Statistics Prove the Value of Referrals

Are you looking for hot leads to increase your real estate sales? You could spend a lot of time online and have an excellent website. You might want to take advantage of various internet ad sources. Maybe you make many phone calls during the day or put in a great deal of leg work. These tactics may yield some encouraging results, but referrals from satisfied customers are among the best ways to increase your business. Here are some statistics to demonstrate the importance of referrals for enhancing your sales career.

Family and Friends

Who do you trust for the best personal recommendations? If you are like most people, your friends and family come first. A vast majority (84 %) of all consumers place those closest to them in the highest degree of trust.

The Value of Satisfied Buyers

Who should you concentrate on when looking for more referral business? You may want to take a look at your past clients. Statistics show that an astonishing 74 % of home buyers and sellers are willing to refer their agents to others and would call upon them again for services.

It is the mark of a truly intelligent person to be moved by statistics.

George Bernard Shaw

Does Age Matter?

Some agents believe it is essential to concentrate on a specific age group (usually older people) because they are more likely to refer your services to others. Although there is some truth to this belief, it may surprise you when you examine the statistics on client age. For example, people in Generation X (43%) and Millennial (46 %) groups are more likely to hire agents through referrals.

On the other hand, older clients are doing more of the referring these days. For instance, 86% of people between the ages of 51 and 60 are likely to recommend their real estate agent. Yet, 82 % of the people age 36 to 50 group would be willing to refer you.

Age is an important consideration for generating referral business. For example:

  • You might want to focus on Millennials and Generation X when it comes to targeting leads. These people represent the most significant percentage of potential business.
  • When it comes to previous clients, older people are more likely to refer you. However, the difference between 86% and 82% may not warrant concentrating on one seller's age group over another.

Buyers Vs. Sellers

You have two important groups to think about when generating more referral business. You can place more emphasis on buyers, or you can concentrate on past sellers. Which is the best group to use?

As previously stated, according to statistical data, 88 % of your sellers will probably recommend your services to other people. When it comes to buyers, those numbers are considerably lower. 63 % of home buyers would recommend their real estate agents. If you go by the numbers, sellers might be the most lucrative source for your referral business. However, both groups can be a possible gold mine if you put more work into earning referrals.

Brokers and Referrals 

A recent survey involving 120 real estate brokers and the data on referrals may help you see the importance of your past business. For example, how many brokers do you think are planning to train their agents on earning more referral business this year? If you guessed 85%, you are right. In the same study, brokers revealed that 35 % of business for their real estate agents resulted from referrals. Is it no wonder they plan to help their agents see the value of referrals.

Things to Think About

The real estate business can be highly competitive. Finding leads online or cold canvassing is very time-consuming and may not be as profitable as earning business through referrals. Statistics prove that people listen carefully to relatives and friends. More of your referral business is likely to come from past buyers. Younger people are more willing to rely on referrals to seek you out. Older sellers are often the ones doing the referring. Brokers understand the value of referrals, and all this statistical data can be precious to the agent willing to take the time to study it.

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