You won’t get a referral if you don’t follow up and have a long-term commitment to building relationships. Top producers realize building relationships is more important than making the sale or getting the commission.
Sadly, most sales agents don’t follow up after a sale even though 68 percent of sales come through follow-ups. The reason most agents don’t reach out after a sale is they don’t have a long-term vision! They don’t understand the value of building their brand.
Asking for permission to follow up 5 days, 15 days, and 30 days after a sale is smart and appropriate. This should be a normal part of your customer service to make sure clients are happy with their purchase.
The flowers or basket of fruit they received on the day of closing are nice, but your sincere personal interest in them weeks after you have received your commission check will make a more lasting impression.
When you reach out 5 and 15 days after the purchase, your purpose is to inquire about their transition into the property and inquire whether they have questions or want advice on something they hadn't thought about before agreeing to purchase the property. These inquiries may be as brief as a voice message, but you are proving your long-term interest in them. You are also creating a bond that lasts well beyond your commission for this sale.
When you call a client after one month, it is a good idea to invite them to lunch. At this point, you have made several brief contacts with them, and you have proven your loyalty to them. At this meeting, you are going to ask for a referral if you haven't received any from them previously.
On the anniversary of their purchase, send them a report on all the sales that have been generated in their area for the last year. Then call your client and acknowledge the anniversary. Thank them for doing business with you. Tell them how much you appreciate them for allowing you to handle their purchase and allowing you to be their “go-to” real estate professional.
Even if they have not sent you any business, thank them anyway for their loyalty and the business you hope to receive from them in the future. Always conclude each communication with your client by very subtly asking for one referral.
Referrals are the lifeblood of your business. In fact, the most successful brokers only work with referrals. Now is the time to begin building your referral base and your brand. One referral could be worth as many as 50 to 100 leads from other sources. However, cultivating a client who will give you referrals requires trust and work.
There is a way to ask for a referral without making your client feel uncomfortable. Based on the psychological concept Barry Schwartz wrote about called “Paradox of Choice,” ask for ONE referral. If you ask for more than one, you will cause confusion in the client’s mind. They will begin thinking about their Christmas list and all kinds of other lists, and your request will get lost in the shuffle of hundreds of names. If they have to think about it, they will tell you they will get back to you. Their intentions may be sincere, but you may never get the referral.
That’s why you only ask for one name in a very low-key, authentic manner. The best time is when they are happiest about their investment decision, which is generally right after closing. And you should be comfortable continuing to ask for one referral in your subsequent communication with them.
We have a coaching client that earns close to a million dollars most years. Here’s the script he uses:
“Mr. and Ms. Client, I lost something today.
“What did I lose? My best prospect: YOU!
“As of today, you guys are now clients, and if I lose all of my good prospects, I’ll soon be out of business. Accordingly, I’m asking for your help in finding just ONE new prospect.
"My goal is to make you proud to refer your friends and family to me, and I promise you, I’ll always work on their behalf.
"All I am requesting is ONE referral to prove to you the job I will do. Can you think of one friend or family member right now who may need professional real estate assistance?
“Your introduction would be greatly appreciated.”
As you practice the HPA Academy’s “5-, 15-, and 30-Day Follow-Up Rule,” you’re on the right track. This is how you will build your brand, and referrals are your reward.
