So how can you consistently generate more real estate referral leads?
Let's dig into these 6 strategies.
Dunbar's number states that the average person can have roughly 150 connections. Within those connections, Robin Dunbar explains that there are varying degrees of relationship.
50 of those individuals you might invite to dinner; 15 of those individuals you might have a close friendship with; ~5 of those individuals you'd consider to be your closest confidants.
To adapt this principle in a real estate context, imagine you have 1,000 people in your database. That means that you essentially have ~5,000 people that you're "intimately" connected with because each person that you know has a close relationship with ~5 people.
Now, Dunbar's number recently came under scrutiny in light of a new study by Stockholm University. Researchers argued that in our hyper-connected world, each person can have many more connections.
Either way, here's the point: Using the logic of Dunbar's number (and the latest research), we can use our sphere of influence – not to sell to people in it – but to sell to their friends and family members.
Here's an example:
At Curaytor, we're always coaching our clients on how to turn their current listings into more listings.
Whenever you have a property that's about to hit the market that you know people will love, create some buzz around it. Sending this email to your database is a great way to grow your network.
Be the Local Expert
A simple way to be the local expert is to take recent data, adapt it to your local market, and present it to your database in monthly market reports.
Curaytor client Dan Wurtele is an excellent example of an agent who executes in-depth market reports. He takes real-world data, compelling market statistics, timely information, and anecdotal stories to craft comprehensive market reports. What makes Dan's market reports so brilliant is his analysis. Every time he presents his opinion to the reader, he backs it up with data.
If you claim to be the #1 local real estate expert, prove it by creating monthly market reports, like Dan, and share them with your audience. Even if they're not thinking of selling, they might know someone who is.
Here's another way to generate real estate referrals: Be the agent who champions your community.
Curaytor client Jay Marks is a great example. In his Denton County Giving series, Jay puts the spotlight on nonprofits and charities. He shares their story, how to get involved, and upcoming events to rally support from the community.
However you stay active in your community, feature it on your website. It's a great way to fuel referrals and keep your audience up-to-date on how you're involved in your community.
Stay Top of Mind
If you stay consistent with your marketing, you'll naturally generate referrals because you'll be top of mind.
The key here is to adopt a proactive posture with your audience instead of waiting for permission to be helpful.
Permission looks like… "Would you like me to send you a market report?"
A proactive posture looks like… "I've prepared an updated market report for you. Here are the key takeaways…"
If you're not sure what to send, take a look through our free library of swipe and steal email templates.
Simplify the Customer Experience
The future of real estate is making the process as painless as possible for the consumer. When you do that, your past customers will want to tell their friends and family about their experience.
Let's think about Opendoor as an agent.
Opendoor defines a real seller as an individual who requests an offer and then goes under contract with Opendoor or lists on the MLS within 60 days. At a 6% service charge, Opendoor converts approximately 1 out of every 2 real sellers. At a 10% service charge, Opendoor converts approximately 1 out of every 5 real sellers. (Opendoor Technologies Inc.)
The reason why Opendoor is the #1 agent in Raleigh is because they eliminate pain from the selling process. In their value proposition, they sell:
57% of consumers are willing to pay more for simpler experiences. And 76% of consumers are more likely to recommend a brand because it provides simpler experiences and communications. As much as possible, lean into developing those core experiences for your customers and you'll naturally generate more real estate referrals.
Create Client Success Stories
Another simple way to generate more real estate referrals is to let homebuyers and sellers understand what it feels like to work with you.
Curaytor client Scott Hartis published a powerful success story where his clients, Kendra and Addison, share their experience in their own words.
If you are consistently marketing your customers' experiences, you'll attract more listings. It doesn't have to be a video, either. Lean into whatever medium your client is most comfortable with – whether that's being filmed, having their picture taken, or writing out their experience.
The best part? This is evergreen content. This type of campaign can be monumental in your long-term growth.
Invest in Relationships with Other Agents and Brokers
The best agents are the ones who are constantly building new connections, leading with value, and are patient. They are willing to invest with no expectations of returns.
That said, referrals do come naturally if you're willing to consistently build relationships with other agents and brokers/owners.
Consider investing 1-2 hours per week on networking. Maybe that looks like sending out an introduction package to other agents and teams who are affiliated with your business. Or maybe it's contributing to real estate Facebook groups on a regular basis.
Prioritize consistent networking each week and over time your agent-to-agent referrals will compound.
Once you find a referral strategy that works for your real estate business, double down on it. Find your strength – be it creating in-depth market reports, expanding your database with compelling emails, or simplifying your customer experience – and make that a focus for your business this year.
For many Curaytor clients, it's a focus of theirs. An unexpected benefit of partnering with Curaytor is the quality referral network from inside our exclusive Mastermind Group.
“I’ve sold a number of referrals from my Curaytor friends," said Curaytor client Tami Stough. "In fact, last year I sold a $780,000 house that was a referral, and I just listed a house yesterday for a $745,000 house that’s a referral from a Curaytor bud. There’s been several million dollars worth of generated business just from my Curaytor buds.”
If you're interested in learning more about whether Curaytor would be a good fit for your business, just schedule a call with our sales team and we'll see if we're a great fit.