Looking to build your referral network? No one meets more people than Realtors, Financial Planners, Lawyers, and Mortgage Brokers! Top professionals meet a lot of people, which means you have the ability to refer more clients to other businesses than anyone else. Top agents understand the importance of capitalizing on this power by developing referral networks.

Whether it be industry related, like for realtors networking with mortgage brokers, home inspectors, real estate lawyers, handyman / trade, or other industries like business / family lawyers, accountants, dentists, chiropractors, car sales, or other small business owners, professionals with strong referral networks know how to accumulate an army of professionals all working to refer them clients.

How do they do this?

1. Developing a Business Referral Network

Clients frequently look to Realtors for suggestions on everything from transactional referrals such as mortgage brokers, home inspectors, movers and real estate lawyers to area specific referrals such as local daycares and dentists, to home trades referrals such as a handyman, painters and plumbers. It is essential to cultivate a list of referral businesses to refer these people to and to consistently and purposefully instruct business referral recipients to also send clients back in return. This is why it’s important to be aware of other professionals that you could refer clients to.

Tip: you don’t need to refer business before initiating a referral relationship with another professional. Simply contacting business owners about the idea of developing a referral partnership in advance of referring any actual clients is the preferred method for generating business and growing a referral network quickly. It also lets you meet with the business professional to see if there is a business style match and that they could in fact service your clients in the way you need them to be treated. After all,any referral you make reflects back on you and your business.

2. What to say to a business when Building a Referral Network

If you are hesitant to ask business owners to refer clients to you, you first must understand that you are doing it to provide a service to your clients and that by doing so you are helping create a great client experience while also providing value to the other business. Come from a position of giving rather than taking. For example, you may cringe when yet another home inspector calls you to refer them business, if they were calling to refer you a listing your attitude towards the conversation might change dramatically. So when approaching these conversations embrace the mindset that you have future business to provide these prospective partners.

· Example script for initiating a referral partnership, no client referred:

“Hi (name of business owner), I’m (your name) with (your business) and I’m in the process of creating a list of preferred businesses to give to refer my clients to. Since I frequently have clients ask me for a good (their business, i.e. dentist, mover, etc.), I’m looking for a trusted company to refer them to. I’ve heard good things about you (or your company), would you and your business be interested in being included?”

(If yes, continue . . .)

“Great! I like to establish these professional referral partnerships to help grow each other’s businesses as well. So if I were to refer clients to you, would you be willing to refer your clients that are looking to buy or sell a home to me with the assurance that I will provide them with the high level of customer service that you expect?”

(If yes, continue . . .

Excellent! How about we exchange each other’s contact information so that we can get started?”

· Example script for initiating a referral partnership, with a client referred:

“Hi (name of business owner), ), I’m (your name) with (your business) and I just gave your contact information to some clients of mine that need (their product or service, i.e. a new roof, electrical work, a house cleaner or etc.).

Here is their contact information so that you can reach out to them as well

(After they thank you, continue with . . .)

I’d also like to continue to refer clients your way in the future too. In fact, I am in the process of contacting various businesses that I can refer to my clients and include on a list of preferred businesses to give to them. Would you be interested in being included?”

(If yes, continue . . .)

“Great! I looking to developing these professional referral partnerships to help grow each other’s businesses. Would you be willing to refer your clients and friends that are looking to buy or sell a home to me?

(If yes, continue . . .)

Excellent! So it looks like you already owe me one! (said in a jokingly serious tone) I’m not kidding, you had better get on it so that I have to keep sending business your way in return! Does this sound like a good plan to you?

3. Enhancing a Referral Network

There are a number of ways professionals can add further value to their business referral partners in order to increase the number of client referrals that they receive. You could hold a vendor appreciation event(s) where all of your referral partners are invited to a party, happy hour, sporting event, luncheon, bbq, or other types of social gatherings. You can also try to get your more closely affiliated referral partners to sponsor these events to help cover the event costs. However, you will often receive enough referrals at the actual event itself to easily cover its expenses a few times over.

Agents with established referral networks also use their website to list and promote their professional partnerships and provide more services to their clients. You can be creative with its naming, perhaps call it ‘Client Concierge’. You can even take it one step further, and for select businesses that are able to, they may be able to offer a discount to clients referred by you, like a friends and family offer.

Preferred vendors are also more likely to refer clients to professionals who are seen regularly promoting their businesses on social media. A promotional Facebook post that includes a photo of their business or product with a link to their Facebook page can go a long way to remind referral partners that you are working for them and that they need to refer business to you.

Good luck, and let’s grow together!

Co-written with Martin Breeze, Mortgage Broker, TMG The Mortgage Group