Have you ever recommended a product that you like a lot or that has been very useful?
Someone once asked you if you knew an accountant and you told him that your brother’s accountant is great and also his rates are very reasonable?
That is a recommendation, a good reference.
References are a world unto itself, there are international organizations like BN that specialize in having members exchange business references, it is an altruistic practice that generates millions of dollars in new business for the members of BNI.
A typical BNI meeting includes a 60-second presentation where each member of the group explains what their business is and gives their references to a member of the group, something like the following:
Hello, my name is David Parra and my business is Red Parra, Real Estate Developments Parra, a very important section of our business is to help business owners and entrepreneurs find locations for their new branches, we specialize in advising with expansion plans, Opening of new branches and everything related to the opening of new branches and points of sale. You can find us on redparra.net.
Today I have a reference for Architecture Innovation, one of our clients’ needs a remodeling project for a new office, and I tell you that Architecture Innovation is going to call them, they urgently have the project to start work in a couple of weeks .
The referrer gives a special card to the other member of the group which is committed to attend immediately to the client and to inform in subsequent meetings if the reference results in a contract and the amount thereof.
That is the power of referrals, in the case of BNI members are not paid cash commission among themselves, are paid with more business references.
But in the real estate area, if you can earn a percentage of the operation, it is a common practice and, even if it is not tabulated, asking between 10% and 20% of the commission that is generated is considered an acceptable amount, you cannot ask for the Half of the commission since you are not doing the job, you are only opening the door for a person prepared in the subject to close the business and share a percentage of it.
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A few days ago a good friend asked me about the colony where I had recently acquired a house, how was the development since he had the interest to acquire a home and had considered among their options the development where I am living.
I’m really comfortable, the colony has beautiful green and recreational areas, the houses are comfortable and we have not had any of us or any of the neighbor’s problems with the quality of construction, something that is relatively common, so yes, we are happy and satisfied.
Then my friend asked me to contact the seller who sold me the house, which I did with pleasure, my friend is already being treated, and I visit the fractionation and it is to decide if he becomes my neighbor, which would give me a lot taste.
By the way, the sales area of the company that developed my colony, runs a referral program, if you recommend someone and this one buys a house you get a gift or a small economic compensation, something like .3% or .4% of the value of the house, is not a high percentage, but it is not bad to win something just to recommend to your friends and family something with which you are happy. It is also within the tabulator that comments, 10% to 20% of the total amount of the commission.
Referrals are the simplest side of the real estate hex for income generation, once your brain adjusts to see these kinds of opportunities; they are starting to sprout everywhere.
You just have to take care that the person or company you are referring to is trustworthy so that at the close of the transaction they will report with you for the payment of your referral.
So if you like this article I ask you to refer me with your friends and followers, share this link in social networks and subscribe to the blog, you only need to fill in name and email in the form that is on the right side of the page.
Now, let’s go out and refer business and generate revenue on the way.