What do wealthy princes from other countries, chronic car warranty calls, suspicious sweepstakes winnings, door-to-door salespeople, and false bank claims blowing up your texts have in common? Scam alert! These are some of the most well-known scams to separate you from your money or steal your identity. Not many people would fall for these familiar scams nowadays, but you can never be too careful with security.
As a result, people are cautious when an opportunity looks ‘too good to be true. If you or someone you know has been scammed, you already know what I’m talking about: something sounds like a great opportunity, and you’re excited, but then your skepticism kicks in, your eyes narrow, and you start sniffing for where the scam is. And I know because I’ve been on this interaction’s giving and receiving sides!
Get ready to find out the facts about real estate referrals and follow along as we debunk the 4 common misconceptions mistaken for the truth.
Are You Sure Real Estate Referrals Aren’t a Scam?
I’ve been asked more than once if referral programs for real estate agents are a scam. The answer is no, but how do I know? It does sound too good to be true. Referrals can be very lucrative, take less time than traditional real estate transactions, and be more beneficial. People are always sniffing around for the bad with all the good parts — there just isn’t any!
Wondering why everyone doesn’t do referrals? The answer is that not everyone is uniquely qualified or experienced enough to be referred by colleagues to help close a deal. When you see someone who gets regular referrals, what you don’t see is the years upon years it takes to build the required expertise, knowledge, and connections. Other professionals need those years and experience as leverage to close a deal, so they will seek it out in credible referrals.
Misconception #1: You have to give away a lot of business to get referrals
Fact: When starting out in real estate, it’s easy to get confused about the role of referrals in your business. You may have heard that to get referrals, you need to give away a lot of your business in the beginning. But this isn’t actually true! In fact, if you want to be successful with referrals, you need to focus on providing excellent service to your clients. But don’t stop at service — expand your network to get the resources you need to close deals.
Misconception #2: Referrals are only for agents who are already successful
Fact: It’s easy to feel confused and lost when starting out. You may not know where to turn for advice or who to trust. It’s natural to want guidance from those who have found success. You want to work with are considered pillars in the industry, but what do you have to offer in return? Take the time to identify your strengths and develop them to be considered an expert.
Misconception #3: All I need is a good list of contacts to get referrals
Fact: There is no denying that networking and building your contact list are necessary for success in real estate. However, many new real estate agents think they only need a good list of clients. Wish as we may, it’s not the case. In fact, many agents struggle to find clients, even with a paid list. The real struggle comes from the many other contributions to real estate success.
Misconception #4: If referrals are so great, wouldn’t everyone do them?
Fact: This is where most of the confusion comes from. Referrals aren’t a given for realtors. On the other hand, when you get your real estate license, it is a given that you’re a realtor. You have the credibility as a realtor to buy and sell properties. The same is not the case for real estate referrals. You have to work, sometimes for years, to build your authority in the industry and the relationships with other professionals to have the leverage that other realtors are willing to refer to in a sale.
Why Focus on Future Referrals Now?
The real estate referral process can be confusing for anyone, especially newbies. It’s not always clear how to start making money or the best way to go about networking. Don’t let misconceptions hold you back from expanding your network and looking toward the future right now. Like every other aspect of real estate, finding a mentor will help you navigate any unanswered questions if you want to be successful.
If you never learn the truth, common misconceptions about referrals will keep you from building a successful real estate business. The fact is, growing your network is the key when it comes to referrals. You need people you can trust who can help you get leads and close deals. Good mentors are also invaluable in learning the ropes and starting a business. With a bit of networking and guidance, you’ll be on your way to getting referrals and enjoying a long and successful career in real estate.
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Relationships