It is just the cold hard facts;
The rule of thumb that applied to a Real Estate Agents commission’s used to fall under the 80/20 Rule. Things have changed, things have tightened up. It is now the 90/10 Rule.
Here is what it means to each Real Estate Agent:
1% of the Agents earn 40% of the commissions.
4% of the Agents earn 30% the commissions.
5% of the Agents earn 20% of the commissions.
90% of the Agents share 10% of the commissions.
Part of this has to do with the 85% failure rate for new agents lasting 5 years.
But most of it is because most Agents do a really poor job of getting referrals. Those people falling into that failure group are the ones that do the worst at getting referrals.
It’s not their fault. Every agent is told to ask for referrals. Some even take it to the point they will make a post on Face Book to ask for referrals.
You must understand that a client or prospect (YES, prospects do give referrals if you have set them up to do so) have to like, know and trust you in order to give you a referral.
Those top 10% have learned the secret, but most never get it; and there is very little being taught about the process.
Here are the keys to getting a large number of referrals:
- Expand your connections. What would happen if you had 5000 people in your “List”? Change you emphasis in prospecting from looking for what I call “Mr. and Mrs. Right Now” to “Mr. and Mrs. Not Right Now”.
- Stop selling to your connections. They already know you are a Real Estate Agent.
- Become an Educator and Advocate for them. Build a relationship with them.
- Start GIVING referrals. Become a source of who your connections look to when they need any kind of service. You are in the “Home” business so make that list every possible service a homeowner could want.
Number 4 here is the final key. Print out a list. Put a page on your Personal Web Site. Publish a small booklet. Make a custom App you can put on their cell phone or tablet.
It does not matter how you do it, just do it.
Become their Go To Source to answer the question “Do you know a good . . . . “.
You can see more about this at https://RealEstateMillionDollarAngle.com Look for REFERRALS