How to Create a Property Management Referral Program
As a property manager, you most likely spend time searching for different ways to grow your property management company.
However, it can be difficult to know what to do or even where to start.
One of the ways to expand a property management business that is growing in popularity is to develop a property management referral program.
So, in this guide, we will be explaining how property managers can do just that, as well as why they would even be interested.
To begin, let's discuss why a property management referral program would be important for property managers.
Why Referral Programs are Important for Property Managers
Referrals are a vital part of any property manager's business.
It is a common way for property managers to gain new clients and build their business.
Referrals are recommendations from satisfied clients who have had a positive experience with a property management company.
These recommendations can help to build trust and credibility for property managers, making it easier to attract new clients.
But, how can these referrals actually help expand a property management business?
How to Leverage Referrals To Grow A Property Management Business
Referral programs can help property managers grow their real estate business in several ways.
First, they can generate new leads and increase their client base.
Referral programs also provide an opportunity to build relationships with existing clients and maintain a positive relationship with them.
Additionally, referral programs can help property managers stand out from the competition, make sure that their business remains competitive, and even help fill their rental properties faster.
So, now that we know how a referral program can help grow a business, let's get started with how to plan and set up your referral program.
Planning & Setting Up Your Referral Program
The first step in creating a property management referral program is to thoroughly plan and set it up
In this section, we'll be discussing the planning and setup of your referral program.
To begin, we have to determine the target audience.
Determining the Target Audience
The first step in creating a successful referral program is to identify your target audience.
Knowing who your program is intended for will help you determine the right incentives and promotional strategies to use.
Your target audience could be your current clients, real estate agents, property owners, or even tenants.
For example, if you want a new property owner to know about your services, you may be inclined to start a realtor referral program or real estate agent referral program.
One of the most effective ways to determine your target audience is to look at your existing client base.
Some of the things that you should analyze include your clients':
- Likes/dislikes about your services
You can also conduct market research to identify potential new clients and their preferences.
For example, you may have tenants that own their own rental properties and can hire you to manage them.
Setting Clear Objectives & Goals
Once you have determined your target audience, the next step is to set clear objectives and goals for your referral program.
These goals will guide your decision-making process and help you measure the success of your program.
Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
For example, you could set a goal to increase your client base by 10% through referrals within six months of launching your program.
Deciding on the Referral Rewards System
The referral rewards system is an essential part of any successful referral program. It is the incentive that motivates people to refer others to your business.
The type of reward you offer will depend on your target audience, the nature of your business, and your budget.
You can offer various types of rewards, including:
- Monetary incentives
- Gift cards
- Discounts on services
- Free upgrades
It's important to ensure that the reward you offer is valuable enough to motivate people to participate in your program.
It is also important to make sure that you check with your state and local laws for anything that may prohibit paying referral fees to specific individuals.
Creating a Referral Program Marketing Plan
Finally, creating a referral program marketing plan is critical to generating leads and building relationships.
Your marketing plan should include a targeted email campaign, a webpage form, and a simple handwritten card for your existing clients.
Your marketing plan should focus on the benefits of participating in your referral program, such as the opportunity to generate income, build relationships, and help others.
Make sure to also highlight the success of past referrals and how the referral program has benefited your clients.
So, after planning everything for your referral program, you can begin thinking of ways to promote it to gain more exposure.
Promoting Your Referral Program
After going through the work of planning and setting up your referral program, the next thing you're going to want to do is promote it.
Below, we've outlined some of the most important steps in promoting your program to make sure you get your property management services as much exposure as possible.
Creating a referral program landing page on your website
The first step in promoting your referral program is to create a dedicated referral program landing page on your website.
This landing page should provide information about your referral program, including details about the reward, how it works, and how to participate.
The landing page should also include a simple form for referrals to submit their information immediately.
Make sure to optimize the page for search engines by using relevant keywords, such as "property management referral" and "referral program."
Include a call-to-action on the page to encourage visitors to sign up for the program.
Using social media
Social media is an excellent tool to promote your referral program.
Use your social media channels to announce the launch of your program, and encourage your followers to participate.
Share success stories and testimonials from clients who have benefited from the program. Use targeted ads on social media to reach potential clients who may be interested in your services.
Sending email campaigns
Email campaigns are a great way to promote your referral program to existing clients and prospects.
Create a targeted email campaign that highlights the benefits of the program and encourages recipients to refer their friends and family.
Include a call-to-action and a link to your referral program landing page.
Providing materials to your clients and partners
Another way to promote your referral program is to provide marketing materials to your clients and partners.
This could include a simple document with details about the program or a brochure that outlines the benefits of the program.
Make sure the marketing materials are eye-catching and clearly explain the referral process.
Partnering with complementary businesses
Partnering with complementary businesses is an effective way to promote your referral program to a wider audience.
Identify businesses that target the same audience as you, such as real estate agents or rental property owners, and approach them about cross-promoting each other's services.
Offer to promote their business to your clients in exchange for promoting your referral program to their clients.
Setting Up a Tracking System
To set up a successful referral process, it's crucial to set up a system that allows you to easily monitor and manage your referrals.
One way to do this is to use a dedicated webpage form to collect referral information. You can also use a targeted email campaign to encourage your clients to refer their friends and family.
Once you've collected referral submissions, it's essential to log them in a spreadsheet or database, so you can keep track of the referrals and their progress.
This helps you identify which referral sources are generating the most leads and conversions.
Analyzing referral program data
Analyzing the data from your referral program can help you understand how well it's performing and identify areas for improvement.
Some key metrics to track include the number of referrals received, the number of referrals that convert to clients, the average value of referral sales, and the conversion rate of referral leads.
By analyzing this data, you can determine which referral sources are the most effective and which referral types are generating the most business.
You can also identify areas for improvement, such as increasing the number of referrals or improving your conversion rate.
Making necessary adjustments
Based on the data analysis, you can make necessary adjustments to your referral program to optimize its performance.
For instance, if you find that a specific type of referral generates more business, you can focus on increasing those types of referrals. You can also provide more incentives for referrals, such as finders fees, to encourage more referrals.
It's essential to maintain a positive relationship with the person making the referral and the client they are referring.
You can thank the person making the referral with a simple handwritten card or other small gesture of appreciation. Make sure to communicate with the client, keeping them informed of the referral process and the status of their referral.
Maintaining & Nurturing Referral Relationships
Nurturing referral relationships as a property manager
To maintain contact with referred clients, consider developing a system to check in with them periodically.
For example, you could set up automated email campaigns that go out to these clients every six months or so. This will remind them of your services and provide an opportunity for feedback.
Another option is to make personal contact with your referred clients by sending a simple handwritten card thanking them for their business.
This personal touch can help build a positive relationship with your clients, making them more likely to refer others to you.
Offering Incentives to Clients Who Refer Multiple People
Incentivizing clients to refer multiple people can be a powerful way to generate new business. Consider offering a discount on future services or a monetary reward such as a finder's fee to clients who refer multiple people to you.
This not only encourages clients to refer you to others but also provides a benefit to them, making it a win-win situation.
Nurturing Long-Term Relationships with Referral Partners
Long-term referral relationships are built on trust and mutual benefit. To nurture these relationships, consider discussing the specific individuals or businesses that your referral partners are targeting.
This can help you tailor your services to their needs and increase the likelihood of future sales.
Another way to build a positive relationship with referral partners is to offer a targeted email campaign that provides valuable referral information.
This campaign could include property descriptions, management referral program details, and other useful information that can help your referral partners generate leads.
In addition, consider using a webpage form to allow for easy submissions of referral information.
This makes it simple for your referral partners to submit new leads and helps you manage these leads more efficiently.
Jumpstart your lead-generating referral program
Creating a property management referral program can be an effective way to generate new business and build relationships with clients, realtors, and other referral partners.
By following these tips, you can manage and nurture your referral relationships, making your program more effective in generating new clients and future sales.
Remember, building positive relationships with your referral partners is essential to the success of your program.