5 reasons why alcohol is a risky settlement gift

Some agents are already thinking … “C’mon – they’ve got to be kidding. It’s one of our main ways to say congratulations. What’s wrong with gifting a bottle of expensive bubbly? How could this possibly be a risky gift?”

We think it’s not only risky, but a really big missed opportunity to grow more listings for your business – and here’s why.

A settlement gift is an opportunity to do two things.

  1. Make you memorable – you want to make sure your client remembers you. Client referrals is one of the most effective channels for new listings for real estate firms (world-wide) and referrals can happen well after you’ve done business. You only become relevant again when your clients friends or family need your service – and that’s when you want to be top of mind.
  2. Show that you’ve been really thoughtful – establishing a strong connection with a client doesn’t happen overnight. Demonstrating you’ve been thoughtful and not just transactional in your settlement gift makes an enormous difference. Why? Because it shifts the focus. Most businesses are not generous or thoughtful. They are transactional (i.e. you did this for me, here is your reward). If your settlement gift does this, you’ve got a greater chance of being well regarded by clients and being talked about.Being talked about  = more referrals. We have a list of 10 strategic rules we use when it comes to settlement gifts.

Here are five reasons why gifting alcohol doesn’t do either.

    1. It’s a ‘one use’ gift.
      Our #1 rule when it comes to settlement gifts is make sure the gift useful so it’s used time and time again. It gives you the best opportunity of being recalled and talked about between friends and families when that moment comes that they need a great real estate agent. If you gift a ‘one use’ item like a bottle of champagne. You’ve wasted an opportunity. Instead – you should be gifting something that is useful, personal, memorable and will remain ‘used’ in the home often.
    2. Some people have an unhappy history with alcohol.
      Unfortunately, the statistics show that a percentage of your clients will experience addiction, violence and sadness as a direct result of alcohol abuse. Unless you really know your client, you run the risk of your settlement gift causing unwanted distress, often without you even knowing it occurred.
    3. Alcohol is a no, no for a lot of cultures and religions.
      Religions such as Islam, Buddhism, Hindu and even some Christian based faiths reject the consumption of alcohol. Some will find it straight up offensive and others will politely accept and re-gift. Either way – you’re missing an opportunity to strengthen your connection.
    4. Not everyone likes what you like.
      Some people love red wine, but won’t touch champagne, maybe they’re beer drinkers only or simply don’t like any form of alcohol at all. Getting the right type of alcohol is frankly just guess work. So it becomes a gesture and another missed opportunity.
    5. You’ll be lost in the noise of other gifts.
      There’s a good chance friends and family will (also) celebrate a new sale or purchase with your client. The (easy) go-to gifts they typically bring include flowers, plants or you guessed it – alcohol. If you’re strategic about leveraging the power of settlement gifts – you want to stand out and not gift the same thing as others. It’s hard to do that with ‘one use’ gifts like alcohol.

Find out more about our strategic settlement gift service here and grow your listings.

Leave a Reply