Your Database is a Gold Mine

This article was written and published by Buffini and Company in 2006. It is just as relevant today as it was then. Enjoy! Darryl Mitchell

Author: Beth Bresnahan
Publishing date: 07/07/06
Commentary by Brian Buffini

My father and grandfather relied on a simple principle for their business in
Ireland: exceed clients' expectations and they will exceed yours by
referring you to others. When I entered the real estate business in San
Diego, I wanted to be able to rely on a steady stream of referred leads like
my family had.

Realizing that I could work with people who already trusted me, I focused on
relationships rather than transactions. By implementing a system, I built a
fortune while working with great clients. I held myself accountable to
standards and always took the time to remind clients that I did not spend
time advertising or prospecting. I could dedicate even more time to them if
I could rely on being referred to others. My core database became a
goldmine.

At our Turning Point RetreatT, I explain how to effectively build and use a
database to guarantee a supply of referred leads. A database is not a
mailing list; it is a list of relationships. This is a critical point of
awareness. Many real estate professionals have a mailing list, but the good
ones know what to do with a database. I advocate building relationships
because I believe it is the best way to do business. There is a goldmine in
your database, but you have to know how to mine for it.

Do you have an intentional system to consistently generate referred leads?

Working by referral demands a system. You may say to yourself, "Referrals
and word-of-mouth are the same." Well, we all get some word-of-mouth
business, but we do not all know how to proactively ensure those leads are
consistently generated. Waiting for word-of-mouth means you are not in
control of your own success. It is a passive and disorganized way of doing
business. Thousands of sales and service professionals across the country
have joined our ClubNetT Coaching program to learn how to develop referred
business using our proven systems. These systems are designed to be
implemented with commitment and consistent application. Our coaches help you
organize your database via three mechanisms:

Build: Gather the names of all those you know, including past clients.

Sort: Prioritize this database and consistently communicate with those who
refer you most.

Qualify: Using specific dialogs, continue to determine who is willing to do
business with and refer you.

After you have compiled a list of all those you know-including businesses
you refer to others-set a goal to meet five new people a day. At your place
of worship, sporting events or social gatherings, take the time to introduce
yourself. Open houses are another great opportunity to meet people-in fact,
the primary focus for holding an open house should be to grow your database.
The secondary focus is to find a lead.

The referral process is a system that demands perseverance and consistency.
Once compiled, you need to "ABC" your database. We always start there, as it
is where the rubber meets the road. The good news is there are only four
types of people in your database:

"A's" - most likely to refer you

"B's" - would refer you, if asked and shown how

"C's" - might refer you in the future

"D's" - names to be deleted from your database-it's good to get rid of a
headache, so do this up front!

When you prioritize your clients, you can prioritize your tasks, which then
allows you to prioritize your time.

Make a commitment to always refine your database. Don't just add new names
to it without working through those additions. The best way to refine your
database is by using a dialogue I teach called the "Mayor Campaign." My good
friend, Joe Niego, coined it when trying to ascertain who would do business
with him: "Oh, by the way, if you were buying or selling a home, or had a
friend or family member who was, do you have a Realtor who you would refer
them to?" For those who would refer you, make a follow-up phone call, send
them a personal note and add them to your CAP (Client Appreciation
ProgramT).* If they say, "Yes I do have a Realtor, and it is not you," then
move on. Practice the referral dialogs. Start with those you are closest to
and work your way out.

The key element is that you are trying to find "A" clients-those most likely
to send you referrals. Don't presume anything in this business. If you're
new to the business, use the Mayor Campaign to build your database. If
you've been in the business for a while, then use it to prune
back-constantly refining the ore for the gold. The rhythm of referrals is
about first giving, then asking, and finally-receiving.

Personal referral, based on trust, will never go out of style.

Trust is the key component to doing business by referral. For people to feel
a sense of trust, your character and competence must be communicated by
others. That's the unique impact of a referral. It really takes someone
other than you to verify your character and competence. As I've said
previously, referrals sell you better than you can sell yourself. It's
almost impossible to communicate your character to others as it appears
boastful. Referrals, however, are objective and effective. I took time to
think about a proactive system that generated referrals at the source.
Thinking long-term, I viewed my client base relationally, rather than from a
transactional standpoint.

For most people, success requires planning, a system and commitment.

Serve those who want to be served. A small number of high-quality clients
can send you more referrals than you can handle. Focus your energy and your
efforts where the gold is. This system is designed to invigorate your
database so that they work on your behalf.

Those who've been most successful in our coaching program prove that luck
has nothing to do with it. What determines success is the effort applied to
implementing the fundamentals: stay in contact with clients, take great care
of them and remember to ask for referrals.

These days life is noise, pace and speed-it's easy to not feel valued or
cared for. In my real estate business, I would zero in on my best clients,
let them know how important they were and make sure I was available to them.
We'd meet and afterwards I would send them a book about the topic we had
discussed. Sometimes I gave them items of value that cost a little more-a
balloon ride or tickets to a sporting event. An A+ client is one who has
given you multiple referrals that have closed. With my A+ clients, I kept a
list of what they liked and sent them things based on that. To this day, I
have great relationships with people because I invested time and energy into
my best clients.

If you want your business to be big, make your focus small. If you want to
grow a fortune by implementing a referral-based business, remember that your
database is a goldmine.

Brian Buffini is the founder and president of Buffini & Company. For more
information, visit http://ping.fm/PczF5