Generating Referrals From People You Know

Provided By Realty Times

Some of us have referral aversion, so we are challenged in asking for referrals. We also might be a behavioral style like a high Steady, which causes us to avoid bothering people so we view asking for referrals as bothering our client. We need to approach the referral process with the correct mindset, right skills, and right timing. Some of selling is being there at the right time. The same is true for referrals. Here are four rules to follow:

Rule #1 – Respect the referral process

My friend Bill Cates, the "Referral Coach" and author of the book Ultimate Referrals, taught me this – Referrals are hallowed territory. We are entering the domain of another person's most valued relationships. We are asking for access to their most intimate personal space and relationships. This is holy ground we are asking to tread on.

Don't merely use a throw away line like "Oh, by the way" before you ask for the referral. This tactic cheapens the referral process rather than raising it to the high level of honor and respect it deserves. The client can see right through this cheap technique. A quality referral request should take at least five minutes; the truth is ten would be better. I learned from Bill Cates to frame the referral request with the statement, "I have a very important question to ask you." This technique will force a pause, build anticipation, and set the tone for a valuable conversation.

Rule #2 – Ask for help

A referral is a request for assistance. We are asking our past clients, current clients and sphere for help. Too many of us feel funny about soliciting help. Many Agents feel it's beneath them to seek help. The trouble is usually our ego gets in the way, and it won't allow us to think or utter the words out of our mouth. "I value your help" or "I need your help" are key phrases to open the referral floodgate.

Rule #3 – Ask permission

We want to ask permission to explore who they know that might benefit from our service. We are asking permission to access areas of their life. We are trying to discover friends and associates we might be able to help. We can ask permission to explore using a script like this one:

"I'm delighted that I've been able to serve you. I am wondering about others you might know in your life who would also benefit from my service. Could we explore for a few minutes who else we might be able to serve?"

The final segment of the script is the Champion segment. It is telling them we need a little time together to probe and think about who they know. Too often, we are like a hit and run driver with referrals. We crash and then leave. We bring up the subject and leave the burden of thinking up names on them. Most people who are referral sources or referral alliances don't want to work that hard. They will work that hard with you, but not alone. Be willing to come alongside and help them. This will increase the quality, quantity, and frequency of the referrals you receive.

Rule #4 – Get specific

This rule is the most frequently forgotten. We usually have been taught to make the general referral request. We use general language like, "Who do you know that might want to buy or sell real estate?" This approach is akin to the department store clerk who asks, "May I help you?" The clerk, well over 90% of the time, receives what is called the "reflex no". It's the automated response we use when we, as consumers, are on autopilot. Let me give you a hint, autopilot customers are not good for salespeople. An autopilot or "reflex no" response to that clerk would be, "No, just looking." How many times have you said that to a clerk to get rid of them?

Using a general referral request script like, "Do you know someone who might benefit from my service?" will give you the same results as the store clerk or worse. You are setting yourself up for the reflex "no".

Focus the referral request by narrowing their field of choices. If we give them the whole world to choose from, it's easier to say no. Explore with them in niches or areas of their lives where they have relationships. Ask them about people in their immediate family, their small group at church, the people in their department at work, Bobby's soccer team, Susie's second grade class. If they are involved in social service organizations or clubs, have them pull out the roster and invest some time talking through the names on the list.

To engage in this technique effectively, you must be able to gather quality information about your clients and prospects. You have to know what your clients and their kids are involved in, so you can create a deeper connection with them and increase their value as a referral source.

We coach our clients to collect a profile on each client in key areas. This accomplishes two things. The first is it gives you questions and areas to dialogue with during your personal calls to them. It could take you a number of calls to secure a reasonable volume of information. I get asked all the time, "Okay I will call my clients and past clients, but what do I say?" Treat them like a friend, and see how they are doing. Then tell them something relevant in the real estate marketplace like interest rate increases, inventory level changes, appreciation results, or investment opportunities. It's easier to talk with people when you know their interests.

With our coaching client we use a form that has thirty-three questions to ask their referral sources over time to increase intimacy. When you ask them about certain areas of their lives, it's easier to explore and create referrals in that area. You will also feel more comfortable asking for referrals, and they will feel more comfortable sharing referrals because you didn't use some hokey line to do it.

If you really want to be a Champion, I have one more step for you. Have your computer technician program these "fields of interest" into your database management software with space to type in responses. When you are talking with the client, you can record the responses in your CRM program. Doing this will increase the ease of use dramatically. You will be able to see the information easily the next time you call. You have also increased access.

Your Assistants and Buyer's Agents can access the information as well. You can train them to use the information to create a connection with the client while they are servicing them. Imagine the warm feelings they will have about selecting the right Agent and Team to represent their interests when the Listing coordinator asks about Bobby's soccer team and how they are doing, or a year after moving, they call the Closing Coordinator to inquire about a document they misplaced, and she asks if they have been playing much golf. The typical client would fall out of their chair.

Another opportunity that is available when we program the database is searching different questions or search fields for commonality. Let's say you read a great article on a new golf course opening in your region soon. You go to your database under hobbies and interests and search golf. There are nineteen people in your database who are avid golfers. You photocopy the article for them and write a personal postscript of how much you enjoyed the article and thought of them. You might even add, "We should go play there when the course opens", if they are in that client category. Then stuff, lick, stamp, and mail it. When your client receives this from you, they will be blown away – all from your ability to get specific.

A Philosophy of Trust and The Birth of the Interdependent Model

Provided By KW Blog

Editor’s Note: After posting this article this morning, The KW Blog Team received the sad news that Stephen R. Covey had passed away. Our sincerest condolences to his son, Stephen M.R. Covey, his family, as well as his friends and avid followers. As you will read below Covey influenced Gary Keller, co-founder and chairman of Keller Williams Realty, as he began building the company in the 80’s.  So as to prevent any confusion, we want to be sure our readers realize the interview below is with Stephen M.R. Covey, the son of Stephen R. Covey.

The KW Blog team is an avid reader of all the blog posts on KellerINK.com. As Gary Keller’s publishing arm, his books are very much a part of Keller Williams Realty’s history and much of our associates’ success rests on the models and systems presented in The Millionaire Real Estate Agent.

Last week, we were thrilled to find out that their latest blog post featured an interview between Gary, Stephen M.R. Covey and Greg Link, co-authors of Smart Trust. And we had to listen in!

Of course, the interview was an amazing opportunity to a get sneak peek ofSmart Trust and the conversations between Gary and Covey can definitely confirm it’s a phenomenal read with plenty of insights on running a smart business in today’s climate. What came as a welcome surprise was the little-known story of how Covey’s father’s teachings helped inspire Gary’s vision for his real estate franchise.

First published in 1989, Stephen R. Covey’s book The Seven Habits of Highly Effective People was, as Gary says, “a road map to how my industry has been built.” Gary realized while reading The Seven Habits that the real estate industry began following a dependent model and then naturally moved to an independent one. And when Covey described the natural progression from an independent to an interdependent model, Gary realized there was a gap in the industry.

No real estate company was truly built around an interdependent model.

That was the logical destination for everyone, yet no one was there. So he set out to create a company based on the third option. And much that we now identify as Keller Williams Realty was born. Twenty-three years later, Keller Williams is still dedicated to the interdependent model.

Gary Keller discussing Keller Williams Realty's Agent-Centric Business Model during the company's early years.

We really enjoyed listening to this interview not just because it’s a fantastic opportunity to hear from Covey and Link on maximizing opportunity and minimizing risk in today’s unique business climate, but also because it’s a great lesson on the history of Keller Williams Realty.

Click here to listen to the interview. And be sure and share it on Facebook, Twitter and with your sphere!

KW Blog: Monthly Book Review

Provided By KW Blog

The Slight Edge: Turning Simple Solutions Into Massive Success by Jeff Olson

“Take two seemingly similar people and give them both the exact same opportunity. One takes it and has remarkable success, the other doesn’t. One wins, the other does not.”

What’s the difference between a successful person and someone who is not? It’s a question that’s asked every single day by millions of people aspiring to achieve their dreams.

It’s also the question Jeff Olson, author ofThe Slight Edge posed to himself one day while getting his shoes shined at the airport. “The shoeshine woman was a hard worker. Good with people,” he writes. “She knew how to read and clearly enjoyed doing so. She was a superb communicator. She obviously had the talent, personality and basic life skills to accomplish a lot more than just living off tips … I couldn’t help but wonder what this woman’s life would be like if she had taken a different path five years earlier?”

That one day set sparked a fire in Olsen that sent him on a quest to find the factors that separate 5 percent of the population – those who have success – from the other 95 percent who never fully reach their potential.

The KW Blog Editorial Staff pulled together our high-level look at the book and some must-read chapters.

Big Thoughts. Olsen dedicates the first half of the book to defining The Slight Edgeand shares examples of the philosophy at work. His take on what catapults people to the top of their game: successful people do what unsuccessful people won’t.

The little things that will make you successful in life, that will secure your health, your happiness, your fulfillment, your dreams, are simple, subtle, tiny things that nobody will see, nobody will applaud and nobody will even notice while it’s happening. Real success is taking a progressive approach to your success. Olsen says, successful people do that by choosing the right attitude and actions day in and day out, allowing those actions to compound over time and then continuing to do them in very key areas of your life.

Best Chapter(s) Chapters 1 – 3 review The Slight Edge Principals and build the case for changing your philosophy on winning over the long term. Chapter 6 lays out the seven ways to apply The Slight Edge Principal to your life. In Chapter 12 Olsen applies the SMART goal-setting process in the areas of health, personal development, relationships, finances and life – a great exercise for anyone looking to make some serious changes to their success trajectory.

If you read nothing else: Olsen’s principal is rooted in logical thinking, and yet, he points out, many people don’t do it. In our haste for immediate results we seek the fast fix, the secret ingredients and the one perfect formula for success. Olsen argues that it’s the things you do every day, the things that don’t look like they matter, that do matter. They not only make a difference – the make all the difference.

Put it in Practice. The Slight Edge can work for or against you. In Chapter 6 Olsen identifies the 7 Slight Edge Principles to create a game plan for success over the long term.

1. Show Up
2. Be Consistent
3. Have a Good Attitude
4. Be Committed for a Long Period of Time
5. Have Faith and a Burning Desire
6. Be Willing to Pay the Price
7. Practice Slight Edge Integrity

Rating (1 out of 10): 8. Olsen’s book reads fast and is chock-full of simple ideas that will leave you feeling inspired and prepared to take action on your life’s success.

Social Madness Challenge

Your Mission: Create a video incorporating a listing!

Goal: Understand why and how Social Media can promote your business.

Ready, Set….ACTION!

With each passing day, more and more companies are waking up to the strong correlation between content marketing and business growth. But creating quality online content that is relevant to one’s target audience is only half the battle- it must be easily found in places where they will most likely consume it.

Increasingly, more realtors are taking steps to becoming social media experts! Keller Williams is the leading social media real estate company! Here is how Rockwall KW wants to expand your social media GROWTH!

Please read below:

·         You will meet at Rockwall KW next Tuesday, July 17^th at 6:00pm.

·         We will split you up in groups of 2.

·         You and your partner will go to 3 specific listings and create a video.

·         Your video needs to be less than 1 minute long, preferably 30 seconds.

·         Here are the video topics:

1.      Buyer Testimony

2.      Seller Testimony

3.      Agent ‘selling’ a listing

·         You will choose which video you will create at each listing. There are 3 topics for 3 listings. One video will be shot at each location.

·         Once you and your partner have created all three videos you will head over to Primos’ (off of Bass Pro/30) where we will enjoy KW Family time with food, drinks and laughs!

·         Be sure you email your videos to frontdesk552@kw.com for your chance to win.

·         We will email all agents with the video footage and you will vote for your favorite!

·         Winners will be announced at our July 24^th Partner’s Meeting! 

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Common Seller Issues

Provided By Realty Times

As an any seasoned real estate agent knows, working with clients isn't always smooth sailing. There can be rough waters when working sellers. This simply comes with the territory. Selling your home is a huge undertaking. It comes with emotional, physical, and perhaps most notable -- financial stress.

In order to best deal with common seller issues you train yourself to recognize these problem area. Over time you will begin to notice the signs of these issues far before they become problematic. The faster you identify and solve the issue, the faster you'll sell that house.

Let's take a look at the top seller "rough waters".

First, it comes down to price. Every seller wants to get "top dollar" for their home. This is true whether the house needs major repairs or the market is in a major recession. The majority of your sellers will be realistic about pricing, but there is certain percentage of sellers that are true dreamers or are simply uninformed.

In order to stop this issue in its tracks you should always present sellers with a solid comparative market analysis. Show them in black and white at what price homes are selling. You should also give them basic economic data to explain why prices are what they are. What are the prices are why?
The same idea applies to the territory of appraisals. Prepare buyers for the state of today's market and appraisals so they are not shocked or disappointed by low numbers. Many area homes have experienced steep price declines in recent years. Sellers may be unaware.

The second common seller issue is a resistance to staging. "My home looks perfect the way it is!" This is a good time to gently explain that buyers are looking for more of a blank slate... or at least a slate where they can see their own style. Show examples of before and afters of stages homes.
Help sellers understand that staging a space could make homes sell faster and for more money. If staging is out of personal reach be sure to recommend professional staging companies. Many agents provide this service free of charge, knowing the value of a good staging.

The next issue is negotiations. Some sellers feel pressure to themselves perform at negotiations. This causes a lot of undue stress. Reassure sellers that you are trained and certified in this area. All the seller has to do is decide to accept or reject an offer. You'll guide them the rest of the way.

The final, and very common, seller issue is a request for a reduction in commission. You can't blame someone for trying to get a deal, but at the same time this is your job and livelihood. Explain gently that you don't do commission reductions and then show what they seller is getting for the money.
Working with sellers can be a real pleasure, especially when your experience helps to ensure smooth sailing.

“Show Up Like No One Else”

Provided By KW Blog

Imagine you’re standing in the middle of an exhibit hall at your favorite convention. You’re there for one reason: to find the best lock boxes. As you walk around, you realize “gee, there are a lot of lock boxes here that all look the same.” You want more information, so you visit each vendor’s booth. You talk, they hand you a tri-fold informational brochure and you go on your merry way. At home you go through the brochures; but no one vendor really stands out. Each is just selling lock boxes. How do you choose?
This example is played out over and over in businesses every single day. Consumers, searching for the best product to meet their needs, are confronted with a colossal number of choices and brands, none of which truly stand out. This is instructional. In the case of real estate as sales, your services are the product and you are the brand.
So when you look at yourself compared to the competition, where do you stand? Are you distinguishing yourself or are you hiding behind industry norms of doing something a certain way?
Dan Kennedy, an authority on direct-response marketing and advertising and a provocative, truth-telling author of 20 business books has a unique take on helping brands stand out against the competitive playing field. He challenges his clients to look at industry norms and go against the grain.
In short, he believes in “showing up like no one else.”
Kennedy proposes several practical stand-out strategies. The KW Blog Editorial Team found the following particularly helpful for agents looking to differentiate themselves in a saturated market place.

The Absence of Unique Makes You Obsolete

It’s easy to buy into industry norms that real estate marketing or the services you offer are done a certain way. To be fair, we do acknowledge that there are certain fundamental strategies that every agent must employ in their business. But how you use those strategies to distinguish yourself is how you win. Doing what everyone else is doing just because everyone else is doing it is the quickest path obsoleteness: in the absence of unique your make yourself obsolete.
Let’s look at an example like online shoe stores. They are a dime a dozen. But there is one store that is synonymous with online shoe shopping: Zappos. Their unique calling card – exceptional customer service, easy return policy and enormous shoe inventory – distinguishes them from any other online retailer.
What are you synonymous with among your peers? What’s your “Unique Factor” or “U-Factor” for short? Do clients ever say “You do this ‘one thing’ better than anyone else” on a consistent basis? Yes? Then exploit that “thing” to your advantage! Here’s another tip if you aren’t sure about your “U-Factor”: look at what everyone else is doing in your market and go in a different direction.

Success Comes to Those Who Wait

Sales people have a killer instinct to jump on prospect and close them the second they come in. That may work for you right now. But you can also harness the power of what Kennedy calls the “Delayed Sale.”
The way the “Delayed Sale” works is simple in concept, but hard for sales-savvy agents to execute simply because it requires you to apply restraint in favor of a well-prepared prospect. You intentionally delay the sale in order to provide information up-front with a motivation to pay attention to it.
So how do you do that? First you have courage, and then you create what Kennedy calls a “Shock and Awe” package.

Validate your Value with “Shock and Awe”

The package can be something as simple as a video or as elaborate as a package Fed-Exed to their home prior to meeting. Seychelle Van Poole Engelhard of the Van Poole Team in Dallas, Texas (who we’ve featured several times on the blog) uses the free service Animoto, to make videos about her team’s unique marketing services. Prior to meeting, she sends the video to the client in an email with a little note simply stating: “Hey [client], here’s a great video we’d like you to watch before we meet. If you have any questions, please bring them to our meeting on [day].”
This accomplishes two things. One, she’s differentiating herself from other agents by using a video to talk about her services. And two, Seychelle is implementing the “Delayed Sale” concept by prompting her prospects to prepare and engage in the sales process before sitting down. This makes the sales process more efficient, less stressful for the buyer and the agent [Seychelle cut her meeting time substantially] and validates the services she offers and the commission she deserves.

Systems make the world go ‘round

The final piece of advice we found helpful as you embark on establishing your “U-Factor” is this idea of Systems. Systems – to be clear – are different than business operations. They are not, according to Kennedy, when you open doors, how you answer the phone or how your staff orders paper for the copy machine. Rather, your marketing and branding systems are those actions that are going to produce leads. Paper in the copy machine ≠ leads. So what do you do? First start by defining your audience, then you craft your message and then you tailor it to a specific media. It seems like an easy concept – but so many people get it wrong!
As you kick off your week we encourage you to look around. Ask yourself: “how bright do I shine amongst the crowded marketplace?”