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Why Out-of-Town Referrals are Valuable for Business

Written by Posted On Thursday, 17 September 2015 09:51
Build your network - Grow your business with this FREE app Build your network - Grow your business with this FREE app

In a time when people are more likely to move to a different city/town – the 2014 U.S. census showed a trend of increasing “domestic migration” compared to shortly after the 2008 recession – real estate agents know that there is a big business opportunity in out-of-area referrals.

Referrals from clients are great, but seasoned real estate pros understand how much work goes into getting any sort of consistent client referrals. Even the best and happiest clients are often not very good at referring us new business because it's just not a very natural thing to do. Everyone has busy lives and few people want to be a ‘sales person’ to their friends and family.

One area where real estate professionals know they can get referrals from is via out-of-town agents. But as you know, finding and vetting good agents outside of your city or town may feel like flying blind.

Real estate referrals from other professionals are extremely important to the success and longevity of a Realtor’s career because: 

  • Realtors constantly have clients moving from one market to another, so the stream of business is consistent and reliable.
  • When a client is referred by another professional they already have a trusting relationship with, this trust extends to the new agent and that makes the client more loyal to us.
  • An agent referred client generally needs to complete a transaction within a short period of time – they are not wasting our time.
  • The GREATEST reason for Realtors to focus on Realtor-referred clients is the referral fee itself. We only pay that fee if/when a client completes a transaction. If there's no transaction there's no out of pocket expense for the Realtor. It's that link between our cost and profit that makes a Realtor’s business which focuses on this type of client the most profitable.

Having a system to for out-of-town referrals is important on both the giving and receiving ends of the equation. When you give a referral to an agent in a different city or town, you most likely are working with clients you know and you may have had a previous working relationship with. In a people oriented business such as ours, you want to make sure that your clients are taken care of when you pass them on to a new agent. Agents sometimes overlook the clients’ appreciation in being referred to another good agent by the one they know and love.

When you are on the receiving end, you want to make sure that you are starting a relationship with a trustworthy agent from that city, so that you know you are building your network with trusted professionals with whom you may want to do business with in the future.

Our app, Real Referrals, is a platform for real estate professionals to give to, and receive referrals from, agents in other areas. It is a professional place for real estate agents to exchange business: 

  • Agents are verified professionals on LinkedIn
  • Users can easily search and manage referrals
  • Agents commit to referrals on the app so you know you will be paid

Well-seasoned agents already know the value of this type of business. It's consistent and profitable when we can build our business on this type of client. Our costs are directly tied to our profit, so the more we spend, the more we make! There’s NO OTHER WAY to achieve that link aside from Realtor referrals.

For new agents, it is best to get on board as soon as possible. The high attrition rate in the industry is due to the costs. This type of business connects the costs to our profit. Referrals are integral to building your business as a real estate professional. When working within your area, you may accumulate these referrals in more traditional ways, from word-of-mouth, traditional advertising, or from working with other agents. Use the tools available to you – like Real Referrals – to build your network today.

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Ed Deprato

www.realreferrals.net/

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