Humber/Ontario Real Estate Course 4 Exam Practice

What is an effective method for developing business in real estate?

1. Open houses exclusively for potential buyers

2. Referrals from satisfied clients and customers

3. Duty time as a strategy for finding clients

4. Prohibiting door-to-door canvassing for privacy

5. Mailing lists for contacting potential customers

6. Online social media advertising campaigns

The correct answer is: Referrals from satisfied clients and customers

Referrals from satisfied clients and customers are one of the most effective methods for developing business in real estate. This strategy leverages the positive experiences of past clients, who can provide credible endorsements to their friends and family. When clients are happy with the service they received, they are more likely to share their experiences, offering valuable word-of-mouth marketing that can lead to new business opportunities. This approach is particularly effective because it builds trust. Potential clients are more inclined to work with a real estate professional who comes highly recommended by someone they trust, which can significantly influence their decision-making process. Additionally, referral-based leads often convert at a higher rate compared to leads generated through other marketing tactics since the prospective client has a built-in level of confidence and trust in the referred agent's capability and reputation. While other methods, such as online advertising or open houses, can be useful in generating leads, they often lack the personal touch and trust factor that referrals provide. This makes referrals not just a method of developing business but a cornerstone of sustainable success in the real estate industry.