THE REFERRAL BUSINESS

Tune in to this very informative conversation between Dean and Kevin Kauffman. Dean is a 30+ year veteran in the real estate business using his expertise in marketing and applying this knowledge to real estate.

HOW MUCH HAS CHANGED in the REAL ESTATE BUSINESS?

Dean’s reflection on how much has changed in the Real Estate world and how much hasn’t changed. In the beginning, Realtors had all of the information contained in a book and searches for properties were physical – you had to go to the open house, read the newspapers, talk to other agents. Now, everything is online and Buyers oftentimes know more than the Realtors. Back in the day, people desired getting top dollar in the least amount of time with little to no hassle. This was true 30 years ago and is still true today with the added benefit of more opportunities to make it happen. What hasn’t changed is Days on Market and the asking price percentage.

(Kevin) How have you taken your Real Estate experience and your marketing experience and brought them both together? What’s really happening in the Real Estate world?

(Dean) I spent 30 years to study how to crack the code of the real estate puzzle pieces of:

1. Getting listings 2. Multiplying your listings 3. Getting referrals 4. Converting leads 5. Finding Buyers.

One area that is competition proof is the referral business. Dean employs the Dunbar Number and markets to his Inner Circle of 150 people defined as this – these are the people you recognize by their name, you would stop and have a conversation with them, and you know your position in their life.

(Dean) So then the problem to solve is – How can you manage this ‘Relationship Profile’ as an asset for a 20% yield (which is the target and gold standard) to generate 30 referred transactions a year? For example: Take the number of repeat and referrals you had in the last year and divide by the 150 in your inner circle). Fifteen referrals yields a 10% repeat, 5 referrals yields a 3% repeat yet the goal is a 20% Return on Relationship and this requires real orchestration. 80% of referrals are passive and 20% are reactive. This makes up all referrals but leaves out the proactive referrals.

What is an Orchestrated Referral Program? Ex: When showing a home in a particular neighborhood call or email a friend who lives in that neighborhood explaining what you are doing and ask if they know of anyone in that neighborhood who is interested in selling their home.

This is a proactive referral. Discussion on the psychology of the herd – changing mass behavior, making people feel good to do something for you and elevating their perceived status and giving them opportunities to do so. We are all hard-wired to provide value to people in our inner circle of 150 and are constantly looking for an opportunity to add value.

(Kevin) Yes, it’s like invoking the law of reciprocity. How can you make this happen?

(Dean) By deconstructing the mechanics of how a referral works and orchestrating the situation in the mind of your inner circle of 150.

https://ilovemarketing.com/have-you-tried-a-9-word-email/

Reference links: http://www.gogoagent.com/

http://gettingreferrals.com/

DEAN JACKSON BIO

Dean’s greatest joy in life is to find a new idea and share it with those around him.

This is Dean’s unique approach to marketing. His inspirational approach to marketing is bringing new DNA to the net. His approach is to compartmentalize your business model into three phases: Before, During, and After and using a steady drip campaign finding the multipliers to launch your business into a new dimension.

(Conversation is condensed and paraphrased for convenience and flow.)