13 Best Real Estate Referral Marketing Ideas [+ Tools]

Wondering how to get more real estate referrals? Instead of running more ads and praying they bring in the traffic, why not leverage the power of trusted recommendations? After all, people trust peer referrals most. 

The best way to bring in these referrals – and track them – is with a referral program.

These real estate referral marketing ideas cover everything you need to launch a successful one. But first, let’s go over the reasons you should start one.

Benefits of real estate referral programs

Real estate referral programs work by engaging your existing clients, as well as relevant professionals. You’ll build a stronger customer base through trust, and won’t have to run pricey campaigns. Here are the top benefits of real estate referral programs in detail:

Increased brand awareness: Referral programs leverage the power of satisfied home buyers (and sellers) sharing their experiences. This helps build a positive reputation for your agency, reinforces social proof, and generates interest among potential clients.

Increased trust in your services: People trust referrals from peers far more than ads and other messages from your brand. A study by Nielsen revealed that 84% of people see referrals as the most trusted and influential form of advertising.  

Creation of warm real estate leads: When previous or current clients promote you, they refer friends and family members who are already interested in buying or selling homes. Established clients understand your services and are likely to know others who would also benefit.

Improved conversion rates: A personal endorsement increases the chances that others will be enthusiastic about using you as a realtor – thanks to trust in their peers, they’re more likely to buy or sell a home with you. Research shows that a personal recommendation can be up to 50 times more effective in driving a purchase than a standard advertisement from a business.

Lower customer acquisition costs (CAC): Referral programs bring in clients at a lower cost than other marketing strategies, such as traditional ads. If you can’t (or don’t) offer rewards, that lowers your CAC even further.

Easy referral tracking: Starting a referral program – with or without rewards – makes clients’ sharing trackable. Thanks to the right referral software and the links it creates, you’ll easily be able to attribute every referral to the person who sent it.

Referral software for real estate agents [Free Tools]

These referral tools for real estate agents are a free and easy way to help you start your referral program.

Want a fully automated referral program for your real estate business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Our expert ideas for real estate referral programs

How to run a referral program for your real estate business? Rely on these proven ideas and best practices.

Cover the basics first

A remarkable client experience is the primary reason why people will feel inclined to recommend you. So, make sure you’re referable before you start a program. This is all about taking care of your clients in an above-and-beyond way: 

• Understanding their unique needs
• Helping them meet their goals
• Providing personalized service with a close attention to detail
• Reaching out regularly with prompt communication

Are people leaving five-star reviews, sending stellar feedback, sharing testimonials, posting positive comments, or recommending you even before you’ve launched a referral program? These are signs that you’re shareable.

Follow the rules for referral fees

In many areas, state and federal laws prohibit real estate agents from paying referral fees to individuals who don’t have a real estate license. If that’s the case in your area, you can’t give out any traditional rewards to people who make referrals. And even non-cash rewards (like gifts for the referrer) will be illegal to give. So, be sure to check the laws regarding referral fees before planning out your referral program’s structure.

Even if you can’t legally give rewards to referrers, don’t despair. Non-incentivized referrals are the most authentic form of recommendation. They signal that clients are genuinely sharing your services because they love it and want others to have the same experience. Plus, you’ll enjoy the benefits of the trust people put in their peers, even without a reward.

Here’s more on creating a referral program without rewards.

Consider giving back as a reward alternative

What to do instead if you can’t offer incentives? For every referral, you could make a donation to charity. This could either be one you’ve chosen outright, or one that the referring client selects from a list of options. Go local, national, or global with your charity choice(s) – it’s up to you and your referring clients. Your referrers will appreciate the opportunity to give back to a worthy cause.

Ask for referrals at the right time

One of the best ways to get real estate referrals is simply to ask previous and current clients. The key moments to ask are when your clients are happiest, such as right after a successful transaction or right after a glowing review.  You might also ask on the anniversary of a home purchase or sale.

Reach out with a personal note thanking them for what they’ve already done for your business, then kindly ask if they know anyone else who is looking to buy or sell a property and in need of a real estate agent. Send along a link to your referral program for easy access.

Promote your program regularly

More participants in your referral program can significantly boost referrals and revenue. So, it’s essential to promote your program on as many channels as you can, focusing on those channels that clients see most:

• Send bulk emails to all your current and past clients that are fully focused on your program. That helps attract new referrers and keep the program top of mind. We recommend sending them monthly to quarterly.
• Include short promotions for your referral program in newsletters and other regular communications. 
• Place a sentence about your program in invoice emails.  
• If you have a portal, incorporate referral promotions directly into the portal. Include direct links to the program for easy access. 
• Feature a prominent banner or hero image on your website’s homepage – link directly to your referral landing page.  
• Think about using subtle promotion techniques on your website, like adding a link in the footer or menu. If users can easily locate and access it, they are more likely to participate in your program.  
• Share updates about your referral program on your social media channels.  
• Mention your program on offline materials, such as business cards (include a QR code for easy online access).
• Take advantage of Referral Rock’s Monthly Summary emails to follow up with existing program members. These provide a personalized recap of each member’s referral activities every month.

Stay connected with past clients

Reminding your past clients of your agency is key to a successful program. You’ve built a wide network of potential referrers thanks to your customer service. So, keep in touch and show that same care to the clients who previously finished a home purchase or sale. 

Consider sending them holiday cards and personal notes, hosting events, or even surprising them with gifts on the anniversary of a home purchase or sale. Even if you can’t reward clients for referrals, you’re still allowed to send gifts to clients “just because,” as long as they aren’t required to provide you any benefit in return for that gift.

You could even send along a small food gift (or a lower-value gift card) with a tag asking for referrals, as a creative way to keep your program top of mind. That’s a small gift to encourage referrals, and not one in return for them, so it’s perfectly fine to give.

Source

Make sharing a breeze  

To get maximum participation in your referral program, prioritize ease of use and sharing.

• Break down the program into three to four straightforward steps for better understanding.  
• Emphasize the advantages of sharing. Even if you can’t offer rewards, you can still list intrinsic advantages, like the chance to help a friend – and if applicable, the chance to help a charity.
• Remind clients of the benefits your real estate agency provides – benefits their friends stand to enjoy if they become new clients.
• Keep your program page organized – don’t clutter it up with too much text. 
• Ensure there’s a clear call to action (CTA) that encourages sharing.  

Additionally, strive to minimize the effort required to make a referral.

• Offer various sharing options that fit how people usually communicate, like email, social media, and text messages.  
• Provide a referral link that clients can easily copy and share anywhere—referral software can create these links with ease.  
• Craft a friendly pre-written message for clients to send to their friends. Make it feel personal and engaging.  
• Make sure the program is easy to access and use on mobile, as most clients share things with friends via their phones.

Remove the step of logging in 

Another great way to eliminate barriers and simplify sharing is by removing the hassle of logging into your program.

With Referral Rock’s One Click Access links, your clients can immediately start sharing your real estate services. This means they are automatically enrolled in the program without the need to sign up or complete a form. 

Be sure to include One Click Access links in all your promotional emails for the referral program, including newsletters and transactional emails, not just those specifically about the referral program.

Plus, Referral Rock allows both new and existing members to access their referral portal using popular social logins like Google and Facebook, eliminating the need to remember a password.

Get referrals from other sources, not just clients

Previous clients aren’t your only possible source of referrals. Homebuilders, loan lenders, architects, designers, home service providers, movers and other people at related, non-competing local businesses could send referrals your way. You might even get referrals from other real estate agents who are based in different states or countries – they might know previous clients who are thinking of moving to your area! So, you’ve potentially got a whole referral network at your disposal if you form the right partnerships. 

You might offer separate referral programs for current and past clients vs. for professionals, or you can have everyone funnel their referrals into the same program.

Send thank-you notes

Even if you can’t (or don’t) send rewards for referrals, it’s still vital to show your appreciation. 

When referrers feel valued, they’re more likely to continue spreading the word – and a simple thank you note is a powerful gesture that costs nothing.

You can decide how personal you want to make the note. Whether you opt for a handwritten message or an email, consider adding specific details that reflect your unique relationship with the client or professional.

Alternatively, you could create a general note that you send to all referrers, making slight adjustments throughout the year to keep it engaging. No matter which approach you take, remember to include the person’s name and convey your sincere appreciation for their referral.

Try public shout-outs

Another way to say thank you is to make it public – shout out referrers on social media, your website, or your blog to thank them for sending new clients your way. You might choose to reserve this public thank you for your top advocates. A public thank-you might just be the “incentive” that drives others to make their own referrals. And like the personal thank you notes, this costs nothing to offer.

Track your referrals so you know what to improve

It’s essential to monitor, test, analyze, and refine your program. Focus on tracking important metrics like awareness, shares, reach, and converted referrals to evaluate how well the program is performing, spot areas that need improvement, and understand its overall worth.  

Additionally, it’s important to compare your costs with your revenue: consider the operational costs of the program against the sales you generate. If the revenue from referrals exceeds your customer acquisition cost (CAC), you’re seeing a positive return on investment (ROI) from your referral program. This information should guide your future strategies.

Select the right software

Referral software tools allow you to effortlessly track the number of referrals people generate, pinpoint where those referrals are coming from, and quickly distribute rewards. You’ll also gain essential insights into your referral program, enabling you to evaluate its success and implement any necessary changes.

Plus, referral software generates unique links, making it easy for individuals to promote your program via social media and email.

Referral Rock software streamlines the creation, tracking, rewarding, and marketing of your program, making it a vital tool for anyone looking to launch a successful referral campaign.

With Referral Rock, you can:

• Effortlessly track referrals: Each participant in your program receives a unique referral link, allowing you to see exactly where each referral originates. Customers can also monitor their own referrals through personalized dashboards.
• Automate marketing efforts: Engage customers with strategic, automated promotional emails, and make sharing easier with passwordless links.
• Automate reward distribution: If you’re offering rewards, Referral Rock will distribute them instantly as soon as someone makes a successful referral.
• Integrate with essential tools: Easily connect Referral Rock with over 50 different tools, including your CRM.
• Gather program insights: Quickly assess your program’s performance and make data-driven adjustments and enhancements.
• Set up in no time: With Referral Rock, you can launch your program in just days, with expert assistance available at every stage.

Set up your own real estate referral program 

A real estate referral program lets you leverage the trust and influence of personal recommendations to attract new clients The benefits of a referral program include easy tracking of referrals, increased awareness of your services, and reliable client acquisition. Be sure to set yourself apart with a stellar experience, promote your program regularly, and make sharing as easy as possible.