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
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Lead Generation 36:12:3 Slide 3
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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Lead Generation 36:12:3 Slide 4
Introduction
How You Will LearnLearning Methods
1) Manual• Models/Systems• Exercises/Discussion• Stories
2) Classroom• PowerPoint slides• KWConnect videos• Classmates/Instructor
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Lead Generation 36:12:3 Slide 5
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
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Lead Generation 36:12:3 Slide 6
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
IntroductionPower Session 9
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Lead Generation 36:12:3 Slide 7
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
IntroductionPower Session 9
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Lead Generation 36:12:3 Slide 8
Why You Are Here
IntroductionPower Session 9
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You are here!
Lead Generation 36:12:3 Slide 9
Mary Charters’ Aha Moment
Read, underline, and share …
IntroductionPower Session 9
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Lead Generation 36:12:3 Slide 10
Introduction
What Will Make This a
Great Training Experience• • •
Power Session 9
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Lead Generation 36:12:3 Slide 11
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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Lead Generation 36:12:3 Slide 12
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
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Lead Generation 36:12:3 Slide 13
Power Session 9
An Untapped Resource
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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Lead Generation 36:12:3 Slide 14
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
An Untapped Resource
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Lead Generation 36:12:3 Slide 15
An Untapped Resource
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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Lead Generation 36:12:3 Slide 16
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
An Untapped Resource
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Lead Generation 36:12:3 Slide 17
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
An Untapped Resource
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Lead Generation 36:12:3 Slide 18
An Untapped Resource
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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Lead Generation 36:12:3 Slide 19
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
An Untapped Resource
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Lead Generation 36:12:3 Slide 20
A Win-Win RelationshipHaving agents in your database means• Valuable, lifelong relationships• Colleagues with whom you can
discuss ideas, challenges, etc.
An Untapped ResourcePower Session 9
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Lead Generation 36:12:3 Slide 21
Reap the Rewards
An Untapped ResourcePower Session 9
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Lead Generation 36:12:3 Slide 22
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?
An Untapped ResourcePower Session 9
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Lead Generation 36:12:3 Slide 23
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
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Lead Generation 36:12:3 Slide 24
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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Lead Generation 36:12:3 Slide 25
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
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Lead Generation 36:12:3 Slide 26
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?
Getting StartedPower Session 9
More examples on p. 19
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Lead Generation 36:12:3 Slide 27
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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Lead Generation 36:12:3 Slide 28
Getting StartedPower Session 9
Mary Charters on Giving Referrals:
• Check with Team Leader
• Find a good fit for both agent and customer
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Lead Generation 36:12:3 Slide 29
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
Getting StartedPower Session 9
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Lead Generation 36:12:3 Slide 30
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
Getting StartedPower Session 9
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Lead Generation 36:12:3 Slide 31
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
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Lead Generation 36:12:3 Slide 32
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
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 33
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.
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 34
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
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 35
Prospecting and MarketingPower Session 9
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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Lead Generation 36:12:3 Slide 36
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
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 37
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.
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 38
Prospecting and MarketingPower Session 9
Rick Geha: Leverage your out-of-area Mets
• Regularly contact them
• Educate them on what you do
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Lead Generation 36:12:3 Slide 39
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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Lead Generation 36:12:3 Slide 40
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
Prospecting and MarketingPower Session 9
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Lead Generation 36:12:3 Slide 41
Prospecting and MarketingPower Session 9
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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Lead Generation 36:12:3 Slide 42
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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Lead Generation 36:12:3 Slide 43
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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Lead Generation 36:12:3 Slide 44
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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Lead Generation 36:12:3 Slide 45
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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Lead Generation 36:12:3 Slide 46
Focus Over Time
Maintaining your agent relationships through consistent lead generation will result in more transactions.
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Lead Generation 36:12:3 Slide 47
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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Lead Generation 36:12:3 Slide 48
Power Session Aha’s
Your Lead Generation Action Plan
Putting It All TogetherPower Session 9
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Lead Generation 36:12:3 Slide 49
Putting It All TogetherPower Session 9
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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).
Lead Generation 36:12:3 Slide 50
Thank Youfor Being Here!
Don’t forget your evaluations!