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February 10, 2010

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Is a Sphere of Influence Business Model Effective in a Second Home/Resort Market?

So, you work in a resort community where most of the buyers and sellers live somewhere else. It's not likely you'll run into them at the grocery store or local coffee shop, and they probably won't be having a housewarming party you can finagle an invitation to (or even offer to host!). And unless their friends all decide they want to keep up with the Jones's and buy a vacation home, too, your past clients probably won't be a good source of referrals, no matter how deliriously happy they are with you.

Can you rely on your Sphere of Influence (SOI: the people you know) to keep you in business? Yes, with a few tweaks.

First, obviously, there are people who do live in the community, who know you and know that you sell real estate. You should definitely apply the principles of SOI to them. Remember that they are the gatekeepers to everyone they know, which may very well include some out-of-town homeowners or future homeowners.

Second, you will likely need to do some marketing to strangers, both directly to absentee owners as well as local advertising to attract buyers. Check out what other successful agents are doing... and do it more creatively.

Many agents in resort markets prospect heavily to expired listings, and there may be plenty of those. Perhaps you can create a better, more creative expired listing campaign and incorporate it into your prospecting plan.

Obviously, a local blog is a must. People buying second homes will almost certainly begin their search online. Be there.

If you decide to reach out to strangers, you can still apply the principles of SOI to your efforts. For example, make your advertising interesting, relevant and non-salesy. Create a website that reflects your personality, not just a boring boilerplate site. Use your blog to demonstrate your familiarity with your area as well as to showcase your sparkling personality.

Consider doing a postcard mass-mailing to absentee owners with a fun blurb about your blog (and make sure your local sphere knows about it). If you advertise in local real estate magazines, don't just showcase listings; create a fun, attractive ad for your blog. Create an online referral directory for out-of-town homeowners.

Return phone calls and online leads promptly - and when you get online leads, pick up the phone instead of simply replying via email.

Spend time learning even more about your market so that when A Stranger Calls, you are able to speak intelligently and confidently about the market. Be particularly conversant about the more desirable properties - be familiar with and know how much it costs to live on the beach, the slopes or the river. But also know how much you can save by buying a block or two away.

When you're out and about, have your antenna up and a smile on your face, but keep your business cards to yourself unless asked. Don't risk being that annoying real estate agent who always seems desperate for business.

The ultimate goal of a sphere of influence-based business is to ensure that everyone you know and everyone you meet thinks of you as their favorite real estate agent. When you work in a resort market, you may have to reach out beyond the city limits to find your clients, but the goal is still the same!

Published: November 19, 2009

Use of this article without permission is a violation of federal copyright laws.




Jennifer Allan is a former top producing real estate broker, a published author, a speaker and a trainer. She has written five books a bout the business of selling real estate, including her flagship book: Sell with Soul: Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect. Her new book entitled "If You’re Not Having Fun Selling Real Estate, You're Not Doing it Right!" will be released in early 2010.

Jennifer believes that the secret of success for real estate agents is not in aggressive marketing techniques or hard-core sales pitches, but rather in being competent in one's craft. Competence begets Confidence. And in today's world of increasingly suspicious and ad-weary consumers, having an air of self-assurance and enthusiasm will be far more effective than a slick sales campaign.

Jennifer writes and speaks with this philosophy in mind. She preaches that salespeople should follow the Golden Rule in their day-to-day practice of business - treating clients and prospects respectfully, as the salesperson him or herself would like to be treated. Being competent, reliable and fair, and motivated by a true desire to earn a paycheck, not just show up at closing with hand outstretched.

She is a regular contributor to several real estate newsletters and magazines, a member of the RE/MAX Hall of Fame and one of the industry's most popular bloggers. You can learn more about Jennifer's "soulful" philosophies at www.SellWithSoul.com.

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