Nearly every commercial real estate professional I know hates cold calling! Well, not everyone, there are a few out there who not only love it but who do it really well. But for the rest of us, there’s a better way.

If you’re ready to do more business in less time, work smarter, not harder, and increase your income, READ ON because referrals are the way to go!

Referrals are the most important and powerful strategy for increasing your income because they shorten the sales process. Referrals connect you with more qualified clients, generate more callbacks, and get you more “yes” responses in less time.

The definition of a referral: “Any name or contact information given to you for the purpose of doing business.”

If you provide excellent service to others, you not only earn the right to ask for referrals, but others will be eager to offer them. The key is to “ASK”. Furthermore – go the extra mile delivering “WOW” client service and people will be lining up to do business with you. Just remember you still will need to qualify the prospect before agreeing to take him/her on, the key is working with only “A” and “B” clients.

The best way to begin building a referral-based commercial real estate business (and never cold call again) is to follow the 12 strategies outlined below:

Step 1: Declare a specialty and become known for that specialty.

Step 2: Be Referable, act and dress professionally, always follow up and do a great job.

Step 3: Develop a one-page strategic referral plan declaring goals and outlining the steps you need to take each week and each month to reach your goals. Refer to this plan daily.

Step 4: Use your database for more then just an electronic database. Store the information you’ll need to remember for future conversations (i.e. hobbies, family, travel). This information can then become conversation starters.

Step 5: Keep current with the latest technology and USE IT! Keep in front of your clients and prospects regularly with email – newsletters, snippets of useful information. This will remind them you’re still around.

Step 6: Develop scripts for talking to others about giving you referrals. Have scripts for talking to colleagues, friends, and family. Having scripts makes it easier to ask when the time comes for the conversation.

Step 7: Develop a Top 20, a list of 20 people in your sphere that are in a position to refer to you. This list could include a colleague with a different specialty; lawyers, bankers, architects, and so on. This is the list of people who will get the most attention when marketing.

Step 8: Eat meals with others two or three days a week. How about making Monday, Wednesday, and Friday “lunch out” days? During these lunches you will form and strengthen relationships, thereby increasing your referability.

Step 9: Develop Strategic Alliances, groups with whom you can associate and attract referrals. Examples are SIOR and ICSC.

Step 10: Network. Set a goal to attend one networking event each month. Join groups like LeTip and BNI. Form your own breakfast clubs or mastermind groups. But be sure to go beyond having an enjoyable conversation and leave with a pocketful of referrals.

Step 11: Give Referrals. It’s really so simple. To get referrals – give referrals. Be mindful of those in your circle whom you can refer to. What goes around comes around!

Step 12: ASK! The easiest and yet the one thing most professionals never do – ASK!

There are dozens of other ways to increase business. These additional sources are revealed to the members in my Real Estate Gym Mastermind Group . Keep in mind – most commercial real estate professionals do nothing but pray for clients to fall in their laps.

If you do just 3 referral-building action steps per week, your productivity should increase by 20% per month, that’s 240% by the end of the year!

Develop a strategic plan that is focused on building a referral-based Commercial Real Estate Business. Include things such as how many referrals do you want in a year, a month, a week? What action steps do you need to make this happen?

Some professionals are comfortable with asking around at a networking function, others write an email or letter, and still others have a one–on-one conversation. The point is: Put the steps you are willing to take and put them into action.

What will be your three action steps this week?

This week instead of my usual article, I am incorporating a copy of my Commercial Real Estate Diagnostic for your use. I designed this to help my clients to help determine their strengths and weaknesses.

Click here to download and print the Commercial Real Estate Diagnostic .pdf file.

Please take time out of your busy schedule to take this diagnostic, it shouldn’t take too long. After you have completed it and scored your results, you can chose which strengths to strengthen and which weaknesses to delegate.

The traditional view of learning how to strengthen a weakness takes up way too much energy. But if you change your motto to, “strengthen your strengths, delegate your weaknesses” you will find your business will grow more rapidly and with less effort.

“Marketing” is one of the hot buzzwords of the decade. Brokers do it, property owners expect it, and yet no one has uncovered the “magic marketing formula.” While I can’t profess to know the magic marketing formula (or maybe it’s a future article!), I do know what not to do. I know what a deadly marketing mistake is and how to fix it. So, the following are my tips for you.

1. Deadly Mistake # 1 – Not Marketing at All: Approximately 60 % of commercial real estate professionals do no marketing whatsoever. They rely solely on the sign out in front of the property secretly praying for the right prospects to drive by and call. And while this isn’t a bad strategy, it won’t lease up the property.

Fix-it Strategy: Implement an easy-to-follow marketing system that includes things known to be effective; mailings, personal calls, newspaper ads or whatever you as the professional feel will best serve the property. The point is do something!

2. Deadly Mistake # 2 – No System to Follow: Do you re-invent the wheel every time you get a new listing? Wasting time trying to figure out “what’s next” is foolish as well as time consuming.

Fix-it Strategy: Think of how much easier it would be if you knew exactly, and I mean EXACTLY what needs to happen each day, week, and month in order to get your listing in front of every possible prospect. In other words, what does your typical marketing program look like? For example, monthly emails the first Monday of each month promoting the property, quarterly mailings, weekly requests for referrals, daily phone calls to 5 people on the prospect list and so on. The point is to have a system that works, and to use it on a consistent basis.

3. Deadly Mistake # 3 – Poor Marketing Pieces/Message: How many times have you received a property flyer advertising space for lease or sale and you tossed it directly into the garbage without even looking at it? It probably looked just like every other piece you get and the benefits of the property were nowhere on it.

Fix-it Strategy: To start, make sure you have a professional, timely, and attractive piece. This only means the prospect will at least look at it once. In order for them to really pay attention – you must include the BENEFITS they will experience. For example, is the location better then the competition? Is it tops in technology (cyberspace and so on)? Is it priced below competition? List the benefits in an easy-to-digest style and it WILL get the attention of a prospect.

4. Deadly Mistake # 4 – Giving Up Too Soon: OK, here comes that famous 80/20 rule again. 80% of your prospects will finally pay attention to your marketing piece after seeing it for the 5th time. So if you have a marketing campaign designed specifically for a client who has signed a six month listing agreement and the plan is for a quarterly mailing – guess what? You have just wasted your time and effort.

Fix-it Strategy: Be certain that your marketing campaign (or system) matches the length of your listing agreement and has enough diversity in that you are hitting the prospect from several angles. So if a quarterly mailing is part of your typical “system”, the prospect has already seen your name enough times and is in the position to react. Be certain your marketing programs include enough strategies to get your “product” in front of the “buyer” at least 5 times during the listing period.

5. Deadly Mistake # 5 – Deciding in Advance a Prospect’s Interest: How many times have you deleted a prospective client from the “list” because you just knew they could not possibly be interested? A classic example is when a broker is marketing a new shopping center development and just because Office Max is across the street, they are not included in any marketing campaign because after all, they are already in the marketplace.

Fix-it Strategy: Never presume to know what’s going on with a potential prospect. You do not know if they would have any interest unless you personally speak to them. After all, who could have known that Office Max needed to move because their lease was up and the landlord needed the space back to expand Home Depot? Certainly not you, so include all possibilities when marketing.

6. Deadly Mistake # 6 – Poor Timing: Do you know the best time to call a prospect, the best day to send an email, a brochure or do you just attack without thinking?

Fix-it Strategy: Be mindful of the prospect’s schedule. Call between 9:00 a.m. and 10:00 a.m. or between 4:00 p.m. and 5:00 p.m. Never send an email on a Monday – too many from the weekend are sitting in the inbox, and never, never do a mailing in December (holidays) or August (vacations). Basically, just think about what you are doing before you do and pay close attention to the timing for maximum results.

7. Deadly Mistake # 7 – No Call To Action: This one’s easy and it’s why it’s last. Most brokers have no call to action in their marketing program. How is a prospect supposed to know what to do next unless you tell them?

Fix-it Strategy: Decide what you want the prospect to do first and then tell them. Should they drive by the property first, call you first, email you or set up a meeting? The instructions may be something like, “Please drive by the location and call me with any questions you may have. I will set up a time to meet you at the site in order to determine if the property can fill your needs.” You have given your prospect 3 instructions with these 2 sentences. Drive by, call, and meet. Now the prospect knows exactly what is expected. This may seem silly or elementary to you but you would be surprised at the difference it can make. So remember, don’t forget a specific call to action.

A common complaint I hear from my clients on a regular basis is, “It’s so hard competing for exclusive listings these days. I can’t compete with so and so.” And yet so few are doing this correctly. Most people show up at a meeting to make a presentation for a listing and their delivery tells others it’s all about them, what they’ll do and how they’ll do it. Presentations should be all about the client, their real estate needs, how their problem will be solved, and the benefits they will receive by choosing to work with a certain realtor. The following top ten steps should have a focus on the client, not you!

1. Prepare and have available a detailed 180-day marketing plan, outlining how you will market the listing (either lease assignment, tenant representation, or other), and be sure to follow it for maximum success. Include things such as cold calling methods, how much, where, how many hours per week you will work on this assignment and how you will market the listing to other real estate professionals. Be sure to check in with the client first and find out what his/her marketing expectations are before you prepare the plan.

2. Write a list of all services your company provides as well as the benefits clients receive by hiring you. Please don’t bore the client with lengthy descriptions about your company (they don’t care – it’s you they are buying). Be sure to include at least five things and the benefits of each that your organization does beyond placing a sign.

3. Bring a list of references including recent assignments completed, contact names and phone numbers for your last three clients. Include testimonials and the specific result the client received. Results sell.

4. Describe in detail your follow up procedures. This detail should be presented so that it matches your client’s needs. Check in before preparing this document by asking what is important to the client in follow-up. Once again, make it about the client.

5. Give a sample copy of a report you have used in the past showing activity on listings and what your reporting procedure is like. Explain they too can expect reports similar to this in addition to anything else that would be of value. For example, does the client have to report to somebody in his/her organization? If so, what information are they required to provide? Put your heads together and determine how you can help.

6. Compile a report providing competitive listings and transactions that have been completed in the marketplace; include area absorption rates. Keep it updated.

7. Include a sample copy of your company listing agreement. Make a request of the client to read it and let you know if anything is missing.

8. Make certain all of the materials you compile are professional in presentation, free of errors and pleasant to look at. Include your business card. You have one chance to leave the client with an impression – make it perfect!

9. Give the client ample time to talk about himself/herself and their needs (assignment). Listen. Listen. Listen. Ask any thoughtful questions needed to be certain you are clear with the client’s expectations. Make sure the client feels cared for and heard.

10. Finally, keep in touch. Add value where you can. It’s all about the client and the results they are looking for. When you’ve completed the assignment, thank them in writing, send a gift, and thoughtfully ask for referrals.

How often have you asked yourself, Is there an easier way to grow my business? I believe the way we do business is changing, and it’s changing rapidly. And those who are good at asking for and giving referrals will be ahead of the line.

Think about it. Technology has taken us from face-to-face to virtual business in the blink of an eye. Yet it’s not necessarily easier to get hold of the people you want to speak with; residential businesses have a “do not call” in place, cell phones have voice mail, and the Internet is cracking down on privacy issues. It’s important to remember that relationships are what drive the referral-based business. Grow, value, and guard your relationships, they will grow your business. The following 10 steps have been developed to help you put a system in place that will allow your business to shift to being referral-based.

Note: “Referral sources are key individuals who can directly refer your services to prospective clients or influence those who can. Your referral sources are generally people you know, peers and professionals with whom you have networked.” Successful Professionals

1. Who to talk to: There are many types and categories of people who are in a position to directly or indirectly refer you business. Look around you and you will notice a network of people already in place. Categorize the people you are already acquainted with, and secondly, focus on developing very specific new relationships. Know who is in a position to refer business to you.

2. What to say: Have a conversation; inform your listener what you do, where your focus is, what types of clients you can help best. Help your listener understand what you are committed to and why using you for a particular service will make a difference for the client. This is the time you inform your audience and then ask for a referral. Asking for a referral seems to be the single hardest thing for most people.

3. Build your Top 20: These are the Top 20 people in your network most able or likely to refer you business. These are people already in your network or those you would like to bring in. The purpose of building a Top 20 roster with all contact information is to have quick, easy access to up-to-date information for each contact. This is a living, breathing list that changes as your Top 20 changes.

4. Identify Prominent Referral Sources: Many people spend a lot of time networking with the wrong people and don’t know it. By identifying where your good clients are coming from and where they’re likely to come from in the future, your marketing will be more efficient.

5. Work your Top 20: “If somebody you trust suggests something is meaningful, this is more important to you than information presented in an impersonal way.” Dr. Sydney Levy, Northwestern University. Therefore, wine, dine, connect with and take care of your Top 20. Most importantly, remind them regularly about the best type of referral for you.

6. Host social events for your Top 20: This is really, really fun and yet most people never do it. Set up a golf outing, tennis match, luncheon, party, anything to get together and just have fun. If I could, I would conduct all of my business at the gym or while running because I feel so comfortable and things just seem effortless. Back in my dating days (over 20 years ago – a lifetime) I used to get all of my dates to meet me for a tennis game before I would graduate them to a “real” date. My husband thought this was really funny and still talks about it to this day.

7. Track Your Referral Sources: The old “80/20” rule applies here; most likely 80% of your referrals will come from 20 % of your referral sources. Distinguish who these individuals are and treat then accordingly.

8. Three new action steps a week: The rule of thumb for building a referral-based business is to take three action steps per week towards this goal in order to be a success. What will yours be? Plan these action steps early in the week and block time in your schedule for implementation. Just remember, it is necessary to ask for referrals in order to get them.

9. Always Add value: This is a no-brainier. Add value to your referral sources when appropriate; send newsworthy information, a card, a call just to say “hi”, anything that will brighten your Top 20’s day.

10. Be Thankful: Always thank your referral sources immediately, whether by card, a lunch, a gift, or whatever. Pease don’t leave this step out. Also, a phone call or email is fine, but a formal thank you is still required.

What I am really saying here is it is possible to build a commercial real estate business exclusively through referrals. Treat your clients well, cultivate your referral sources, ask for referrals, thank your referral sources and start again. This is a people-based business and I am afraid some of us are forgetting that. Just ask yourself, would you rather make 100 calls and get 1 client, or make 1 call and get 100 clients. Good luck and call me if you’d like to discuss this concept further.

For a copy of my Client Development Diagnostic (developed by Successful Professionals), email cindy@businesscoachinggym.com and a copy will be forwarded to you. This diagnostic will allow you to evaluate your strengths and weaknesses in building a referral-based business.

One of my favorite clients told me the other day that he was tired of cold calling and that it just wasn’t producing any results for him.

I told him no problem; there are other ways to get clients that don’t include cold calling. He quickly replied, “You know Cindy, you are constantly telling me that. I can’t think of any so start spitting them out.” To my surprise, I struggled to get come up with four or five ideas. I told him I would think about it and get back to him with a list of at least 25. As a rule, I don’t tell my clients how to do their jobs, but because I’ve bragged so often about having great strategies for getting new business that don’t include cold calling, I feel it’s time for me to impart my knowledge.

25+ ways to get new business: (Not in any particular order)

1. Imagine your ideal client profile: Be clear about the type of clients you want or you’ll waste precious time and money. Build a list of ideal clients; who they are, where they work, why they need you, etc.

2. Request referrals: It may seem very simple, but the best way to get referrals is to just ask!

3. Spruce up your emails with a signature line: This is a great way to carry exposure of your services to everyone you contact. You can add a one or two-liner about the services underneath your contact information. And for an additional bonus, also add a line such as “My business grows with referrals.”

4. Stop being a secret: Tell everyone you know you have room in your schedule for a couple of new clients and ask if they know anyone you can contact.

5. Never stop networking: Networking is a crucial way to build your contacts, but remember, only network in groups that can give you business, otherwise it is a waste of time. For example, LeTip or BNI.

6. Connect with past clients: These people are the foundation of your business, and are integral to your success. Create a system for being in contact with them every 90 days!

7. Bait with broadcast emails: Send promotional emails to your database and other contacts asking for clients.

8. Stick to superior client service: By doing this referrals are inevitable.

9. Start strategic alliances: Brainstorm all the possible business alliances you can have, e.g. trade associations that your ideal clients belong to, colleagues who deliver complementary services to yours, etc.

10. Fill up your FARM area: Choose it, define it, work it.

11. Create a client specialty: Now that you know who your ideal clients are, narrow them down into specific groups like buyers, sellers, lessors, lessees, investors, retailers, restaurateurs, office managers, industrial corporations, and so on.

12. Market by mailings: Snail mail information about your services to prospective clients. Do this regularly. It takes a prospect 10 times to see your name and information before they may contact you.

13. Produce or update promotional materials: What kind of promotional material do you have on hand? Is everything current and relevant to what you’re doing now?

14. Clean up your contact database: Your database isn’t just a bunch of names on paper or in your computer. Keep this important information updated on a regular basis. Even just calling people to update current contact information helps you keep in touch.

15. Tickle your tickler file often: Do you have a reminder file for all of your appointments, contacts and follow-ups?

16. Build broker-to-broker referrals: Retail brokers should be referring to office brokers, residential to commercial, and so on.

17. Convert calls to sales: When you receive email or phone call inquiries regarding your property listings, do you regularly try to convert these prospects into clients? If not, why not? What do you need to know in order to do this?

18. Frequently ask friends for referrals: Respectfully and gracefully ask, ask, and ask for referrals. And, refer business to them regularly.

19. Participate in passing on helpful tips: If information comes across your desk you think valuable for your colleagues or clients, send it on!

20. Promote relationships with property owners: Stay in touch. Ask, “What can I help you with today?”

21. Seek relationships with state and city economic development departments: Develop relationships with those folks in your FARM area, get to know them, refer to them, and ask for referrals in return.

22. Cultivate a can-do attitude: Be positive with everyone. You’ll develop a reputation for being reliable, professional and someone who can always finds solutions.

23. Rev up the referrals: Give more referrals then you get.

24. Vow to add value: Always look for ways to add value to all of your business relationships.

25. Marketing you. These are some of the best ways to get new business!
a. Have ready a current resume of completed deals.
b. Have ready postcards/mailers/emails of completed deals.
c. Have ready a list of benefits you offer.
d. Create an ongoing Newsletter/ezine.
e. Gather and highlight testimonials in your marketing materials.
f. Put together announcement ads and news releases about completed deals.
g. Have an up-to-date media source list at your fingertips.
h. Prepare a 30 second speech on your services.
i. Develop and improve your website.

This past winter I conducted a small, informal focus group by calling several top-producing commercial real estate professionals in the Chicago area and asking: “What keeps you awake at night?” There was one unanimous response: “Staying on Top!” Now mind you, these are all very successful folks in our business. As a result, I have put together the following 8 strategies for helping you stay on top; in other words, keeping the pipeline full.

1. Vision: Have a very clear, defined and detailed vision for one, three, and ten years. One of the habits of highly successful people is to annually develop a written vision statement for their business and personal lives. Include details on various areas of your life such as business, family, health, spirituality, financial and so on. Clearly articulating your vision takes the stress away from the “what if?”, “what’s next?”, and “who’s next?”. The benefit of doing this helps clarify things like how much money you need to earn this year to support your lifestyle? How many new clients? How many transactions will you complete? And so on. Know what needs to happen in order for you to stay on top.

2. Goals: Make sure 2005 is Your Best Year Yet. We have already established that highly successful people have a written vision statement, but they also have clearly-stated goals and a system or process for keeping accountable to those goals. Goals force you to be clear, focused and energized. The key requirements here are action steps. Dare to take the necessary action steps to complete the goals.

3. Go from “Good to Great”: Make a list of your accomplishments for the past 12 months; things that went well, were effortless, made money, and that you enjoyed. Then make a list of your disappointments or things that didn’t go well. What lessons did you learn? Now, make the decision to stop doing what didn’t go well. Most of you thought I’d say to continue things what went well but this would bring more of what you’ve got now; a good result. If you stop doing what didn’t go well, or the things that disappointed you, you will go from “Good to Great” (for more on this subject read, From Good to Great by Jim Collins).

4. Maximize Your Time and Finances: The single biggest obstacle my clients report is a lack of time. There is no such thing as a lack of time – only an inability to prioritize time effectively. Create time in your schedule to “plan”, thereby becoming more effective in fewer hours. Get into the habit of following a weekly schedule with timeslots committed to handling necessary actions, for example, things like cold calling, paperwork, marketing, client meetings and so on. Get a handle on your finances one year at a time. Know what your financial needs are well in advance so you can develop strategies to hit your target every time. Clarity in the financial department is essential.

5. Work “on” Your Business, Not Just “in” Your Business (Michael Gerber, The E-Myth Re-visited): Keep the pipeline full – always have your eyes peeled for new clients. It is typical in the real estate business to have cycles where you market, get clients, close deals, and begin again. The key is to break this cycle and always be filling the pipeline (marketing). Just because you have a handful of clients you are currently working with doesn’t mean you give up that daily/weekly marketing timeslot. Also, just a note: be certain you have a system in place so that it’s effortless to go from prospect to close. This assures you will have energy left for marketing on a regular basis. Three consistent marketing actions per week will keep the pipeline full.

6. Deliver “Wow” Client Service: Always, always under promise and over deliver! Always tend to the details. And, always meet the clients needs (if you only work with ideal clients, this will be effortless). This creates raving fans. These raving fans will continue to employ your services as well as refer others. If you don’t, the guy sitting next to you would be thrilled to have your business.

7. Build a referral-based business: Don’t be a secret! Does everyone around you know what you do, who your ideal client is, and how to refer business to you? If not, teach them. And by the way, who are your best referral sources? Do you even know? Take the time to identify and acknowledge these individuals. Let them know how much their referrals mean to you and your business.

8. Be authentic, be you: It’s exhausting to portray personality traits that aren’t yours and it’s even harder to keep up with them. The best relationships develop when you are being the most authentic, your natural self. Your authentic self is very attractive and will attract the best people and referrals into your business and life.