While many real estate agents actively seek leads, others feel that it is better to focus on relationships instead. Is there merit to this piece of advice? Below are some of the benefits you’ll gain by prioritizing relationships over leads.
Use The Ripple Effect
The ripple effect is based on the principle that it is better to know a handful of people very well than to know a lot of people superficially. It essentially involves quality over quantity. Collaborating with the few people you already know is better than dealing with large numbers of people because the more people you deal with, the more stretched you will be in terms of resources and time. This doesn’t mean that you should shun new relationships completely, but that your primary focus should be on existing ones.
It is best to dedicate about seventy five percent of your time and energy to maintaining and strengthening existing relationships, while the remaining twenty five percent can be spent developing new ones. Oftentimes you will get better leads from the small pool of people you already know well, since they will understand your needs more than someone you just met.
Online Relationships Are Also Important
The internet in general and social media in particular is the wave of the future when it comes to building relationships. Although there is value judgement to consider when interacting with people online, many real estate agents have made good connections through websites. To succeed over the web however it is important to get to meet people in person, as interacting in the real world can leader to greater success. Such meetings shouldn’t occur until you’ve corresponded with them over the web for an extended period of time (at least 6 months) and you feel that they would be a great part of your network.
It is essential for real estate agents to consider their end goal when deciding the best strategy to employ. Those who want the best results need to use a wider net and do the numbers game. But the preferences of one agent can differ from another. Networkers who manage large spheres of contacts and would likely ignore the opportunity to have lunch with a source of referral might not find a website like Zillow very effective for generating leads.
Know Your Strengths And Weaknesses
Understanding the areas where you’re strong and weak is important as it will help you develop relationships with people that compensate for your shortcomings. For instance, many agents are not natural referrers. It isn’t unusual for them to make the mistake of thinking that merely providing good service will lead to a large number of referrals. In order to get around this you must have people in your network who are good referrers if you aren’t one yourself. The key to successful relationships in the real estate business is trust and an extensive network of people who are natural referrers.