March is Marketing and Branding Month here at Inman. As we enter spring selling season, let’s explore which tried-and-true tactics and cutting-edge innovations are getting deals done in today’s market. We’ll also recognize the industry’s marketing and branding leaders with Inman’s Marketing All-Star Awards.
Most Realtors claim their business is based on referrals. In truth, the median number of sides a residential Realtor did was 10 in 2023, according to the most recent National Associaton of Realtors data, despite the fact that many have thousands of people in their referral database.
Founder of Workman Success Systems, leading expert on teams, top speaker, and best-selling author Verl Workman paired up with Brandon Barnum to create an instant real estate best-seller, Raving Referrals for Real Estate Agents. This book contains everything you need to build a successful referral-based real estate business at virtually no cost.
The 7 laws of referrals
For years, NAR statistics have shown that approximately 65 percent of all transactions are based on referrals from past or present clients, your sphere of influence or other industry professionals. To generate more referrals for your business, begin with the seven laws of referrals.
1. Every meaningful relationship begins with trust
If you don’t have a foundation based on trust, it doesn’t matter what you ask for, you’re not going to get it. Instead, the first step is to start building your relationships with trust (BRT).
2. Serve, regardless of opportunity
Workman said that everyone talks about this, but few agents understand what it actually means.
“Serving regardless of opportunity (SRO) means that we give people options and do the right thing for them, even if we don’t get paid. When you understand that our relationship is based upon how we help each other rather than how much money we make off each other, that dramatically changes the nature of the relationship.” Workman said.
“Rather than dropping off a jar of jam, which is a nice gesture, your clients need to know that you’re willing to help them, that you are an expert in real estate, and that you can help them with their financial future and building wealth. There’s more wealth in real estate than any other vehicle,” Workman said.
3. Relationships trigger transactions
The next step in generating referrals for your business is to “activate the relationship,” using the following dialogue.
Agent: “If I give you five-star service, and I blow you away with the service I provide during the transaction, can I have your permission to ask you for a referral later?”
When the client says “yes,” which they usually do, Workman recommends that you start watching for what he calls the “triggers.” For example:
“I can’t believe you just did that for me. Oh, that’s amazing. You just delivered that.”
This is the moment to ask for the referral.
4. Stellar service creates stellar success
Many real estate agents do the minimum they need to do to close a transaction. Workman argues that creating referrals is based on doing the exact opposite — delivering such stellar service that your clients are saying, “You were amazing,” and you delivered so much service that they say, “That’s all you got paid?”
Now contrast this to, “You only showed me one house and that’s how much you got paid?”
5. Delighted clients refer delighted customers
Workman explained how this concept works. “If I do a great job and I blow you away, the people you refer to me are going to be good people who are easier to transact with, require less time to close, and create less stress and anxiety,” Workman said.
He also noted that as an agent, “Your stress level also goes down as your transaction level goes up.”
6. The fortune is in the follow-up
One of Workman’s long-time “Verlisms” is “Nothing happens until someone generates a lead.” A lead, however, is ultimately worthless if you can’t close it or if the person is unwilling to send you referrals.
Consequently, Workman advises agents to be laser-focused on lead follow-up.
“There are no bad leads, only people who aren’t ready yet. If they aren’t going to move, that’s great,” Workman said.
When a homeowner is not ready to sell, the agent’s role is to make sure that the lead has everything they need to be an intelligent homeowner. This includes knowing what’s going on in the market, making sure they’re not underinsured, as well being aware of the types of tax deductions they may be able to take as homeowners.
Here’s what Workman recommends that you say:
“A lot of our people are in their forever houses but use us to purchase investment properties and to find other streams of income. Have you thought about that?”
“We follow up with people until they buy, tell us to die or file a restraining order,” Workman said, laughing. “I never want someone to ever say about me that I didn’t follow up.”
What makes the difference here is that in Workman’s system, you are constantly providing them with service and creating value for them as homeowners, not hounding them to death about selling their home.
7. Everyone wins, or no one wins
Whether it’s clients or anyone else who does business with you, always make sure that they win every time they do business with you.
“That requires you to strategically design your business practices, operations and communications to guarantee that people know that you have their best interests at heart,” Workman wrote. “The more people feel like they win every time they do business with you, the more business they will do with you, and the more raving referrals they will send your way.”
The B.A.N.K. Code: the ‘magic trick’ that reveals why they will buy or sell
Would you like to increase your buyer and seller lead conversion by up to 300 percent? The secret? Use the B.A.N.K. Code system on your next listing and buyer appointments to make sure that you understand your clients’ values and are aligned with them.
The 4 B.A.N.K. Codes: Blueprint, Action, Nurturing and Knowledge
Blueprint (B) personality: Structure, systems and stability (Red Card, order, predictability)
Blueprint personalities value order, rules and predictability. They prefer proven systems, well-defined processes and a clear plan before taking action.
Action (B) personality: Results, speed and winning (Blue card, driver)
Action personalities are driven and competitive and thrive in fast-paced environments. They seek excitement, big opportunities and love to take bold risks to achieve success.
Nurturing (N) personality: Relationships, connection and community (Yellow card, nurturing)
Nurturing personalities prioritize people, relationships and making a positive impact. They value trust, collaboration and authenticity, always striving to support and uplift others.
Knowledge (K) personality: Logic, research and mastery (Green card, knowledge)
Knowledge personalities are curious, analytical, and driven by data and expertise. They thrive on deep learning, intellectual challenges and making well-informed decisions based on the facts.
To use The B.A.N.K. Code system in your business, go through the four categories and rank them in importance to you, putting the most important one at the top. Repeat the process until you have created the correct sequence that best describes who you are.
Once you have completed that process, you can begin using this approach on your listing and buyer appointments. Here’s how Workman uses it with his clients and agents.
“We have given everyone a set of “magic cards.” The next step is to ask your clients if they would like to see a magic trick,” Workman said.
Assuming your clients answer “yes,” have them put the cards in order. Based on the order they select, you can then adjust your communication style to fit their profile. Workman explains why this is so incredibly important, “I believe that the highest level of respect is to meet people where they are and communicate with them in a way that’s comfortable for them, not what’s comfortable for me.”
For example, Workman said that if he’s working with a client who pulls the green knowledge or yellow nourishing cards, he knows not to hard close them the way you can do with someone who pulls the red action card. In the case of the person with the green card, they need all the facts and data before they decide. Those who select the yellow nurturing card as their top value are more interested in building trust and relationships.
Putting the B.A.N.K. Code to work in your business
Whether you’re an agent, a team leader or a broker-owner, Raving Referrals for Real Estate Agents is ultimately about teaching relationship mastery both in your business and your personal life.
For agents, use the cards at your next listing or buyer appointment by asking your potential clients if they would like to see a magic trick. Once they have put the cards in order, you know what they value most and can adjust your presentation and communication style to fit their values, not yours.
For brokers and team leaders, Workman uses the B.A.N.K. Code to figure out the avatar of who he wants to recruit. While the Code is not a predictor of success, it does allow the broker or team leader to identify what type of position (sales, admin, tech, etc.) is the best fit for that person. It also allows you to create an environment that allows the individual “to live within their values and knock it out of the park,” Workman said.
You need leverage to succeed
Workman explained that leverage comes in two ways — through technology and people. What sets top agents apart from the rest is that they are niched into specific parts of the market, they avoid trying to be everything to everyone, and they have a team behind them.
Most importantly, having a team allows top agents to follow up with their “B” and “C” leads, something very few agents actually do. It’s this persistent follow-up, however, that leads to success.
Although Raving Referrals for Real Estate Agents is Workman’s first book, he’s already working on his next book that replaces the “SMART goal” model with what Workman calls “Stupid Goals.” No doubt that one will be fun.
If you’re ready to turn your database into a goldmine for your business, master the Seven Laws of Referrals, use the B.A.N.K. Code to communicate with clients and better align with their values, consistently follow up, and provide stellar service that will ultimately create raving referrals for you and your business.
Editor’s note: An earlier version of this story incorrectly stated that agents do 12 transactions a year rather than the median of 10.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.
