We all know the hustle of chasing down cold leads, dialing up strangers, and praying that your latest Facebook ad actually lands you a client or two. While traditional lead generation funnels—such as cold calling, online ads, and purchased leads—have their place, many agents overlook the goldmine right in front of them: their sphere of influence (SOI). SOI marketing isn’t just a buzzword; it’s a strategy that can revolutionize the way you do business. But what exactly does it entail, and how does it stack up against traditional lead generation? We’ll explore this plus get into the core activities of SOI marketing as well as the benefits of tapping into your sphere for your real estate business.
What Is Your SOI in Real Estate?
Think of your SOI as your very own VIP club. These are the folks who already know you, trust you, and doggone it – they like you. This group isn’t just your immediate family and best friends (though they’re definitely included); it’s everyone you’ve ever interacted with—past clients, neighbors, the guy who fixes your car, your dentist, and even your social media followers.
Now, here’s the kicker: Unlike those cold leads who have no clue who you are (and frankly might not care), your SOI is already part of your fan club. There’s a built-in trust factor that gives you an inherent advantage over marketing to strangers. Marketing to your SOI in real estate is all about nurturing these relationships so that when anyone in your circle needs a real estate agent—or knows someone who does—you’re the first person they think of.
SOI Marketing vs. Traditional Lead Generation
1. Relationship Building vs. Chasing Transactions
Marketing to your SOI is all about building and maintaining relationships. Traditional lead generation often focuses on a one-and-done approach, where the goal is to convert a lead into a client as quickly as possible. It often feels like a numbers game—how many calls can you make before someone says “yes”? While this can generate immediate results, this approach alone often lacks the depth needed for long-term success.
SOI marketing flips the script. Instead of going for the quick sale, you’re playing the long game with consistent, meaningful interactions. It’s about sending personalized and meaningful messages, offering genuinely helpful information, and showing interest in the lives of your contacts. Over time, this builds a loyal base of clients who not only return to you but also refer others.
2. Cost-Effectiveness
One of the most significant advantages of marketing to your SOI in real estate is cost-effectiveness. Traditional lead generation strategies often require significant investments in advertising, technology, and time.
SOI marketing, on the other hand, is generally less expensive. While it can be helpful to have a dedicated CRM to help you effectively execute, sphere marketing leverages existing relationships, meaning you don’t need to spend as much on outreach itself. Instead, your investment is in time and effort—writing a personalized note, reaching out on a client’s birthday, or sharing market updates with past clients.
3. Higher Conversion Rates
Statistics show that leads from your SOI are far more likely to convert than cold leads. According to a study by Buffini & Company, 82% of all real estate transactions come from referrals, repeat business, or personal contacts. This is in stark contrast to the much lower conversion rates seen with cold leads, where the average conversion rate is just 1% to 3%.
This high conversion rate shouldn’t surprise you – more of the people in your sphere want to transact with you because they already know and trust you. When you focus on your SOI in real estate, you’re not just a name in a sea of agents. You’re their agent, the one they’ll think of first when real estate comes up.
The Core Activities of SOI Marketing
To effectively market to your SOI in real estate, it helps to focus on a few core activities:
1. Regular Communication
Consistency is the backbone of sphere marketing. Your outreach can take many forms, such as monthly newsletters, personalized emails, phone calls, or even a quick text message. It doesn’t have to be a chore — in fact, if it feels that way, your sphere can probably tell. Think of it as catching up with friends. The goal is to stay top of mind without being intrusive.
Tip: A good CRM makes outreach easy and automatic so no contact gets left behind. Learn more about MoxiWorks’ CRM solution.
2. Providing Value
People are more likely to stay connected with those who provide value. In real estate, this can mean sharing market insights, offering advice on home maintenance, or even hosting community events. By positioning yourself as a knowledgeable and helpful resource, you reinforce your role as the go-to real estate expert within your sphere.
3. Personalization
This is where you can really shine. Send a handwritten note when a client moves into their new home, remember their kids’ names, or surprise them with a small gift on their anniversary of buying a house. These personal touches go a long way toward building loyalty that can turn a one-time client into a lifelong advocate for your business.
4. Asking for Referrals
If you’ve done your job well, people will generally be more than happy to refer you. Don’t be afraid to ask! However, it’s essential to ask in a way that feels natural and not pushy. After wrapping up a successful deal, try something like, “I really enjoyed working with you. If you know anyone else looking to buy or sell, I’d love to help them too.”
The Benefits of Focusing on Your SOI in Real Estate
1. More Referrals, Less Stress
When you focus on your SOI in real estate, referrals become a natural part of your business. People are more likely to recommend someone they know and trust, and with sphere marketing, that someone is you.
2. Long-Term Client Relationships
SOI marketing isn’t just about the here and now; it’s about building relationships that last. Happy clients are repeat clients, and they’re also more likely to send their friends and family your way. This kind of loyalty is invaluable in the real estate world, therefore your relationship with a client should never end after the transaction closes
3. Enhanced Reputation
Your reputation in the real estate industry is invaluable. By focusing on your sphere of influence, you build a reputation as a consistent, trusted, reliable, and personable agent. This reputation can lead to more referrals and a stronger presence in your community.
4. Enjoy the Journey
Working with people you already know and like tends to make your job more fun. Instead of constantly chasing cold leads, you get to focus on nurturing relationships and helping people you care about. SOI marketing allows you to build a business that feels good, with clients who trust you and appreciate your work.
Leveraging your SOI is cost-effective, fun, and incredibly powerful for your real estate business. As you plan your next move to win listings, don’t forget the value you’re already sitting on in your sphere. By embracing the power of your sphere, (and working it effectively) you’ll not only see better results in your business but also find more joy in helping people you know and care about achieve their real estate dreams.
