Many entrepreneurs know what real estate agents are, but are unfamiliar with real estate referral agents and what they do. As an entrepreneur, you might be surprised to learn that you can increase your cash flow quickly by starting a real estate referral business. These agents refer clients to other real estate agents. Those real estate agents provide the clients with the necessary services. When a real estate agent sells a home to a referred client, the real estate referral agent earns some of the commission. Thus, real estate referral agents make high profits through providing leads. In this post, you will learn how to start a real estate referral business.
Get Your Real Estate License
Before you can even establish a real estate referral business team, you need to get your real estate license. After all, home buyers do not want to get referred to real estate agents from someone who does not know what they are talking about. To earn a place in the industry, find out your state’s requirements to obtain your license. Most states and cities like Madison, WI require prospective agents to take a certain amount of courses. Upon completing the necessary course hours, you have to take an exam. If you pass the exam, you will gain your real estate license. Then, you can start a real estate referral business.
Use Your Connections
To begin getting your real estate referral business’s name out there, use your connections. Entrepreneurs starting up companies in all industries use this strategy to establish audiences that eventually turn into customers. Look through the contacts in your phone. Reach out to past colleagues, friends and family members. After connecting with them on a personal level, inquire about any real estate needs that they might have. If they are not looking for a new home, ask if they know anyone who is looking. Or, you can help them secure cheaper home financing options. Even if you do not find anyone who is looking to buy at the moment, at least you marketed your new company to people who will likely pass the information on. Reach out to your connections to easily generate leads for your new real estate referral business.
Network For Recommendations
Another necessary step to take to start a real estate referral business is to network for recommendations. Many entrepreneurs assume that networking means having lunch with professionals to obtain names of leads. As a result, they fail to make new alliances and do not gain any recommendations. Without recommendations, your real estate referral startup cannot grow and you cannot make a profit. To ensure that you do not meet this outcome, focus on gaining recommendations when you network. While having a long list of lead names is helpful, proposals bring in more clients. For this reason, you need business networking to build relationships that will provide you with new clients.
Market On Online Platforms
Also, entrepreneurs who market their real estate referral startups on online platforms succeed. Social media sites, in particular, assist startups of all kinds in reaching new audiences. As a new owner of a real estate referral business, you can use social media platforms to market your company from wherever you are. If you open up an office, you can post your location on social media for potential clients to see. Most platforms offer paid advertising. You can target local prospective luxury home buyers through paid advertising. If such home buyers show an interest in your business, you can make more referrals and increase your startup profits.
Reward Those Who Refer You
Reward those who refer you to retain business during the startup stage and beyond. If your startup budget is dwindling, you can simply call those who referred you. Tell them how much you appreciate their referrals. If you have the finances to purchase small gifts, do so to show your gratitude. A simple gift card to the local coffee shop will suffice and encourage them to continue referring clients to you. Many people who refer clients to you will also feel your gratitude if you keep them updated on how you are helping their referral. Eventually, you can even create a points-based reward system. Reward those who refer business to you in simple ways to keep them on board with your real estate referral business startup.
Send A Personalized Thank You Card
When receiving referrals from social media or your network, send them a personalized card. Send cards to your contacts who are going through new life milestones, including career changes, family celebrations, or academic achievements. Additionally, personalize cards to anyone who puts you in touch with a lead or contact. Personalize the note to thank them for the new connection. Mention how much you appreciate them thinking of you and recommending you. Often times, you’ll receive a follow with the person, giving you another opportunity to stay in touch. Staying in touch can eventually lead to more referrals, an investor contract or direct customer. Even if the lead does not get in touch, you can continue to follow up. Certainly, sending a card is an inexpensive way to say thank you. To build your real estate referral business, stay connected with personalized thank you cards.
Entrepreneurs who understand the prospective profitability of being a real estate referral agent move onto start their own real estate referral businesses. To join those entrepreneurs and begin profiting through real estate referrals, get your real estate license through your state. Then, use your connections to begin building an audience. When you begin to network, focus on building relationships that will earn you recommendations. Use online platforms like social media to market your new business. In addition to these steps, begin rewarding those who refer you early on in your startup process. If you follow these steps, you will successfully start a real estate referral business.