First, allow me to apologize for using that tired phrase "Today's Market." Real estate is most certainly local, so "Today's Market" in Denver is much different from Today's Market in Tulsa, Dallas or Las Vegas. I get that. But, for the sake of argument (or discussion), let's just assume that in most US real estate markets, "Today's" is not as much as fun as "a Few Years Ago's." Deal?
In my writings, I've often made the statement that you "can rely on your SOI (sphere of influence) for most, if not all of your business." But is that still true?
Well, yes... and no.
In "Today's Market," the Sphere of Influence approach we've always used is probably NOT enough to maintain the lifestyle we'd like to grow accustomed to. Now, before you (depending on your frame of mind) gloat and smugly say "I told ya so," or conversely, burst into tears with disappointment, allow me to continue.
In the good old days (prior to "Today's" Market), buyers and sellers were all over the place. Everyone knew someone who trying to buy a house (and getting outbid) or who had just sold their house with multiple offers. People were amazed at the equity that had built up in their recently-purchased properties. Anyone with a toolbox fancied him or herself a real estate investor. In other words, real estate was a hot, POSITIVE topic of conversation. All you really had to do was get your cute little backside out there in the world and you could pretty easily drum up a prospect or two.
In my first year back in 1996-97, I implemented a take-a-friend-to-lunch campaign which was wildly successful. I got a lead and usually a closing from every single lunch. Like I said... everyone knew someone who was thinking about "doing" some real estate. It was practically shooting fish in a barrel. Eat some sushi, sell some houses.
Today - eh - not so much. For various reasons we're all familiar with, people simply aren't buying and selling homes in the volumes of years past. Real estate is NOT the hot, positive topic it used to be and I'll bet many of you have faced that sympathetic look when you tell someone you sell real estate for a living.
So, what's a cold-call phobic to do? Just get over the fear of cold-calling or otherwise pestering people for business?
Nope.
How about simply reminding all your friends that you sell real estate and sending them off into the world to be your marketing department?
Again, nope.
Why not?
Because the volume of buyers and sellers is drastically reduced from days past when everyone and their uncle knew someone buying or selling. Now, it's not unrealistic that the people you know truly DON'T anyone who needs your services today or tomorrow!
But what if you redefine the term "SOI?"
If you expand the term "SOI" to include every warm body you come into contact with during your day-to-day travels, then yes, most certainly, a sphere of influence business model will work beautifully for you, even in Today's Market. Obviously, this means that you need to try to get your smiling face in front of as many warm bodies as you can, as often as you can. However, you can't just hit the streets (or the phones) with a smile on your face (although that helps A LOT) and hope that new clients will force themselves on you.
In order to capture the attention of those warm bodies you run into, you need to have something they want. What's that? Information, as in -- knowledge of your local market. Fact and figures, yes, but also a familiarity with specific listings, recent sales and even the overall vibe of your marketplace.
When you're out in public and can Talk the Talk confidently and casually, business will be almost magically drawn to you. You won't have to beg for it; you won't even have to ask for it. People will ask you if you have time for them.
So, how is this related to a Sphere of Influence business strategy? Well, you have to have an audience with whom to share your market knowledge and the best way to find a receptive one is to be in the company of people you enjoy. Your friends, sure, but also people who live in your neighborhood or attend the same parties or eat at the same restaurant or drink at the same bar or go to the same dog park or even shop at the same Walmart!
Being a nice-n-friendly guy or gal is great, and can even be enough to generate a minimal level of business is a strong market, but today, you need more. In order to effectively generate business from the people you know and the people you meet, you must have something they want. That something is information.
Master Your Market... and sell your share of it!
Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm. The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.
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