Last Updated on September 16, 2021
Does at least 60% of your income come from repeat and referral business? If not, I’ve got some good… and some bad news for you.
The Bad News
First, the bad news… if you’re not generating at least 60% of your business from repeat and referrals, you’re missing out on clients you should have done business with! Why 60%?
According to the 2021 NAR Profile of Home Buyers and Sellers, 53% of Buyers and 66% of Sellers found their agent because they were referred, or had used them previously. When you average those out, that’s 59.5%!!
That means every year, on average, at least 60% of your business should come from people who already know you, or from people who know someone that knows you… and I bet you’re above average!
In fact, most agents I work with have made it to a point where 100% of their deals come from repeat and referral clients, and they don’t have to waste any of their time chasing cold leads.
The Good News
Don’t worry if you’re not generating the 60%-100% repeat and referral business you should be, there’s a huge amount of opportunity, and we can pretty easily narrow down how to get you there. That’s because there are generally 4 challenges I see that hold agents back from significantly growing their income.
The 4 Challenges
So, let’s examine the challenges that are standing in your way of generating 60% (or even 100%) of your business from repeats and referrals.
- You’re Looking For Business In The Wrong Place
Agents get clients from all sorts of sources like cold calling, neighborhood farming, online leads and more, but all of those take time to get to know, like and trust you before they do business with you. Plus, the colder the lead is, the more likely you’re in competition with lots of other agents for the same deal.
Instead, you want to go after the type of clients that are proven to be easier to work with and take less time to convert. These are the people you’ve already built reciprocity with – your past clients, friends, former colleagues, family members, and the rest of the people most likely to do business with you.
- You’re Not Delivering An Experience Worth Referring To
To get people to do business with you again, or send you business, you need to give them an experience that stands out and makes them confident of how well you take care of your clients. This one is key and we’ve covered it in the past, but I genuinely don’t think this is your, or most agents’ problem. As a member of our community who is always looking to improve your business, I know you’re an agent that goes above and beyond for those you work with.
- You Don’t Follow Up Consistently
Getting people to send you business or work with you again isn’t just about being a great agent. You also need to follow up consistently and effectively to stay top of mind, generate reciprocity, and program referrals. In fact, the Advanced Marketing Institute reports that you lose about 10% of the people ready to send you deals for every month that you don’t follow up.
This tends to be the biggest issue and it’s usually because agents aren’t using some sort of system to make following up on a monthly basis easy. Make sure you’re not falling into this trap and set yourself up to follow up each month with as little work as possible.
Check out Service For Life! for an easy and effective monthly follow up program that is proven to generate repeat and referral business for you.
- You Follow Up With Ineffective Methods
This is where a lot of agents will say… “but Alex, I am following up with people consistently, and I’m still not at 100% repeat and referral business.” Well, it’s not just about doing it consistently – you need to do it effectively as well.
When I say “effectively,” I mean a campaign that gets opened, interacted with and responded to. Plus, it needs to program your contacts to think of you any time real estate crosses their path.
We’ve covered how to do this in the past, but I want to invite you to an exclusive webinar I’ll personally be hosting next week, where I’ll cover the exact people you want to follow up with, and the most effective tactics for generating 100% of your business by referral. Make sure you register for my webinar: “How To Multiply Your Sales Without Chasing Leads”
You Can Do It!
If you’re not currently generating 60%-100% of your business from repeats and referrals, I know you can overcome the challenges that you’re facing right now to follow up consistently and effectively. Whether you’re worried about having the time, or knowing what to send, we cover it in the exclusive webinar I’ve just offered above, so make sure you don’t miss what I’m going to reveal…. it will make a huge difference in your business!
Build a Client Network That Brings You Business All Year Long!
Ever wondered what it would be like to have hundreds of people out looking for clients for you, every single day? In this webinar, learn how you can create a network of advocates that act as a giant personal sales force for your real estate business!