If you’re a real estate agent, you know how profitable it can be to handle referrals from other agents. Engaging in two-way referrals with other agents is one of the most lucrative aspects of the business. But the fact is that most real estate agents are not taking advantage of this opportunity as much as they could.

As an agent, you need a game plan to get referrals, and this article has some tips for developing one. What this strategy really boils down to is combining the power of the Internet with good old-fashioned networking.

Using the power of Internet networks

The Internet allows you to interact with people from all over the country and around the world. This is especially the case when it comes to social networking sites like Active Rain, LinkedIn, Facebook, Twitter, and many others.

But it’s hard for most real estate agents to see how social networking sites like Active Rain and LinkedIn can benefit their business. After all, estate agents primarily deal with local clients, so it’s not clear how having professional contacts in cities on the other side of the continent will help you.

It is true that Facebook, Twitter and some others will allow you to network with local people. For example, you can search for friends and followers who live in your city, town, or region. Or you can join Facebook groups where members share some of their interests. Let’s say, for example, that there is a group of concerned citizens in your community who have formed a Facebook group to protest against the construction of a new large shopping center on the outskirts of town. Or let’s say there’s a dating group or a photography group or a small business group for your city or town.

But getting involved with groups like this has some obvious problems. You may not want to identify with the cause being promoted, or you may just not be a “fit” very well in other ways. Typically, the range of interests is so wide on Facebook and Twitter that finding people who might be interested in your service is a long shot. Almost any local supporter group is going to contain people with other causes to promote, entrepreneurs promoting their products or services, kids killing time, and just ordinary people who want to share news and photos with their friends and family.

Hardly any of these people want you to feature their real estate services, even subtly, in every post or comment you make. Therefore, it will be difficult to get your marketing message across without turning off more people than you turn on.

What you really want to find are people interested in real estate issues and opportunities in your local community, and you probably won’t find them on sites like Facebook, Twitter, Active Rain, and LinkedIn.

What you can find on some of these sites are other real estate agents. But what good is that? They are not potential customers. They are not likely to buy a house in your town or city.

What you might find on some of these sites are real estate agents who share your interest in exchanging referrals. Especially on a site where that is their entire focus. These are agents who subscribe to the idea “If you scratch my back, I’ll scratch yours.” And that’s a great place to start on your quest to build a strong and productive referral network.

Old-fashioned networking: the other necessary ingredient

Despite its power and potential as a communication tool, the Internet can be a very disappointing tool for marketing. As millions have learned, simply launching a website or blog does not guarantee visitors. And it certainly doesn’t guarantee customers. Even if you find a group of people dedicated to sharing referrals, there’s no guarantee that they’ll want to share them with you. Getting a response from your network requires some work, what we call “good old-fashioned contacts.”

The simple fact is that people will not buy from you or use your services just because you are on the web. First of all, most people will never find you. And second, even if they do find you, they probably won’t see any good reason to trust you or prefer you over your competition. This is a tough pill to swallow for most people who have just spent hundreds or thousands of dollars to set up a website, but that doesn’t make it any less true.

The same goes for participation in networking sites like Facebook, Twitter or Active Rain. Being there is not enough. You have to participate. Participating helps you develop new friends, followers, and networking partners. Participating means telling others what you are doing, sharing your relevant experiences, taking an interest in what others are doing, and showing your interest by commenting on their contributions and ideas or providing suggestions when they have problems.

This is what we mean by “old-fashioned networking”: connecting with people who share some important interests with you, sharing ideas and opportunities with them, and showing an interest in what they say and do.

Is it possible to bring these two things together, the power of the Internet and good traditional networks, and create a successful marketing strategy in the process? More specifically, is it possible to create a successful agent referral network in this way?

Yes it is, and the formula is really quite simple. You must first find other agents interested in networking with you. The Internet is a good place to start, especially sites dedicated to real estate agent referral networking.

And second, you need to network with them. Introduce yourself, ask them questions, answer their questions, show them that you are interested in what they are doing. Just as you should with your customers, develop a system for keeping in touch with them on a regular basis. You’ll be amazed at how many interesting people you can meet and how productive such a network can be.