Why Your Realtor Referral Program Isn’t Working (& How to Make it Work)

Summary:

We’re talking about Realtor referral programs on The Property Management Show today, specifically, why they fail and what is required to make them successful. Vitaliy Merkulov from Renter, Inc. has joined us to share what he’s learned about referral programs and how to ensure property managers are making the most of these tools.

Key Takeaways:

* A Realtor referral program is a tool or system that a property management company uses to collect leads based on referrals from Realtors.

* Realtor referral programs can be a great source of generating leads. To make yours successful, you need to be willing to put time into maintaining and managing your program, and your relationships with Realtors.

* Realtor referral programs are the most successful when supported by a holistic property management marketing strategy.

Basics of a Realtor Referral Program

Everyone has a different idea about what a Realtor referral program is and how it should work. At its most basic, the program is a tool or a system that a property management company sets up to help them with the marketing of their leads. There are typically multiple components involved:

* A website or a web page that explains the program. This site should include information about the referral bonus paid to eligible Realtors who refer clients to the property manager and a list of benefits that the Realtor will enjoy by working with the property manager.

* An automated marketing system where social media outreach is done or a Business Development Manager calls Realtors on a consistent basis.

* Online form asking for referrals

These are the typical components, but that’s not everything your referral program should include.

Creating the Realtor referral program is your first step. Then, you have to make it work for you. That requires marketing and managing your program. There are multiple levels to its success, and it requires ongoing attention.

Check out our step by step guide to creating your own referral program makers

Successful Programs vs. Those That Fail

Why do some Realtor referral programs work and others do not?

Vitaliy says it really comes down to effort.

As with any program, you have to put in a lot of work to get the results you want. With referral programs, it’s easy to get discouraged if you don’t see immediate results. But, you have to realize that building successful referral relationships takes time. Programs fail because property managers don’t make the effort. They don’t spend time networking with real estate agents and marketing their services and value. If a lot of traction isn’t made right away, it’s easy to lose interest in the program and begin focusing on other things.

This is a mistake.

Referral programs aren’t easy. Earning those referrals requires time and effort, and it’s not going to happen right away.

Everyone knows that property managers are busy. There’s a lot of talk about property managers working in their business instead of on their business. A referral program sounds like a great idea but it starts with a website and relationships and marketing. Before too long, something else will grab your attention and you’ll go back to getting lost in the day-to-day business needs. If you want your program to work, you have to focus on implementing that program and jumping on Zoom calls and meetings with Realtors. You need to share your expertise and your knowledge while promoting your services. That’s what will bring you the success you’re hoping for with a referral program.

In the property management industry, no two days are ever the same.