Unlocking Growth Potential: The Power of Real Estate Referral Programs for Property ManagersFeb 14, 2023
Real estate referral programs are a well-known growth strategy for property managers. By offering a referral fee to real estate agents for bringing their investor clients to you for management, you can expand your reach and gain valuable new business. Despite the simplicity of this approach, many property managers struggle to leverage their real estate partners effectively.
When working with clients, we always begin by examining their current lead funnel, including the sources of their leads, the effort required to obtain them, and the potential return on investment. Real estate referrals are consistently one of the most important lead sources we discuss.
It's clear that many property managers understand the importance of brokers and agents to their growth. However, when it comes to actually leveraging these relationships, many managers seem to be at a loss. Is it because they think it's too easy, not innovative enough, or assume that everyone else is doing it? It's difficult to say for sure, but it's clear that many property managers are looking for something new and unique, rather than building on the proven strategies that have worked in the past.
A useful analogy for understanding this phenomenon is the example of personal fitness. We all know that drinking more water and being more active are essential for good health, but it's easy to fall into the trap of constantly searching for something new and exciting, rather than sticking with the basics. Similarly, many property managers are eager to be innovators, to come up with new concepts for growth, and to differentiate themselves from their competitors. While this drive to innovate is admirable, it's important not to forget the foundational work that has already proven to be effective.
At RevUp Mastery, our approach focuses on a baseline growth plan. We help our clients to ensure they are actually doing the foundational work that we know is effective before introducing new ideas. A RevUp COA is one of the most powerful outbound lead generation tools that any property manager can add to their toolkit. A RevUp BDM is essential for any manager who wants to focus on PM system innovation rather than sales. But without a solid foundation, both your COA and BDM will fall short of their (and your) potential.
So why are broker partners so crucial for growth? Brokerages can help you extend your reach far beyond what you would be able to achieve on your own. The best form of marketing has always been direct, and agents who understand your value can act as an extension of your sales department.
Great real estate agents are always looking to provide the best level of service to their clients. When those clients are real estate investors, a solid PM recommendation is crucial. Referrals from agents close at a high rate because the relationship has already been built.
For example, Keller Williams reports that they have 164,399 agents in the US and Canada. Imagine the impact that building relationships with even a few of these agents could have on your business. The more agents you have referring business to you, the better and quicker you will see growth. But it's essential to become the "go-to" PM in these agents' minds. This requires bringing value to real estate brokers, demonstrating your expertise and value proposition, and building strong relationships that can benefit both you and the brokers.
In conclusion, real estate referral programs remain one of the most effective ways for property managers to gain traction on their growth goals. By building strong relationships with real estate agents and brokerages, property managers can extend their reach and bring in valuable new business. While it's important to innovate and differentiate yourself from competitors, it's also essential to remember the foundational strategies that have already been proven to work. By focusing on the basics and building strong relationships with real estate partners, property managers can set themselves up for long-term success.
Want some guidance on where to start? Give us a call!
Author: Experience Officer