Lead Generation 36:12:3 Power Session 9: Agent-to-Agent Referrals

Lead Generation 36:12:3

Power Session 9: Agent-to-Agent Referrals

Lead Generation 36:12:3 Slide 2

In this Power Session. . . 1) Introduction

2) An Untapped Resource

3) Getting Started

4) Prospecting and Marketing

5) Focus Over Time

6) Final Note

7) Putting It All Together

Power Session 9

Page 1


IntroductionPower Session 9

Ground Rules1) Arrive on time.2) Form groups quickly.3) Limit side conversations.4) Turn off cell phones and pagers.5) Be comfortable.6) Respect time.7) Respect each other.8) Help each other.9) Respect confidentiality.10)Have fun!

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Introduction

How You Will LearnLearning Methods

1) Manual• Models/Systems• Exercises/Discussion• Stories

2) Classroom• PowerPoint slides• KWConnect videos• Classmates/Instructor

Power Session 9

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(continued)


Introduction

How You Will LearnAccountability Methods

1) Lead Generation Action Plan

2) Accountability Partner/Program

Power Session 9

1. Set Goals

2. Do Key Activities

3. Measure Results

4. Evaluate Process

5. Make Adjustments Accountability

Feedback Loop

Page 4


EXERCISEWhere You Are Today1. Lead Generation Activities

2. My aha’s from these activities

3. The most difficult part of these activities

4. What I will do differently in the next 24 hours

Time: 10 minutes


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Why You Are Here• Learn how to tap into one of the most overlooked

sources of leads—other real estate agents• Discover ways to ensure top-of-mind status with

other agents• Discuss tools you can use to screen and qualify

other agents for referrals• Cover a variety of ways to prospect and market

to other agents


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(continued)


Why You Are Here


Page 6

You are here!


Mary Charters’ Aha Moment

Read, underline, and share …


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Introduction

What Will Make This a

Great Training Experience• • •

Power Session 9

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An Untapped Resource

1. Agent-to-agent referrals as a source of leads are often overlooked

2. Only 4% of buyers and 4% of sellers found their real estate agent by referral from another agent

Power Session 9

How Sellers Found Their Agents

Source: “2006 NAR Profile of Home Buyers and Sellers”

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An Untapped ResourcePower Session 9

Doris Carlin on A2A Referrals:• Don’t leave money on the table

• Always ask if a seller needs help with the purchase of next home

• Ask if you can refer them if buying out of your area

Page 10


Power Session 9


EXERCISEEstimate your answers now and follow up with actual numbers once you are able to analyze your database.

1. How many real estate agents are in your database?

2. How many of them do you touch on a regular basis?

3. What percentage of your business comes from agent referrals?

Time: 5 minutes

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Giving and Receiving• Referral from another

agent almost always a “hot” lead

• Takes less time than cold prospecting

• High pay, little effort

Power Session 9


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Pros and Cons - Receiving

Power Session 9

Validity already established with customer because of the referral

Agent may continue to refer to you if all parties are satisfied

Customer becomes a Met and you have the opportunity to win all of customer’s repeat and referral business

Customer is well served by you

You earn 70-85% commission

You pay referring agent 15-30% referral fee

You receive a ready customer

Cons of Receiving ReferralsPros of Receiving Referrals

Validity already established with customer because of the referral

Agent may continue to refer to you if all parties are satisfied

Customer becomes a Met and you have the opportunity to win all of customer’s repeat and referral business

Customer is well served by you

You earn 70-85% commission

You pay referring agent 15-30% referral fee

You receive a ready customer

Cons of Receiving ReferralsPros of Receiving Referrals

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Responsibility of Receiving and Accepting Referrals

If you accept referrals, you must

1. Respond to the customer immediately2. Love to work with buyers3. Want to provide solutions along with awesome

experience4. Be committed to and capable of working with

referred customer5. Know city and resources such as doctors, auto

service, restaurants, etc.

Power Session 9


(continued)

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Responsibility of Receiving and Accepting Referrals

6. Know builders of new homes and subdivisions7. Be patient and flexible8. Stay current on your market 9. Educate buyers about local price10.Communicate with referring agent regularly and

always pay the referral fee

Power Session 9


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Pros and Cons - Giving

Power Session 9

Agent may reciprocate and refer to you

Your customer is served by a well-qualified and well-matched agent

You choose the agent

You may lose customer’s repeat and referral business to other agent

You receive 15-30% referral fee for minimal work

Cons of Giving ReferralsPros of Giving Referrals

Agent may reciprocate and refer to you

Your customer is served by a well-qualified and well-matched agent

You choose the agent

You may lose customer’s repeat and referral business to other agent

You receive 15-30% referral fee for minimal work

Cons of Giving ReferralsPros of Giving Referrals

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Responsibility of Giving Referrals

If you give referrals, you must plan carefully

1. Thoroughly interview customer to understand needs

2. Thoroughly interview agents to find perfect match for customer

3. Communicate level of service expected

4. Follow up with customer

5. Follow up with agent

Power Session 9


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A Win-Win RelationshipHaving agents in your database means• Valuable, lifelong relationships• Colleagues with whom you can

discuss ideas, challenges, etc.


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Reap the Rewards


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More Reasons to “Tap In”1. Real estate agents are plentiful and readily

identifiable (1.3 million—2006 NAR membership)2. Agents “get it”—already understand benefits of

referring3. Provides additional reason for attending events4. Opportunity to build relationships with agents

around the country

Can you think of more?


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Getting Started

Mindset and Mindshare

• Other agents are assets to your business, not competitors

• Be memorable! Achieve top-of-mind status with other agents

Power Session 9

You

Other agents

Agent

Page 17


Power Session 9Getting Started

EXERCISE1. What makes you different or unique from all other

agents competing for agent-to-agent referrals?

2. Here’s an opportunity for you to differentiate yourself from other agents. Fill in the blanks about what makes you unique, and be prepared to share with the class.

Time: 5 minutes

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Screen and Qualify

1. Identify what makes other agents “top of mind” with you

2. Make sure customer comes first with them

3. Prepare qualification questions to ask

Getting StartedPower Session 9

Page 19


Sample Qualification Questions

1. What do you love about what you do?

2. Which do you like better, listing homes or helping buyers?

3. How long have you been in this business?

4. What is your area of expertise?

5. What geographic area do you serve?


More examples on p. 19

Page 19


Power Session 9Getting Started

EXERCISE1. What important qualities do you look for in an

agent to whom you would give a referral? The choice of the right agent for you and the customer is an important one.

2. Circle three questions on p. 19 you think are the most important to ask OR add any questions you think are important that aren’t on the list.

Time: 5 Minutes

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Mary Charters on Giving Referrals:

• Check with Team Leader

• Find a good fit for both agent and customer

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Know when to refer1. When the customer has a buy and a sell and one

of the transactions is out of town

2. When the customer wants to buy or sell outside your geographic area and could be better handled by an agent from that area

3. When an agent refers to you and you are not the right fit for the customer


Pages 21-22


Fee negotiation and referral agreements1. Negotiate the referral fee up front 2. Some factors that affect this rate

1) Market conditions2) Price range3) Number of referrals previously received from same

agent4) Potential work/time involved

3. Both parties complete referral form before meeting with customer


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Myth

I don’t need to actively prospect or market to real estate agents.

TruthYou must regularly add to and

contact the agents in your database to reap the rewards of referrals.

Prospecting and MarketingPower Session 9

Page 25


Cultivate your agent farm

1. Pick a narrow market and dominate it

2. Agents are just another type of farm

3. Prospect and market to them to cultivate relationships


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Myth

Attending events takes time away from my business.

Truth

Actually, it’s smart business because you have an opportunity to enhance relationships and increase referrals.


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Prospecting: Meet them at events

1. Attend events with a purpose

2. Volunteer for visible positions at events

3. Collect info on as many agents as possible

4. Cost of attendance could be recouped from referrals

5. Make a positive impression with all


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Mary Harker on attending events:

• Lucrative part of her business

• Great way to lead generate

• Break from your group and meet as many people as you can

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Market after the event

1. Enter info you’ve collected into database

2. Stay in the power position by making contact first

3. Maintain systematic contact with them1) Consider using 8 x 8 and 33 Touch

2) Personalize for the group


Pages 27-28


Myth

People who know you don’t have to be reminded you’re in the real

estate business.

Truth

People who know you and trust you are the most important group with whom to maintain regular contact.


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Rick Geha: Leverage your out-of-area Mets

• Regularly contact them

• Educate them on what you do

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Power Session 9

Prospecting and Marketing

EXERCISE1. Think of five of your out-of-area Mets you can

contact about agent-to-agent referrals.

2. Call one right now and see if anyone in his or her neighborhood might need an agent.

3. HOMEWORK: After your session today, call the other four. Find an agent you might refer the lead(s) to. Report your findings during your weekly accountability session.

Time: 10 minutes

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Prospecting and Marketing: KW White Pages

1. Prospecting tool for finding and contacting other agents

2. Gather contact info and implement 12 Direct plan

3. Make sure you update your KW White Pages info to stay top of mind

For Discussion:

Courtney Yates story/KW White Pages information


Pages 30-31



Boyd Brown: Prospecting through Recruiting• When recruiting, you are

building a relationship with other agents, whether they join KW or not

• Anytime you come in contact with agents, keep in mind they are a source of referral business

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Power Session 9

Prospecting and Marketing

EXERCISE

1. You have talked about many examples of ways to prospect and market to other agents for referrals. Can you think of three more ways you can accomplish this?

Time: 5 minutes

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Myth

It costs too much to stay in touch with a large database of agents.

Truth

It costs too much NOT to stay in touch.

Focus Over Time Power Session 9

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Focus Over Time

Maintain the Relationship

1. Stay in touch consistently over time

2. The up-front cost of staying in touch is well worth it

3. Not staying in touch means lost referral business

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Focus Over TimePower Session 9

Mike Mendoza on consistent communication• Began building a database of

other agents he met

• Today that database is more than 7,000 agents strong

• Creates special marketing content aimed at getting referrals

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Focus Over Time

Maintaining your agent relationships through consistent lead generation will result in more transactions.

Power Session 9

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Stop leaving money on the table—make connecting with other agents part of your

daily 3-hour lead generation habit!

Final NotePower Session 9

… for 3 Hours Every

Workday.

One HabitOne Habit

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Power Session Aha’s

Your Lead Generation Action Plan

Putting It All TogetherPower Session 9

Page 37-38


Putting It All TogetherPower Session 9

Page 39-40

The 3-Hour Habit

1) Time block 3 hours every workday before noon.

2) No skipping. If you must erase, then you must replace.

3) Allow no interruptions (unless they truly are emergencies).


Thank Youfor Being Here!

Don’t forget your evaluations!

Documents

Lead Generation 36:12:3 Power Session 9: Agent-to-Agent Referrals