Relationships = Referrals = Profits
Most of us know that referrals are the life-blood of business, and yet so many business people basically ignore their significance. By properly maintaining your client or customer relationships you can actively cultivate referrals and take your profits to the next level or beyond.
In his program Your Secret Wealth, Jay Abraham shares ways he has helped every-day men and women discover the income potential buried in their businesses and in themselves. In this example Jay helps a business professional realize the value of her relationship with each client, and how those relationships could lead to a profitable business based on referrals instead of prospecting.
Secret Wealth Principle #10
People who have bought you, your service
or product before have a vested interest
in selling you to others they know.
Real estate agent Rita Casey was working her heart and life out making a good living but nearly killing herself working open houses, calling door-to-door, looking for new listings and buyers – and, in general, following all the “traditional” methods real estate agents follow. Every week was a new battle to go out in the cold marketplace and try to fight for new business
It was not fun.
The Power of Friendship
Jay asked her why she allowed herself to become a commodity and more specifically why she was willing to work so ineffectively. More specifically, Jay asked her why in the world she wouldn’t want more joy, fulfillment, control and reward out of the effort.
Jay pointed out that out of the approximately 600 past clients she had sold, she’d invested emotionally so deeply in them and they in her that they’d actually become deep friends – only she had failed to recognize the fact. Any good friend has both the concern and desire to keep in continuous touch and to extend themselves for their friends.
Jay showed her that she had an obligation to offer all her past customers the benefit of plugging their other good friends, co-workers, neighbors or relatives into her expert perspective on their local real estate market – and got her to see that irrespective of whether these friends of her past customers used her or not, she could help them formulate the best possible strategy about real estate decisions without making a mistake.
It’s easier to rekindle an old relationship
than start a new one
Once Jay got her to see that she had 600 old friends she hadn’t kept in touch with and that each friend had other friends who deserved to share her point of view, Jay got Rita to enthusiastically rethink her entire strategy. In less than six months, she changed her whole way of doing business.
Now nearly 90% of her business comes from referrals from all the old “friends” with whom she rekindled ongoing relationships.
Rita’s average listing went up from approximately $190,000 to $254,000, meaning her average commission per transaction increased 30% or more (for no extra work) but her income skyrocketed. One month alone her personal commission was $84,000 – that’s an annual income level of $900,000-plus if she keeps it up – all from changing her approach from calling cold to rekindling friendships. Most importantly she loves her work now that she’s doing it this way.
No matter what you’re trying to “sell,” people who have bought before from you will be easier to sell to or through a second time than strangers. (Power Relationships are covered in detail in Lesson 7 of Your Secret Wealth.)
This is an excerpt from Jay Abraham’s program Your Secret Wealth. Jay has extensive knowledge and powerful ideas about how to uncover secret wealth in your life that, in his words, “will help you get raises, promotions, security, income streams, and more.” If this example gets you excited about doing more with referrals in your own business – or makes you want more information about how to do that – you can purchase Your Secret Wealth and other Jay Abraham books and tapes on Amazon.com. Or go right to the source at www.abraham.com.
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