What Is A Sphere Of Influence
Your Sphere Of Influence is anyone who you personally know who you can reach out to and consistently market to in order to provide them & their sphere with your real estate services.
Build Your Sphere Of Influence
This is THE target market that every new real estate agent should work on every day. I say new real estate agent but this is a neglected market for veteran real estate agents. I personally have left hundreds of thousands of dollars on the table for not following this step by step plan of action to build your real estate sphere of influence.
Quick story – I lost $6,600
My buddy Greg and I went to college together. He became a General Contractor and I became a Realtor. We graduated from Florida Gulf Coast University and went our separate ways building our businesses.
We would hang out once in a while in a group settings crossing paths and catching up. However, not too frequently. In 2011, he calls me up, leaves a voice message and says he has a real estate broker question.
I called him back a few minutes later. “Steve, I’m negotiating a contract on this house and want to get your professional opinion on price.”
“Greg! You have an agent?” – – “Yes, I see you on Facebook and it just seems you are very busy and didn’t want to bother you.”
Well a $220,000 house later with $6,600 less commission dollars in my pocket, I was pissed. A nice house on some acreage pictured here. Initially I was mad at Greg, but why? The only person I had to blame was myself! I was not doing my job by following up and continually offering my services.
Greg did close on the property. It made me wonder how many others I let slip through the cracks over the years that I wasn’t staying in touch with.
But get this… I got my shit together. Since then, Greg asked me to run comps on this house now worth around $425,000. I will get the listing at some point. Also since then, I sold 4 other homes for him. 2 were spec homes he built with a partner to resell and 2 he referred me to people that he built for that needed to sell.
I made $36,000 so far from Greg. I anticipate selling his house ($12,000) and many others. I also refer people to Greg who are interested in building (and will get commissions on the build).
This is how this all works!! Can you imagine if he didn’t call me that day? He likely would not have referred all of this other business my way.
Sphere Of Influence / Past Client Broken Down
These are past clients, friends, family members, current and past co workers in all jobs, your mechanic, barber, college roommate / classmate, landscaper, doctor, dentist, supermarket check out person, oil change guy.
The list goes on and on! Remember, they may not necessarily be in the market to buy or sell. But… They all know 100+ people who they will refer you to.
Sphere Of Influence Are Loyal
Warm referrals are the best kind you can get. They tend to stay very loyal as they were referred to you from someone they know and trust. This is the best kind of business you can get. Not only loyal but they many times are easier to work with.
Six Simple Steps To Build Your Sphere Of Influence
- Put together your Sphere Of Influence database with the following: Name, Phone, Address and Email Address. This can be put into your CRM or a free Mail Chimp. Pick what system works best for you in order to stay in front of them. But don’t let this slow you down on starting. Look through your phone, social media, email database. Think your daily routine and figure out who you see on a regular basis that you are forgetting?
- Call the entire Sphere Of Influence list stating you have exciting news and started at a new company (or changed careers / now full time in real estate). Tell them you are working on getting everyone’s accurate info together in order to send them some business cards. Reach out to no less than 25 people a day until your list is done. Be sure to speak with all of them.
- The SAME day, mail them a hand written card with 2 business cards inside. Don’t wait. Get these out asap. Try to make the note you write relevant to them / your conversation with them. Example: “Susy it was great talking and catching up! I really appreciate you taking the time and hope we can help anyone you know with their real estate needs. Tell Mike I said hello and give a hug to Billie” (The Family Dog).
- Thereafter—Email one time per week. Such as every Friday at 9am** Put into your calendar and stick to it or set up a drip email campaign. You can email about local market news, real estate trends, hot real estate picks of the week, YouTube videos, educational content from your blog like this example on our Beach Broker website – Sell Your Primary Residence And Make $$ Tax Free. PS – Do you see the benefit of this article? Someone may call you and say: “I have been in my property for over 2 years and think I have significant equity. Can you run comps for me??” Remember, it isn’t luck. You created the situation.
- Mail your entire database every other month by the 5th of each month. Contents can include a lot of what is mentioned above. Magnet calendars, Simple Note Cards, things pertaining to the holidays or seasons. Like pumpkin seeds to grow in October. Neat creative things that get the attention all meanwhile sliding in your business card and a note saying “Our Business Revolves Around Referrals From People We Know. Thank you for your continued support.”
- Take one person a week from your Sphere Of Influence out to coffee, lunch or dinner. Not the same person each time obviously. We want to get in front of people we know. Talk about them and what they are up to.
The 10% Rule – Real Estate Agent Sphere Of Influence
If you work the 5 steps above in a disciplined manner, you can anticipate a 10% annual return. What does this mean? Let’s say you compiled your list and have 220 people on it. Trust me. You probably know way more people than you think!
220 x .10 = 22 annual transactions
If you average commission is $4,400
$4,400 x 22 = $96,800
Your Real Estate Agent Sphere Of Influence may be the only target market that you need to work on. You may never have to call or door knock a stranger ever, even as a new real estate agent.
Keep adding to Your Real Estate Agent Sphere Of Influence
Think of this as if you have a farm. Each person is a seed that grows into a nice tomato plant. Each plant gives off a certain amount of juicy ripe tomatoes each year. Every tomato that comes off of those plants, you replant a stem to grow another tree.
Every time you get a referral they are added to this list and you start with the 6 steps above. Every time you meet someone new, get their info and start with the 6 steps above.
I just moved here and I do not have a Sphere of Influence
First off, you likely already know people here. Why did you come even move to this new location? Start compiling the list. Even if it is a small list of 15 people, that is ok. It is a start.
Do you have hobbies? If not, what do you like to do? Go and join that group. Some ideas on how to grow your real estate agent sphere of influence are below.
Nurture it as if it is a baby. Take the time with it. Remember, we are here to help people. You are helping them and many times this is the biggest decision of their lives.
How Else Can I Build My Sphere Of Influence?
Health – Exercise should be part of your morning routine. Consider joining a running or walking group. If there isn’t one, create it. Look for people who jog or walk on a regular basis in your community. Ask if they have interest in having company.
Join A Gym – Not only will you meet people working out but most fitness centers offer specific classes like Yoga, Spin, Swimming, Basketball, Volleyball, etc.
Pets – People are fanatics with their pets. They are great icebreakers as well. Go to dog parks, pet stores or volunteer for pet rescue centers. There is a mall by us and they host a “Yappy Hour” where people come with their pets. Have drinks, shop, listen to music. Don’t have this in your area? Create one!
Work From Starbucks Or Community Locations. A handful of our agents have THIS STICKER on their laptop. In speaking with them, they have actually increased the amount of interaction in these places by 100% and now have accounted to at least 4 sales over the last few months. Many tables are shared or community tables with opportunities in the next seat over. I am excited to see the total sales from this over a 12 month period.
Bar / Restaurants – Personal Story. Recently I purchased an investment property on the backwater of Fort Myers Beach. A short walk and you are on the beach and nearby the Outrigger Tiki Bar. I lived in this property only a couple of months while it was being renovated. My girlfriend and I have gone to the Tiki Bar a handful of times, meeting vacationers and full time residents.
One Saturday afternoon we met a couple from Wisconsin. They were looking at properties the last week in order to buy now and retire in a few years. I asked, what kind of property are you looking at? They said new construction homes in Golf Course communities. It turns out they do not play golf and they love the beach. I explained prices were fair out on Fort Myers Beach and within their budget. The next day we looked at 2 houses, closed on one in 3 weeks and made $12,000.
Charity – I currently sit on the board for a local charity group in Bonita Springs. Bonita Springs Assistance Office I meet so many new people from this organization and I also am able to help local people in need. Help others and you will be rewarded.
Hobbies – If you like playing chess, join a chess club or go to competitive events. If you like painting, join an art club. If you like knitting, join a knitting club.
Sports – If you love to ski, join a ski club. If you love to paddleboard, go to sunset paddle board events. If you love soccer, join an adult recreation league. If your kids are in sports attend their games / practices and network with other parents.
Read – I always encourage reading right? Join a book club. Bring your Kindle with you and discuss interesting books that you read. Hopefully you discuss some books mentioned on this site. You can talk about financial freedom and encourage then to invest into income property.
Go Hiking – Are there any cool spots around you to hike that are popular? You will be surprised how many are by themselves. Go with the intention to link up with one person each time.
Host a party. Knock on the doors and / or mail 50-100 neighbors saying you are doing a small block party with food, drinks and games. PS – One of our agents did this twice recently. She lives on the water in Matlacha. She had a live band, food and drinks. So far they pulled 2 listings from it! The cheapest listing is $350,000. Total cost each party was around $300.
Join A Real Estate Investor Group. Need I say more? Learn about investing all while meeting potential investors to assist. REIA is big out here locally. Real Estate Investor Association. Google this + your area and I am sure you will have some come up.
Start An Investment Group. If you do not have one locally. Or there is a market for it, start one up yourself. Social Media is an easy way to push it free.
Go to real estate events. There are plenty of events related to new construction, investing, mortgages, buying / flipping, etc. The guy on TV from Flip this House, had his crew out here doing a weekend long event for FREE. Trying to sell you on coaching and so forth. But a great way to meet potential investors.
Dance Classes – If you like to dance, go get on the floor! Perfect place to really get intimate with a complete stranger. There are no shortage of the type of dance types out there.
Tasting Events. You may have local tastings for food, wine and craft beer. An example, we have Bonita Beer Fest and it is awesome. A bunch of craft beer companies set up tents and you can try and talk about their latest creations all while exchanging your cards.
Speaking events. Watch local news and read the newspaper for upcoming events. Go to events that interests you so you can drum up conversations with others on topics you can relate to.
Art Class. Or any specialty classes they have these days. One big one that took off here locally is Art and Wine classes where you hang out, the teacher walks you step by step on how to paint a specific piece all while drinking wine.
Your Sphere Of Influence is by far one of the easiest and most enjoyable aspects of making really good money in this industry. Simply implement the 6 steps above and continually work increasing your database. It will happen if nourished!
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