Why are Referrals So Important - THEN & NOW

Seems like I've been in the insurance business FOREVER... In actuality, it's only been 30 years. Interesting that in that 30 yaars I don't feel like it's been just one carreer, but about 4. It's just changed so much over the years, I've had to RE-Learn the business several times.

1978

• Microfiche Readers
• 1 phone line
• All manuals/rate books in 3 ring binders
• Information updates several weeks old
• Commission checks mailed to me
• Delivering paperwork all over town
• Communication by
  
• Office phone
  
• F2F (Face to Face)
• Mail (USPS)
  

2008

• Computer
• 5 phone lines
• Manuals/rate books online
• Information Updated Immediately
• Commission Checks Direct Deposit
• "Paperwork" delivered via FAX / Email
• Communication by
• Office Phone
• Cell Phone
• F2F
• Mail (USPS)
• Email
• Website
• Fax
• Voicemail
• Blackberry

I'm tired just looking at all that. As our business has changed, so has the world we live in and the people we need to reach to drive our business forward.

• THEN: People had Answering Machines to Catch Calls (and
  NO
  Caller ID)
• NOW: People have Answering Machines to SCREEN calls (in
  addition to Caller ID)(I never answer the phone when I'm home,)
• THEN: People viewed the mail with EXPECTATION.
• NOW: People view the mail with SUSPICION and ANNOYANCE
  (ever received an ad that looked like a check?) (Do you stand over the trash
  when sorting your mail?)
• THEN: People answered their door when a stranger
  knocked.
• NOW: People check the peep-hole -- Maybe they
  answer, maybe they don't.

With all this KEEPING THE WORLD OUT going on today, it's no wonder that our "traditional" methods just don't work anymore.

• Cold Calling (can't get past the answering machine)
• Expireds & FISBO's included here
• Direct Mail (sorted into the trash just like everybody else)
• Print Ads
• Internet Ads / Leads (what are your chances among all those Web Sites/Pages (here's the best data I could find)

19.2 billion pages were indexed by Yahoo as of August 2005.
70,392,567
websites were indexed by Netcraft as of August 2005.

Yet when we're feeling a little behind the curve, it's all those "traditional" vehicles we run to. It's all those devices that are costly and that provide such lesser-quality leads than do referrals from people who know us, like us and trust us.

REFERRALS ARE:

• Usually not just looking
  
• Nearly always convert to clients
• Come to us Pre-Sold on us
• CALL US (or, IDEALLY, the friend calls us asking us to call the referral)
• Requires only about an hour a day of nearly FREE activity to create
• The highest quality
  
• Higher average sale price / commission
• Are most likely to then refer us because they were referred TO US.

How could we NOT embrace the simple, daily process of nurturing our database and centers of influence to generate quality referrals???????

We press on..... :)