Sphere Of Influence

Sphere Of Influence PROSPECTING PEOPLE YOU KNOW Mike Devlin Keller Williams Realty Silicon Valley – San Jose Gateway

Business Plan  Establish Goals. What is it that you want?  Make a plan to reach each goal.  Can you see yourself working the plan?  Have you set deadlines? Scheduling is the key to getting things

done.  Put the plan into action.  Are you working the plan?

The 90-day Rule  Whatever you are doing right now, today, will affect your

business in 90 days.  Don't get wrapped up in your sales and forget to prospect.  80% of your time should be spent prospecting when new.

Time  The most important function of a salesperson is to get    

clients. 80% of time should be spent on this activity until busy servicing clients. 40 hour week x .80 = 32 hours per week divided by 5 days = 6.4 hours per day. 20 hour week x .80 = 16 hours per week divided by 5 days = 3.2 hours per day. We would be happy with 1 hour a day.

Generate Leads with Your Database

“No matter how you slice it, lead generation will almost always come down to a game of numbers.” Gary Keller, The Millionaire Real Estate Agent, page 136

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Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets

Target Group Your Contacts

Mets

Allied Resources

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Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets

Target Group Your Contacts

Mets

Allied Resources

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Your Strategy  Move people from outer circles to inner circles

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Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets

Target Group Your Contacts

Mets

Allied Resources

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Everyone in your Met Group first goes into an 8 x 8 program, which is then followed by a 33 Touch

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Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets

Target Group Your Contacts

Mets

Allied Resources

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Put your Target Group on a 12 Direct campaign to create an awareness of your brand

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Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets

Target Group Your Contacts

Mets

Allied Resources

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Use a wide variety of prospecting and marketing techniques to generate leads from the General Public

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Put MREA Model into Action with eEdge

Consolidate your contacts in one place

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Put MREA Model into Action with eEdge Break Out Your Contacts into Groups Allied Resources

Haven’t Mets

Buyers

Sellers

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Put MREA Model into Action with eEdge

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Put MREA Model into Action with eEdge

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Feed Your Database Every Day A Closer Look at Your Mets

Inner Circle

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Feed Your Database Every Day A Closer Look at Your Mets Hidden Circles found by Social Media

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Feed Your Database Every Day Your Mets Online Google+ Circles

LinkedIn

Facebook Twitter Grow Your Business with KW Technology BREAKOUT CLASS TITLE

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Business Development Cycle  Meeting people.  Eliminating rejection.  Repeat.

 Promote

Meeting people  You are the product that must be sold to the consumer.  People who don’t know your product, will not use your

product.  People will choose you from among the hundreds of agents available because they know you, or at least know of you, and what it is you do for a living.  Home-sellers and homebuyers most often use an agent’s services because they know, like and trust that agent.

Meeting people  There is a direct correlation between the number of people

you meet and the number of transactions you close.  If you are getting your name and face in front of a lot of people, you win.  If you are sitting in the office expecting the business to come to you, you lose.  If you want to do more business, meet more people.

Understanding Prospecting  Active prospecting, or making direct, two-way contact

with potential clients provides the most leads per contact.  Conducted via face-to-face or telephone conversations, active prospecting is valuable because you can gauge the prospect's interest and desire to work with you more accurately.  Examples of active prospecting include door knocking, holding buyer/seller seminars, open houses and making telephone calls.

Understanding Prospecting  Passive prospecting, or one-way contact, is a less

effective method of obtaining leads.  This includes paper mail, email, online or through publicity efforts.  Examples include sending direct mail letters to members of your farm, developing and releasing press releases, or distributing electronic newsletters.

Eliminating rejection  The fear of rejection causes most agents to avoid meeting

people and, therefore, most of the failure in the real estate industry.  For an agent to be successful in making new contacts, they must do one of two things, overcome the fear of rejection, or eliminate the rejection so they no longer have to be afraid.  It makes more sense to eliminate rejection, by eliminating its cause, than to learn to live with it.

Eliminating rejection  Most rejection is caused by the simple fact that when we

interrupt people, to ask if they have a need for our services, we give them nothing of value in return.  It is a win-lose situation. We win. The consumer loses.  We have the opportunity to generate a lead. They have the inconvenience of having their private time interrupted.

Eliminating rejection  What is a win-win prospecting method?  You, the agent, have the opportunity to meet a potential buyer or seller.  The homeowner receives something of value. You both win!  Something of value for the homeowner can be as simple as

information, a unique handout or flyer, home maintenance tips, a calendar of local events or anything that would be perceived as a fair exchange for the use of the homeowner’s time.

Dynamics Of Expanding Sphere  Make contact with 10 new people a day, 5 days a week, 50    

weeks a year. 50 per week x 50 weeks = 2,500 contacts Divided by 15 years = 166 transactions a year 10% = 16 transactions Not include expose to their sphere of influence

Dynamics Of Expanding Sphere You know or come to know 100 people. They let you know of others wanting to buy or sell property. Say that each of them know as least 20 people. 100 x 20 = 2,000 people in your sphere of influence. People move once every 15 years. 2,000 divided by 15 equals 133 potential transactions. Assume that each listing or selling commissions is worth $7,500 to a salesperson. That's $15,000 potential per transaction.  $15,000 x 133 transactions = 1.9 million potential yearly income from your sphere of influence.  10% of 1.6 million is $190,000 per year! 5% of 1.6 million is $100,000 per year!       

Sphere of Influence in Real Estate  Definition: A group of people upon which you have

influence because they know you. Includes family, friends, those with whom you do business, fellow organization or club members, etc.  Increasing your sphere of influence should be an ongoing goal that will pay off in business over time.  Also Known As: SOI

Finding an Agent  The most common way for both buyers (40%) and sellers

(38%) to find an agent is when a friend, neighbour or relative refer someone.  This reinforces the importance of  Staying top of mind with your past clients and sphere of influence,

and  Asking for referrals.

2012 Profile of Home Buyers and Sellers (NAR)

Sphere of Influence  You already have a sphere of influence.  You have family, friends, schoolmates, business associates,

soccer buddies, etc.  These are people that know you, and because of that, you have some influence on them.  You should always plan to grow this group.  This will become a huge source of repeat and referral

business over time.

Sphere Of Influence  People would rather do business with someone they know

and trust than with a stranger.  Most people use the same accountant, car repair shop and

doctor again and again.  The same people who know you and like you automatically

comprise a network that represents the strongest base of potential clients.  Not only potential clients, but referral sources.

Sphere Of Influence  We encounter new faces visiting clients, attending social

gatherings, and waiting in line for a cup of coffee.  Always have your business cards with you.  May want to carry notebook or so you can write down names and contact information.  Wear KW career apparel and/or name badge.

Business Cards  1,000 cards handed out

 5% respond = 50 responses  10% of responses result in a transaction = 5 transactions  $10,000 commission x 5 transactions = $50,000

Make contact the way you usually do.  You could produce a nice letter in envelopes and mail via first

class mail.  If you're making a really large contact list, many of them will be people you usually talk to via email, text messaging or phone.  Contact them the way you always have; split your list into groups by contact method.

Categorize by how you know them.  You want to have certain common types by which to identify

contacts.  If you're using Outlook, you can use the "Categories" function

for this.  You would have categories for Friends, Family, Vendors

(doctor, lawyer, local grocer, etc.), Buyer Prospect, Seller Prospect, etc.  The buyer and seller prospect categories are for those new ones you're about to get.

Plan ongoing contact and do it!  Make a plan for how often you want to contact them.  This can vary by type, such as family will not need a lot of

follow-up, etc.  Follow the plan and make regular contact.  There's nothing worse than finding out a good friend bought

a home elsewhere because they forgot about you.

Do some quick list-building activities.  Get involved in community activities, go to homeowner

association meetings, give out your business card to the person behind the dry cleaner counter.  If you go for coffee in the mornings alone, stop getting a table and sit at the counter. Strike up a conversation with the person next to you.

Define and Rate Sphere of Influence  A = someone likely to refer to you

 B = someone who with a little more contact with you, would

refer to you  C = Questionable  D = Delete

Send an Item of Value each month  What do you send to your sphere of influence?

 Is it something you would want to receive and find valuable?  How many creative Items of Value can you come up with?

Make it a daily ritual  Calling daily some people out of your sphere of influence is

essential. Even one a day is OK.  Call several times a day if you want your income to raise quickly.  Decide when to make calls and keep at it until you’ve reached the people you were trying to call.  Several weeks after doing this, it will feel a lot easier.

Overcome your blocks to calling  “I don’t want them to think I want something from them”

 “I’m afraid they won’t like me”  “I don’t want to be like a telemarketer”

Overcome your blocks to calling  If you send an Item of Value , you are giving, when you chat

with them and listen to what’s going on in their lives, you’re giving again.  At the end of the call, say something like, “Oh by the way, if you hear of anyone even whispering about buying selling a home, please give me a call with their name and number.”  “I’ll be happy to send referrals to your business, as well.”

Overcome your blocks to calling  After calling monthly (after mailing Items of Value) you’ll

begin to know your sphere of influence and they’ll know you.  You’ll learn which are A’s, B’s, C’s and which ones to delete.  You’ll be in their stream of consciousness; the first one they’ll think of when they think of real estate.  Don’t be surprised if you get referrals in the first few weeks.

Making Contact  Ask them if they currently have any personal need of a

professional Realtor in either the area of buying or selling their own residence.  Any friends, relative, neighbors or acquaintances that have a need of a professional Realtor?  Don't use the words “real estate agent.” “Professional Realtor” sounds better.

Tips For Working A Sphere Of Influence  1. Meet people.Whenever you talk with someone, let them

know you are in real estate. Make it a habit to work it into your conversation.  "The only way people in my profession come to know about people buying or selling real estate is through people kind enough to let us know when they hear of someone. Could you help me out? Do you happen to know of anyone who might be considering buying or selling real estate ?"  If the person says "no", give him or her a business card and say, "Here is one of my cards. If you happen to hear of anyone thinking of buying or selling real estate, will you keep me in mind?" If they say "yes" to this question, they have just committed themselves to helping you.

Making Contact  Don't just give people a business card; make a specific

request of them to help you.  Rather than saying “please send me some referrals,” let your friends,

relatives, acquaintances and contacts know that you are out to “build your business.”  Make this a specific request of your sphere of influence and

look them in the eye and ask “can I count on you for it?”

Making Contact  When you see the same people again, they are going to have a

sense of wanting to do something to help you.  When they say “Hey Susan, how is the real estate business going?”, you have a response of “Well, it's going all right. By the way George, I want to make sure that you still have my cards and my promotional brochure. Do you need some more ?”

Making Contact  Must hear from you six times prior to remembering you on a

conscious level.  If you mail to people six times, they still may not automatically refer people to you.  Better to send professional letter and personal brochure to all the people that you know, and then follow up with a telephone call.

Tips For Working A Sphere Of Influence  2. Put them into your eEdge Database. Keep a record

of names, addresses, phone numbers, and personal data on each person for future reference. This file should be updated with personal data to help develop future conversations.  3. Send each person a "thank you" note. In the note, write: "...I just want to say thank you for saying you will keep me in mind when you hear of someone interested in buying or selling real estate. I really do appreciate your consideration. Hope to talk to you soon."

Tips For Working A Sphere Of Influence  4. Get back personally to each person within two weeks of

the first contact and at least every 30 days thereafter. Try to accomplish the following in this order.  A. Work to build a friendly relationship. This can be done by talking about them. Don't spend more than a couple of minutes or you will become a nuisance.  B. Thank them again for remembering you. "I just wanted to say think you again personally for saying you would keep me in mind if you hear of anyone considering buying or selling real estate. The only way I can be successful in my profession is through people like you considerate enough to keep me in mind when they run across someone considering buying or selling real estate.“  C. Remind them of their commitment to you. "Since the last time we talked, have you run across anyone considering buying or selling?"

Tips For Working A Sphere Of Influence  5. Get back in touch with each person, either face to

face or via telephone, at least once every thirty days. Use each visit to build the relationship, educate, and to ask if he or she has come across anyone interested in buying or selling real estate since your last meeting.You will not get a lead unless you ask. Follow the format (a, b, and c) above.

Tips For Working A Sphere Of Influence  6. When you get a lead from one of these people

compensate them with gratitude and appreciation. Give each prospect referred to you 100% of yourself. Ask your customers and clients to thank the person who referred them to you. When someone gives you a lead shower them with gratitude. "You know, we never would have met if it hadn't been for Bob. Would you do me a favor and make it a point to let him know I was able to help you and thank him for introducing us?" And then to Bob say, "I wouldn't be successful in my career if it wasn't for people like you helping me. Thanks for your help. I appreciate it."

Tips For Working A Sphere Of Influence  7. Never forget to stay in touch every 30 days. The best

source of referral leads are past customers, clients, and people who have referred you to others. If you don't stay in touch they will soon forget you and the quality of your service. If you want to get and continue to get referrals from these people you must stay in touch at least once every 30 days. It is not their job to remember you, but your job to remind them.  8. Evaluate each person in your sphere of influence and stop talking to those who haven't given you a lead within a reasonable period of time, maximum 6 months. Always recruit more people into your sphere of influence to replace the unproductive ones.

101 Lead Generation Ideas 

1. 2. 3.

4.

Main Ideas Consider the many possibilities. Choose three methods. Create an action plan for each one. Identify an accountability partner.

101 Lead Generation Ideas 57

101 Ideas to Consider 1.

2. 3. 4.

5. 6.

Garage sales Car dealer Furniture sales Mortgage companies Title companies Inspectors

101 Lead Generation Ideas 58

101 Ideas to Consider Appraisers 8. Moving companies 9. Facebook 10. Twitter 11. Chamber of commerce 12. Airlines 7.

101 Lead Generation Ideas 59

101 Ideas to Consider 13. High school/Middle school/Elementary

14. PTA 15. Volunteer for school trips 16. Band

17. Choir 18. Sports/Booster clubs

101 Lead Generation Ideas 60

101 Ideas to Consider 19. Teachers

20. Principals 21. Divorces 22. Judges

23. Charities 24. HOA associations

101 Lead Generation Ideas 61

101 Ideas to Consider 25. RELO companies

26. Girl/Boy Scouts 27. Running clubs 28. Biking clubs

29. Ski clubs 30. Gyms/Personal trainers

101 Lead Generation Ideas 62

101 Ideas to Consider 31. New home builder reps

32. Building co-owners 33. HUD 34. VA

35. Bank/Short sales 36. Open houses

101 Lead Generation Ideas 63

101 Ideas to Consider 37. Country clubs

38. Real estate agents 39. NAR 40. CAR

41. GRI/CRS/WCR 42. Realtor seminars

101 Lead Generation Ideas 64

101 Ideas to Consider 43. College alumni associations

44. MREI seminars for investors 45. First-time buyer seminars 46. Urban seminars

47. Weddings 48. Move-in parties

101 Lead Generation Ideas 65

101 Ideas to Consider 49. Before-market preview parties

50. Apartment pool areas—grab

your swimsuit? 51. Apartment representatives 52. Parades 53. City holiday celebrations

101 Lead Generation Ideas 66

101 Ideas to Consider 54. Whole Foods

55. Nursing homes 56. Bunco/Poker parties 57. Your past work functions

58. Past spouses 59. Singles organizations

101 Lead Generation Ideas 67

101 Ideas to Consider 60. Cleaners

61. Starbucks 62. Doctors 63. Marriage counselors

64. CPA 65. KW Regional Directors

101 Lead Generation Ideas 68

101 Ideas to Consider 66. KW Team Leaders

67. KW MCAs 68. Teach 69. Billboards

70. Shopping carts 71. Places of worship

101 Lead Generation Ideas 69

101 Ideas to Consider 72. Craigslist

73. Newspapers 74. Local magazines 75. Theaters

76. TV 77. Radio

101 Lead Generation Ideas 70

101 Ideas to Consider 78. Back of your laptop

79. Restaurants 80. Networking groups/BNI 81. Financial planners

82. Stockbrokers 83. Door knocking

101 Lead Generation Ideas 71

101 Ideas to Consider 84. Expired listings/FSBOs

85. Go to the malls 86. Professional building search 87. Horse shows

88. Car shows 89. Farm an area

101 Lead Generation Ideas 72

101 Ideas to Consider 90. Hotels

91. Hospitals 92. Rental cars 93. Taxis

94. Dairy Queens 95. Goodwills

101 Lead Generation Ideas 73

101 Ideas to Consider 96. Hair salons/Nails

97. Blood banks 98. Golf courses 99. Banks

100. Gas stations 101. Lamaze classes

101 Lead Generation Ideas 74

Step 1: Your Top Three Picks  Choose three methods best suited to you.

 You can try others later, but focus on these first.  Make these avenues your top priority every day.

101 Lead Generation Ideas 75

Time to Act “To accomplish great things, one must not only think—one must ACT.” The Beginning

101 Lead Generation Ideas 76

Step 2: Action Plan  Create an action plan for each method.

101 Lead Generation Ideas 77

Step 3: Accountability  Find a partner who cares about your success.

 Their job is to hold you accountable.

101 Lead Generation Ideas 78

Ideas into Action 1.

2. 3.

Decide which three methods best suit you. Create an action plan for each of them. Get support from an accountability partner.

101 Lead Generation Ideas 79

Online Customer Relationship Marketing  Repeat business and referrals remain your most profitable

source of business.  Customer relationship marketing (CRM).  Lifetime Value is the TOTAL dollar value every client and every affiliation brings to your practice over the lifetime of your relationship.

Lifetime Value  The FIRST value is the “Single-Transaction Value” every client

brings you. For most agents this is the Lifetime Value.  The SECOND value is “Transaction Multiplier” value. A listing should bring at least two new buyers and another listing in the area.  The THIRD value is the “Repeat Business” Value. The average home ownership in this country is about 5.5 years.  The FOURTH value is the “Referral” value. Clients who are acquired by a referral are very high quality (i.e. they are easier to work with, easier to close, and provide the fewest problems), and they refer others just like themselves.

Strategies to Build Referrals and Gain Repeat Business  Communicate regularly with your past clients, and

others in your sphere of influence.  Take advantage of all available online and offline methods to express your professionalism and continued interest.  At the end of each communication, always ask for a referral, and don't be bashful about it.

Repeat and referral business   



Strive to average at least one new referral client per transaction. Don't be shy. Make it your policy that closings are never truly closed until you have asked for referrals from all the players. Activate a business-building campaign after each closing that includes e-mails, faxes, phone calls, and follow-up-letters to the buyer, the seller, friends, coworkers, neighbors, etc.

Follow-up is critical  Your ultimate objective is to pull as many referrals as possible into

the "Lifetime Marketing Cycle."  This all-important cycle begins with lead generation and acquisition, moves on to prospect follow-up and conversion, and long-term contact and retention, which, in turn, provides more referrals.  Effective customer relationship marketing calls for quick followup at each step of the lifetime marketing cycle.  The biggest mistake you can make after asking for, and getting referrals is the failure to follow up with a series of targeted communications.

Online Professional Worksheet  Current Position  Company Name, Title, Time Period, Description.  Professional Summary    

Your professional “headline” Your primary industry of expertise Specialties you have in your industries of expertise Summary of your professional experience and goals

 Prior Experience  Company Name, Title, Time Period, Description

 Education  School, Years

 Additional Information  Websites, Groups/Associations, Interests