How do you properly reward someone from your Sphere of Influence that sends you a referral?

Referrals  are a testament to the trust your clients and network place in you. So, how do you reward those who send referrals your way? The answer might be simpler—and more impactful—than you think.

The Traditional Approach

Historically, realtors have often resorted to sending small gifts like Starbucks cards or bottles of wine to thank their referrers. While well-intentioned, this approach can sometimes backfire. In some states, this could even be seen as an inducement to a non-licensed individual, which might lead to regulatory issues. Equally importantly, this method can unintentionally shift the perception of the referral from a genuine endorsement of your services to a transactional exchange expecting a tangible reward.

The Best Way to Reward a Referral

The most effective way to reward a referral doesn’t involve material gifts. Instead, it revolves around the quality of service you provide to the referred client. Here’s how you can make both your referrer and the new client feel genuinely valued:

1. Provide Exceptional Service: First and foremost, treat the referral with the highest level of care and professionalism. The better service you provide, the more you validate your referrer’s decision to recommend you.
2. Regular Updates: Keep your referrer in the loop throughout the process. Regular updates make your referrer feel involved and reassured that their friend or family member is in good hands.
3. Early and Frequent Thanks: Express your gratitude early and often. Acknowledge the referral as soon as it’s made, and continue expressing thanks as you update the referring party with transaction progress. This constant acknowledgment reinforces your appreciation and keeps the positive feedback loop going.
4. Storytelling: Share success stories about how you’ve helped the referral achieve their real estate goals. This not only highlights your expertise and dedication but also makes your referrer feel proud of the role they played in their friend or family member’s satisfaction.
5. Positive Reinforcement: Just as puppies respond well to positive reinforcement, so do humans. By associating the act of referring you with positive experiences and outcomes, you encourage your sphere to continue referring you in the future.

Why This Matters

When you handle referrals with exceptional care and keep the referrer updated, you accomplish several things:

• You reinforce the trust that the referrer has in you, encouraging them to continue advocating for your services.
• You enhance your reputation as a trustworthy and dedicated real estate professional.
• You increase the likelihood of turning both the referrer and the new client into repeat clients.

By focusing on providing unparalleled service to the referred client and regular communication with the referring party, you turn each referral into an opportunity to strengthen your professional relationships and build your reputation. This approach not only fosters a stronger network but also sets you up for a sustainable influx of future referrals.