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First Step as a New Realtor, Gather your SOI your Sphere of Influence

By
Education & Training with Keller Williams / Phillipy Consulting

The real estate business is a relationship business.  So if you want to be a successful Realtor and build a Sold Real Estate Business, you will need to build your Sphere of Influence.  

A Sphere of Influence (SOI) is a group of people you have some influence over just because they know you. This includes family, friends, business associates, fellow organization or club members, etc.  The relationships with your SOI will be key in starting as a new Realtor. 

Now, I don’t want any excuses. I don’t want you to say, “I don’t know very many people.  I don’t have a sphere of influence.”  That won’t cut it. First of all, you won't find success in your real estate business if you start with excuses.  Your mindset MUST be “Let’s figure out a way.  Let’s make it happen.” Ok, back to SOI.

So, if your Sphere of Influence is so important, then how does one build their SOI?  Well, I’ll show ya.  Your first step is to get into brainstorming mode.  This means there is no bad answer.  This also means that you don’t need all the info.  What you're trying to do in this brainstorming mode is list as many people, individuals, groups, associations, etc. that you can, that you are aware of, or that are aware of you.  Don’t try to analyze this list. It doesn’t matter if they don’t live near you.  It doesn’t matter if they aren’t interested in buying or selling a home. We just want the names for now. Just let it flow. You are going to list all your friends and family, neighbors, etc. . . You are going to crank through this list in about . . . 3 minutes.  You need to be creative. Think of all the people you know, the places you go on a regular basis.  You will need to challenge your memory of all the people in your life.

At this point you are probably feeling pretty good about yourself. I have 75 names, GREAT JOB!!! You are a quarter of the way there. HA!  Get back to the drawing board and really challenge yourself.  Think of people who respect you, people who look up to you, people you use to work with, friends of friends of friends.  You should put anyone you can think of on this list.  When you feel like you have hit the wall, put the notepad down and come back to it at a later time.  Then, as you walk around throughout the day, keep a notepad with you.  When someone comes to mind, write them down.  That person may be the next person who knows someone who is buying or selling a home.

See, one of the things you have to keep in mind is that your Sphere of Influence may not ever be your clients, but they will know your future clients.  They are the ones that will refer the business to you.  The more people in your SOI, the more people to refer you.   Check out this stat.  Every American family is aware of 3 real estate opportunities each year. So, if you have:


                  100 in your SOI = 300 potential referrals

                  300 in your SOI = 900 potential referrals

                  500 in your SOI = 1500 potential referrals


Get the picture?  That’s why I want you constantly adding to your SOI all the time.

Ok.  What’s next when you've racked your brain to the max and feel like your Sphere of Influence has been well gathered?  Well . . .that’s what I will cover in my next post.  You can read this post and any following posts at my blog for new realtors at bearealtor.wordpress.com .  It is a great resource if you are building your real estate business or wanting to improve the foundation of your real estate business.

Until then, what do I want you to do?  Grab a pen and a pad, or sit down at your computer and start building your Sphere of Influence.  Do exactly what I have mentioned above and you will be ready for the next post.

Faith LaRosse
Springer Realty Group - Limerick, PA
Serving Berks, Chester & Montgomery Counties

This is great information Daren- probably THE most important thing a new agent can do- create a strong database.

Oct 20, 2011 06:59 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

A newbie told me once, "I don't want to bother people I know". She soon left the business...

Oct 20, 2011 07:20 AM
Anonymous
Daren Phillipy

Thanks for your comments Faith and Doug.  I have seen too many agents struggle in this business not using their SOI and their database properly.  They throw money at marketing tactics that have a low % closing ratio, and then wonder why they can't make more money.   Missing these 2 elements of the bussiness is fatal a Realtors business, and I felt this article would provide some direction for new agents.  I am thankful you noticed my post.  Good luck and may you continue with success.

Oct 20, 2011 07:35 AM
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