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Dolly and Jennifer Lenz nearly lost a $100 million client.
The mother-daughter duo run Dolly Lenz Real Estate in New York city, but recalled Tuesday an episode in which they referred a high-rolling client to a broker in Malibu, California. But things quickly went south, Jennifer said, as the California broker failed to communicate with the client.
“It was such a bad match for the client,” Jennifer recalled.
“And it took us five years to get the relationship back,” Dolly added. “Five years, so it’s a big mistake.”
Dolly and Jennifer discussed the experience while on stage at Inman on Tour Nashville during a session about how to build a referral business in real estate. Dolly argued that referrals can be powerful — “We just did a deal in Los Angeles and that led to three other deals,” she said — but they have to be done right.
“The most important thing about a referral is, you really need to have a like mind,” Dolly added.
From left to right, moderator Lindsay Listanski, Dolly Lenz, Jennifer Lenz, Tristan Kinsley, and Ashley Dutton at Inman on Tour Nashville. Credit: AJ Canaria Creative Services
Tristan Kinsley, a Nashville agent with Compass, also appeared on stage during the session and made a similar point. He recalled thinking in the past that agents in different markets who had achieved a level of success similar to his own would treat his client much as he would. But he was wrong.
“I realized that oftentimes it’s not enough,” he said, adding a moment later that referrals ultimately rely on a “relationship that you have to work at.”
In Kinsley’s case, he advised real estate professionals to attend events — particularly smaller events. He gave the example of a gathering focused on skiing with 50 people. In that kind of environment, attendees are likely to encounter each other again and again, and thus build better and deeper relationships.
“If that doesn’t exist in your brokerage,” Kinsley added, “start something.”
Dolly Lenz also mentioned events, specifically singling out Inman Connect gatherings as useful places to meet potential referral partners.
“We just did a deal in Los Angeles and that led to three other deals,” she said of her business that has come from Inman events.
A fourth panelist, Ashley Dutton of the Dutton Ruch Group at Engel & Völkers, echoed the comments of the other leaders on stage, adding that one referral from a friend turned into $11 million in gross commission income within two years. The takeaway was that referrals can be lucrative, but they also require work.
“Overcommunicate,” Dutton concluded. “I don’t want to have to ask what is the status of my referral.”
