Sphere of Influence (SOI) real estate marketing is a strategy used by real estate agents to grow their business by tapping into their existing networks. The SOI refers to the people in an agent's personal and professional circles, such as friends, family, colleagues, and past clients. By focusing on these individuals and building relationships with them, agents can generate new leads and referrals, ultimately increasing their sales and revenue.
In this blog, we will delve deeper into the concept of SOI real estate marketing, discussing its benefits, strategies, and best practices. We will also explore how technology has impacted SOI marketing, and offer tips for agents looking to leverage the power of their sphere of influence.
Understanding Sphere of Influence (SOI) in Real Estate Marketing
In real estate, your sphere of influence is the group of people you have a personal or professional relationship with, who may be potential clients or sources of referrals. This group could include friends, family members, coworkers, past clients, vendors, and other people you have connected with in your personal or professional life.
SOI real estate marketing is a strategy that focuses on building relationships with people in your sphere of influence to generate new leads and referrals. By cultivating these relationships and staying top of mind, agents can stay ahead of their competition and position themselves as the go-to agent for their clients and their sphere.
Benefits of SOI Real Estate Marketing
There are several benefits to using SOI real estate marketing as part of your overall marketing strategy. Here are some of the key advantages:
- Targeted audience: Your sphere of influence is a group of people who already know, like, and trust you. By focusing your marketing efforts on this group, you can avoid wasting time and money on unqualified leads and prospects.
- High conversion rates: According to the National Association of Realtors (NAR), referrals and repeat business account for 82% of all real estate transactions. By staying top of mind with your sphere of influence, you can increase your chances of receiving referrals and repeat business.
- Cost-effective: SOI marketing is typically more cost-effective than other forms of marketing, such as advertising or lead generation. By leveraging your existing relationships, you can save money on advertising and generate more leads for less.
- Builds relationships: SOI marketing is all about building relationships with people. By staying in touch with your sphere of influence, you can foster strong connections that can lead to long-term business relationships.
SOI Real Estate Marketing Strategies
Now that we understand the benefits of SOI real estate marketing, let's look at some strategies agents can use to build and nurture their sphere of influence:
- Stay in touch: One of the most important aspects of SOI marketing is staying in touch with your contacts. This could be through email newsletters, social media, phone calls, or in-person meetings. The key is to stay top of mind and remind your contacts that you are a resource for all their real estate needs.
- Provide value: When you reach out to your sphere of influence, make sure you provide value. This could be through sharing relevant industry news, offering tips for home buyers and sellers, or simply checking in to see how they are doing. The more value you provide, the more likely your contacts will be to remember you and refer you to others.
- Host events: Hosting events is a great way to connect with your sphere of influence in person. This could be anything from a client appreciation event to a home buying or selling seminar. By providing valuable information and creating a fun atmosphere, you can strengthen your relationships with your contacts and generate new leads.
- Ask for referrals: Don't be afraid to ask your sphere of influence for referrals. Let them know that you are always looking for new clients and that you appreciate their support. You can also offer incentives for referrals, such as a gift card or a discount on their next transaction with you.
- Leverage technology: Technology has made it easier than ever to stay in touch with your sphere of influence. Use social media platforms, email marketing tools, and customer relationship management (CRM) software to manage and nurture your contacts.
- Personalize your communication: When reaching out to your sphere of influence, make sure your communication is personalized. Use their name, reference past conversations, and show genuine interest in their lives. This will help you build stronger relationships and increase the likelihood of referrals.
- Be consistent: Consistency is key when it comes to SOI marketing. Make sure you are reaching out to your contacts on a regular basis, whether that's monthly, quarterly, or annually. This will help you stay top of mind and build stronger relationships over time.
Best Practices for SOI Real Estate Marketing
To get the most out of your SOI marketing efforts, here are some best practices to keep in mind:
- Set goals: Before starting your SOI marketing campaign, set specific goals for what you want to achieve. This could be a certain number of referrals or transactions per month, or a specific increase in revenue. Having clear goals will help you stay focused and measure your success.
- Segment your contacts: Not all contacts in your sphere of influence are the same. Segment your contacts based on their level of interest, likelihood of referring you, and stage of the home buying/selling process. This will allow you to tailor your communication and provide more personalized value.
- Use a variety of communication channels: Don't rely on just one communication channel to reach your sphere of influence. Use a variety of channels, such as email, social media, phone calls, and in-person meetings. This will help you reach more people and stay top of mind.
- Measure your success: Track your SOI marketing efforts and measure your success. Use analytics tools to track your email open rates, social media engagement, and website traffic. This will help you understand what is working and what needs improvement.
- Stay up-to-date on industry news: Make sure you stay up-to-date on industry news and trends. This will allow you to provide relevant information to your contacts and position yourself as an expert in your field.
When implementing your SOI marketing strategy, it's important to be authentic and genuine in your communication. Don't just focus on promoting your services, but instead focus on providing value and building relationships. By doing so, you'll position yourself as a trusted advisor to your clients and increase the likelihood of them referring you to their network.
Lastly, it's important to stay up-to-date on industry news and trends. Real estate is an ever-changing industry, and staying informed can help you provide more value to your clients and stay ahead of your competition.
SOI real estate marketing is a powerful strategy for agents looking to grow their business and generate more leads and referrals. By focusing on building and nurturing relationships with their sphere of influence, agents can position themselves as the go-to agent for their clients and their networks. By leveraging technology, providing value, and staying consistent, agents can build stronger relationships and generate more business over time.