By Colleen
Barry, CEO of Gibson Sotheby’s International
Realty
The number of real estate transactions has shrunk over the last
12 months. This was inevitable, as the real estate market follows
cycles and is affected by external factors, like interest rates. We
had two years of high sales volume, which could not have continued
at that pace. The rising interest rates just hastened the end of
that boom.
During challenging market cycles, successful agents often tell
me some version of this statement: “Thank god for referrals —
they really kept me afloat!”
Why are referrals so important?
When the market shifts, there are always people who need to
move. However, they might not be in your sphere of influence. So,
what is the best way to expand your sphere? Create a Venn diagrams
with other people’s spheres.
A Venn diagram is a set of overlapping circles. Imagine your
sphere overlapping another agent’s sphere. Then imagine another
and another… Each of these spheres is a group of people who are
connected to one another in a meaningful way. So, when a member in
one sphere needs help in your marketplace, they will refer them to
you!
Whose circle should you overlap?
When looking for a referral partner, you need to be a giver and
to find another giver. The process of creating overlapping Venn
diagrams is a collaborative process. Both professionals need to see
the value in the other and need to be looking for ways to help the
other. This reminds me of the old Zig Ziglar quote, “If you
help enough people get what they want, you will get what you
want.”
There is an excellent book about honing this skill. It’s
called “The Go-Giver” by Bob Burg. Within it, Burg
tells the story of a salesman who is trying to create success in
his business. His mentor shares with him The Five Laws of
Stratospheric Success:
- The Law of Value: Your true worth is
determined by how much more you give in value than you take in
payment. - The Law of Compensation: Your income is
determined by how many people you serve and how well you serve
them. - The Law of Influence: Your influence is
determined by how abundantly you place other people’s
interests first. - The Law of Authenticity: The most
valuable gift you have to offer is yourself. - The Law of Receptivity: The key to
effective giving is to stay open to receiving.
As a Sotheby’s
International Realty affiliate, our entire network is built to
create value through collaboration. Every agent in our firm who has
attended any of the Sotheby’s International Realty regional or
international events has come away with several meaningful
relationships — and, eventually (and sometimes instantly),
referrals.
This also happens with people outside of your industry. For real
estate, we can start with people in related businesses, for
instance portfolio lenders. Portfolio lenders tend to be part of
wealth management groups and, therefore, are called in to advise
clients before they select a real estate agent. If you set aside
30-60 minutes, you could probably come up with several roles, like
portfolio lenders, with whom it would make sense to overlap.
Building a successful business is a heavy lift — too heavy to do
on your own. The goal is to build a team so you can all lift
together.