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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...soi

 

 

The Exceptional Agent 

 

 

 

 

 

 

22 Comments on A Lack of Sleep and a Huge SOI Aha Moment

JAN
25
2008
225,623 Points Localism Sponsor Outside Blog
I never liked cold calling and seeking out "strangers" as clients. They have come sometimes more frequently than I would expect or desire. I guess that's what happens when you get your name out there.
6:47pm • #1
I can't figure out what the attraction is! Gotta be happy for the business.
6:49pm • #2
That is great. I am new with RE/MAx and working on my SOI right now.
6:54pm • #3
1 Featured Post
The trick is attracting those strangers TO you ... and I'll elaborate tomorrow... Cassie - let me know if I can help - SOI is my passion (yeah, I need to get a life)
7:06pm • #4

Jennifer,

I'm looking to the next installment of this blog.

7:21pm • #5
115,184 Points 4 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
As long as there is no cold calling, FSBO courting & door knocking, "strangers" are welcome!  I am SO staying tuned. 
7:54pm • #6
1 Featured Post
Elaine... we're missing you over at the SOI Blog Forum... please come chime in!
7:59pm • #7

No mystery to me, Jennifer.

You still built the relationships, mets or have not mets.  You didn't have to sell them anything but you.

I would suggest even the strangers soon became part of your SOI.

 

 

Dean Davidson, Charlotte/Waxhaw, NC (Active Rain)
8:14pm • #8
188,613 Points 23 Featured Posts
Jen - I feel you......APPROACHABLE ......you have to be where bees rest to collect honey.it won't come to you.
8:25pm • #9
1,049,319 Points 177 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
I understand where you are coming from as I am facing the same trend too. My business these days are alot from people calling me (strangers and not from referals). How they find me remains a clue but I'm not complaining.
8:29pm • #10

As I contemplate joining a top producer as her buyer's agent, part of the allure is NOT having to go after expired listings or FSBOs...even though my one listing DID come from a FSBO. I like the idea of working with the leads she already gets from her many listings...they're still strangers, but I don't have to cold-call or bug anyone. I just have to answer their inquiries and help them find a house...which is why I got into this business in the first place!

So yes...get some sleep, and then tell us more!!

10:07pm • #11
JAN
26
2008
1 Featured Post
Just an update from Friday night... it's 1am... been wide awake for a few hours now. Sheesh, by the end of this, I'll have solved all the world's problems!
2:11am • #12
188,613 Points 23 Featured Posts
Jenn - Yeah, when you wrap up the world's problems, how about you drop by here and tell me where those damn missing socks disappeared?
8:09am • #13
282,504 Points 21 Featured Posts Outside Blog Hit Router Called Shot Master

LOL...leave it to John Mac for a morning chuckle. 

Jennifer, I understand where you are coming from and it's okay, REALLY...I think most of us are just happy hearing the part about "not pursuing strangers for business"!  LOL  I'm totally cool with strangers - heck, I talk to strangers all the time, waiting on line, in stores, in coffee shops, you name it, I'm talkin' to them.  But ask for business?  Uh huh!  Not going there!  LOL  Maybe there is a ton of missed opportunity there, but hey, not my style and I am not going to intentionally inject any uncomfortable moments into my life.  Enough occur naturally! 

 

8:37am • #14
1,063,886 Points 156 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jennifer, it has always amazed me how some veteran Realtors say 90-100% of their business is from sphere and referrals. If that is enough business for you then it works. Others think "strangers" or new customers should account for 40 to 60% of your business. There probably is no right answer, but whatever works for you. SOI definitely seems like less marketing cost for you though. I am interested in your thoughts as we move forward.

Also, strangers are just future members of your SOI.

10:33am • #15
367,675 Points 102 Featured Posts Outside Blog

Well, I still consider those "strangers" to be SOI, so I'll say that my business was indeed 90%+ SOI. It's just a slightly different definition of SOI than the traditional ones we hear - even the one I've been spouting all this time.

I'm dying to finish this blog, but things are crazy here... yay!

10:53am • #16
123,282 Points 1 Featured Post
Jennifer- Sometimes we just fall into meeting strangers who need our services so you are forgiven.  LOL  The problem can be if you rely on those strangers to sell to, you don't get a lot of clients.  I am looking forward to your next installment. 
2:39pm • #17
Well Jennifer, it would just have been naive of us to think that at any given time in your Carrier that it would stand to reason you would get business from a total stranger. Besides would you say that 80+ percent of your business was SOI? If so, then no problem. I don't consider it a big deal. Not that what I think really makes a big difference in the whole grand scheme of things.
9:05pm • #18
DEC
06
Cool! That's a cvleer way of looking at it!
Delia
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07
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DEC
09
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DEC
11
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10:53am • #22

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Jennifer Allan-Hagedorn, Author of Sell with Soul

Pensacola Beach, FL

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