How do you build and scale your luxury real estate referrals in a proactive, systematic way?
The truth is, luxury real estate referrals are 4x more likely to convert to actual revenue in your business, and yield a higher lifetime value — especially in the upper tier.
The problem? Most luxury real estate professionals take a passive approach to their referrals and don’t know how to network in a way that gets them in front of the clients they want.
Fortunately, this problem is exactly what the Institute’s new Masterclass, Wealth Quotient, aims to solve.
Wealth Quotient is a methodology co-founded by David Friedman, who was also co-founder of Wealth X — a database that helps luxury professionals gather data on prospective clients to make better connections.
One question David and his business partner kept running into while at Wealth X was, “How do I get in front of these wealthy clients?”
This question made him realize most luxury real estate professionals are taking the wrong approach to prospecting, and are just barely scratching the surface of the potential that lies within their referral pipeline…if they’re building one at all.
Based on the Wealth Quotient Methodology, here are a few ways to build — and take control of — your luxury real estate referral pipeline:
1. Ditch the “Outward-In” Approach
One of the biggest mistakes luxury real estate professionals make is in the way they first connect with affluent prospects. Because it’s easier than ever to get data on prospects through systems like Wealth X or OWL, luxury real estate professionals believe they need to make a direct connection with prospects they’re after.
However, David warns this “depositions” them right off the bat. That means instead of meeting prospects as a trusted professional, they’re coming in too cold.
A better approach? Aim to be introduced by one of your prospect’s connections. This is the “Inward-Out” mentality, in which you become a vetted “referral” rather than an unknown agent.
2. Stop Asking “Who Do You Know?”
When you ask an open-ended question, you get an open-ended answer. The most common response to the question, “Who do you know?” is “I don’t know, let me get back to you…”
Life gets busy. Before you know it, weeks, months, or even years go by without an answer.
David calls this “Hope Marketing,” when a luxury professional simply “hopes” their real estate referrals will fall into their lap.
Instead, he suggests employing “Bespoke Marketing” which takes a more direct and personalized approach.
Rather than asking open-ended questions and expecting your connection to do your work for you, David says to do your research beforehand so you can ask to be introduced to a specific person in your connection’s network. This can even be a specific type of person, like someone they know who lives in a certain area who may be thinking about buying, selling, or investing.
It might feel intimidating at first, but you’d be surprised at how much more effective this simple adjustment in your approach can be.
Why? Because even if the particular person you’re asking for isn’t the right fit, or your connection can’t get in touch with them, it may jog their memory to connect you with someone else who may be just as useful.
3. Actively Survey Your Clients
When was the last time you emailed a survey to your client after a transaction to ask how they felt about your service?
Most agents believe that if the service was good enough, the referrals will come rolling in. But what happens when they don’t?
Getting into the practice of sending out a survey to clients using a simple online form or document isn’t as intrusive as you may think.
Clients are typically happy to provide their feedback…as well as a referral.
Plus, a shocking statistic from NAR says nearly 70% of clients would refer their agent to a family member or friend…if they could remember who their agent was.
That means most clients would not only welcome a follow-up survey, but are hoping you follow up in some way after their transaction.
Making surveys and follow-ups a systematic part of your business can help ensure your luxury real estate referral pipeline never dries up.
Want to Learn More About the Wealth Quotient Masterclass?
This unique Masterclass is designed to give you the tools and the methodology to build and scale your sphere of influence and will be offered in an easy-to-take, online webinar format.
To learn more about the benefits of becoming an Institute Member, click here.