Do you see your Sphere of Influence (SOI) as something that boils down to a game of names and faces?
See, it’s nothing but.
In reality, it's a dance of engagement, alliance-building, and bond-forging.
Your network of personal and professional contacts is a treasure trove of potential leads, referrals, and opportunities. It's a genuine, people-first strategy to grow your real estate empire, and for most people who do it right, it's proven to be a winning move.
Your SOI is the network of people who know you, trust you, and are willing to vouch for you. These are the people who will recommend you to their friends, family, and colleagues when they hear of someone looking to buy or sell a property.
They're your advocates, your cheerleaders, and your most valuable marketing resource. Wielding your SOI effectively can lead to a steady stream of referrals, which are often the highest quality leads you can get. And today, we explore all the ways that you can use, expand, and nurture your SOI to get more leads in 2024.
But first, let’s quickly review all the lead generation tools you need to be effective today:
Is SOI still a viable strategy with all these powerful new tech at play in your strategy? Let’s find out!
Chapter 1: The Role of SOI in Lead Generation
Your sphere of influence is to your lead generation strategy as the heart is to the body. It's the engine that powers the process of transforming strangers and prospects into individuals who have shown an interest in your services.
Your SOI is a goldmine of potential leads.
It's all about nurturing those relationships, keeping them warm and active. This puts you in a prime position to generate new leads constantly. Every interaction is a golden ticket, an opportunity to identify a potential lead, nurture that relationship, and eventually convert that lead into a client.
Just to give you a sense of how powerful this can be, consider this: a study by the National Association of Realtors found that a whopping 64% of sellers who used a real estate agent found their agent through a referral by friends or family, or used an agent they had worked with before.
But… It’s 2024!
I hear you going “But isn’t AI on the rise? There’s also so many prop tech options that could bring me all the leads I need now.”
Well, let's not beat around the bush here.
While AI and new technology can certainly enhance and streamline the process of managing and engaging with your SOI, they can't fully replace the human touch that is often required.
AI can automate tasks like sending out regular newsletters, tracking interactions, and even initiating follow-ups (options we will explore later). The latest marketing technology can help you reach a wider audience and stay top-of-mind through targeted ads and social media engagement.
But the personal connection, understanding, and trust that form the core of your SOI are things that technology can't fully replicate.So rather than think of these as replacements for the personal, relationship-building aspects of SOI management, think of AI and new tech as tools that can enhance your ability to manage and engage with your SOI.
Chapter 2: Building and Expanding Your SOI
Building and expanding your sphere of influence is a continuous process that requires strategic planning and execution. The following are practical strategies and insights on how to effectively build and expand your SOI.
Networking and Building New Relationships
Networking is a powerful tool for expanding your SOI. It's about making connections, sharing information, and fostering mutually beneficial relationships. Here are some practical ways to network as a realtor in 2024:
Attend industry events. Real estate conferences and conventions are great places to meet colleagues and learn about the latest trends in the industry.
Collaborate with local businesses. Forge partnerships with other businesses in your area that complement the real estate industry, such as mortgage brokers, interior designers, or home inspectors.
Participate in local real estate groups or associations. Local real estate groups often provide great resources for agents looking to enhance their professional development, as well as build relationships with other professionals in the area.
Engage in community and industry events. Attend local community events, industry conferences, and networking meetups. Be genuine and show interest in others.
Don’t worry if you don’t bag a lead or a client from your networking efforts. Sometimes it takes a friend of a friend to introduce you to a potential client. The key is to be persistent and keep plugging away - even if it takes weeks, months or years of networking before you get your first lead.
Leveraging Existing Personal and Professional Connections
This is where having a large network of connections pays off. Your personal and professional connections are a great starting point for expanding your SOI.
Reach out to old friends, former colleagues, and even family members.
Let them know about your real estate business and how you can provide value. Every person you meet has the potential to connect you with dozens of other people.
Utilizing Technology to Grow Your SOI
While it’s no replacement for that human touch, technology should play a crucial role in expanding your SOI today.
Why? Because your competitors are all using it.
From social media to customer relationship management (CRM) systems, technology has become part and parcel of what it means to be a realtor in the 21st century. And it’s not hard to see why.
Not only can it help bring in more leads from places you didn’t even bother to look, it can help you reach more people, manage your relationships more effectively, and ultimately grow your SOI. Here are some key ways it does that:
Social Media and Online Networking. Social media platforms like Facebook, LinkedIn, and Instagram provide powerful tools for expanding your SOI. You can connect with people you might not meet in your day-to-day life, engage with your audience, and build your personal brand. The same could be said for virtual events like Inman Connect, so make sure to make room for them when you can.
CRM Systems and Database Management. A good CRM system is a must-have tool for managing your SOI. It allows you to keep track of your contacts, manage your interactions, and ensure that no lead falls through the cracks. A CRM worth its salt will allow you to segment your SOI into different categories based on the level of relationship, such as "advocates," "clients," "prospects," and "acquaintances," which can help you tailor your approach and communication strategy to each group.
This is crucial as different segments of your SOI will require different communication strategies. For example, you might send a monthly newsletter to your "acquaintances" segment, while your "clients" segment might receive more personalized communication.
Later, we’ll discuss how your CRM plays a critical role in nurturing your leads, as well as a highly recommended tool custom to realtors’ unique needs.
Chapter 3: SOI and Your 2024 Real Estate Marketing Strategy
Now that we’ve covered all of the ways to build and grow your SOI, how do you leverage it as part of a more comprehensive real estate marketing strategy?
While there’s no one-size-fits-all answer, there are time-tested techniques that can help you maximize your SOI; a mixture of both old and new strategies, some of which we have already covered above.
Old School Marketing and SOI
Referral Programs and Word-of-Mouth Marketing
In the real estate jungle, nothing roars louder than a personal recommendation. It’s true then, it’s true now. (As an aside, it’s the reason why tools like LSA and GMB are so powerful, and to an extent the goal of social media buzz is word-of-mouth relevance).
Your sphere of influence is an ocean of potential referrals. These are the folks who know you, trust you, and are ready to shout your name from the rooftops.
A slick referral program can turn your SOI into brand evangelists, spreading the gospel of your services far and wide. This creates a ripple effect, extending your reach beyond your immediate circle.
Fact: 41% of home buyers chose to work with an agent who was referred to them by a friend, neighbor, or relative.
This is why you should never shy away from asking for referrals from your SOI, because a nod from a trusted friend or family member is worth more than any billboard.
Direct Mail and Newsletters
While the digital world is booming, old-school methods like direct mail and newsletters still hold their own, especially when it comes to nurturing your SOI.
In a rush to get with the times, too many realtors miss how many buyers and sellers are not online, and so miss leads that could only be reached by traditional snail mail and print.
And get this: direct mail enjoys a 5x to 9x higher response rate than emails and other advertising channels.
A personalized letter or a well-crafted newsletter is a physical reminder of your services.
It's your chance to share market insights, recent wins, or upcoming open houses. More importantly, it's your ticket to staying top-of-mind with your SOI.
By consistently delivering valuable content, you're not just promoting your business; you're building a relationship and positioning yourself as a trusted expert in the real estate market.
Digital Marketing and SOI
Connecting with your Online Client Base with Email Marketing
There’s no doubt that email marketing has emerged as a cost-effective and efficient way to stay connected with your SOI.
It allows you to deliver personalized content straight to your contacts' inboxes, whether it's a monthly market update, a blog post, or a simple holiday greeting.
But everybody and their mother is doing this today. How do you stand out?
The secret sauce to successful email marketing is providing value. Each email should offer something that piques the interest or meets the needs of the recipient, whether it's an informative article about the local real estate market or tips on home staging.
This not only keeps your SOI engaged but also positions you as a knowledgeable and helpful resource in the real estate industry - the kind people look for when it’s time to buy or sell their home.
Need some guidance on how to do it effectively? Watch our 2-part webinars series on “Mastering Email Marketing” and get insider tips from industry veterans and get their time-tested templates for FREE!
Start here:
Social Media Marketing and SEO
We’ve already touched on this earlier, but it bears repeating: Social media platforms offer a unique opportunity to engage with your SOI on a more casual and frequent basis.
Sharing relevant content, engaging in conversations, and showcasing your personality can help strengthen your relationships and keep you top-of-mind.
What’s more, social media can supercharge your search engine optimization (SEO) efforts.
When it comes to something like Facebook lead generation, for example, your branded search site could act as the “fishbowl” that you can funnel all your social leads into, which in turn improves your search engine rankings, and increase your online visibility.
A win-win that you don’t want to miss out on.
Remember, your SOI isn't just a source of potential leads. At the end of the day, you’re building a community that you need to engage with both online and in real life. You're not just marketing your services; you're building and nurturing relationships.
Chapter 4: Nurturing Your SOI for Sustainable Success
Having regular touchpoints and follow-ups with your sphere of influence network is in one sense the lifeblood of your enterprise. Cultivating robust relationships guarantees your position at the forefront of their minds when it’s time to make a move.
Until that time, it isn't about turning on the hard sell or being pushy; it's about demonstrating genuine interest and delivering unparalleled value. Here are a couple of ways to nurture your leads and keep your brand fresh and evergreen in their minds.
1. Personalize All Communications
We’ve already covered the power of bespoke messaging and using it as a means to inform and remind them of your most recent wins and accomplishments for social proof.
The key to doing that and doing it consistently is to transcend the realm of generic emails and messages.
Play detective; decipher the unique needs and interests of each individual in your SOI and customize your communication to resonate. Value is the name of the game.
For instance, if a contact recently hinted at downsizing, dispatching them information on how to masterfully downsize can be a game-changer.
This tailored, value-driven approach not only fortifies your relationships but also cements your status as a trusted confidant in the real estate arena.
2. Use the Right CRM for Your Real Estate Business
We’ve also covered how CRMs help you understand customer behavior and preferences. These systems also empower you to track interactions, set reminders for touchpoints, and segment your SOI based on various factors such as readiness to buy or sell, type of property interest, and more.
With a CRM system in place, you ensure that no lead evaporates into thin air and every member of your SOI receives the attention they merit.
With that in mind, one such CRM system that comes highly recommended by us is Follow Up Boss (FUB). FUB is a complete digital marketing platform for real estate agents and teams, and it integrates seamlessly with the latest and greatest Ylopo tech.
This integration allows you to manage new and unconverted opportunities, old and unconverted opportunities that are active, and converted and active leads. It also provides tools for organizing daily tasks, managing appointments, and monitoring team performance. No wonder that the use of CRM systems in real estate has been shown to increase sales by up to 29%, sales productivity by up to 34%, and forecast accuracy by 42%.
FUB's daily hot sheet, inbox, tasks, and dashboard can help you stay organized and manage your leads effectively. Its calendar, which is integrated with Google, can assist in managing tasks and appointments. FUB's reporting tools can also be used to monitor team performance and manage leads.
FUB also integrates with Ylopo Tags, which can be used to identify leads' behaviors and intentions. This can help you tailor your approach to each lead based on their specific needs and preferences.
Leads are categorized into stages such as "Hot," "Warm," "Cold," and "Closed."
This helps you understand the individual buyer stories of your leads and ensure consistency in contacting them. What’s more, their Stars feature allows for a deep dive into a lead's profile and activities, providing valuable insights that can help you nurture your relationships more effectively.
3. Leverage Your Socials to Deliver Value and Construct Trust
We already know that social media is a potent tool when it comes to putting out value-driven content. But it’s also an appropriate place to show off your portfolio to potential clients.
A glowing review on your GMB profile, for example, is high-quality social proof that encourages others to use your services.
Considering how 90% of buyers and sellers read reviews before dealing with a real estate agent, having as many 5-star ones on there can do wonders for your conversion.
This is why you successfully assist members of your SOI with their real estate needs, don't shy away from soliciting testimonials and referrals.
These potent tools serve as social proof of your expertise and can significantly amplify your credibility within your SOI. A delighted client can lead to a cascade of referrals, expanding your SOI and amplifying your potential for new business.
Don’t have a GMB Profile yet? Sign up for end-to-end set up and management here.
Supercharge Your Sphere of Influence: Skyrocket Your Real Estate SuccessWith Ylopo
Your sphere of influence is critical to your success in the industry, and there are a lot more indispensable tools and strategies to help you extend your impact other than the ones we talked about today.
Do you know what they are? We do.
You see, we have a community – a powerful network of realtors, like you. This community, combined with our in-house industry experience, has given numerous realtor clients an edge, expanding their reach and driving their success.
Imagine being part of a community of like-minded professionals who share your passion and understand your challenges.
Picture a future where you can focus on building genuine relationships, forging meaningful connections, and turning those leads into satisfied clients.
This future can be your reality with Ylopo.We believe in the power of your SOI, and we have the tools to help you leverage it. But don’t just take our word for it - experience it for yourself. Book a demo today and witness firsthand how our platform, our community, and our expertise can serve as the springboard for your success in the real estate industry.
Remember: yesterday’s SOI strategy might not work tomorrow.
You need a partner that understands this dynamic landscape, one who can help you navigate the twists and turns of the real estate market. You need Ylopo.
So, are you ready to level up? Your journey towards real estate success begins with a single step - clicking the button below. Contact us today.
About the Author
Aaron “Kiwi” Franklin
Head of Growth
Aaron "Kiwi" Franklin is the Head of Growth at Ylopo and an innovative technologist and serial entrepreneur who has over 25 years of experience creating digital solutions for major brands and pioneering companies at the intersection of technology and real estate. His depth of expertise stems from leading development of the first website for Apple to founding a global community of over 1,000 elite athletes. Connect with me