While online leads offer mixed results at best, client referrals consistently yield tangible results for real estate professionals. Yet building a steady referral business takes focus and strategy.
In a session titled “How to Increase Your Referral Business,” moderated by Ennis Antoine, managing broker at Compass Real Estate, panelists Greg Chaplain, associate broker/team leader of The Real Estate Group, and Art Obleton, a REALTOR® with eXp, shared their strategies for building a successful referral business in a challenging real estate market.
Chaplain emphasized using social media as a tool to connect with clients, while Obleton focused on deepening relationships rather than expanding them. He suggested using a simple script to engage with clients about their family, occupation, recreation and dreams. He also highlighted the importance of staying top of mind with constant communication and identifying the ideal client. Both panelists agreed on the importance of using a CRM to manage referrals and enhance efficiency.
The different approaches to referrals between the two successful professionals showed that there is more than one way to succeed. Both professed a passion for their work and a desire to build strong relationships with their clients that would lead to valuable referrals.
Chaplain stressed the importance of going beyond the transactional nature of the business. He believes in building deep connections with his clients rather than simply chasing after more and more deals. To achieve this, he focuses on developing relationships with other professionals in the real estate industry, such as lenders and title companies. In fact, he would visit his banker friend regularly, not only to discuss business, but to also bring him clients who needed his assistance. Through this friendship, Chaplain realized that the more he connected and engaged with people, the more opportunities he had to ask for referrals. Sometimes, he didn’t even have to ask, as his banker friend would proactively recommend him to potential clients.
As for past buyer/seller clients, he had this advice.
“Any agent that’s been in the business for a while has a database,” he said. “They have a sphere of influence that they’ve nurtured over the years, and I would encourage everybody, whether a new agent or a seasoned pro, to get back in there and reconnect with that database.
“One thing you’ve got to keep in mind is that a database is a living, breathing thing. It constantly changes because relationships constantly change. And we may have served the client in the past, but over the course of time, their relationship not only with us—but with many other people—has changed. And you never know when maybe they’re in a particular organization and they’ve gotten close to another REALTOR®, and maybe aren’t sure if we’re still the best option for them.”
Obleton, on the other hand, started his real estate business by relying on internet leads. However, he soon realized the importance of building relationships with his clients, shifting his approach from transactional to relational. He understands that staying top of mind with clients is crucial, so he works his database every day. He uses a CRM system to manage his relationships, keeping track of when to call, when to stay in touch and when to reach out to potential clients. He also implemented the FORD script, which focuses on discussing family, occupation, recreation and dreams with his clients. By genuinely connecting with them on a personal level, Obleton found that his clients would often ask about his real estate business, giving him the opportunity to share market updates and establish himself as a local expert.
He goes into detail about how he utilizes the FORD strategy.
“It’s a simple script,” he explains. “I’ll call the person to catch up and ask how their family is doing. I’ll ask how things are going at their job, what they’re doing for fun and if there are any things they have planned over the next two to four years that are for fun, for recreation or that they’re dreaming of.
“Then what happens is those clients will ask me how things are going. At that point, I’ll tell them about the market and how my business is doing. I’ve learned to be the local expert economist. As I tell them more about the business and the market and how things are going, they’re hopefully feeling better about the market and themselves. Then I’ll ask them if they know anyone I can help buy or sell a home. What family members, friends or coworkers are looking to buy or sell a home.”
Both recognized the power of technology in enhancing their referral business. They utilize CRM systems to manage their contacts and stay organized. They also leverage mass texting, emailing and even voicemail campaigns to efficiently communicate with their clients and keep them informed about events and market updates. However, they understand that technology is only a tool to enhance their relationships, not a substitute for personal connection.
Their dedication to building strong relationships paid off, as 90% of Obleton’s business in 2023 came from referrals and repeat clients. Having become known in their communities as trustworthy and reliable agents, Chaplain and Obleton are always willing to go the extra mile. They prove that in a competitive market it’s not just about the number of clients you have, but the depth of the relationships you cultivate.
Greg Chaplain’s key points
- He emphasizes the importance of reconnecting with your existing database and nurturing those relationships.
- He suggests constantly sorting and qualifying your database to ensure you are still the best option for your clients.
- He advises having a clear strategy for adding new members to your database to compensate for those who may exit.
- He recommends getting involved in organizations and communities that align with your interests to meet new people.
- The focus is on generating referrals by leveraging your influence and dialogues with your existing clients.
- Social media is mentioned as a tool for working by referral and staying connected with your network.
Art Obleton’s key points
- He mentions using a CRM to manage relationships and stay in touch with clients at different stages of the buying process.
- He also mentions using technology, such as texting campaigns, to reach out to old leads and schedule appointments.
Ennis Antoine’s key points
- He highlights the importance of timing when giving gifts to clients and staying top of mind through constant communication.
- He suggests watching YouTube videos from real estate experts like Barbara Corcoran for market updates and insights.
- He advises identifying your ideal client and finding out where they hang out to target your networking efforts.
