Real estate referrals have always been a lucrative source of leads for seasoned agents, so knowing how to generate referrals is vital to building your business. Referrals typically result from you providing such an exceptional customer experience that clients, friends, and neighbors are all compelled to recommend your services to others.
So, how do you consistently turn satisfied clients into championing supporters who bring new prospects to your door? I’ll explore how to get real estate referrals from your sphere of influence, creating a continuous flow of new clients through trusted word-of-mouth recommendations.
1. Tap Into Your Existing Network
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Estimated Cost:
$0-$50 (per person)
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Time Investment:
1 hour each day
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Go-to Close Resource:
Building Client Relationships: A Complete Guide for Agents
- Connect with clients on social media regularly.
- Show genuine appreciation by hosting client appreciation events.
- Surprise your past clients with pop-by gifts.
Your existing network is a goldmine of potential real estate agent referrals just waiting to be tapped into. These people already know, like, and trust you—making them your best cheerleaders! Stay in touch regularly through personalized emails, holiday cards, and milestone check-ins to keep yourself top-of-mind.
Show appreciation for any referrals with handwritten thank-you notes and drop off pop-by gifts. By actively engaging with your existing network, you will create a steady stream of new clients and grow your business.
2. Join a Referral Network
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Estimated Cost:
Varies
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Time Investment:
5-10 hours for setup and 2-3 hours of engagement each week
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Go-to Close Resource:
The Complete Guide to Real Estate Referral Fees
- Choose the right network.
- Build strong relationships.
- Harness the power of follow-up.
Becoming part of a referral network can truly transform your real estate business, but the key lies in selecting the one that aligns perfectly with your goals and values. Not all networks are created equally, especially ones you find on social media. Paid or pay-per-transaction referral programs tend to be more lucrative and yield a better return on your investment.
To get the most out of a referral network, attend meetings, join the discussions, and genuinely engage with the referral network. When you get a referral, follow up quickly and professionally, keep the referring member in the loop, and show appreciation. This diligence boosts your reputation in the network and encourages even more real estate referrals down the line.
Popular Referral Networks
Start by looking for networks that focus on building relationships and passing real estate referrals among professionals, provide platforms for receiving leads from buyers and sellers, and match clients with top local agents. These networks can help you expand your client base and grow your business.
Here are our top picks based on popularity to get you started.
| Zillow Premier Agent |
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| Sold.com |
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| Movoto |
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| ReadyConnect Concierge |
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Things to Consider When Choosing a Referral Network
- Referral fee percentage: Some networks charge as much as 40% referral fees. With these companies, consider whether the juice is really worth the squeeze.
- Subscription fees: Some referral networks charge a monthly or annual subscription fee. Consider whether you’ll be able to justify the amount you’re paying to be a part of the network and whether you’ll be able to recoup any of the costs. A few networks don’t charge a subscription fee and only collect the referral percentage. Weigh whether the leads you get are of high enough quality to justify your investment.
- Lead quality: Will the leads convert? Before signing up, getting feedback from current referral network members, especially paid networks, is never a bad idea. Check company reviews to see what other agents say about the lead quality.
- Lead volume: If you’re paying a subscription for a referral network but aren’t getting a lot of leads, reconsider your investment. Learn as much as you can about how many leads to expect from any referral source before signing up for a long-term commitment.
When thinking outside the box to figure out how to get real estate referrals, these are just a few elements to consider if you’re contemplating joining an agent-to-agent referral network. In addition to these, there are many other networks where you can pay for leads. If you want to learn more about companies specializing in paid lead generation, check out our recommended top lead generation companies.
3. Boost Your Online Presence
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Estimated Cost:
$0-$50
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Time Investment:
3-5 hours each week
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Go-to Close Resource:
Real Estate Testimonial Examples to Inspire Your Referral Marketing
- Create a professional website.
- Leverage online reviews and testimonials.
- Use social media platforms and paid advertising.
A solid online presence is crucial to attracting real estate referrals. Start by creating a clean, easy-to-navigate, and mobile-friendly professional website. Ensure all the essential information, like your services, contact details, and client testimonials, is easy to find. Keep a regularly updated blog that offers valuable content to engage visitors and boost your search engine optimization (SEO). Positive reviews and testimonials are gold, so don’t be shy about asking happy clients to leave reviews and respond to all feedback. Share these glowing testimonials across your social media profiles and website.
Speaking of social media, it’s a fantastic tool for building your brand. Keep active profiles on platforms like Facebook, Instagram, LinkedIn, and Twitter by sharing engaging content regularly. High-quality images, videos, and interactions with your audience go a long way. And don’t forget about targeted ads—they can help you reach an even broader audience.
4. Connect With Local Businesses
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Estimated Cost:
$0-$500
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Time Investment:
1-2 hours each week
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Go-to Close Resource:
Underrated Real Estate Lead Generation Ideas
- Build a mutual partnership to refer each other’s services.
- Host joint events.
- Collaborate on marketing efforts.
Ok, so we’ve all likely walked into a local coffee shop, restaurant, or store and thought, “Oh, maybe I should see about putting my business cards here.”—only to see five other real estate agents who have beaten you to the punch. Building mutual partnerships with local businesses can be a fantastic way to boost your referrals, but just putting your business cards out isn’t going to do the trick. Take it a step further and ask to speak to the owner to see if you can team up to refer clients to each other.
Offer to cohost events in their space, like holding a first-time homebuyer’s workshop. At the same time, the coffee shop provides the coffee—or consider hosting client appreciation events at a local business. You can even collaborate on marketing efforts to reduce costs by cosponsoring ads or other promotional materials. These partnerships are not only smart but also super exciting, adding a dynamic edge to your business and strengthening your community ties.
5. Get Involved in the Community
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Estimated Cost:
Free
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Time Investment:
2-3 hours each week
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Go-to Close Resource:
How Parkbench Helps Agents Drive Community Connections
- Volunteer your time for local causes.
- Sponsor community events.
- Join local business organizations.
Immerse yourself in the community to build lasting connections and make a meaningful difference in the lives of those around you locally. Start by volunteering for local causes you’re passionate about, whether it’s helping at a food bank or joining a neighborhood clean-up. This engagement shows you care and builds genuine connections. Consider sponsoring community events like charity runs or local festivals to get your name out there and show your support for the fun and important things happening locally.
So, if you’re looking for how to get real estate referrals, don’t forget to join local business organizations like the Chamber of Commerce. It’s a great way to network, meet other professionals, and establish yourself as a community leader, all while building a strong foundation for referrals for real estate agents.
6. Provide Value to Your Clients & Prospects
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Estimated Cost:
$0-$50 (per person)
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Time Investment:
2-3 hours each week
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Go-to Close Resource:
How to Do a Comparative Market Analysis: A Step-by-Step Guide
- Offer expert advice and insights.
- Host educational events.
- Go the extra mile with exclusive perks and personalized services.
What’s the secret sauce for building strong relationships and securing those all-important realtor referrals? Start by offering expert advice and insights on the real estate market. Share valuable information through engaging blog posts, fun newsletters, or personalized one-on-one consultations to help clients make informed decisions about market trends. Hosting educational events like workshops and seminars on home buying, selling strategies, or property investment is another fantastic way to provide your clients with the knowledge they need while showcasing your expertise.
Go the extra mile by offering exclusive perks and personalized services. Give clients first dibs on your new listings or special deals with local businesses. By consistently adding these special touches, you’ll show your commitment to their success and satisfaction, setting yourself apart as a trusted and dedicated real estate professional.
7. Ask for Real Estate Referrals
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Estimated Cost:
Free
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Time Investment:
30 minutes each week
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Go-to Close Resource:
Tips to Earn More Reviews & Help Build Referrals & Repeat Clients
- Pick the right moment.
- Connect on a personal level.
- Make it easy for them to refer you.
Asking for real estate referrals can feel daunting, but it’s one of the most effective ways to grow your real estate business. Pick the right moment, typically right after a successful transaction, when your client is most satisfied with your service. Connect with them personally by sending a heartfelt message or a friendly phone call to express your appreciation.
Make it easy for them to refer you by providing business cards, referral links, or other simple ways to share your information with their network. This approach ensures a positive and seamless referral process that can significantly boost your business.
Frequently Asked Questions (FAQs)
What is a reasonable referral fee?
Great question—and one that’s hard to answer. While there’s no set commission rate and no set referral fee, a reasonable referral fee in real estate is typically around 25% of the commission earned from a transaction. This means that if you close a deal through a referral, you will pay 25% of your commission to the referrer. However, this can vary based on factors like the referral network, which might charge between 20% and 35%, and direct agreements between agents.
Brokerage policies can also influence the fee. The key is to balance the fee against the benefits of receiving prequalified leads, often making the cost worthwhile. Ultimately, a fair referral fee is one both parties find mutually beneficial, encouraging future business collaborations.
How do you make money with real estate referrals?
To make money with real estate referrals, you start by building a network of trusted real estate professionals, such as agents, brokers, and service providers. You earn a referral fee when you refer a client to a licensed professional in your network who successfully closes a transaction. You can do this by joining referral networks that connect agents with prequalified leads or networking directly with other agents. Past clients and encouraging them to refer new clients, although you won’t be able to compensate them for it unless they are licensed as well.
How important are referrals in real estate?
Referrals are a big deal in real estate. They’re like a personal endorsement that builds instant trust with new clients. When someone refers you, it shows they trust you enough to recommend you to their friends or family, which makes it easier to close deals. Plus, referral leads are often of higher quality since they come from people already interested and motivated.
Final Thoughts
Referrals are the lifeline of a thriving real estate business. There are multiple ways of obtaining referrals, from leveraging your existing network to creating new relationships to drive business your way. Get in front of as many people as you can whether it’s in person at local community events or using your online presence on social media. Don’t be shy about who you are and why you’re in this business. Ask for referrals or join conversations where you can get to know people who may have referrals for you.
Do you have any unique ways to generate referrals organically that we didn’t cover here? Let us know in the comments.
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