Top producers consistently report that the bulk of their business comes from their referral database. In fact, the latest NAR Profile of Home Buyers and Sellers says that 57 percent of all closed transactions came from the agent’s sphere, past clients list, or referrals.

Nevertheless, many agents continue to spend a huge percentage of their marketing dollars developing new sources of business rather than strengthening their existing referral database.

So, here’s the bottom line: to be more profitable, focus on building referrals from your existing sphere of influence. This means putting well over half your time and your money into developing leads from these sources. It takes less time and it almost always yields results.