Tapping Your SOI for More Referrals in Real Estate

Need more referrals in your real estate sales career? Tap your "Sphere of Influence" (SOI).

Your Personal Circle is made up of those friends, relatives, former co-workers and acquaintances who may be willing to recommend your services to their friends, relatives and acquaintances.

What makes your SOI such a great referral source?

Most of the people in this group are homeowners. According to research, most homeowners know three to five people each year who will move. If there are 25 people in your Sphere of Influence, you could potentially gain 75 to 125 referrals per year!

Now, just because someone is a friend doesn't necessarily mean you will receive a referral – no matter how close the relationship. Your friend may be loyal to another REALTOR®, or even related to one!

Qualifying Your Real Estate SOI

That's why, as with any other referral source in real estate sales, you must qualify the people you put in your Sphere of Influence and categorize them appropriately in your real estate contact management system. Some may be an immediate "Yes," others a clear "No," and some may feel comfortable referring you over time if you nurture them properly.

This can be tricky. Many REALTORS® feel awkward approaching a friend or relative for real estate leads and referrals. Here are some strategies that will make it easier:

• Set the tone. Let them know upfront that they are under no obligation, just because you're friends or you're related.
• Relieve the pressure. "I don't mind if you're loyal to someone else. In fact, I respect loyalty even if it is with another agent."
• Encourage them to be truthful. "I invest a lot of time in my referral sources. So if you prefer not to be one, please let me know. In fact, it would really help my business if you would set me straight."

It may surprise you, but most people in your SOI may not even know that you want referrals. Once they do, most will be more than willing to help.

IMPORTANT: Don't react negatively if someone in your Sphere of Influence seems uncomfortable or says no. On the contrary, thank them for their candor. They really are doing you a favor.

To view the original article, visit the IXACT Contact blog.