Building Your Internal Networks: Allied Resources, Supporters, and Core Advocates.

Building a strong real estate referral network is a cornerstone of success in this competitive field. This chapter, “Building Your Inner Circles: Allied Resources, Advocates, and Core Advocates,” focuses on a pivotal strategy: building and developing an internal network of relationships consisting of individuals and institutions that can be valuable sources of referrals and endorsements.

Scientific Significance:

The effectiveness of building a referral network relies on principles of sociology and relationship marketing. From a sociological perspective, referrals are seen as a form of social exchange built on trust and reputation. Studies indicate that individuals tend to trust recommendations from people they know and trust more than traditional advertising. From a relationship marketing perspective, building long-term relationships with customers and partners focuses on creating mutual value, leading to increased loyalty and referrals. This chapter addresses these scientific concepts by providing a structured framework for identifying, evaluating, and developing relationships with individuals and institutions who can be part of your internal network.

Subject Summary:

This chapter explores three main levels of relationships in the internal referral network:

1. Allied Resources: These are service providers associated with real estate who serve a customer base similar to your own. Collaboration with these resources allows for mutual referral opportunities.
2. Advocates: These are past clients who are highly satisfied with your services and who become loyal advocates ready to recommend your services to others. Maintaining their enthusiasm and loyalty requires regular communication strategies and customized appreciation programs.
3. Core Advocates: These are influential individuals with extensive networks who can provide a continuous flow of qualified referrals. Building strong relationships with these supporters requires personal effort and investment in providing valuable reciprocal services.

Building Your Internal Circles: Allied Resources, Advocates, and Core Advocates

Introduction: The Power of Internal Circles in a Real Estate Referral Network

Building a strong referral network is a cornerstone of sustainable success in the competitive world of real estate. This network is a strategic system of relationships built on trust and mutual benefit. This chapter focuses on building this system by developing three vital internal circles: Allied Resources, Advocates, and Core Advocates.

Basic Theory: The power of the network depends on the concept of Reciprocity. In sociology, reciprocity is the rule that governs social interactions, stating that individuals tend to reciprocate favors and services. Building strong relationships with your internal circles depends on recognizing and effectively applying this rule. It can be represented by the following equation:

R = f(V, T, C)

Where:

• R = relationship strength❓
• V = Value Provided
• T = Timing
• C = Consistency

The more value, appropriate timing, and consistency in your interactions, the stronger your relationships with your internal circles and the higher the likelihood of getting referrals.

1. Allied Resources: Expanding Reach

• Definition and Importance: Allied Resources are individuals or companies that share your same target customer base but offer different services. This includes real estate finance experts, insurance companies, home inspectors, renovation contractors, and other home-related service providers.
• Importance:
  • Expanding Reach: Accessing a wider segment of potential customers through recommendations from Allied Resources.
  • Providing Added Value to Customers: Providing comprehensive solutions to customer needs through recommendations for reliable service providers.
  • Increasing Credibility: Building a strong professional image by associating with reputable service providers.
• Building Strong Relationships with Allied Resources:
  • Periodic Meetings: Holding regular individual meetings (several times a year) to discuss how to provide mutual value to customers.
  • Mutual Education: Educating Allied Resources about your Value Proposition and how to convey it to potential customers. In return, learn about their services and how to integrate them into your strategy.
  • Defining Service Expectations: Setting clear standards for the level of customer service provided by both parties to ensure a positive customer experience.
  • Exchanging Referrals: Referring appropriate customers to Allied Resources and providing rewards for incoming referrals. Remember the rule of reciprocity.
  • Joint Marketing: Collaborating on marketing campaigns, such as organizing joint seminars or workshops for customers.
• Evaluating the Performance of Allied Resources:
  • Quality of Service: Monitoring the quality of service provided by Allied Resources to your customers. Remember that their performance reflects your image.
  • Mutual Referrals: Track the number of referrals received and sent to and from each Allied Resource.
  • Customer Satisfaction: Collecting customer feedback about their experiences with Allied Resources.
• Applied Example: Suppose you are a real estate agent and have a relationship with a real estate finance expert. You can hold a monthly meeting to discuss potential customers who may need financing. You can also attend community events together to raise awareness of your brands. If the real estate finance expert refers a customer who bought a home through you, you can reward him with a gift card or by referring a potential customer to his services.

2. Advocates: Building a Base of Loyal Customers

• Definition and Importance: Advocates are former customers who were impressed with the level of service you provided and have become ambassadors for your brand. They are more than just satisfied customers; they are enthusiastic about recommending you to others.
• Importance:
  • Continuous Referrals: Providing a continuous flow of qualified referrals.
  • Building Trust: Enhancing your credibility through testimonials and recommendations from Advocates.
  • Reducing Marketing Costs: Relying on word-of-mouth marketing instead of costly marketing campaigns.
• Turning Customers into Advocates:
  • Providing Exceptional Customer Service: Exceeding customer expectations at every stage of the transaction. This requires:
    • Caring Attitude: Showing genuine concern for customer needs.
    • Communication: Communicating regularly and transparently with customers.
    • Competency: Providing professional and reliable service.
  • Advocate Appreciation Program: A program designed to maintain communication with Advocates and appreciate them for their referrals. This includes:
    • 33 Touch: A structured communication plan that includes sending appreciation messages, small gifts, and valuable information periodically.
    • Referral Rewards: Rewarding Advocates for each successful referral.
• Developing a Customer Relationship Management (CRM) System: Use a database to store customer information and record past interactions and transactions. This helps you remember personal details and provide personalized service.
• Customer Satisfaction Equation:

CS = P - E

Where:

• CS = Customer Satisfaction
• P = Perceived Performance
• E = Expectations

To achieve customer satisfaction, actual performance must exceed their expectations.

• Applied Example: After completing a successful real estate deal with a customer, you can send a handwritten thank-you note, accompanied by a small gift. You can also add the customer to your Advocate Appreciation Program, which includes sending monthly newsletters with information about the local real estate market, invitations to community events, and exclusive offers. If the customer refers a friend who bought a home through you, you can reward him with a dinner at a fine restaurant.

3. Core Advocates: Accessing Influence

• Definition and Importance: Core Advocates are influential individuals who have a wide network of relationships and can provide you with a constant stream of qualified referrals. They are usually community leaders, CEOs, or successful business owners.
• Importance:
  • High-Quality Qualified Referrals: Getting referrals from trusted and influential people.
  • Access to New Markets: Expanding into new markets through the networks of Core Advocates.
  • Building a Strong Reputation: Associating with successful and reputable people enhances your professional reputation.
• Building Relationships with Core Advocates:
  • Acquaintance Through Shared Relationships: Building relationships with people who already know Core Advocates. This provides you with an easier entry.
  • Providing Mutual Value: Understanding the needs of Core Advocates and providing services or solutions that meet those needs.
  • Personal Communication: Communicating with Core Advocates frequently through phone calls, dinner invitations, or attending social events together.
  • Gifts and Special Appreciation: Providing valuable gifts and special appreciation to Core Advocates for their referrals. Gifts should be thoughtful and appropriate to their personalities and interests.
• Applied Example: Suppose you want to build a relationship with the CEO of a large company. You can attend industry events that the CEO attends and join professional organizations to which he belongs. When you meet the CEO, you can offer him your services as an expert in the local real estate market and advise him on real estate investments. If the CEO refers an employee who bought a home through you, you can offer him a very personal service, such as hosting a dinner party in his new home.

Conclusion: Building a Strong Referral Network is an Investment in the Future

Building the three internal circles (Allied Resources, Advocates, and Core Advocates) is a strategic investment in your real estate success. By understanding the role of each circle and applying the scientific principles and basic theory of reciprocity, you can build a strong and sustainable referral network that provides you with a continuous flow of potential customers and enhances your professional reputation. Success in building these circles requires continuous commitment and effort.