Everywhere you go, online or off, people are talking about the importance of generating leads.
But are leads what you really want?
What you actually want are sales. Am I right?
And did you know that the fastest, easiest and best way to a sales is not through a lead, but a referral?
In this episode, I make a distinction between a lead and a referral and share with you two critical components of getting more referrals in your real estate business.
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What’s up, everybody? Justin Stoddart, here. You know, everywhere you go people are talking about lead generation, whether it’s online or in-person leads, leads, leads!
Everyone wants to teach you how to get them or sell them to you even hand-delivered to your phone.
But let’s be honest, are leads really what you want an entire inbox of people to call and follow up with, many of whom will have no idea who you are, how you got their number, and why you’re even calling?
I believe the answer is no. What you really want is more sales, right? But can you really get to more sales? Without leads? Yes, kind of.
In today’s video, we’re going to talk about the difference between a lead and a referral, and how much closer a referral gets you to a sale than does a lead. But how do you get more referrals you ask?
Well, today, that’s exactly what we’re going to talk about. But before I do that, let me remind you that right here on this channel, we are doing some really big things to help you really stand out and create a successful business and a significant life. So do both of us a favor and like this video, subscribe to the channel and then hit that little bell that shows up so that you get notified every time we drop a new episode.
So yes, today we are going to be talking about the difference between a lead versus a referral and how to start getting more referrals. Now as we move further into an era of industry disruption, those industries that continue to retain space for a niche of profitable professionals include those industries, which influence wealth in meaningful ways. Okay, that involves our industries.
Naturally, the professionals that will occupy those profitable niches within those industries are those that offer the leadership that best helps their clients both preserve and grow wealth.
Now, let me begin by making a distinction between a lead and a referral, there is a difference. The example below that I’m going to share with you is a hypothetical of a real estate agent talking to a lead. Okay.
So the agent picks up the phone and says:
Hello, is this Kurt?
Now Kurt responds and says, Who is this?
The agent replies: Well, you’d expressed some interest in a home over it. 382…
And Kurt interrupts: I’m sorry, how did you get my phone number?
The agent replies: Well, you filled out a form online expressing interest in a home for sale over at…
Again, Kurt interrupts: I’m so sorry to cut you off, but this is a bad time for me to talk. I actually don’t have an interest in a home at this time. So no need to call me back. In fact, don’t call me back. I have to go. Goodbye.
Now the agent thinks to himself: Ugh… that sucked. Next phone number.
Kurt was what you might say just a little curt. Right?
If we’re honest with ourselves, can we blame him? If someone were to call you out of the blue on your cell phone number during the middle of the workday or middle of family activity, and you’re not even exactly sure how they got your number, there’s probably a good chance you’re not going to treat them with the same respect that you treat, maybe like a close friend or a trusted advisor.
Now in this next example, I’m going to demonstrate a real estate agent talking to a warm referral. Keep in mind there is a difference between a lead and a referral.
In this situation, the agent says:
Hello, is this Judy?
And Judy then replies: It is. To whom am I speaking?
Well, my name is Justin and I promised your friend Ted that I would call you. I’m his trusted real estate adviser.
And Judy then interrupting Justin in a tone of excitement says: Oh, my goodness, I’m so glad you called. Can you hold on? Just one moment, please. You’ve then hear Judy cover the phone and speaking of someone else in the background, says: Sam, that real estate adviser that Ted referred us to he’s actually on the phone right now.
She then comes back and says: Hey, Justin, are you there? And the agent says, Yes, I’m here. Judy replies I’m so sorry to keep you waiting. I just wanted my husband to speak with you as well. You see, we’ve been excited to talk with you. I’m gonna put the phone on speaker right now so that we can both hear you. Is that okay?
And then Justin continues? Absolutely. Yeah, no problem. And I can hear you just fine. Thank you.
Sam, then replies, thank you again for calling. Ted has been raving about you for so long. And we know how in-demand you are. And we’re actually grateful for your time for you calling us.
The agent replies. You know, Ted is a good man for saying what he said. I appreciate his value and his confidence.
Judy then says, Do you think you’d have time to come and meet with us maybe in the next couple of weeks to help us understand what would be the best option for our family.
Now, you can imagine making phone calls like that regularly. Again, this has been dramatized a little bit right for a fact. But there are calls that most real estate agents only dream of, and although again, slightly dramatize I share it as an illustration of the difference between a cold market lead and a warm market referral
If I were to do a quick poll, which one of those two calls would you prefer to make each day? My guess is that unless you’re a masochist, right, calling referrals is a way better option than calling leads.
Additionally, and just as importantly, the way in which you entered into the lives of those customers was very different. In fact, the metaphorical door through which you walk into the lives of a cold market lead doesn’t start the relationship in the best way. You better have what they need. Otherwise, why are you calling me right?
On the other hand, the door you walk through when you enter into a prospect’s life, as a highly recommended, edified referral is very different. You have trust and immediate credibility.
So how do you generate more referrals rather than just leads?
Isn’t that the real question? Again, ultimately, we want more sales, and one of those two will get us there.
Again, using traditional methods of just tapping into your personal sphere in your past clients, you’re always going to run a deficit between your incoming referrals and your ambitious goals. So if more sales are what you want, and you’re confident that both quality of life as well as conversion rates, and getting more sales will be best achieved by having more warm referrals.
How do you bridge that?
Well, here’s a couple of points. Number one, what you focus on expands. If you’re looking for leads, you’ll find them. If you’re looking for referrals, you’ll also find them.
Point number two parados principle or the 80/20 rule says that 80% of your results will come from 20% of your activities. Specifically, what I mean by that is that there are a few people in your database, or that could be in your database, who have the ability to absolutely blow up your pipeline with warm referrals.
So on that last point, if you’re interested in learning more about that, then you need to get your hands on my number one international best selling book, The Upstream Model, where I teach how to expand upon that concept, you can actually get your hands on a copy at upstreammodel.com/book.
Now if you’re like me, where time is money, and you aren’t sure, if you have the ability to read a book and apply the concepts, I get it, I totally get it. Then you need to look at the course and a group coaching offering that I have in place for busy professionals like you and you can find that offering it upstreammodel.com/course.
And remember, Go Think Bigger!