Referral Thank You's...

[Admin]

In one of the ezine issues I put out, I recommended not throwing away the leads that don't fit your specific criteria.  I suggested using them to create goodwill and/or to generate referral fees.  I realize plenty of investors disagree with this and consider it a waste of time.  You'll have to make that decision for yourself.

I recently sent a friend of mine a $500 check for a little deal I closed.  He had sent me the lead a couple of months ago.  I had intended to make $2,000 for this retail assignment, but due to several factors, I've only collected $1,000 so far and that may be all I get.

I never mentioned to my friend that I was still working on it so he'll get a nice surprise in the mail.  No, I didn't make much and I earned every penny of it and more.  Yes, I gave up half my proceeds (so far), but don't you think my friend will continue to send me leads?

I just thought I'd put this out there for your consideration.  It's been my experience that folks who make money with you typically continue to want to work with you.

[agkatz]

Dear Tim

I haven't received the check yet.  

Please resend it, as my baby needs a new pair of shoes.

- Adam.

[Admin]

Papa better get busy hustling cuz that envelope didn't have your addy on it....

[agkatz]

That's pretty funny...

Actually, I can further validate what Tim is saying:

I just got my first deal down in San Antonio. The reason I got it is because of this:  The investor who flipped it to me has a long list of rehabbers that he already works with.  But, I started sending him leads that came in through my web site, so they put me at the top of their list, for the next time something came across THEIR desk.  (Law of Reciprocity).  

And it did.

Now I'm ready to write my own course on real estate investing.  
(That was a joke.... hence the dancing banana.)

- Adam.
RealEstateCourseReviews.com
http://www.realestatecoursereviews.com

[StacyKellams]

Since you're sending out $500 checks, go ahead and make one out to me too.  :thumbsup

Daddy needs a new monitor. My 21 incher is going out. What really sux is that it's only 2 years old.  


 

[Eric C]

Hi guys -

All fun aside, everyone here seems to agree that Tim has a point about this low cost means of maintaining relationships (networks) with others in the biz. But something that might not occur to newbies is that even if the leads don't prove to be useful, folks remember that you offered to them.

Years ago -- in a time before emails, it was standard practice (for me, at least) to purchase airline tickets to visit possible property acquisitions. I believed then (and I still do today) that most negotiations are best handled face to face (besides, there is the fact that I am terrible on the telephone -- too much hearing loss).  The only way to conduct business at any reasonable level was to travel a lot and that often meant purchasing tickets I might not end up using.  I called them "lunch tickets" -- use it or eat it.

In any case, by buying these things early and in quantity I could get pretty good deals on the airline fares. My usual practice was simply to offer the tickets I couldn't (or wouldn't) use to people (friends, business people, acquaintences, etc) at no cost. The good will these generated was unbelievable -- especially with those folks who DIDN'T take the tickets.  

You see, no matter the outcome, they always remembered you offered. And when's the last time anyone offered you something like that -- no strings attached?

I can't say it was really a marketing effort because it wasn't. Any marketing or goodwill was simply an extra benefit.  On the other hand, over the years I can point to seveal very profitable deals that came my way through similar circumstances. Keep in mind that you don't have to own an airline to make this concept work, dinner invitations to nice restaurants, tickets to sporting events or shows, vacation week-ends at posh hotels -- all of these have the same effect (more or less).

Take care,

Eric

PS - I should also mention that not paying attention to little things (like these) can sometimes come back to haunt you.  Last month, a former business parther offered me some great concert tickets --  but at a very high price.  Not only did I not take him up on them, I also decided then and there to close out my positions (any operations with mutual involvement) ASAP.

Two reasons:

First, he's benefited to the tune of hundreds of thousands of dollars by working with me -- and he wants to now charge me for these? What's up with that?

Second, by insisting that he really needs the money to cover these tickets he's sending a signal that he may be in trouble (he hasn't yet asked for money directly, but it's on his mind).  Time to cut him loose.  People who aren't upfront about their circumstances cause problems for themselves and everyone around them.  Becoming part of the collateral damage in someone else's BK or reorganization isn't on my agenda.  And it shouldn't be on yours.