According to NAR, potential buyers note that “the reputation of the agent is the most important factor they consider when choosing an agent to work with, followed by the agent’s honesty and trustworthiness.” In today’s technology driven world, consumers now turn to the internet to verify that information. Because of this, agents are constantly being pushed to ask for referrals. However, when clients are reluctant to provide the praise agents are looking for, agents may push even more, creating a tense situation all around.
Michael Maher, North America’s Most Referred Real Estate Professional and #1 International Bestselling Author of (7L), says that agents need to change the idea of their business approach from one that chases clients to one that uses generosity to reach them. During the most recent Secrets of Top Selling Agents webinar, “3 Critical Sales Cycles You MUST Know For 2015,” Maher provided valuable insight about how agents can use happy clients to receive referrals and increase their marketability.
Here are three cycles that Maher says agents should pay close attention to:
1. Chase Cycle
The Chase Cycle is also referred to as the Cycle of Discontent. In this cycle, agents often over-promise and, as a result, under-deliver. As the name suggests, in the Chase Cycle, agents chase and corner clients, and pressure them into business. In the end, buyers are left unsatisfied and are highly unlikely to leave a positive referral. Because of this, agents then repeat the cycle with another client.
2. Referral Cycle
In the Referral Cycle, rather than over-promising and under-delivering, agents under-promise, giving themselves the opportunity to deliver more than their clients expect. This cycle is geared toward inspiring clients to give referrals since they will be happier with the outcome of events. In turn, these referrals will inspire other potential homebuyers or sellers to contact the agent because of their endorsements.
3. Generosity Cycle
In order to power the Referral Cycle and receive those referrals, Maher notes that it is also necessary to implement the Generosity Cycle. In this cycle, generosity leads to prosperity. When you are generous to your clients, they naturally reciprocate this generosity in the form of referrals. These referrals then make you more profitable which leads to prosperity.
Don’t forget to register for this month’s Secrets of Top Selling Agent’s webinar, “FSBO Farming – Top Tips to Double Your Inventory,” with Jim Remley, best selling author and accredited luxury home specialist.