Is it Time for New Friends?

By
Education & Training with The Real Estate Masters Institute

One of the most profitable ways, yet often underutilized sources of business, is your Sphere of Influence.  What do I mean by that?  I mean anyone who would know your name or know your face, and whose information you can track down, should be considered a part of your Sphere of Influence (or SOI).  In the back of my upcoming book I am including a handy little memory jogger to help you think of people you may not pull off the top of your head.  Try it...you'll be amazed!  I know the first time I applied it, I was awe struck at some of the names I had over looked of good acquaintances of mine.  I remember seeing one line, for example, that simply said "bald," and it made me remember two or three guys whose hair was starting to thin out that I would most likely have never considered until I may have run into them sometime down the road. 

I also used to think that I was pretty good at keeping in touch with my SOI until one day I read a book, "The Millionaire Real Estate Agent," that suggested I contact my Sphere multiple times a month!  I was contacting them every 3 or 4 months with a phone call or letter, birthday card, etc. and that was way more than a lot of agents I know, so I felt pretty confident I was doing plenty.  Once I read the book I realized maybe I hadn't done as much as I could do, and I began doubting my effectiveness.  I went through and began calling people and low and behold, I missed upwards of 30 or 40 deals in the last 18 months alone!  I was sick!  Even if the average sales price may have only been $100,000, that equated to over $100,000 in commission income to me.  Ouch!

 

I have heard many reasons for people not utilizing their SOI as a lead generation source.  One is "I don't want my friends to feel like I'm pestering them for business.  I'm afraid they'll not want to hang out with me any more."  Another I've heard is that they just don't know what to say to them, or that they have call reluctance.  Here's the thing, people tend to do business with people they like and people they trust.  If this doesn't sound like your friends, then it may be time to look for new friends.  Seriously though, this is your best, most predictable source of future business.  If you communicate effectively to them, and get their support in your career, they will send a steady stream of qualified leads your direction for a fraction of the cost it takes to generate business from other sources.  The main challenge you will face is getting them to make a paradigm shift of your role in their life. 

Out of those deals I missed, I realized the main reason I missed so many wonderful business opportunities is because I had not effectively done my job of educating my sphere on what I do for a living and how my services could fulfill their needs in real estate, their friends and family's needs, their co-worker's needs, etc.  I had dropped the ball.  I took for granted that since we were friends or good acquaintances that when they thought of real estate, surely, I mean Surely, they thought of me!  But you know what?  When I asked those people why they didn't use me for their home purchase or sale, they said things such as "we didn't know you were still in real estate;" "we didn't know how to get hold of you;" "aww, sorry, Jeff, we didn't even think about it!  You're the guy I play golf with (or have happy hour with, or go to church with...you get the idea)."  They did not see me as their Real Estate Consultant!!!  I was so upset at the first one or two people that didn't use me, and I took it personally. 

After I continued hearing the same response with slight variations, I realized the only person I could find to ultimately blame was the one staring back at me in the mirror.  It was disgusting that I lost out on so much money.  The beautiful thing is, that no matter how much you may have dropped the ball on this in the past, you have another chance.  You have the chance to change the way you do business and approach your Sphere starting today.  I like to call your Sphere your ATM machine.  They are your "Automatic Transaction Machine."  If you begin to nurture those relationships with a business purpose, you will see your numbers soar.  It will change your life.  It is like having a little army of prospectors beating the street on your behalf! 

Always Remember, There Are No Limits!

Jeff Bonham

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Tags:
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Rainmaker
487,080
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

$45 million in sales.  78% of the business is from people I know.  That is a pretty staggering percentage.  Thus, sphere is my business......  Let people laugh at me on Facebook......

Feb 03, 2009 09:16 AM #1
Rainmaker
550,924
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Jeff,

ATM, machine, funny. My SOI has been my life-blood for years, I wouldn't even be on life-support without them. As for 3/4 X a year, you are so right. And for those who say they don't want to "pester" others, I look at it differently. I always want to provide them something of value, I want to be their resource for all things r.e. We call it "staying in the flow"...

Great post, it would be wise (imho) if more REALTORS got it. It's far less costly to keep great clients than look for new ones.

Feb 03, 2009 09:19 AM #2
Rainer
15,336
Jeff Bonham
The Real Estate Masters Institute - Springfield, MO
CEO

Thanks for the feedback Tim and Lynda.  I see so many agents out there looking for the "Magic Bullet" that they fail to capture the golden goose sitting right in front of them.  If you haven't seen the research, check out the latest publication from the Keller Center for Research at Baylor University regarding Lead Generation....I found even more facts that attest to the power of our ATM...

http://www.baylor.edu/business/kellercenter/index.php?id=55741

Feb 03, 2009 09:36 AM #3
Rainer
13,192
William German
NetWorks Real Estate LLC - Lacey, WA

Hello Jeff,

I really enjoyed reading you post. I must say that I am new to the business and I have tried various forms of lead generation except my SOI. Today starts a new beginning for my career. By the way I read your bio and for the life of me I can't figure why you are posted in the rookie section.

Feb 03, 2009 10:52 AM #4
Rainer
15,336
Jeff Bonham
The Real Estate Masters Institute - Springfield, MO
CEO

Thanks, William, for the input.  I'm really excited for you and the new direction you are about to embark on.  A great follow up program with your sphere will change your business and provide the fuel to the fire.

I am posted here because one of the main reasons I stepped out of sales into coaching is that over my 13 years in the business I saw so many people that were 100 times more naturally gifted than I was at real estate sales or relationship building who fell through the cracks and for one reason or another are no longer in this amazing business.  So, I blog here hoping to provide any little insights I can to the newer agents and to also let them know there is someone out there who can help guide them through this crazy maze if they decide they want a more formal relationship with me and my coaching company.

Best wishes in your future success and keep me posted if there is any way I may be of service!

Jeff Bonham

Feb 04, 2009 01:49 AM #5
Rainer
13,192
William German
NetWorks Real Estate LLC - Lacey, WA

Jeff,

My hat is off to you. Not many seasons veterans would do what you are doing right now.  Thanks!

I look forward to reading more post from you.

 

William German

Feb 04, 2009 04:26 PM #6
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