We all think we have a handle on how real estate referrals function, but the following stats are still eye popping.
Everyone and their uncle knows that referrals for the bedrock of any flourishing real estate business, and some recently unearthed stats by the folks over at IXACT Contact (courtesy of research by Buffini & Company) drive home just how important referrals are – and how agents should go about securing them.
So without further ado, here are those stats:
That’s the percentage of all transactions that come from either repeat or referral business; in other words, if you’re focusing strictly on new clients (and not on retaining old ones), you’re missing out on an overwhelming chunk of business.
That the percent of agents who generate at least half of their business from repeat clients, which only further drives home the importance of keeping in touch.
Similarly, 21 percent of agents generate at least half of their business from the referrals of past clients. What are you doing to develop and maintain relationships with past clients, so that you’ll be the first person who comes to mind when a friend or family member decides to sell their home?
That’s the percentage of consumers who trust the recommendations of their family and friends before any kind of advertising. Of course, a clever (and exhaustive) marketing/advertising campaign can be quite influential for your business, but ultimately, the best advertisers will be your past clients – and considering that, per NAR research, 88 percent of buyers and 84 percent of seller would use their agent a second time, it’s clear Realtors have caught on to that concept.
Overall, that’s the percentage of business that the typical agent receives from either repeat clients or referrals from past clients.