"Methods used to find real estate agent

Referred by friend, neighbor, or relative, 44% of buyers, 40 % of sellers.

Used agent previously, 14% of buyers, 27% of sellers."

Source: NAR 2003 Profile of Home Buyers and Sellers

After the first 2 sources the list drops into single digits with an Internet website attracting only 6% of buyers and 2 % of sellers; that's a staggering statistic to me!

Since referrals are such a huge source of business I'm working on a compelling ad message to appeal to this large and apparently, highly effective, source of business.

One method I'm exploring is a small message board on super market grocery carts; I just signed up for a test marketing in 2 local markets.

One ad message I'm considering using is something like the following:

" FREE GROCERIES! FREE $250 gift certificate for every friend, relative, or neighbor you refer to me who buys or sells a home. No strings, no limit, no catch. If I get their business, you get the free groceries*.

*You can also refer yourself if you're thinking of selling and/or buying; same terms.

Call or e mail Jim Lee for details and to register your referral."

My rationale for the copy is this: I believe most grocery shoppers are women, they're in the grocery store spending money, I think the average family probably spends around $250 or more weekly on groceries, and an offer to get what amounts to a weeks grocery bill would be a compelling and attention getting message.

In my state it is OK to offer an inducement as long it isn't cash.

Any thoughts or people that have used a similar campaign???

Some very successful agents use "referral points". Basically, each time you refer someone, you get .5% off your next transaction. At the same time, the other person gets .5% off. They send a certificate to you with your name, who you referred, and it has the information on the back.

Seems like a good idea. People like rewards. With their program, you can have your house sold for free after a number of referrals. The thing I like about their program is that, even when you get your house sold for free, you can still help your friends get .5% off since they were referred by you.

Seems like a good idea. Combined with a client appreciation event, I can see you building long-term relationships.

Jim,

I like it--I think it is compelling and immediate enough to generate a response. I think alot of families would jump at getting their groceries paid for a few times a year just for listening and referring people. I may try it myself with my sphere of influence first. I've toyed with the rewards idea such as Dee spoke about but I think I like yours better because it is more immediate. I would have to double check our Texas Real Estate Commission Regulations. Let us know how your program turns out if you do it.

Thanks,

I think it's a good idea too. It's a nice USP as long as it doesn't violate any regulations.

This would work very well near a campus. We have a lot of them here and if you use the words FREE and FOOD in the same sentence, you will get attention.

There are other areas too. For instance, we have some grocery stores that are frequented by senior citizens, so if that's your niche, it could work well.

I must say this is a very good idea , i need to check if its ok here in virginia though , i was thinking of giving an entertainment center to buyers who purchase a home through me , but i think the referral idea could prove to be a kicker once you offer quality service. I have one question for though , How was you approach a grocery store (Food Lion) to do a promotion like this , is there any agreement you would have to sign , would it involve a lawyer ?. Not only is this a great idea but a very
good method of advertising providing that you could leave flyers in these stores. If there is some contract that have to be drawn up , please let me know , because i would take this to beauty parlor , barber shops , gastations (with these high gas prices) ect. Its really a win win situation becuase the business owner is happy , you the agent is happy and the customer is happy , after all that gift certificate will be spent right at their business....

Good one James Lee

I bought the cart space through an advertising firm called Super Karts that sell ad space on grocery carts nationwide.

I don't think they have a web site but if you'll e mail me I'll give you my reps name and number.

This idea actually works better and legal compared to referral fees.

Try this..

Refer 10 people buy or sell your next house free.

Since you are not paying them any referral fee no respa issue comes into play.

Sounds like a decent plan, Jim. Remember ... you never know what will work until you try.

My only recommendation is of a formatting nature. You might try to isolate "FREE Groceries" by putting it on a line by itself. If I were you, I'd do this even if it meant I had to cut another line of copy.

Reason being, it will stand out much more if it's on a single line by itself (like the headline of a newspaper story).

FREE GROCERIES!

FREE $250 gift certificate for every friend, relative, or neighbor you refer to me who buys or sells a home. No strings, no limit, no catch. If I get their business, you get the free groceries*. Etc, etc.

Also, be sure you have some way to track the results. You could probably just use the old standby: "How did you hear about me?"

Good luck! Let us know how it works out.

-Brandon