Partnering with local businesses can help real estate agents make a name for themselves
By Myrna Traylor
Whether you focus on buyers or sellers, having a steady stream of prospective clients is vital to your success. Some REALTORS® may pursue a course of reciprocal marketing, an upfront arrangement whereby customers from a nearby business are pointed to an agent for a home transaction and the agent promotes that business in turn.
Investing in informality
Other REALTORS® take a different approach; one that is more subtle but is nevertheless extremely effective. Steve Epstein, CRS, sales agent with Keller Williams Realty in Santa Barbara, California, specializes in luxury home sales and feels that agents might miss valuable informal referral opportunities.
“Rather than call it marketing, I would say I’m focused on strategic relationships,” Epstein says. “I’m always amazed at how many agents don’t understand that everybody in your orbit is a past, present or future client—everybody.” He says that agents need to “have their antenna up to understand where the opportunities are,” including with other agents. “I’ve done quite a bit of business with licensed agents, even within my community. They need help, or they’ve retired and been out of practice for a while—or they just don’t want to be bothered.”
Epstein encourages REALTORS® to think of every person they meet as being within their sphere of influence, including “businesses that we don’t necessarily think in terms of prospecting. If you’re at the barber or talking to a pest control company or get work from appraisers who get called in to conduct a date of death appraisal or something,” he says. Epstein has planted the seeds for future referrals by building a relationship with these individuals. “Now I’ve got them prepared to say, ‘Are you working with a local professional to help you decide if you’re going to sell this asset?’ Before, they would just show up and do their work.”
Epstein is happy to extend professional courtesy as warranted. “Some of them are licensed, so they certainly can collect a referral fee [unless] they may think that’s a conflict of interest, and I make sure to tell my clients that if they need to get a date of death appraisal, I know a good appraiser that I refer them to.”
Be strategic
For Epstein, professionalism is key to building that strategic relationship.
“I work in a luxury market, so I don’t like a stated quid pro quo. I’m a little more subtle,” he says. “But the good news is when people see how you operate and present yourself, it makes it a lot easier. They can refer with confidence because they know you’re a professional.”
Taking that one step further, you might be able to tag team a promotional event with other financial professionals. Epstein mentions an invitation-only event at a private club to help find new clients. “We got together with a financial advisor, a law firm and an accounting firm that did a lot of real estate work, so it was a gathering of trusted advisors. We went to a private event space and met with these high-net-worth individuals in a comfortable, social atmosphere.”
If that kind of event isn’t in the cards for you, remember the value of local businesses—even if you aren’t using their services for your real estate business. The local baker, day spa or jeweler might be the source of a future client. “I would have no problem sticking my head in the door and saying, ‘We’re going to be running in the same circles, and I’ve been in real estate here for 35 years, so I’ve got a good client base built up. I think there could be some synergy between our two businesses,’” Epstein says. “That way, when you recommend their business to one of your clients, you’re not being disingenuous.”
Epstein likens building these partnerships to playing the long game—you may never know which one will make you a winner. But can you afford not to do it? “I’ve trained my team that with every piece of business they do, whether it’s a listing or for a sale, they should focus on monetizing that into another two or three pieces of business,” he says. “If you get a listing and don’t circle back, prospect that listing and turn it into another two or three listings, you’ve wasted time and money.”
Don’t Cross the Line
When you are approaching an individual or business with the goal of sharing clients, be absolutely sure that you aren’t crossing any ethical boundaries.
“I sat on the grievance and professional standards committee at my local association for 15 years,” says Steve Epstein, CRS, sales agent with Keller Williams Realty in Santa Barbara, California. “And I knew agents that would say to the escrow or title companies, ‘I gave you a deal, and I expect a lunch or something,’ and that’s—for lack of a better description—a kickback. It’s completely unethical and not allowed.”
Make sure you always adhere to the NAR Code of Ethics in your interactions with others. Never offer anything of value in exchange for a business referral. Keep everything above board, or you could face professional sanctions or prosecution.
Stay up to date on the latest marketing trends. Enroll in our 2024 Webinar Bundle to learn and network with the best at CRS.com/education/webinars.
Photo: iStock.com/Dilok Klaisataporn
