When you own your own real estate brokerage firm you take home a larger portion of the closings as you would if you were working for another firm. While this has the potential to increase your take-home pay, if you’re just starting off owning your own brokerage or if you’re experiencing downtime between closings you fully understand the importance of bringing in money between these sales. Whether it’s a slow time of year where you live or the real estate market has simply hit a lull where you are, it is important to increase your ability to make money between closings with real estate referrals. Here is exactly what you need to know about making money off of a real estate referral fee.
How to Make Money Between Closings with Real Estate Referrals
What To Do Financially Between Closings
When you’re first starting off you will want to play it extra safe with your money. The fact of the matter is you don’t know when your next closing might occur. It could come tomorrow or it could come two months from now. While there are actions you can take to reduce the potential time, you need to play it safe for the time being.
The best way to play it safe with your money is to put anywhere from 10 to 20 percent of the money you make off of closings into a savings account and never ever touch it. Don’t even think about withdrawing from that account unless you’re eyeing a default on different bills. The best way to keep yourself from easily tapping into the money is to put it into a separate savings account. There are a number of high-yield savings accounts available online that will offer you 2% or more interest. Consider putting the extra 10 to 20 percent savings into that account after every sale.
At the same time, if you’re just getting started as a real estate agent you’ll want to cut down on current expenses. You don’t need to drive around in a flashy German SUV or overextend yourself just to impress clients. A client will be far more impressed that you close a deal for them than if you drive up in the latest Mercedes. You can extend your expenses as you move forward and the more solid foundation you established for yourself. But early on, live a simple lifestyle. The rewards will come later.
Put On Events For Current And Previous Clients
Most real estate agents make the majority of sales off of referrals. Satisfied clients will recommend you to their friends or relatives, which helps keep the potential sales rolling in. Due to this, it is very important for you to leave your clients happy. However, you also need to remind them you’re around.
If a past client has gone a few years without seeing and hearing from you, they may completely forget to recommend you to their friends if they have a friend shopping around for a new home. That is why to stay connected you need to put on special events.
Now, this doesn’t mean go email blasting a few hundred people. You want to make it a bit more intimate. Instead, first consider segmenting your past clients. You can put them into groups based on if they have children, the part of town they’re on, and so on. Then, you can set up smaller, intimate events for each segment of your client base. For example, for families you can reserve a screening of a family friendly movie and extend a free invitation to the families on the list. Or if you live where there’s a minor league baseball game offer tickets to another group. It’s small enough to where you can talk with everyone and spend quality one-on-one time with them. Chances are one of these people will have a friend who’s considering a new house. It makes paying for the event an excellent investment.
Consider Email Marketing
Email marketing is an extremely powerful and cost effective tool to use with your current real estate clients. However, sending out the latest listings to those who recently purchased a home doesn’t make much sense, and in fact it’s a quick way to see your clients unsubscribe from your email list.
Instead, you want to craft emails with helpful information. You can offer up lists of the top restaurants, parks, and other destinations in town. You can send out special deals to local businesses and you can offer other insights your past clients will find beneficial (another reason why you need to segment your email list in order to better provide desirable information to your previous clients).
The purpose of doing this is to not only keep in touch with your past clients but to offer them desirable information, so they want to read your emails. This keeps your name and real estate brokerage in their head, and so the next time someone talks to them about buying a house they will be more likely to recommend you.
Grow Your Client Base
Real estate referrals are great, but client referrals only work if you currently have a client base to pull from. If you’re just starting out in the world of real estate you won’t have this kind of list, which makes it a challenge. That is why you need to turn to third party service providers to help connect you with potential prospects. This is exactly what a service like RealProcity can do for you and while it is an especially valuable service to take advantage of.
Discover the Art Of Real Estate Referral Fees
Having multiple streams of income is important, even as a real estate agent. It isn’t always possible to have a steady stream of closings. Everyone hits a dry patch from time to time, so there will likely be a time when you don’t have any money coming in as you’re working on the next closing. In order to help you bring in more money in between these closings you will want to look into real estate referrals. With the help of RealProcity, you’ll discover how you can generate a steady income in between closing dates through a real estate referral fee.
RealProcity will help outline the process of a referral, how you can generate referrals, and also help connect you with these referrals in the first place. So, whether you’re seeing extended times between closings at certain points of the year or you want to have this money making opportunity in your back pocket, now is the perfect time to check out RealProcity and discover what the service can do for you.