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The Successful Home Builders' Newsletter Archives...your library to profit-building articles.

Two Great Referral Generators, Part 1
I'm always keeping my eye out for different methods builders and renovators use (or could use) to increase their profits and reduce the time involved in running their business.

As it happened, two ideas ended up hanging on my parents' fridge...waiting for me to discover them when we visited over the holidays.

What I saw was a postcard from a family friend...and the local recycling calendar.
How a Postcard and a Recycling Calendar Could Help Your Business
First...the postcard.  This wasn't any postcard, it was a postcard from our friends' real estate agent announcing their their recent move.

To see a copy of it simply go to:

http://www.SuccessfulHomeBuilders.com/postcard.jpg

This agent is using his client's 'network' (friends, family, etc.) to market his services for next-to-nothing.  (And, yes, that photo is an actual photo of the house -- what do people want more than others to see their new home!)

Unfortuantely, the agent DROPS THE BALL and misses a crucial step that'll make this postcard almost ineffective!  More about that in a sec...but here's how a builder or renovator can make use of this strategy.

Imagine sending a picture of your client's new home, or new reno, to all their friends and family as a goodwill gesture -- effectively, and cheaply, marketing your business!

Too expensive you say?  Well, no one said you can't limit the numbers (10? 15? 30?) or the geography (say, to your market).  But, how much do a handful of postcards cost?  I know my local office supply store sells 60 for around $20.  Add in cost of printing, psotage, etc. I'm sure it wouldn't top $100.  And that's for D-I-Y...I'm sure it would be about the same, and less hassle.

So here's the kicker, think you could add $100 or so onto the cost of your home or reno to cover the costs?

All of a sudden you're marketing your business to every single person your client knows for about $1.50 per contact.  Try those numbers with your local newspaper.
And Where the Agent Could Have Done Better...Much Better
Remember I said the agent dropped the ball? Actually they missed two steps:

1) ASK the recipient to do something; and
2) USE your client's network's network (more on that mouthful in a second...).

Notice the back side of the postcard.  It's essentially a business card for the agent.  That's it.  This card will sit on someone's fridge (like my parents) then eventually be thrown away.

IF the agent's lucky, people interested in moving soon will call her.  But what about people that are going to move six months, one year or five years from now?  (Or, in your case, build or renovate?)

The agent didn't include a great, low-risk reason to contact her so she could continue to contact.  What about a free moving guide?  Or the "Top 7 Questions" to ask an agent before hiring them?

This agent will only get a handful of calls (if that) before this card goes in the garbage.  However, if she had only taken one more step and added a reason to contact her, she could be building her lead database for now, and future, moves.
...and Mistake #2
Also, this agent isn't considering (or, at least, not making use of) the fact her client's friends and family also have friends and family.

If this agent's information only makes it as far as handful of people her client knows, that's too bad.  Let's say her client sends this card to 50 friends and family members.  That means, those 50 friends and family members probably know 50 OTHER people.  That's a reach of 250 PEOPLE!

So, for the cost of sending a postcard to 50 people, she could actually be reaching 250 people (and, in fact, more!).  How many of those people may be considering moving, or know someone that's considering a move?  (Or, again, in your case, how many of your clients know someone interested in building or renovating?  How many of THOSE people may know someone interested in building or renovating? How many of THOSE people...get the idea?)

By simply placing "If you, or anyone you know, is considering a move in the next XXX months, have them contact me for my free guide." (or whatever tool she chooses to use) this agent could start capturing now and future business for the cost of $1.50 a postcard. (And so can you!)
Recycling Calendar
Next time I'll tell you how a recycling calendar can get you more referrals (not "word of mouth") all year long...without COSTING YOU A PENNY!

Here's to your profitable results!