Launching your new business as a newly licensed real estate agent is exciting! It also takes courage and a healthy dose of willpower to let the world know you’re open for business.
One way you can leap from a newbie to a producing (and paid) real estate agent at your chosen real estate brokerage faster is to develop your sphere of influence.
Also known as your SOI, your sphere of influence is the foundation of your lead database. So, how do you build your SOI into the deal-making driver you need it to be? Keep reading and learn a golden strategy from veteran real estate broker and National Real Expert for The CE Shop, Jill Malloy.
What Is a Sphere of Influence?
Think of your sphere of influence as your own personal network of contacts. It’s made up of your personal contacts, professional contacts, acquaintances you know within your community, and anyone else in your orbit who could potentially become one of your clients.
Malloy — who has also served as a longtime trainer, mentor, consultant to many real estate companies and associations — explains that developing your sphere of influence is the first thing a new agent should do for a successful start in the business.
“When you’re a new agent, your goal is to build business,” she says. “And it’s important to know that you build business easily with the people in your network who already know, like, and trust you.”
Recent data builds a strong case for identifying and growing your sphere as early as you can, too. According to the National Association of REALTORS® 2024 Member Profile Report, the typical REALTOR® earns 20% of their business from repeat clients, and 21% through referrals from existing and past clients. These are deals that start within your sphere.
Yet, Malloy admits, developing your real estate sphere of influence can be a difficult task for new agents. It’s especially challenging for new agents whose minds are often spinning with post-licensing to-dos, little lead-generation know-how, and potential anxiety over asking personal contacts for business.
That’s why Malloy recommends this simple five-step strategy to create your SOI. Then, you can begin marketing your services within your sphere, and ultimately, win your first client (and commission check) faster. Follow this formula.
H2: 5 Simple Steps to Identify Your Sphere of Influence
#1: Make a list of everyone you know.
First, simply make a list of everyone you know. “Don’t think forward here,” Malloy says. “Just sit down and make the list. At this point, you don’t want to qualify who is on your list and you don’t want to get sidetracked looking up contact information.”
Your goal with this step: make your list of names. Chances are, it's a hefty list, even if you think it might not be. Include connections like:
Family members
Friends
Past and present work colleagues
Acquaintances you know within your community
If you’re a parent, include your kids’ teachers, coaches, caregivers, and fellow parents in your orbit
Include anyone else you think would trust you — now or in the future — to help them buy, sell, or lease a property
#2: Divide your list into patrons and contacts.
Second, “qualify” the names on your list. In other words, decide who on your list would be closest to becoming a client today if they needed a real estate agent. Some people divide leads into “cold,” “warm,” and “hot” to measure how close someone is to becoming a client. Malloy recommends a similar but simplified approach: divide your list into patrons and contacts.
Patrons are contacts you know and trust who you think would trust you to help them with a real estate transaction today. Contacts are people who might trust you to help them, and who you should further develop your relationship with to transform them into patrons.
#3: Schedule appointments with your patrons.
With your list of patrons and contacts ready, focus first on connecting personally with your patrons to explore their potential real estate needs. Malloy recommends scheduling in-person meetings with patrons instead of relying on phone calls. Think casual coffee catchups, lunches, and similar low-pressure meetings. While phone conversations are helpful touchpoints, in-person meetings offer a way to develop deeper connections, especially if you’re reaching out after a long while.
When you meet with a patron, let them know three things:
You’re excited to share that you’ve earned your real estate license and you’re looking for individuals and families to help with your real estate services.
Ask them about their current real estate needs and goals and let them know you’d love to work with them now or in the future.
Ask them if they wouldn’t mind keeping their eyes and ears open for people within their network who are looking to buy, sell, or lease a property. Would they mind sharing your name as a recommendation?
As you catch up with your potential client, listen for clues that indicate when they may be looking for real estate services. For example, are life circumstances leading them to explore upgrading to a larger home? You may have a potential buyer client soon. Will they eventually be looking to downsize? There’s a potential seller client.
Make a mental reminder to jot down notes about their real estate goals and anticipated timeline in your client notes. This will help with your future conversations. Even if you don’t connect with a patron who needs real estate services now, remember, you’re planting a seed for future business. That alone is an important step in real estate lead generation.
After each meeting, be sure to follow up by sending a thank-you note to everyone you’ve met with. Express your heartfelt appreciation of their time and let them know you’re always here to help with real estate needs and questions.
#4: Add your patrons and contacts to a database.
Next, be sure to add all of your contacts to a database. This goes whether you begin by using a starter Excel sheet (like these helpful Customer Database templates) or a more sophisticated Customer Relationship Management database (CRM) that your brokerage offers. Doing this allows you to organize your lead information, add notes, and keep track of your communications with your contacts.
#5: Schedule regular communication touches.
Finally, schedule regular communication touches with your patrons and contacts to stay top-of-mind and within their orbit. Schedule dedicated time to engage with your prospects via phone calls, texts, and emails. Experiment with cold-calling scripts to help you connect more effectively with leads.
Plus, consider monthly digital marketing ideas to offer more value in your communications, including:
Creating and sending a monthly newsletter
Sending regular market activity updates
Offering seasonal real estate tips
Sharing home improvement tips
Sending out info about local area events and entertainment
Browse these helpful real estate content marketing ideas for email, social media, and traditional marketing for inspiration.
Through your communication touches, your goal is to keep your patrons “warm” until they're ready to make a real estate move and, ideally, reach out to you. Your goal is also to elevate the status of your contacts into warmer patrons who know, like, and trust you for help.
“Real estate lead generation is all about relationship-building,” Malloy says. “It isn’t complicated, but it does take discipline. Build a foundation with your sphere of influence, and you’re off on a good start.”
Learn How to Generate Leads For Your Sphere Like a Pro
