Been doing a little private SOI (Sphere of Influence) tutoring with some local Denver agents. Yesterday, as I was working with one of my students, she asked me a question that got me thinking (I love that). She asked "So, my goal is to expand my Sphere of Influence database to a certain number by the end of the year?"
Well, sorta. At least, that's probably one of your goals. But as I answered her question I realized that there are really four different branches of an SOI business model, thus four different "goals" to shoot for as you build your SOI model.
Here are the four branches:
- Your Direct SOI - that is - the people you know
- Your Indirect SOI - that is - the people your SOI knows (i.e. referrals)
- Your Third Generation SOI - that is - the people you meet via your SOI
- Everyone Else - that is - every single person you encounter in your day-to-day wanderings
Your Direct SOI
These are the people who know you and know you sell real estate. It's made up of your Group One (your social network) and your Group Two (those people you know that you don't socialize with). You should try to have at least 200 warm bodies there; of course, more is better, but they don't "count" if the person wouldn't recognize your name off the bat. These are people who KNOW you, even if they aren't your best friends.
You'll get business from your Direct SOI, but it probably won't be your primary source of closings. Most of aren't blessed with an SOI who buys and sells houses on a regular basis!
Your Indirect SOI
These are the people your Direct SOI refers to you, who, of course, will be added to your Direct SOI once you've met. Your Indirect SOI should be a fairly consistent source of business for you, assuming your Direct SOI thinks a lot of you, and they know how to find you.
Your Third Generation SOI
These are the people you serendipitously meet as a result of your existing personal relationships. For example, back in 1996, I met my second and third clients ever at the wedding of a mutual friend. I met another client at a Pride parade I attended with my GLBT friends. Another at a Super Bowl party. Stuff like that. This can be an enormous source of business for you, if you're often out there in the world with a smile on your face and your antenna up, and can speak intelligently about your local real estate market to anyone who's interested (and please don't bore those who aren't!)
Everyone Else
These are the people you run into during your daily travels. Every single person you meet, every day, has the potential to be the newest member of your Direct SOI. Not all will, of course, but you never know who will end up being your biggest fan. It might be that young couple who stumbled into your Open House who had a child the same age as yours. Or that woman standing next to you at Ace Hardware getting a key made, who casually mentions she just moved to town. That guy you meet at the dog park. Your neighbor three doors down who is looking for his lost cat. The woman who calls you off your Craigslist ad to purchase your roller blades.
Again, HUGE potential with this category - if not today, then next month or next year.
So, looking at the four branches... how can you incorporate these four categories into your SOI-building goals & activities?
SOI 101: What exactly is an SOI business model?
SOI 102: The SECRET to Successful SOI
SOI 103: My daughter's best friend's parents just hired someone else!
SOI 104: I think I've blown it with my SOI
Jennifer: I like this approach - categorizing your sphere of influence. I think this would be an effective way on to reach out and correspond to each branch (your sphere of influence). One branch might need a personal handwritten note more often to let them know you are still around, while another group might respond by a monthly newsletter etc. In addition if you are trying to reach a goal for your sphere (which should constantly be changing) breaking it down by each branch might make it easier to obtain and see how the branches get you to see the big picture - the entire tree! I look forward to reading about your other findings in tutoring sessions.
MIchelle - funny, I just got off the phone with someone talking about Fort Rucker!!! (long story). Anyway, I find that a lot of people think their SOI is just the people they know TODAY, but it's far more than that...
Jennifer, this is a good breakdown, I teach my staging students how to mine their spher of influence and this is a great way to get them thinking about its expansion.
Jennifer, nice way of breaking it down. The trick is to be knowledgable about your farm/market, be prepared at all times, and be personable and outgoing, no matter which of the spheres you are interacting with. You just never know which random conversation will turn into a transaction.
Nice way to summarize the SOI, thank you for all of your great information and reminding us to stay in touch with our "people".
The JAsoi
I never thought of breaking it down to that level. Mine is a bit more simple: past customers and business partners... with a sprinkle of prospects. In my world the indirect doesnt seen to pay off as well as the direct.
Jennifer I have read several blogs on the Sphere of Influence, but have not seen anyone break it down like this .......... excellent.
Jennifer,
Great breakdown! I love it! I haven't thought of it this way. Isn't 3rd generation and everyone else kind of the same thing? What is it the necessarily seperates them? Sorry, just trying to see if I'm missing something. I am running on about 4 hours of sleep 3 days in a row!
Great job Jennifer. It makes so much sense the way you explained it. Love your blog - thanks for taking the time to teach those of us who need to learn.
Josh & Kathy ~ I think Third generation are folks we meet because of other folks we already know. Everyone else = total strangers we meet in the course of our day. Like the lady who sold jewelry at my best friend's party...I eventually helped a friend of HERS find a house to rent. They'd be "third generation". But if I start chit-chatting with someone in line at the post office, well, they're "everyone else".
Right Jennifer?
BTW....HAPPY BIRTHDAY!!! : )
Bingo, Sue!
Jennifer,
Great and thought provoking post. I had a little awakening the other day when someone I have nown for years told me that they didnt even realize I was a Realtor. Oh boy, made me really get refocused on making sure people know I am a Realtor and that I welcome the opportunity to help their friends and family.
Another great post and right on the money. Thanks as always for the great information.
A SOI is a powerful thing, especially in a slow market. I'm showing property to my hairdresser, a past client is listing another property and best of all, I'll be writing an offer for a buyer who called 411 and started dialing real estate offices. I was working late, answered the phone and the result will be a sale. Bottom line, your next sale can come from the most unexpected person, and that is what keeps this job fresh and interesting.
The power of your sphere of influence can't be underestimated... I like the breakdown. I use LinkedIn to manage and remind me of my direct and indirect SOI. Database covers the rest.
Great way to break it down! Thanks!