I was recently on a conference call with our coaches discussing the concept of asking for referrals. Nancy Steinhausen, one of RRi’s outstanding coaches, brought up the point that most salespeople wait until the transaction is complete before asking for a referral.

Now, I understand the logic that most salespeople want to wait until they have fully delivered on their service, before asking their clients to generously give the names of friends and family who might be buying or selling. As Jim Rohn so eloquently (and wisely) states, “giving starts the receiving process.”

But from the moment you take a listing or begin working with a buyer, you’re already demonstrating value and hopefully differentiating yourself with expertise, extraordinary service and irrefutable value.  This can be a great time to ask your clients if they know anyone thinking of buying or selling real estate in the next few months.  Why is this a good time? Simply put, this is when your clients are likely to be the happiest. They’ve just listed their home or started the search for potential homes to buy. They’ve made a decision, they’re excited and hopeful. It’s the honeymoon phase!

As time goes on, markets may change and your seller may not get as much money as they were originally hoping for.  Perhaps selling is taking longer than expected and now your sellers can’t get the closing date they needed.  It’s possible your buyers might encounter a multiple offer situation and lose out on their dream home.  Several factors, many of which are outside of your control, could potentially dampen your customers’ spirits and downgrade the experience.  Even though these clients would wholeheartedly admit you did a great job, they now lack the enthusiasm they once had merely because the buying or selling process is not easy.

So first and foremost, ask for referrals. We all must learn to ask people for referrals but I think it’s equally important to think about the optimal time for these conversations, rather than mindlessly slipping the request in with your closing gift.  It’s not always going to be appropriate to ask for referrals early on in the relationship, but be aware when it is, and open the conversation. 

Do you agree?