Referral Business From Past Client.... how important is it? - InspectionNews

Brian Hannigan · #1 (**permalink**) 07-25-2008, 11:27 AM

There has been much discussion on marketing and how to get more business. One thing that I commonly hear is inspectors saying to go after "Referral Business".

Please fill out the poll and on a scale of 1 - 5 (5 being the best or most important) and let me know what you think the value is of an inspection that has been handed to you by a past client.

If you wish, please reply to this post and let us know why you feel a referral inspection is better than a client off the streets.

Easier to book?
A better client?
Not as concerned about price?

Dan Harris · #2 (**permalink**) 07-25-2008, 11:46 AM

Quote:

Originally Posted by Brian Hannigan

There has been much discussion on marketing and how to get more business. One thing that I commonly hear is inspectors saying to go after "Referral Business".

Please fill out the poll and on a scale of 1 - 5 (5 being the best or most important) and let me know what you think the value is of an inspection that has been handed to you by a past client.

If you wish, please reply to this post and let us know why you feel a referral inspection is better than a client off the streets.

Easier to book?
A better client?
Not as concerned about price?

Referrals are easier to book, most of the time the inspection is already sold by my former customer, the new customer already knows what I deliver, just wants to know when I can do their home.
Call from new customer, 3-10 min.
Call from a referral . 1-2 min, most of the time just enought time to get their info.
Price is secondary , I bring it up, on most referral calls.

Scott Patterson · #3 (**permalink**) 07-25-2008, 12:00 PM

I have to echo Dan and his response.

Ted Menelly · #4 (**permalink**) 07-25-2008, 01:39 PM

The biggest thing would be price. They already know what their friend, mother, neighbor paid so if they are calling you it is a done deal. No haggling or price shopping involved and you are the only one on their list. You have the inspection.

Jack Feldmann · #5 (**permalink**) 07-25-2008, 02:56 PM

Dan covered it well.

Bob Elliott · #6 (**permalink**) 07-25-2008, 05:14 PM

Web sites are all I use for marketing, but that would not be enough to keep going if not for referrals.

Referrals are what you get when you make a past client happy and if they send you a referral you are happy, not just for the extra income , but also the fact that your service was good enough for them to send another your way.

Rick Hurst · #7 (**permalink**) 07-25-2008, 05:41 PM

Referrals is great business. Coming from a satisfied prior client to another potential home buyer I think is great.

But when I'm out on a home inspection, do I offer referrals? NO

People automatically think your trying to drum up business for someone else to get a paid fee. Kind of like many HI's do with Brinks. I don't do it. I think you lose some of the confidentiality with the client when doing so.

JMHO

rick

Ted Menelly · #8 (**permalink**) 07-25-2008, 07:20 PM

Rick

I don't do the Brinks thing either.

I Never liked the idea of giving my clients info to someone else so they can call and market them.

Bruce Ramsey · #9 (**permalink**) 07-25-2008, 09:27 PM

Agree that referrals are easy sells. The only issue is what date/time is best. Price, features, etc. are usually already known by the referral.

Did a warranty inspection for a client. Finished the 4th inspection on that cul-de-sac today. 5th has already booked for Sept 5. All from referral. The first client posted my information in the neighborhood newsletter/bulletin board. When the referrals call, they say Donna B referred me. Some do not even know who Donna B is but saw her referral in the neighborhood publication.

fritzkelly · #10 (**permalink**) 07-25-2008, 10:09 PM

I guess I am the lone "no different than any other inspection". I use a scheduling service and really don't know or care where my work comes from.

Nolan Kienitz · #11 (**permalink**) 07-25-2008, 10:27 PM

Referrals are the best.

Deal is already done. They just want to book. Most of mine don't even ask for rate.

They trust their referral source, have heard about my work and want an inspection.

Most of mine are from former customers.

Jeff Kirkpatrick · #12 (**permalink**) 07-28-2008, 06:02 AM

Fritz:

You have no idea how much business you are missing out on. Everything these guys have posted is true. I have been in business 8 years. All of my business comes from referrals. I do not advertise. Most of my clients don't ask or care about the price. After each inspection I send a letter to the client asking them to refer me to their friends and family. It works

#13 (**permalink**) 07-28-2008, 06:37 AM

I would love more referrals. I'm relatively new in the business so I've only experienced one referral so far. It was great! Only had to worry about scheduling and being there to trade inspection for check. Loved it!

Mike Schulz · #14 (**permalink**) 07-28-2008, 05:40 PM

Referrals is 80% of my business. If it wasn't for that I would be out of business and be a consultant..........

Well maybe a media between the Jerry's and my clients.

fritzkelly · #15 (**permalink**) 07-28-2008, 10:06 PM

Quote:

Originally Posted by Jeff Kirkpatrick

Fritz:

You have no idea how much business you are missing out on. Everything these guys have posted is true. I have been in business 8 years. All of my business comes from referrals. I do not advertise. Most of my clients don't ask or care about the price. After each inspection I send a letter to the client asking them to refer me to their friends and family. It works

Yeah, but then I would have to answer the phone. I think I get plenty of referrals, I just usually don't hear about them.

JB Thompson · #16 (**permalink**) 08-01-2008, 08:42 PM

I just looked at my software (it keeps track of this) and 40% of my b'ness is referrals. That's a good number, but I would definitely like it to be better.

Randy Aldering · #17 (**permalink**) 08-16-2008, 04:27 PM

Is it safe to presume we are talking about referrals from previous clients here?

Raymond Wand · #18 (**permalink**) 08-17-2008, 06:29 PM

Can't remember the last time I had to advertise thanks to referrals and reputation. Never found advertising to be an effective tool for gaining business.

Brian Hannigan · #19 (**permalink**) 08-18-2008, 02:55 PM

The reason I created this poll/thread was because every post I have read on InspectionNews about marketing or "how do I get more business" always ends up with comments about referrals. The referral comments are always positive for the same reasons mentioned above and shown in the poll.

This is true when speaking to inspectors at conferences and chapter meetings as well. No one wants to market to Realtors & everyone loves referral business.

My next observation was that very few inspectors were active in keeping in touch with past clients. There might be one "Thank You" card follow up from some inspectors but other than that there seems to be very little effort put out to get the most sought after business, the referral business.

I have been thinking about this for a long time and have been looking for a cost effective, easy and non time consuming methods for you to keep in touch with past clients so that you are always on their mind when a friend, co-worker or family member asks them about the inspection process and who they used. This has not been easy but I have found a system that I think you will really like.

Like any other marketing, repetition is extremely important, even to your past clients. You have to keep in touch, in a non-intrusive way so that you will be remembered and become more than "just the inspector" who they used, you want to become "their inspector" or maybe even their friend.

After all of my searches to find a way (e-mail, phone calls, newsletters etc.) I found a system that I liked because it gave a much more personal touch.

If you are interested in a system that I believe will increase your referral business then take a look at this ten minute video. When you are done with the video click on the second link in this post and you can sign up for a test account and try the system for free.

Click here for the Referral Video: Video

Click here for a free trial: Free Trial Keep your sound on and it will walk you through the steps.

If you have any questions please let me know.

Mike Schulz · #20 (**permalink**) 08-18-2008, 03:44 PM

I will let others try this first. Here's why. I find it wasteful and annoying of all the junk mail I get. Most people toss the crap right in the can when they get it without looking at it. It might work for the first month or so but then it becomes spam and tossed in the can.

I think you could actually get on peoples nerves and loose business. When I bought my car last year my salesman calls me once a month. I find it very annoying even though I like the guy. I told him I will tell my friends about him when they are looking for a vehicle. He stills calls.

When I bought my house my Realtor sent me cards every month and that went straight to the can. I get the same crap in the mail every week and every week it goes straight into the thrash.

I think if you sent them something every six months or so it might work but monthly..........

Brian if you can create a news letter that we can send out once a quarter to our clients and Realtors that would be useful by email I think it would go allot further. There is someone out there making news letters for inspectors already but it's to expensive.

Brian Hannigan · #21 (**permalink**) 08-18-2008, 04:55 PM

Hi Mike,

I wouldn't send out once a month either for the same reasons. That could become pointless spam.

Find what works best for you. Once a quarter, once every six months, once a year, what ever it may be. The point is to keep in touch. Don't deliver your inspection report and let that be your last contact and expect to build a referral business. You might get a referral here or there but you won't build a business that can survive on referrals.

There is always a reason or two (or more) a year to make contact with the past client. Holidays, birthdays, seasonal, anniversary on the inspection date. You can think on many reasons.

Another difference is that these are not post cards and it's not metered mail. These are regular cards, in your own handwriting font, with a stamped envelope. They will get opened every time, especially if you make them sincere, and not a solicitation each time.

The goal is to let your clients know you care about them. The business will follow.

Raymond Wand · #22 (**permalink**) 08-18-2008, 05:49 PM

I always put a client questionnaire in with my report with a self addressed stamped envelope. On average I get back one back per 10-12 inspections. They have always been positive. It also gives them a chance to suggest improvements.

I think its more important to seek clients feedback than to pester them with information such as newsletters and the like.

If they like the service you can bet they will recommend you to their friends and family at least in my experience.

Jim Luttrall · #23 (**permalink**) 08-18-2008, 08:26 PM

Brian, I tried to view the Referral movie several times and could not get it to work. You might want to check it out. Maybe I was too impatient but I thought I gave it enough time to load.

JB Thompson · #24 (**permalink**) 08-18-2008, 08:45 PM

Quote:

Originally Posted by Jim Luttrall

Brian, I tried to view the Referral movie several times and could not get it to work. You might want to check it out. Maybe I was too impatient but I thought I gave it enough time to load.

takes a long time. even when it is ready, it says "movie loading"

i think after about 5 min., i went back and clicked play down on the bottom left and it worked.

Brian Hannigan · #25 (**permalink**) 08-18-2008, 11:10 PM

There was a lot of traffic but that still should not have slowed it down that much.

If you have a cable/dsl connection it should be ready to play within seconds. There may have been heavy traffic or a server issue. If it interests you please give it another try.

Dan Harris · #26 (**permalink**) 08-19-2008, 07:24 AM

I waited for over 1/2 hr.
Figured out if you hit the little arrow at bottom of left side of screen it started right away

Opps I see Bruce figured it out in a prior post.

Jerry Peck · #27 (**permalink**) 08-19-2008, 07:25 AM

I think the poll should have clarified *what kind of* "referrals" it was asking about.

Poll OptionsHow Important Is It To Get A Referral Inspection?
No big deal - Don't care about referrals
No different than any other inspection
I'll take it if it comes my way but not actively seeking referrals
Great. Wish I could get more
Awesome! Would like it to be the majority of my business

View Poll Results

Was it asking about ...

Real estate agent referrals?

Past client referrals?

To me, and I suspect other HIs, it would make a difference.

Brian Hannigan · #28 (**permalink**) 08-20-2008, 12:10 PM

Hi Jerry,

Sorry if there is any confusion. I thought I was making it clear with this line...

Quote:

Please fill out the poll and on a scale of 1 - 5 (5 being the best or most important) and let me know what you think the value is of an inspection that has been handed to you by a past client.

I think by the poll results everyone got it.

If anyone did not understand I hope you do now.

Jerry Peck · #29 (**permalink**) 08-20-2008, 01:04 PM

Brian,

Sorry about that, I did not read your post under the poll, just the poll itself.

Brian Hannigan · #30 (**permalink**) 08-20-2008, 01:09 PM

No problem. I also changed the title of the thread and post.

Thanks for the heads up!

Brian Hannigan · #31 (**permalink**) 08-29-2008, 02:07 AM

Thank you to everyone who has been interested in receiving more referrals and especially to the people who have signed up.

For those of you who are on the fence here is a new video that has more information.

Referral Video

Please let me know if you have any questions.

Brian Hannigan · #32 (**permalink**) 09-18-2008, 01:18 PM

I spoke at a chapter meeting last night and we talked about referrals.

I asked if everyone liked getting referrals from past clients and everyone "Yes".

The reasons were all the same as stated above, a referred client is a much better client.

The next question was how many inspectors (there were about 20) did anything (even just a thank you card) to keep in touch with a past client. Just one person and she said that it was her franchise that took care of this.

In this market when many inspectors do not have their schedules full I believe everyone is missing out on an important marketing opportunity.

Every past client is a potential network for your business but like anything else, out of sight, out of mind. If you don't keep in touch you will be forgotten.

I have had several people sign up for this Send Out Cards Referral System and have had many questions as well about the pricing.

This might help to clear things up.

There are several packages but only two that make sense for business use where you will send many cards over a year.

This referral program is also a referral program in itself where you could earn money if you find someone that would like to use the system.

1) Entrepreneur Package Plus
Cost: $398 - With that you get at no cost:
a) $62 credited back to your account for sending cards (Post cards are .31, Regular cards are .62, Tri-fold cards are .93 and Picture Plus cards are .93) Plus postage
b) $50 Hand Writing font (send cards with your own handwriting and 4 different signature options)
c) $99 Picture Plus (add your own photos to make your own cards) . Get a picture of your client in front of the house and send them the card. This is something they will keep and/or show friends.

So considering the free items included your sign up fee (license) is really $187

This program also pays you $100 if you find someone who likes the system and would like to start an account. It only takes two people and your sign up fee is covered. Get more than two and make money.

There is also what they call "$31.00 Auto-Order (100 Points/month)". Think of that as a marketing budget. It puts $31 (100 point) into your account each month for cards.

************************************************** **

2) Wholesale Package Plus
Cost: $298 - With that you get at no cost:
a) $62 credited back to your account for sending cards (Post cards are .31, Regular cards are .62, Tri-fold cards are .93 and Picture Plus cards are .93) Plus postage
b) $50 Hand Writing font (send cards with your own handwriting and 4 different signature options)
c) $99 Picture Plus (add your own photos to make your own cards) .

So considering the free items included your sign up fee (license) is really $87

However with this option you do not get paid for referring someone to the system but please send them my way

There is also what they call "$31.00 Auto-Order (100 Points/month)". Think of that as a marketing budget. It puts $31 (100 point) into your account each month for cards.

************************************************** **

There is a Retail Package but I would not recommend it. You do not get your own hand writing and the cost for each card is higher.

The "Expense Account" on the order form is for your postage. They keep the card price and the postage separate so just add $10 or $25 depending on how many cards you plan on sending right away. You can always add to that at any time if your postage account runs low.

I can also do a web meeting with you and help you sign up and or show you the features.

Click here for the video

Click here to test the system for free: Send a card for Free

If you would like to talk about it just let me know and I will give you a call or you can sign up here.

Patrick McCaffery · #33 (**permalink**) 09-22-2008, 06:09 AM

Brian,

I am starting my second year in business and I am just starting to get referrals. Not only is it a good source of business, but it lets me know that I am doing a good job.
I got one great referral this summer from a seller. I was doing a radon inspection in her home for my client and her six year old son and his friend fooled around with my monitor. I was able to work it out so that I did not have to charge her for the re-test of the radon and she not only used me for the inspection on her new house, but referred me to her Realtor and Attorney. Since then I have gotten work from the Realtor.
Last week I did an inspection for a client that had accopanied her friend on her inspection one year ago.
It pays to do a good job, be personable and treat clients right.

Randy King · #34 (**permalink**) 10-17-2008, 11:17 AM

I think everyone would agree referals are great. Why not receive more business and most of all more money. I think it is quite simple and although send out cards is a great program I personally like to use my own greeting/holiday cards. What I do is gather their information, and present address on the inspection agreement (they dont ever ask) and then send out a thank you letter about 1-2 weeks after the inspection and then from there about once every 6 months or so send out a card for a holiday or better yet a 1-year anniversary for living in there house. This is more than enough to stay in front of your past customer and receive a possible referral. Just my .02

Randy Hooser · #35 (**permalink**) 01-28-2009, 06:55 PM

All...

It seems that many of us have the same frustrations with trying to get and keep our inspection schedules full. You can be the best home inspector in the world, but if you can't market yourself and your business, nobody will know or care.

What if there was a resource dedicated exclusively to helping home inspectors book more inspections? Well, there is. It is run by a guy who owns an extremely successful home inspection company. He provides a wealth of strategies, techniques, and tips to help grow your home inspection business. He spends a lot of time and effort making sure they work in his own business before he gives them to the members of the group.

Here are just a few of the things you can learn that can help you grow your business:

How to get into the real estate offices and have the agents actually look forward to you coming back each week
The only reason anyone buys anything, a secret you can incorporate into all of my marketing materials
How to get more referrals from your prior clients
How to get testimonials from your clients and real estate agents, and how to use them effectively in all of your marketing materials
Several strategies about how to go directly to the public for business, skipping the real estate agent
How to make your website a sales tool and get it to makes sales 24/7
The kind of direct mail that gets results
Much, much more…

This resource is too valuable to not at least take a look. Being a part of this group has literally transformed my business.

To learn more about this extremely valuable resource and how you can become a member of this group, go to Home Inspector Marketing for Inspection Companies.

Randy Hooser
Dallas Home Inspections | Ft. Worth Home Inspections

Billy Stephens · #36 (**permalink**) 01-28-2009, 08:02 PM

Quote:

Originally Posted by Randy Hooser

All...

It seems that many of us have the same frustrations with trying to get and keep our inspection schedules full. You can be the best home inspector in the world, but if you can't market yourself and your business, nobody will know or care.

What if there was a resource dedicated exclusively to helping home inspectors book more inspections? Well, there is. It is run by a guy who owns an extremely successful home inspection company. He provides a wealth of strategies, techniques, and tips to help grow your home inspection business. He spends a lot of time and effort making sure they work in his own business before he gives them to the members of the group.

Here are just a few of the things you can learn that can help you grow your business:

How to get into the real estate offices and have the agents actually look forward to you coming back each week
The only reason anyone buys anything, a secret you can incorporate into all of my marketing materials
How to get more referrals from your prior clients
How to get testimonials from your clients and real estate agents, and how to use them effectively in all of your marketing materials
Several strategies about how to go directly to the public for business, skipping the real estate agent
How to make your website a sales tool and get it to makes sales 24/7
The kind of direct mail that gets results
Much, much more…

This resource is too valuable to not at least take a look. Being a part of this group has literally transformed my business.

To learn more about this extremely valuable resource and how you can become a member of this group, go to Home Inspector Marketing for Inspection Companies.

Randy Hooser
Dallas Home Inspections | Ft. Worth Home Inspections

.
Hey Ted,

He's only 15 listings Below You ( inspectopia link on his wed page ) and at .08 cents per sq. ft @ 2500 and up on his prices.

You signed up Yet?

Daniel Leung · #37 (**permalink**) 06-21-2009, 09:30 AM

Quote:

Originally Posted by Brian Hannigan

My next observation was that very few inspectors were active in keeping in touch with past clients.

Brian, I keep in touch with my clients through email (and blog), not just a Thank you card. My clients are encouraged to ask me any maintenance ideas after my inspection services. It is a free service, but not every clients call back.

I am teaching "House Inspection DIY" for the Continuing Education of Vancouver School Board. It is a 2-days course on Saturday for the house owners to know about their house and how to upgrade their home into more safe and better condition.

When I email the new class information to my past clients every 3 months, it is a kind of reminder of my inspection business. I never dispatch business card or promote my business in my class (It is the rules). However, I got new clients after every class, also some new referral from the students.

The teaching pays less than inspection, but it is worth to spend my time to serve the community and... get new referrals. Anyone want to try?

Nick Ostrowski · #38 (**permalink**) 06-21-2009, 10:25 AM

The best way to get referral business is to do a good honest job for your clients. As long as you do this, have a good work demeanor and decent personality, referrals will come your way. Keeping in touch with past clients would be the next best way.

You shouldn't have to ask for referrals. To each their own but when I hear a "marketing guru" recommend that you ask for referrals as a way of building your business, I cringe. "Don't keep me a secret" is the line I heard one marketing guy say. It may work but it seems like shameless hawking.

Mike Schulz · #39 (**permalink**) 06-21-2009, 06:09 PM

I'm with Nick, it's like begging for food. Have you no shame

I won't do it but whatever floats your boat..........

imported_John Smith · #40 (**permalink**) 10-26-2009, 04:29 PM

The majority of my business is from past referrals. Did a new house the other day, 1400 square feet, one story, clients hung out for first few minutes - gave me the check, and then asked me to call them when I was done. Plus the front of the house actually faced North (to help me reference walls, etc in the report).

Man, it doesnt get much better than that (unless the client is a Texans Cheerleader and wants to partially pay me in some sort of trade).