Besides segmenting your database into the Platinum, Gold, Silver, and Bronze levels, you must evaluate other areas to ensure you are maximizing your referral sources.

#1 – The Couple

In a typical real estate transaction, we represent the interests of a husband and wife. We also represent other couple-related people. Most transactions involved two buyers and two sellers. The fact that there are two people on each side of the transaction is significant. It creates two past clients that you personally represented. We must call, interact, and ask for referrals from both of them. If we only talk to one, which happens most of the time, we could be getting far less than 50% of the referrals these couples have for us. The reason is one of the two parties will usually be a far better referral source.

If you examine the value of the couple, one will have more value than the other. For example, my referral value is significantly less than Joan’s. I know a lot of people, but they are all over the country. My career and business allows me to meet high-powered people like you everywhere in the world, just not as many in Bend, Oregon, where I live. Joan, on the other hand, volunteers at Wesley’s school, leads a Tuesday morning small group Bible study in our church, and is a leader of women’s ministries in our church that serves close to five hundred women. It seems to me she knows everyone. I am constantly getting introduced to people in my town as Joan’s husband. It’s great! Anonymity has its privileges. I am about as worthless to a local real estate agent as one can be for referrals. If our agent talks with me, instead of Joan, they are missing out on a whole lot of business. I shouldn’t be ignored, but to talk with me every month or quarter would be a waste.

As agents, we need to evaluate the value of each person, and make sure we are calling both people in the couple based on their value. In addition, with the divorce rate over 50%, we need to build a relationship with both people. You don’t want to lose the listing because you are viewed strictly as the wife’s agent or the husband’s agent.

#2 – The Behavioral Style

Our client’s behavioral style will determine the quality and quantity of the leads. Some behavioral styles are more introverted than extroverted. Some have almost unreachable standards for service; others are much more lax. Some people, because of their behavioral style, are people oriented, and some people are task or objective oriented. Our studies validate that these factors play a role in the quality and quantity of referrals.

The best referral source is a high Influencer. They are people oriented; they know more people than anyone else. They seek the limelight and champion their friends and service providers to their other friends. Because, in their world, everyone is a friend they just haven’t met yet. These create the greatest quality and volume of leads.

The Dominants and Steadies make up the middle of the pack. These are both good referral sources (usually), but they are not great.

The Dominant has a greater level of influence over the people in their life. They occupy high power positions that they can use to advance your business. They might not produce as many referrals as a Steady, but when you get one, it will be a whale. If you have done a terrific job for this person, their loyalty is high. They don’t have the time to invest to find someone else, nor do they want to. They fear being taken advantage of, so they are loyal to someone who achieves results for them.

A Steady is more people oriented, so they will focus on the people you can help. They are natural helpers, so asking them to help you is right up their alley. They do want to help you. They will want you to be very careful in approaching the referrals they give you. A softer touch will be needed to keep them sending you prospects. It will be difficult to get them to upgrade the referral to the highest level because they don’t want to bother anyone.

The lowest level with the fewest referrals is the Compliant. Don’t expect a lot from this person. They are wonderful people, but they are not wired for referrals. They have high standards bordering on unrealistic. They also are introverted, so they don’t interact with a large number of people. They are task oriented rather than people oriented, so they are not looking for social situations on their down time. My best advice is don’t spend a lot of effort on them.

To better understand the way to recognize people’s behavioral style and read them through their body language, tonality, pace of speech, and even the words they use in talking, go to our website at www.RealEstateChampions.com; we have a number of programs that specialize in this area. You will raise your sales performance by 25% to 50% by knowing how to behaviorally align your prospecting, lead follow-up, and presentations.

#3 – Influential Positions

We need to evaluate our referral strategy based on our client’s positions in their company and organizations they belong to. For example, a human resources director of a large company is an extremely influential and valuable position to generate referrals for us. To be able to know the people transferring in or out, or people who received promotions, would definitely add dollars into your pocket.

The current president of a Rotary chapter as a past client would be able to connect you with a different group of business people in your community. We need to understand that the influential positions of our referral sources can increase our volume of referrals.

By evaluating our clients, prospects, and sphere of influence in these three additional areas you are ensuring you are maximizing your referral sources to their fullest potential.

Published: December 16, 2011

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Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more regarding this article, please visit www.realestatechampions.com.