April 2018 newsletter Asking for referrals

“Do what you do so well that they will want to see it again and bring their friends.” - Walt Disney

From the time I started working in the real estate industry until today, referrals have always been my number one source of new customers… Period! In my experience, getting referrals from satisfied customers is the best way to build a business. It makes new customers feel secure to know that they are using someone that someone else used and was happy with. In my real estate and speaking career I depend mainly on referrals to increase my customer base.

No matter what industry you are in, your current and past customers can refer you to people who need what you can offer them. What’s the best way to get referrals? Ask for them. Let your current and past customers know that you are interested in reaching out to new customers. If you don’t ask for referrals, people might get the impression that you are not interested in helping more customers.

The purpose of every business is to create a customer who creates new customers

Asking for a referral is not the same as asking for a sale; it’s softer and easier. Here’s a typical scenario: I get a brand new listing, and instead of calling people up and asking them if they would like to buy a new home, I call people to ask if they know of anyone who is looking for a home like this one. Then I offer to email them a link to the listing so they can share it with friends or family members who might be interested in looking at this home.

When you make a phone call to one of your current or past customers to ask for a referral, you are accomplishing two things: (1) you are asking them to refer you, and (2) you are keeping in touch with them so they won’t forget you. This type of contact is no different from calling a friend, and the purpose is the same: to maintain or build your relationship with this person.

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” - Jeff Bezos

Asking for a referral might sound like this: “Mike, you and your referrals are very important to me. If you know anyone who wants the best service possible when buying or selling a home, my family and I would be very grateful if you referred me.” I think it is important to mention your family when asking for referrals because your family also will benefit if you have more customers. In my opinion, saying “my family and I would be grateful” sounds better than focusing on yourself.

One of the best ways to motivate people to refer you is to be helpful to them. For example, someone might be looking for a person who provides a service that you don’t offer. Be resourceful and help them in every way possible. Use your connections and experience to offer names and contact information. They will see how sincere and willing you are to be of service to them, and they will never forget how you helped them. And in the process of being helpful, you are also giving a fellow business person a referral! They will remember that you helped them by sending them a potential customer, and they will be more likely to do the same thing for you in the future.