Title Marketing That Works

The 2 Step Method for Generating Referrals

What is the number one reason you don’t get enough referrals from your clients and prospects?

You don’t ask!

It’s that simple. You need to have a plan in place to regularly ask your clients and prospects for referrals to people who may enjoy receiving the same great service you provide to your clients or could provide to your prospects.

When should you ask for a referral? Don’t ask right after they sent you their first deal. Spend a few months thanking them for their business and developing a strong relationship with them through courtesy, kindness, honesty, and keeping your commitments. As Stephen Covey says, make deposits in their “Emotional Bank Account” and when the time comes to ask for a referral, you can make a withdrawal from this same account. I would recommend you wait 4-6 months after the first deal, when they client knows they can depend on you and will feel comfortable recommending you to someone that trusts them.

Should I ask prospects for referrals? Sure, why not? If you have been doing a great job of communicating on a regular basis with this prospect there is nothing wrong with asking “While I know you’re happy with your current title company, would you know of anyone else who may be interested in our title services?”. Chances of receiving a referral from this prospect may be small but this very act does something else for you that often goes neglected. It positions you as a savvy marketer who does everything you can to generate business.

Positioning or posturing sets you up in a positive light with your prospect. I often receive referrals from title companies to real estate agents or mortgage lenders who are impressed with the way the title company is able to keep in touch with them on a regular basis using our sales automation system. These people know the value of keeping in touch with your prospects and clients on a regular basis and they want to emulate this title company. Your top prospects will be impressed with your efforts and may give you a referral as well as maybe send you’re their next deal due to your efforts.

In the attached exhibits you will find a good example of a letter you can use to ask your clients and prospects for a referral. When you feel it appropriate to send (in our sales automation system we usually send it after 3-4 months of thank you letters). Rarely will someone fax or mail you back a referral. But the secret to this is the follow-up phone call (as is the secret with most tactics in our industry, the phone call is where you have the connection - just like getting people to come to your seminar that we discussed in the May issue). About a week after you send the letter, follow-up with a phone call.

The script for this call is relatively simple. Start off with some small talk. Then pop the question. For current clients ask them “if the know of anyone else who would benefit from receive the great service you receive form our company”. For prospects it’s “while I know you haven’t had a chance to experience our great service, would you know of anyone else who might benefit from giving us a try”.

Whether or not they give you a referral be sure to thank them for their business or the opportunity to talk to them. If they do provide you with a referral be sure to follow-up with a thank you letter (see included exhibits). I’ve also included an introductory letter you can use to send to the prospects you have been referred to by your client or prospect.

So what is your next step? Create a list of clients you think may be able to provide you with a referral. If you feel you have a positive balance in Covey’s “Emotional Bank Account” send them the request for referral letter right away. If not, start thanking them regularly for their business. This could be with letters, phone calls, or personal meetings. Make some deposits in their “Emotional Bank Account”. After you feel you’ve made enough deposits to warrant a withdrawal go for it. Send them the letter and start the process.

I look forward to hearing from some of you on your results of this simple and easy process. The business rewards will be great!