What is Sphere of Influence (SOI) in Real Estate? | Styldod (2024)

In the realm of real estate, your sphere of influence plays a pivotal role in shaping your professional achievements. While you may not consider yourself an "influencer" in the traditional sense, you possess the power to influence the individuals you come into contact with, who in turn have the potential to influence others. Your sphere of influence (SOI) includes all the people who know you to some extent and hold a positive perception of you. Leveraging this network effectively can be the difference between an average year and a truly exceptional one in the real estate industry. By recognizing the significance of your SOI in real estate, you can unlock your true potential and pave the way for success.

What Is My Real Estate Sphere of Influence (SOI)?

Your sphere of influence comprises not only the individuals you have known throughout your life but also extends to your loose connections and acquaintances. It encompasses the vast network of people you interact with on a regular basis, both personally and professionally. To gain a clearer understanding of your SOI, take a moment to jot down the names of individuals you have rapport with. Consider various groups such as:

• Colleagues from previous jobs
• Acquaintances of your spouse
• Personal friends
• Parents of your children's friends
• Neighbors
• Professionals you regularly engage with such as accountants, mechanics, or hairdressers

Why Is My SOI Important?

Every experienced agent recognizes the significance of repeat and referral business in the real estate industry. Nurturing a healthy and robust SOI allows more individuals to become aware of your services, engage with your services, and potentially refer your services to their own contacts.

Visualize the immense potential that lies within your SOI: if you have 100 people in your network, and each of them knows 100 more people, you now have 10,000 opportunities for real estate referrals. By prioritizing the growth and maintenance of your SOI, you can open doors to increased referrals, a broader client base, and ultimately, more commissions.

How to Build Your Sphere of Influence in Real Estate and Maintain It?

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Organize Your Lead List

Rather than discarding or disregarding old leads or former clients, create a comprehensive list to keep track of them. An effective tool like Agent Legend can assist you in importing and categorizing your leads. This organization allows you to monitor where your leads are in the buying or selling process and tailor your communication to each specific group accordingly.

Foster Open and Authentic Communication

With your leads organized, you can now engage in personalized communication with your contacts regularly. Recognize that former clients require a different approach than old leads. Frequent communication keeps you at the forefront of their minds, increasing the likelihood that they will think of you and reach out when they are ready to engage in real estate transactions.

Stay Engaged with Your Community

In addition to periodic communication, actively participate in your local community. Take the extra step of asking questions and offering assistance to those around you. During challenging times, such as the recent pandemic, people have numerous concerns regarding the real estate market and the well-being of their communities. By providing relevant and helpful information, you position yourself as a valuable resource. Actively participating in conversations establishes lasting connections and ensures that you are aware of your former clients' and leads' positions in the buying or selling process, enabling you to seize opportunities as they arise.

Establish Yourself as a Trusted Source

Building upon the previous steps, strive to become a trusted source of information and expertise. Maintain open and authentic communication while actively engaging with your community. Consider utilizing social media platforms, starting a blog, or maintaining a website to share valuable content that resonates with your target audience. By positioning yourself as an expert and offering insightful information, you not only nurture your existing sphere of influence but also attract new leads and clients.

Final Thoughts

Understanding your sphere of influence is crucial for success in the real estate industry. By recognizing and leveraging the power of your network, you can unlock a world of opportunities and propel your career forward. Take the time to identify who makes up your sphere and cultivate those relationships with care. Stay engaged, provide value, and be consistent in your efforts to stay top-of-mind with your contacts. Remember, your sphere of influence is not just a list of names but a valuable asset that can help you achieve long-term success in real estate. So, go out there and start tapping into the potential that lies within your network!

FAQs

1. What is a Sphere of Influence?

A Sphere of Influence (SOI) refers to the network of people with whom an individual or business has the ability to establish a connection with, often used in marketing and lead generation.

2. What SOI in real estate?

SOI (Sphere of Influence) refers to the geographic area or community in which an agent focuses their marketing and networking efforts to generate leads and attract potential clients.