Stay Paid Podcast Episode Summary: "How to Ask for and Actually Get Top-Quality Referrals"

Release Date: November 25, 2024
Hosts: Luke Acree and Joshua Steich
Guests: Dan Allison, Cody Smith, and Stephen Akery from Acre Brothers Realty

Introduction

In this enlightening episode of the Stay Paid Podcast, hosts Luke Acree and Joshua Steich delve into the intricate world of referral marketing with renowned referral expert, Dan Allison. Joined by Cody Smith and Stephen Akery from the Acre Brothers Realty team, the discussion centers on actionable strategies to effectively ask for and secure high-quality referrals. The conversation is rich with insights drawn from Dan's extensive experience across various industries, emphasizing the psychology behind referrals and the importance of strategic execution.

The Current Landscape of Referral Marketing

Luke Acree opens the discussion by questioning the evolving perception of the term "referral," noting that some consider it a "dirty word" in sales contexts. He asks Dan Allison to shed light on the current state of referral marketing.

Dan Allison counters this notion, asserting, “If you're confident at the end of the day and the value that you provide to people and you truly believe that you're helpful to people, why would it ever feel uncomfortable to talk about providing that help to other people?” (02:07)

He emphasizes that referrals are a natural behavior rooted in trust and value, rather than a manipulative sales tactic. According to Dan, the reluctance often stems from internal mental barriers rather than external client resistance.

Challenges in Asking for Referrals

The hosts bring up a statistic attributed to Dale Carnegie, suggesting that “90% of your customers, when asked, say they will refer,” yet only about 11% of salespeople actually make the ask. Luke inquires if Dan's research aligns with this and seeks his guidance on improving referral rates.

Dan Allison responds by highlighting his extensive research involving 50,000 participants globally, which revealed that 94% value their experience enough to refer, and 51% have referred someone in the past year. However, 81% of these referrals are passive, merely sharing contact information without facilitating a direct introduction (03:32).

He critiques common referral scripts that place the emphasis on the salesperson, such as “I get paid in two ways,” arguing that these approaches focus too much on the "me" rather than the "you," which diminishes the effectiveness of the referral process.

Dan Allison's Referral System

Dan introduces his comprehensive referral system, designed to transform passive referrals into active, meaningful connections. He outlines three touchpoints that are pivotal in his strategy:

1. Reactive Approach:

   • When a client mentions they have referred someone, Dan advises responding with appreciation and immediately discussing how to effectively facilitate that referral. For instance, he says, “Can we talk about that for a minute? … Let’s strategize the best way to do that” (06:13).
   • This proactive handling increases the likelihood that the referral will lead to a successful connection, as opposed to simply handing out contact information.

2. Proactive Approach:

   • At the start of a client relationship, acknowledge the value of the client's experience and gently introduce the topic of referrals. Dan suggests, “How comfortable are you with the idea of talking about referrals if you identify people who need help?” (10:05).
   • By addressing potential discomfort upfront, clients feel more at ease and are more likely to engage in meaningful referrals.

3. Post-Service Feedback:

   • After delivering value, such as closing a real estate deal, Dan conducts a debrief with clients to gather honest feedback. He asks questions like, “How could we have been more effective or efficient in our communication?” (13:19).
   • This feedback not only refines his service but also reinforces the client’s perception of value, making them more inclined to refer.

Dan shares a compelling anecdote where a prepared response to a referral led to a significant business opportunity in Asia, illustrating the profound impact of strategic referral management (06:13).

Practical Steps for Agents and Professionals

Cody Smith adds to the conversation by referencing the book Mindset of a Sales Warrior, emphasizing the importance of a value-based mindset. He contrasts the traditional sales approach of cold calling with a mindset focused on adding value, stating, “Instead of calling about someone selling a house, [agents should think] I know that I can help you find the house that you're looking for” (25:10).

Dan Allison reinforces this by highlighting that business growth is inherently tied to the value provided to clients. He states, “Instead of using I want to grow my business, all you want to do is be helpful to more people” (25:57).

Mindset and Behavioral Insights

The conversation delves into the psychological aspects of referrals. Dan explains that understanding and influencing behavior is crucial for effective referral marketing. He draws parallels to psychological principles like Pavlov's conditioning, illustrating how positive reinforcement can encourage clients to refer more frequently and confidently (13:19).

He further elaborates that successful businesses treat every action as strategic, ensuring that each interaction with clients is an opportunity to foster trust and encourage referrals.

Launch of The Exchange

Transitioning to future initiatives, Dan Allison discusses the launch of The Exchange, a platform designed to democratize access to high-quality coaching and business development resources. Partnering with David Desell from Model FA, Dan describes The Exchange as a "Netflix model" for business education, offering a variety of courses and virtual events for a monthly fee of $99 (27:10).

He shares the platform's rapid growth, noting that it surpassed 600 members across six continents within just 45 days of launch, underscoring the global demand for accessible business development tools (30:43).

Final Thoughts and Action Items

As the podcast concludes, Luke Acree and Joshua Steich summarize Dan’s key strategies:

• Engage Clients Proactively: Initiate conversations about referrals early in the client relationship to set clear expectations.

• Facilitate Introductions: Encourage clients to make direct introductions rather than merely sharing contact information.

• Gather Feedback: Continuously seek and act upon client feedback to enhance service quality and reinforce referral potential.

Luke emphasizes that top producers excel by taking decisive action, urging listeners to implement the discussed strategies immediately: “Pick 10 of your clients this week. Call them up … ask them about their experience” (34:05).

Dan Allison wraps up by promoting The Exchange, inviting listeners to join and benefit from the collective wisdom of seasoned professionals.

Notable Quotes

• Dan Allison (02:07):
  “If you're confident at the end of the day and the value that you provide to people and you truly believe that you're helpful to people, why would it ever feel uncomfortable to talk about providing that help to other people?”

• Dan Allison (03:33):
  “What are they saying about your brand, your value proposition? Because Dan said it best. That is truly your value prop. That's truly your brand. It's what they're telling the marketplace, not what you think you're telling the marketplace.”

• Cody Smith (25:10):
  “Instead of calling about someone selling a house, [agents should think] I know that I can help you find the house that you're looking for.”

• Dan Allison (25:57):
  “Instead of using I want to grow my business, all you want to do is be helpful to more people.”

• Luke Acree (34:05):
  “Pick 10 of your clients this week. Call them up … ask them about their experience.”

Conclusion

This episode provides a comprehensive guide to mastering referral marketing through strategic, behavior-driven approaches. Dan Allison's methodologies empower agents and entrepreneurs to transform their referral practices by fostering genuine client relationships, emphasizing value, and implementing structured processes. By internalizing these insights, listeners are equipped to enhance their referral rates, thereby driving sustained business growth and creating a life of freedom.

For those looking to delve deeper, joining The Exchange offers access to a wealth of resources and a supportive community, further amplifying the strategies discussed in this episode.

Connect with Dan Allison and The Exchange:

• Website: school.exchange
• Instagram: @danallison (for personal updates and insights)

Stay Paid Podcast:

• Email: us@teamcrewbrothersrealty.com
• Phone: 434-216-5306
• Website: staypaidpodcast.com

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