Hey Moguls, Doug Van Buskirk here…
Today’s lesson is going to be a powerful paradigm shift for any investor who doesn’t have the quintessential silver spoon (yet).
That’s you if you don’t have:
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A full-blown marketing team
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Oodles of marketing dollars to spend every month
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Proven marketing campaigns that you know bring in money like clockwork
While you may have limited resources financially, time-wise or team-wise, there’s one area that you can leverage to create tremendous growth in your business- without needing tons of cash or marketing expertise.
Imagine this…
A motivated seller lead calling into your phone, already teed up. They know the deal. You buy properties for 60-70% of ARV. In exchange for that price flexibility, you can close very quickly.
All this seller really wants to do is get rid of the property as quickly and easily as possible. And here’s the thing – they already decided they want to work with YOU.
Why?
Because you were referred to them by someone they trust.
Yep. This is a whole different animal than someone calling in from your bandit sign, not knowing if you’re a fly-by-night company or if they can trust you.
The foundation’s already been laid. In many ways, getting the contract signed is just a formality.
Now, you’re probably thinking, “Okay, sounds good Doug, but HOW do I get someone to refer a hot lead to me?”
Ahh, glad you asked.
I’ve written out a checklist of things you need to do to create an environment where folks in your community are happily sending business your way.
Follow my checklist
1. Who do you know (or can you get to know) who’s in the real estate/home improvement/home service industries?
This could be contractors, handymen, home inspectors, real estate agents, real estate attorneys, interior decorators, plumbers, etc. I’m sure you can think of at least 10 more…
These people are natural referral partners for your business. Think about it – they have the trust and attention of past clients and current prospects. If any of those folks ever need to sell quickly or find themselves in a pinch with a property, you’d be a fabulous resource.
The question is, how many referral partners like this are keeping an eye out for potential leads to send you? How many of these types of referral partners even know what you do as an investor?
If you’re like most folks, few if any partnerships like this are in place.
So go through your contact list and see who you already know in the real estate industry that you can connect with. Make contact. Once you’ve done that, make it a point to continue to broaden your reach in your market by connecting with other potential referral partners.
2. Refer business to your partners!
What? I thought you were looking to GET referrals, not give them out? True. But the best way to get someone else to give you a referral is to give them one. It’s simple psychology that triggers the law of reciprocity.
When you do something for another person, they feel an instinctual urge to return the favor. It’s built into our DNA and into our culture. I mean, what do you call someone who takes all the time but never reciprocates?
You call them a “mooch!” And NO ONE wants to be a mooch.
So, reframe your approach from “what can I get out of this relationship” to “what can I give to this relationship.”
Look for ways to refer business to your partners. Look for ways to provide value. This won’t be difficult, especially if you’re actively pursuing new deals.
3. Treat your referral leads like gold.
Your referral partner has just put their name and reputation on the line to send business your way. Everything you do from here on out is a reflection on them, as well as yourself. Your referrals need to be treated as such.
Consistent communication and putting their best interest ahead of your own should be par for the course.
In my experience, people who are referred to you will be easier to work with, they close at a higher rate, they’ll haggle less, they’ll be more loyal and they themselves are more likely to refer.
So it makes sense to treat them as such, don’t you agree?
Don’t Go it Alone
One major mistake I’ve made several times as an investor and entrepreneur was trying to conquer the world all on my own. Let me tell you, nothing could be more difficult.
Here’s why…
We all have certain things we’re really good at, and certain things we’re average at. We’re all plugged into certain social networks and isolated from or unaware of others.
But when we leverage other people’s skills and other people’s connections, the world opens up to us. It greases the chute for you to slide into success.
Now, I’d love to say this all came from a Eureka moment I had one night, but in fact, these ideas are extensions of concepts that business master Jay Abraham has used to pump $9 billion (with a B) into his clients businesses over the course of his career.
His term is Relational Capital, so credit where credit’s due.
Remember, the most successful business collaborate; they don’t isolate. So now’s the time to model that success in your own venture.
Are you ready?
I’m Listening
How do you partner up for these referrals? Share some thoughts in the comments below.
Recognize that you can’t and shouldn’t do this alone.
Think of people already in the business, like contractors and Realtors and inspectors, who you can partner with.
Realize referrals are not just a one-way street – you must also provide value and refer people to your referral partners as well.
Treat your referral partners like gold and reap the rewards together.
Doug Van Buskirk
has always been fascinated with patterns in how people behave. He's used that passion to put a spotlight on the intersection of real estate and psychology, applying that science to networking, negotiation, and marketing. Doug's been investing for a little over 2 years, specializing in single-family wholesaling and mobile homes. In that time, he's also built an online marketing company and real estate coaching program. Doug first achieved his financial freedom at age 25, going from never having done a deal to replacing his 9-5 income with cash flow from income properties in just under 6 months. He lives in Charleston, SC with his fiancé Jen and Lhasa Apso dog, Amber.