you know this person?
• How would you describe your relationship?
• Is there anything that this individual and I have in common?
• What type of a personality does this person have?
• What organizations does this person belong to?
• What are a few of this individual’s personal interests?
• Can I tell this person I’ve worked with you before?

Once you have secured that information, offer an assurance again that you’ll provide the same level of quality service that your referral source has received from you in the past.

To increase the probability of the referral becoming a client, the first step is to secure more information before making that first call. Once you’ve gathered more info, determine which of these four categories the referral will be:

C level:This referral is the coldest variety. The conversion rate is at the lowest level. Your referral source has only given the name and phone number of a potential prospect. They have not allowed you to use their name to create an opening or connection.

B level:I would describe this referral as lukewarm. The odds are improving, but still probably less than 50-50 conversion. The referral has given you the prospect’s name and phone number. They have given you one thing the C level did not, permission to use their name as the referral source to open the door. That certainly helps you make the connection on the first call.

A level:We are getting warmer with this referral. Again, you have the prospect’s name and number, but you have also been granted permission to use the name of your referral source to open the dialogue door. The best part is the source has given you time to ask questions. They are willing to give you five or 10 minutes to explore the referred individual to probe and help increase the odds of connecting with the prospect.

AA level:This should be the level we all shoot for. It’s the Cadillac of referrals. It’s all that the A level has with one huge difference. You have all the information that you have with an A, but the referral source is willing to open the door for you himself. He makes a phone call on your behalf. Of course, this call doesn’t replace the introductory call you have to make. It only makes it easier to call and raises the odds of a positive result with the referral. Also, you might find that a really effective referral source can set up an in-person meeting with everyone involved.

Don’t make referrals complicated. They should be simple. Success in referrals is achieved through consistency in the fundamental process of client connection and service. Make the commitment to improve your referral section of your business, and it will bring the growth you’re looking for.