Jennifer Allan's Selling to Your Sphere of Influence - No Sales Pitch Required!

The other day I wrote a blog, basically admitting that I've lied all this time when I said that virtually all of my real estate business came directly or indirectly from the people I knew, otherwise known as my sphere of influence (SOI).

As part of my re-entry into the wonderful world of real estate sales, I've been more closely analyzing where my business came from the first go-around and had an AHA moment of... "wow - I got a lot of business from strangers!" Now, don't get me wrong, I hadn't forgotten about these Very Important Clients; I just kinda forgot how I met them since, of course, they all ended up in my SOI and many became friends or semi-friends.

But the difference is... I never prospected for the business of strangers. Never cold-called, door-knocked; rarely advertised or farmed. I never, ever approached a stranger with the intent to prospect to them.  All of my Business from Strangers was serendipitous...

They say that luck is when opportunity meets preparation. BINGO!

Opportunity: Being out in the world with a smile on your face and your antenna up.

Preparation: Being ready to hand out your business card and spout your elevator speech? NO!!! Preparation means being ready to speak intelligently and knowledgeably about the local real estate market without a hint of a sales pitch.

Don't want to prospect? Then don't. Spend that time learning the heck out of your market. Preview, preview, preview. Read neighborhood newspapers. Preview some more. Visit neighborhood grocery stores and shopping districts. Preview. Visit new home communities, attend meetings on Transit Oriented Development. Preview. Know your office inventory inside and out.

When a Stranger Calls...(on one your listings or while you're on floor duty), you'll get ‘em. When an open house visitor expresses in an interest in the neighborhood... you'll get ‘em. When another guest at a wedding wants to talk real estate investment... you'll get ‘em.

KNOWING YOUR MARKET is the best way to "prospect" to strangers. No fancy business card, well-rehearsed elevator speech or slick closing technique will beat the confidence that exudes from you when you know your stuff. It's magnetic.

p.s. remember the part about leaving out the sales pitch. If you impress someone with your market knowledge, then hit ‘em with a sales pitch, you'll likely un-do all the good you just did. When you're confident and enthusiastic, people will ASK for YOUR business card. It's a beautiful thing.  Right, Susan?

For over a year now I've been extolling the virtues of an SOI business model - that is - basing your business on the power of your personal relationships instead of the power of your marketing budget. (If you don't believe me check out my tag cloud under "soi").I've claimed that I ran a nearly 100% SOI business literally from Day One - a business that was very successful by anyone's definition - in which virtually all of my business came directly or indirectly from the people I knew. I've implied (or outright said) that I never pursued business from strangers.

Well, since arriving in Denver last weekend, I've hardly slept. My 40 year old body has not yet adjusted to the altitude and I can't seem to stay asleep more than a few hours. Can't nap either. So, in my sleep-deprived haze, I had a stunning revelation this morning.

I've been lying to y'all. Didn't mean to, but I have. Sorry about that.

Here's the thing. A lot of my business DID come from my SOI, no question about that. I was lucky to have a large circle of acquaintances when I entered the business and was able to generate quite a bit of support among the people who knew me. God bless ‘em.

However, upon closer reflection, I realize that a not-insignificant amount of my business through the years came from total strangers. People I had no personal relationship with, nor did we know anyone in common. While I've always referred to these sales as SOI-generated, technically, they really weren't.  THESE PEOPLE WERE STRANGERS TO ME.

But I'll stand behind my statement (modified slightly) that I never actively pursued business from strangers.

I never cold-called, I never door-knocked, I rarely advertised. I never called a FSBO. I didn't farm.

Yes, I GOT business from strangers, but that business was never the result of PURSUING it.

Stay tuned...

I recently read on another forum where a new agent was heartbroken (and subsequently outraged) that his brother-in-law hired someone else to sell his home. Because he was brand new, he felt his B.I.L. owed it to him to give him the listing so that he'd get some much-needed experience. The new agent was bad-mouthing his B.I.L. to the rest of the family and swearing to avoid him at the next family get-together.

OUCH!

How fast can you say "Kiss Your Family's Business GOODBYE!?"

No one on this planet is obligated to work with us, regardless of any personal relationship. Instead of whining and sulking and pouting about the situation, our new agent should have taken all that energy and asked himself WHY his brother-in-law didn't hire him. And made an effort to do better next time.

Was it personal? Maybe, maybe not.  Although with this guy's attitude, it probably was. The minute I get a sense that someone feels I'm obligated to hire them (or even refer them), I'm turned off. Yeah, I'm contrary that way, aren't you?

Getting business from your SOI, particularly your family SOI is an art that once mastered, will seem oh-so-obvious and natural. But if you approach the people you know with the attitude that they owe you something because you're related or went to college together or because you sent them a pretty calendar last year, your SOI efforts will crash and burn.

What I would have advised the new agent to do (had he asked) would be to graciously accept defeat and cheerfully offer his assistance. I'd have told him to be pleasant, supportive and complimentary of the other agent's efforts. Sweet as sugar. Because... at some point, the B.I.L might just get frustrated with his listing agent and be open to talking again.

But instead, look what this guy did. He alienated his B.I.L. and gave the entire family a great reason to wonder about his professionalism. I'll bet that it will be a long time before anyone in that family dares to talk to him about their own real estate needs!  

*SOI = Sphere of Influence = The People Who Know You

http://www.sellwithsoul.com/

The other day I presented seven deadly objections to running an SOI-dependent business (SOI = Sphere of Influence = People Who Know You) and asked for your comments. THANKS for all of them! JMac pretty much summarized my thoughts on the matter - actually he nailed them - eliminating the need for this follow-up blog! But I'm in the mood to talk SOI, so I'll do it anyway. 

Here are seven objections I listed and my responses:

1.       "I don't know anyone who wants to buy or sell right now and even if I did, how can I base my entire business on them?" 
In my first year, I sold 25 houses, all to my SOI. Of those 25, all but three were to people I didn't know the day I got my real estate license. They were people I met as a result of the personal relationships in my life. Some were referred directly to me by my SOI; others I met at weddings, parties, etc.; yet others were service providers in my life who weren't my friends, but knew I had a real estate license.

As JMac alluded: Your SOI is Everyone Who Knows You and Knows that You Sell Real Estate. Not just your friends, family and past clients. And if you add up all those Who Know You and figure out how many other people they know... that's a lot of potential business! (Read Teri Lussier's great blog on this topic.)

2.       "I refuse to be one of those annoying real estate agents that the family avoids at parties."
So don't be! Contrary to popular belief, an effective SOI strategy is not about bothering your friends for their business. Sure, that's a common tactic, and many real estate agents give up on their SOI because they suspect their friends are sick of hearing from them - and they're probably right. Just be a genuinely nice person with a good head on his or her shoulders... who happens to sell real estate for a living.

3.       "My friends would expect a discount or kickback because they know me."
So? I do, too! When appropriate (and I do know the difference), friends DO give friends discounts or freebies! I don't have a problem making my good friends and family feel special by giving them a deal, especially if they've been supportive of my business or are frequent buyers or sellers. But in reality, it doesn't happen nearly as much as you think it will, especially if you have confidence in your value and abilities. I get much more commission objection from strangers than I do from my SOI.

4.       "I don't believe in mixing business with pleasure. If the deal goes sour, I could lose the friendship."
Could happen. Probably won't, if you take great care of your business. Yes, things go wrong, but if you can fix the problems professionally and competently, you'll probably win even MORE brownie points from your friend than if the deal went 100% smoothly. Anyway, if you do a great job for someone who knows you and cares about you, you'll get GREAT PR in your social circle for it! I'll take that risk because I have faith in myself.

One caveat here - DON'T take SOI business that you aren't confident you can handle. For example, if your buddy wants to buy a strip mall, and you're a residential agent, REFER IT. I don't believe we should "practice" on anyone, but especially not on our SOI.

5.       "My family doesn't take me seriously - they see my new career as just another phase."
This is actually a valid objection. Family can be tough; much tougher than friends. If you suspect this will be an issue for you, don't pursue your family's business until you've built a track record you're proud of. They'll come around (or not, which is okay too). There are plenty of other people in the world for you to WOW.

6.       "I don't want my family and friends to feel obligated to use me if they don't want to."
"Obligation" is a dirty word in our business. Never ever ever think that someone is obligated to use you and don't get hurt if they use someone else. It's probably not personal (people have lives outside of our real estate business), and if it IS personal, take the opportunity to figure out why. Always give your SOI the benefit of the doubt if they don't use you - for them, it was the right decision. Respect that.

If, in your heart, you feel that your SOI is obligated to use your services, they'll feel it and resist. Conversely, if you respect their right to "choose," they also feel that and will probably beat down your door!

7.       "My broker says I need to cold-call, door-knock and mail to a geographic farm - that selling real estate is a number's game, so I need to get my name out there everywhere I can."
Somehow we get the idea we need a shot at every piece of real estate business out there in order to succeed. But we don't. If this is your first year you really only need to sell 10 - 20 properties to have a banner year. That's only 10 - 20 people in your whole town who have to hire you! It's tough to get 20 clients by throwing doo-doo against a wall, especially for new agents on limited budgets. It's not likely there are 20 strangers out there sitting by their mailbox, waiting for your fancy farming postcard, but there certainly ARE 20 people in your SOI who would love to help you, if you approach them correctly.

So... there you go.

http://www.sellwithsoul.com/