Lead Generation - How to provide incentives?

Question

Brett Synicky · Answer

gift card to a local restaurant for every referral regardless of whether it turns into a closed transaction or not and this goes for anybody who sends biz your way.  Or if you want tax deductible options you can make a donation in their name instead.

Robert Musallam · Answer

Brian Buffini's program is heavily focused on referral lead generation. You should check him out if you're looking for a structured system there. I'm just not a huge fan of writing post cards and dropping by my preferred clients' houses all the time so I don't really ascribe to it.

A lot of what you all wrote could be done digitally as well. A great way to remind people you're in the business is to create a Facebook business page, invite those that you would like to have following you by inviting them to like your page and then to create valuable content on your page that will steadily drip out to them.

Create a digital "Sellers guide to selling your home" and post it as a free giveaway. (Run targeted ads for this too!)

Just randomly give away a free $5 starbucks card for the first person to answer a simple question (can be housing related or not--it's just more for fun).

You could also tell people your referral policy: Who Wants Free Dinner at X Restaurant? Refer a friend to me and I'll send it your way!

The last one can be a bit dangerous but you get the idea.

If you (or anyone) have any specific questions on how to do any of the above, let me know. Either way, I hope that at least gives you some ideas on how to get leads.

All the best!

Austin Smith · Answer

@Devan Mcclishgood insight. I thank you!

Devan Mcclish · Answer

check your state's realtor commission on what you can do. Cash incentives are frowned upon in some states and may get you in trouble. Gift cards are cash incentives. But if it's OK, then by all means do it.

But I would really focus on direct mail and other sources of marketing as well. Send mail out to absentee owners, high equity people, pre-foreclosure people, etc. Drive for dollars and get listings that way. Use facebook to market your services. There are plenty of things you can do on top of going to your inner circle of influence

Austin Smith · Answer

@Stuart  Birdsong @Russell Brazil I thank you for your input! Good information.

Russell Brazil · Answer

@Austin Smith I think the key is to consistently market to your sphere of influence.  Many new agents take it for granted that the people they know will refer to them.  I think it is less about incentivizing them, and more about consistently marketing to them. I do give a small gift for every referral I give, but I usually only give say a $10 gift card, or a small gift.

I try to send a snail mail piece every month, an email every month spaced a couple weeks from that, a hand written note or card of some sort every 3-4 months, and a cheap gift (Usually themed with the holiday) every 3-4 months.  I think the key is CONSISTENCY. When they think real estate, they need to think of you.

Stuart Birdsong · Answer

Austin,

I think in your search to get your name out there to all of those you know you will find a lot of ideas. My best recommendation would be to just call everyone you know and invite them out for coffee. Explain to them you are becoming a real estate broker and ask them what you could do to become a successful real estate broker in your local market. Follow that up by saying, now that you know I am a real estate broker is there anyone you know that I could help with their Real Estate Needs? Following your lunch/ coffee/ beer with them write a thank you note, no gift card included just a genuine thank you. This doesn't cost much money and provides great results. Trying to provide gift cards and other "incentives" to friends and family comes off as disingenuous and as if you're trying to buy business. A face to face conversation and asking for help has provided great results for me. It is low cost and more importantly people appreciate your willingness to ask for help. Best of luck to you in your endeavors'

Stuart

John K. · Answer

I am curious on this topic. I am doing my research and reading a book in regards to a real estate license and in that book it talks about this a few times. One sentence that i want to point out is this

"

For instance, a friend may want to give you a fancy restaurant dinner to thank you for your help, but someone at your state licensing agency may decide that the meal is a fee. If you intend to start collecting fees for your work, you definitely need a broker’s license or be a licensed salesperson working for a broker."

Can anyone elaborate on the legal issues that may arise from an incentive program?

Detric Moton · Answer

Okay. Thanks for responding. This sounds like a great method.

David Hunter · Answer

Hey Detric,

Well, for the home seller's guide, you want to put in information that'll help the potential home sellers to prepare their home for sale and get it sold!  What kind of tips can you include??  Like... cleaning (but be specific), things that should be updated, how the house should look doing showings, inspections, the process of a real estate transaction, what to expect, etc.  You want to give information that home sellers are seeking.

Lead Generation - How to provide incentives?

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