Do you ever wonder why everyone says the best way to get clients when starting in real estate is by working within your Sphere of Influence (SOI)? Well, there’s a very good reason….
IT ACTUALLY WORKS!
Here’s the thing. All careers in sales, whether what you’re selling is cars, insurance, or real estate, are about talking to people. Indeed, sales is about talking to as many people as possible so that you have a greater chance of one or more of those people actually buying what you’re selling.
This whole process becomes SO much easier when you’re talking to the people whom you already know and who already know you back. If you start with those you know, it’s likely they already trust you—at least somewhat—and therefore are more likely to listen to what you have to offer.
In fact, according to a recent Dale Carnegie study, at least 71% of customers said they would rather buy from someone they trusted than from someone who gave them the lowest price. 77% of those customers said they were at least somewhat likely to recommend a trusted salesperson to family or friends.
Basically, if you want to succeed in sales and get referrals, you must build trust. One of the best ways to build trust is by starting with people who already know you and trust you in other areas of your life.
How To Use Your Real Estate SOI The Right Way
Now that you understand why working with your SOI really works, it’s time to go through the strategy. How do you use your SOI in real estate to get leads and sales? There are six simple steps I recommend.
1. Identify Your SOI
Think broadly here. This should be anyone with whom you connect on a regular or semi-regular basis. It includes family, friends, neighbors, coworkers, colleagues, acquaintances, and professional contacts.
For example, in addition to adding your younger brother to your SOI, you also want to add that old coworker you used to get drinks with or the dentist you visit every six weeks. Don’t be afraid to cast your net wide!
2. Write Down Your SOI Contacts
You can write them down anywhere you like. How does that exchange go in every Facebook group…someone asks “What’s the best CRM?” and everyone answers “The one you use!” Well, the same principle holds here.
Whatever you want to use, use! It can be a CRM such as kvCORE. It can be a project management software like Notion. Or it can even be an Excel spreadsheet! Just make sure it’s something that’s easy for you to navigate and organize.
Now the ideal information you want here includes:
- Name
- Phone number
- Birthday
- Renter or Homeowner
- Mailing Address
- Housing situation (renting, just bought, just moved, ready to move, etc.)
You may not have all this information right off the bat, but that’s okay. Connect with people on social media and ask questions until you get the information you need. Just don’t be pushy about it.
3. Reach Out To Your SOI
Before you can help anyone, you need them to know you’re available, right? Reach out through emails, phone calls, texts, social media DMs, or whatever way you feel comfortable for initial contact.
Let your SOI know that you’re a real estate agent. You don’t need to go into detail—just let them know you’ve started a new career or are building on your career and have a few openings. Share what VALUE you can offer that other agents can’t.
This is the easy part, really. The next part is the HARDEST part of marketing to your SOI…but it has to be done!
4. Follow Up
You MUST stay in touch with your SOI. It’s crucial that you let them know about changes on the real estate scene, from new listings to simple market developments. Let them know you’re keeping up to date on real estate and want to help them do the same.
Here’s a video that systematizes the outreach in a very simple way.
As you get to know people, you’ll figure out what bits of news they’ll be most interested in. For example, if your colleague just bought a house, they’re probably not all that interested in home prices yet…but they will be in a few years. Try to target your information to your specific audience as much as you can.
5. Service Low Hanging Fruit
If there’s anyone in your sphere who is asking you about real estate or has needs that you’re already aware of, don’t hesitate to help them. Give them as much support and information as possible to build trust and rapport.
If you can do that, you should be able to build quite a network of people who will refer you out and bring you repeat business when more needs arrive in the future.
6. Ask for Referrals
It can be intimidating, but you can’t be afraid of asking for referrals. If you’ve provided quality service, your clients should be happy to provide you with referrals! Just ask them to spread the word that you’re looking for new clients.
Let them know that a referral would really help your business—if you’ve poured enough into them that they care about you and appreciate you, they’ll be happy to help.
Leverage Your SOI!
Well, it really is that simple. With those six simple steps, you can leverage you already available SOI to build your real estate business. If you can help these people, you can help anyone else who comes your way!
So, don’t be afraid to start building up your SOI. With the right tactics, you can create a thriving sphere that will help your business grow and flourish!