Studies show that it is 7-8 times more cost-effective to work with your current network, but many agents are unsure how to go about engaging their sphere. We’ll explain how in this deep dive into working your sphere of influence.
A Sphere of Influence (SOI) in real estate isn’t just about who you know; it’s about leveraging relationships within your close friends, family, and professional network to generate steady business.
From the people you interact with on social media to clients you’ve served in the past, your SOI includes a wide range of individuals – relatives, former co-workers, vendors, and even parents from your child’s school.
Understanding and maximizing your sphere of influence is crucial in real estate marketing as it is significantly more efficient to engage existing connections than to attract new clients, with studies showing that it is 7-8 times more cost-effective to work with your current network.
Moreover, while 82% of clients express willingness to work with their agent again, only a small fraction actually do, highlighting the gap in real estate prospecting and the importance of maintaining those connections.
In this article, we will explore strategies to identify your sphere of influence and effectively engage with it to enhance your real estate sphere.
Whether you’re a veteran in the industry or new to real estate marketing, understanding the nuances of database marketing and utilizing your SOI in real estate can significantly propel your business forward.
From leveraging technology and social media to personalized engagement techniques, get ready to unlock the potential of your sphere of influence real estate network and establish a robust foundation for sustainable growth.
Your Sphere of Influence (SOI) in real estate encompasses all the individuals you know, from personal acquaintances to professional connections, regardless of their direct involvement in real estate.
Your SOI can include a wide array of contacts such as friends, family, neighbors, past co-workers, and college friends, as well as service providers.
Recognizing and nurturing these relationships forms the cornerstone of your real estate business, providing a foundational network from which to grow your career and secure transactions.
Each relationship within your SOI holds potential economic value, which varies depending on your experience level in real estate. For new agents, each connection is estimated to be worth around $600 annually, while growing agents see a value of $800, and advanced agents up to $1,000 per connection.
This valuation underscores the importance of regular and meaningful engagement with each individual in your network.
By methodically identifying and interacting with your Sphere of Influence, you lay a robust foundation for sustained success in the real estate market.
To effectively build your Sphere of Influence, start by making a comprehensive list.
This should include family, friends, neighbors, community organizations, former classmates, places of worship, local businesses, and online networks.
Once your list is established, personalize your outreach. A phone call can serve as an excellent initial contact method, setting a positive tone for future interactions.
Organize your lead list by types, including family, close friends, acquaintances, and vendors. This organization aids in customizing communication, making it more relevant and effective for each segment of your network.
This tailored approach not only enhances interaction but also strengthens your relationships within the sphere of influence.
When engaging with your SOI, it’s crucial to maintain a positive and friendly demeanor. You should engage with your sphere daily by making at least five phone calls everyday.
Be proactive in displaying this energy, as it encourages reciprocation and strengthens connections.
Utilize conversation models like the HEFE Model (Hobbies, Entertainment, Food, Environment) or the FORD Model (Family, Occupation, Recreation, Dreams) to find common ground and deepen discussions.
Or, try and use my personal favorite, the CALL model: CHECK-IN: Show you care with genuine interest in their life. Next, ask: Unabashedly ASK, “How can I be of support to you?” or a similar question. Then, LISTEN: Their answer might not be related to real estate, but it will help them know you’re there (and ready to help when real estate needs arise). Finally, LIST: When they ask how things are going for you, start by listing the positive things you’re experiencing in real estate before discussing other areas of your life.
Varying the mediums of communication is also key.
Consider a mix of phone calls, video chats, and social media platforms like Instagram, Facebook, and LinkedIn to keep your interactions dynamic and accessible. We’ll also talk about utilizing email newsletter campaigns, too.
Also, remember, consistency in your outreach efforts is essential for building trust and deepening relationships within your SOI.
Create a schedule that you stick by daily. This might mean five phone calls to sphere, one Facebook post, 10 Facebook comments on other posts, and 20 likes on other posts, etc. Come up with your system, then implement it everyday.
Social media platforms such as Facebook, Twitter, LinkedIn, and Instagram are essential tools for expanding your sphere of influence in the real estate sector.
Regular activity on these platforms helps keep your network engaged and informed about your latest listings, market insights, and professional achievements.
Try out using Canva to create graphics to use. It’s a low-cost service that can tremendously help you create good posts with tons of easy templates to choose from.
Implementing CRM software is crucial for organizing contact information and monitoring the effectiveness of your marketing campaigns. These tools also allow you to set reminders for follow-ups, ensuring you maintain frequent engagement with your sphere of influence, which is vital as 82% of customers express willingness to work with their agent again.
Segment your contacts and deliver tailored content that adds value, such as market analysis or exclusive previews, to keep your audience engaged. Monthly or Quarterly Newsletters are great. Utilize email contacts effectively by sending out newsletters that provide updates and valuable information, keeping you at the forefront of your clients’ minds.
Regular participation in both community and professional events can significantly expand your sphere of influence. Consider hosting your own events to bring value to your network and attract new prospects.
Send personalized messages, handwritten notes, or small gifts to maintain a genuine connection with your network, especially your top referral sources. This personal touch differentiates you from competitors and keeps you memorable.
Organize events specifically for your clients. These can range from appreciation dinners to informative seminars about the real estate market. Such events provide a platform for reconnecting and nurturing your existing SOI.
Actively participate in community services and support local businesses. This visibility enhances your reputation and naturally expands your network through personal interactions.
Build relationships with other real estate professionals. This network can provide support, referrals, and valuable information, contributing to your professional growth and SOI expansion.
Consistently provide valuable insights and solutions, such as vendor referrals, to your community. By doing so, you establish yourself as a trusted resource, encouraging your SOI to turn to you for their real estate needs.
By implementing these strategies, you can effectively engage and expand your sphere of influence, fostering a network that supports both immediate transactions and long-term business growth.
Through the comprehensive exploration of building, engaging, and leveraging your Sphere of Influence (SOI) in real estate, we have unearthed the pivotal role it plays in not just sustaining, but significantly boosting your business.
The nuanced strategies of identifying and nurturing your SOI, coupled with the integration of technology and personalized outreach, underscore the invaluable economic potential each connection holds. Whether it’s through social media engagement, personalized communication, or CRM tools, the emphasis on maintaining and expanding your SOI cannot be overstated.
As we reflect on the myriad of methods to deepen and diversify your real estate relationships, it becomes clear that success in this field is intricately tied to the strength of your network. Remember, sustained engagement and strategic management of your SOI are key to unlocking a wealth of opportunities.
For those looking to further enhance their sphere, consider joining forces with a team that places a strong emphasis on growth and learning.
Join M&D Real Estate, where a full, in-house marketing team helps nurture your sphere, build your database, and consistently teaches you the systems and strategies needed to grow your business, propelling you towards greater success in real estate.
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