Know-How Exchange : Advertising/PR

There's really no magical way to generate leads. Referrals are the best because people transfer their rapport to you. So start with your address book of every (happy) client you ever had. Call them or stop by and ask them how they like their house (if you SOLD to them) or ask them for feedback from the sell of their house if you helped them sell. When they express delight, tell them that this is great to hear - that's why you love your job! Then ask them if you can ask them a question. They will let you. Explain that your business is mostly word-of-mouth and ask them if you can ask them for referrals from time to time. They will say yes. Ask them if this could be one of those times. They will say yes. Then, ask them if they could get their address book out and go through it with you. Describe who you are looking for:
1. First time home buyers, in particular, people in apartments
2. Older people who are getting close to wanting to move "down" in house size
3. Young "up-and-comers" who will be looking to move up in house size
4. People who might be moving in or out of the area

Reinforce that that they don't have to be LOOKING right now - you just want to meet them so they know who you are when they are ready. When they identify one, two, or three, ask if they would feel comfortable introducing you to them. When you meet them, have the person talk about their experience and why they are delighted. Tell the new "prospect" that you're sure that they aren't ready to look now - but you wanted to meet them so that when they are ready, they know who they can trust. You might find that some of them actually are ready and then you have a new customer. If not, say, "before I let you go, can I ask you a question?" and then go through who makes a good client for you and ask them if they may know someone.

After you've met with each one, send them a promotional item - something nice that they will remember you from - not a pen or a calendar or coffee cup. Keep them on your contact list and send them your newsletter or however you stay in touch with people.

That's the referral piece. Next, it's prospecting. Pick a neighborhood that has the right demographics for you and go door to door to meet them. You have to be a "hunter" here - not a farmer. Leave them with something unique so they will remember you. Ask them for referrals (like above).

That's it. It's nothing but hard work.

I hope this helps.

Wayde

The personal networking described above is certainly effective. Wayde is right when he says referrals are best, and the plan of attack he lays out is very non-threatening and actually fun to do when you understand its purpose is not to make "hard sells" but to expand your contact base through personal connections. Some of the fun is in finding out who your clients and their friends know. After six introductions down one line, you could find yourself meeting Kevin Bacon, although I believe the "Six Degrees" theory of marketing has previously been debunked on this site.

Additional referrals can be acquired through an effective membership chapter of Business Network International (BNI), which is the world's largest business networking organization. Not sure where you are located, but BNI is all around the globe, and Realtors tend to be hubs within the chapters, developing power teams with mortgage, relocation, and insurance members. BNIers don't give leads, they build referrals, and they train each other on how to find and give referrals to each other. For less than $500/year, my membership has always paid for itself through new business.

My point is you should visit www.bni.com and see if there are any chapters in your area with an opening for real estate agent--Only one allowed per chapter! If no chapter in your area, find the name of BNI director for your part of the country and see if any chapters are forming.

--- Paul

Paul makes a great point about network groups and in particular, BNI. Networking works if you put work into that too. Again, it's building rapport and then trust. With referrals from your previous customers, the process is faster because they trusted you and you came through - their trust is high. And, presumably, their friends/relatives trust them and when they introduce you and recommend you with high praise, that trust is transferable. So the new person trusts you.

With networking, if you go to a typical open meeting - where anyone and everyone can go if they belong to the organization (like a chamber) and that's all you did - attend, you will almost never get a referral. First of all, there will be 20 realtors there. And secondly, you will not have people's trust. The business of networking is almost always done outside the meetings by meeting with people, gaining their trust, and then by making an effort to GIVE referrals.

This is a principle of BNI and it does work: Givers gain. The best way to gain trust is to give it and demonstrate it by giving referrals. BNI is also exclusive - meaning if you can find a chapter, you will be the only realtor in the group. Also, the purpose of BNI is to give referrals - it is emphasized that the members are your sales force. However, the process of gaining trust does take time. You may not get referrals for six to eight months. You can speed that up by meeting with all the members as quickly as you can and also by giving as many referrals as you can. You will be fulfilling your role as their salesman. However, even with this, don't be surprised of you don't get a referral for a few months. BNI is a great investment in your marketing, but as with many marketing activities, it's more of a long term investment. Also, don't underestimate the value of just being introduced to people versus having a referral that is "hot" - an immediate buyer or seller. If you meet a person, typically, they know 200 or so other people and you can meet them, and so forth. Getting your name and reputation out there is important. Then, once they know you, follow-on touches with them all to make sure you stay fresh in their minds is key. In real estate, it's important to have top of mind presence so they think of you at the right instant that they are ready to make a move. It is rare for you to meet someone who is at that instant in time just ready to buy or sell. And it's hard to "create" that moment - the spontaneous "buy" decision. So you have to be well known so that when the situation arises and before your competition goes in there, they think of you.

Wayde