What Is a Sphere of Influence in Real Estate — and How to Build One
Sep 14, 2021In real estate, like in any business, there’s no shortage of insider jargon. From “farm” to “sphere of influence,” it can feel like a foreign language when you’re brand new.
Sphere of influence is one term you’ll want to take the time to understand, and understand well. Let’s start by debunking the most common mistake new Realtors make when it comes to defining and building a sphere:
A sphere of influence is not made up of people you’ve done business with in the past.
So, what is a sphere of influence?
A sphere of influence in real estate is defined as a group of people who know you, like you, and trust you. These are people who are likely willing to do business with you in the future, or even more likely, will be an important referral source.
As a new Realtor, defining and nurturing your sphere of influence is an amazing place to start when building your business. And knowing where to start is often the hardest part. Although you may be pulled in a multitude of directions with pressure to buy leads in one way or another, the majority of your effort should go to the relationships you’ve already built.
It’s common for new Realtors to spend too much time trying to form new relationships and neglect their most powerful asset: their personal network. While more experienced Realtors can rely on their testimonials and past sales, new Realtors must rely on the track-records they’ve built as human beings. And who knows you better than those closest to you?
Ask any Realtor how they got their first transaction, and the answer will likely be: from someone they already knew.
What type of people should be in your real estate sphere of influence?
The most important characteristic of someone in your sphere of influence is that they like you and connect with you. It’s important for these relationships to be real and authentic!
Ideally, members of your sphere are well connected in a community or group that you may not be part of. You might have your hairdresser, yoga teacher, and a neighbor who is a member at the local golf club in your sphere, for example. Yes, these connections are helpful in expanding your reach in the market, but don’t add someone to your sphere for this reason alone.
Consider this scenario. There is a friend of a friend who has a lot of money and is well connected with people at the local country club. You know this person would be great to have in your sphere, but you simply don’t have that much in common nor do you really enjoy talking to them.
This person is not a good fit for your sphere!
Another important tip to remember is that timeline should not be considered when building your sphere. Just because someone is not likely to buy or sell this year doesn’t mean you should neglect the relationship. Building your sphere is about nurturing long-term relationships so that your pipeline continues to fill 6-12 months down the line — no matter the state of the market.
How many people should be in your sphere of influence?
Start off with the goal of having 25-50 people in your sphere. Remember that the number of people will shift as the years go by. People move and life happens — so never stop building your sphere as your career evolves.
The number is less important than the quality of your relationships. The more you connect with these people and the stronger the relationship, the more likely they will be to mention your name when someone brings up real estate.
What do you do with your sphere of influence?
Set aside time every day to call a certain number of people from your sphere. The goal will be to connect with each of these people every two weeks.
Yes, the first few calls you make will be hard!
Keep the calls short and focus on connecting or re-connecting without even mentioning real estate. The most meaningful calls are the ones that come with no true purpose other than to say hello.
Chances are they will ask you about your career anyways — so no need to force it.
Calling your sphere is a great way to begin your day when possible. It’s the one task that you can’t screw up and will always be productive, so don’t let it get kicked to the curb because you run out of time.
Whether you’re working on nurturing your sphere or just going about daily life, the most important thing you can do as a Realtor is remind people of what you do. We don’t always have control of the market or circumstances in this business, but you have control over the people you know and how you treat them.
It’s a great place to start and an even better place to return to again and again.
