3 Benefits of the Referral Model

Agents often wonder how to get more leads in real estate. Here’s my secret: Using a referral-based real estate model has always worked wonders for me. This model is the core of how Roost operates. Not only does it provide benefits such as a steady stream of income that real estate agents can rely on year-round, but Roost’s referral model works for lots of different kinds of agents, too. 

There are ample reasons why I’ve spent years trying to convert other brokerages to following the same path. Once you consider the substantial benefits of a referral-based model, I think you’ll see the value in it, too. 

Benefit #1: Work With Clients You Like

We’ve all had those clients that, once the sale is final, we’d rather not like to hear from or work with again. For some reason or another, you were just not compatible with them. On the flip side of the coin, you likely have a few favorites in your client list. 

What if I told you that a referral-based model means that, 99% of the time, you don’t have to work with the clients you didn’t get along with as well? Instead, you can shift focus to building relationships with your favorites. That’s one huge perk of referral-based models. 

Benefit #2: Get More Real Estate Leads By Building Strong Client Relationships

Piggybacking off of the previous point, referral-based models are notoriously better for building strong client relationships and can help maintain those connections with your clients. 

With referral-based models, you’re able to help boost your likelihood of repeat clients, which can certainly help you get more leads in real estate. Plus, the potential for new clients to become part of your network is based on positive word of mouth from referral-based leads. If you choose to work with a Roost broker who is closely aligned with your needs, you’ll be able to prioritize your relationships based on any personal goals you have for your real estate business. 

For example, if you and your broker both have a more relationally-focused mindset, this benefit will only get stronger as you work together. 

Benefit #3: Referral-Based Models Are the Best Way to Get Real Estate Leads

If you’re struggling with how to generate more leads in your real estate business, look no further than referral-based models as the solution. Here’s why: Instead of buying leads from companies like Zillow or Realtor.com, referral-based models allow you to have access to more complete, stronger leads. 

You’ll never have to wonder how many bedrooms a listing has due to incomplete information ever again. By working directly with people you have established relationships with, you take away some of the legwork. Directly connecting yourself to motivated buyers and sellers are key to keeping a steady stream of business — and revenue. 

A Case Study: Rena’s Story

One great way of illustrating why we at Roost think the referral-based real estate model is superior to other types of business is Rena’s story. 

Rena is a Roost agent based out of Melbourne, Florida who was new to the business when we first met. She was also new to Florida, so we tried to drum up some business for her to help her establish a foothold on the Space Coast. 

First, we did a six-month trial of Zillow, which cost us well over $1,000 a month. Rena worked hard to learn that system inside out. She tried every possible strategy to give herself an advantage using the Zillow model for the duration of that six-month trial period. 

Unfortunately for Rena, she ended up taking phone calls from people she didn’t know – on the first ring, usually – and followed up with texts within five minutes. During this trial period, Rena also experienced situations where she got terrible leads, she wasn’t able to make connections or work on practicing her craft to improve at business, and it was a non-starter. Rena did everything Zillow tells agents to do to be successful and played by their rules – but she still came up short. I was right with her the whole way and she was miserable. 

The lesson learned here was, often, the types of leads are based on what you can pay for – and they’re competitive. 

In different types of businesses within the real estate industry, agents will run into situations where someone will ask a question through a website and end up with different agents responding all at once because the leads go to multiple agents. It’s frustrating, and we don’t think that’s a good life for real estate agents or a good way to do business. So, we switched gears and went toward a referral-based model instead. 

Since then, Rena has finally managed to break through and find her path to success using our referral-based model at Roost. She has built a successful real estate business for herself, and I’ll tell you this with certainty: She’ll never go back to operating the other way. If you’re struggling like Rena was and want to learn more about how a referral-based model could help you get more leads in real estate, contact us.