Sphere Of Influence PROSPECTING PEOPLE YOU KNOW

1. Sphere Of InfluencePROSPECTING PEOPLE YOU KNOW Mike Devlin Keller Williams Realty Silicon Valley – San Jose Gateway

2. Business Plan Establish Goals. What is it that you want? Make a plan to reach each goal. Can you see yourself working the plan? Have you set deadlines? Scheduling is the key to getting things done. Put the plan into action. Are you working the plan?

3. The 90-day Rule Whatever you are doing right now, today, will affect your business in 90 days. Don't get wrapped up in your sales and forget to prospect. 80% of your time should be spent prospecting when new.

4. Time • The most important function of a salesperson is to get clients. • 80% of time should be spent on this activity until busy servicing clients. • 40 hour week x .80 = 32 hours per week divided by 5 days = 6.4 hours per day. • 20 hour week x .80 = 16 hours per week divided by 5 days = 3.2 hours per day. • We would be happy with 1 hour a day.

6. Generate Leads with Your Database “No matter how you slice it, lead generation will almost always come down to a game of numbers.” Gary Keller, The Millionaire Real Estate Agent, page 136

7. Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets Target Group Your Contacts Mets Allied Resources

8. Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets Target Group Your Strategy  Move people from outer circles to inner circles Your Contacts Mets Allied Resources

9. Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Everyone in your Met Group first goes into an 8 x 8 program, which is then followed by a 33 Touch Haven’t Mets Target Group Your Contacts 8 x 8  33 Touch Mets Allied Resources

10. Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets Target Group Put your Target Group on a 12 Direct campaign to create an awareness of your brand Your Contacts 8 x 8  33 Touch Mets Allied Resources 12 Direct

11. Generate Leads with Your Database MREA Strategic Model for Generating Leads and Building Relationships General Public Haven’t Mets Target Group Your Contacts 8 x 8  33 Touch Mets Use a wide variety of prospecting and marketing techniques to generate leads from the General Public Allied Resources Prospecting and Marketing 12 Direct

12. Put MREA Model into Action with eEdge Consolidate your contacts in one place

13. Put MREA Model into Action with eEdge Break Out Your Contacts into Groups Allied Resources Haven’t Mets Buyers Sellers

14. Put MREA Model into Action with eEdge

15. Put MREA Model into Action with eEdge

16. Feed Your Database Every Day A Closer Look at Your Mets Inner Circle

17. Feed Your Database Every Day A Closer Look at Your Mets Hidden Circles found by Social Media

18. Feed Your Database Every Day Your Mets Online LinkedIn Google+ Circles Facebook Twitter

20. Business Development Cycle Meeting people. Eliminating rejection. Repeat. Promote

21. Meeting people You are the product that must be sold to the consumer. People who don’t know your product, will not use your product. People will choose you from among the hundreds of agents available because they know you, or at least know of you, and what it is you do for a living. Home-sellers and homebuyers most often use an agent’s services because they know, like and trust that agent.

22. Meeting people There is a direct correlation between the number of people you meet and the number of transactions you close. If you are getting your name and face in front of a lot of people, you win. If you are sitting in the office expecting the business to come to you, you lose. If you want to do more business, meet more people.

23. Understanding Prospecting Active prospecting, or making direct, two-way contact with potential clients provides the most leads per contact.  Conducted via face-to-face or telephone conversations, active prospecting is valuable because you can gauge the prospect's interest and desire to work with you more accurately. Examples of active prospecting include door knocking, holding buyer/seller seminars, open houses and making telephone calls.

24. Understanding Prospecting Passive prospecting, or one-way contact, is a less effective method of obtaining leads. This includes paper mail, email, online or through publicity efforts. Examples include sending direct mail letters to members of your farm, developing and releasing press releases, or distributing electronic newsletters.

25. Eliminating rejection The fear of rejection causes most agents to avoid meeting people and, therefore, most of the failure in the real estate industry. For an agent to be successful in making new contacts, they must do one of two things, overcome the fear of rejection, or eliminate the rejection so they no longer have to be afraid. It makes more sense to eliminate rejection, by eliminating its cause, than to learn to live with it.

26. Eliminating rejection Most rejection is caused by the simple fact that when we interrupt people, to ask if they have a need for our services, we give them nothing of value in return. It is a win-lose situation. We win. The consumer loses. We have the opportunity to generate a lead. They have the inconvenience of having their private time interrupted.

27. Eliminating rejection What is a win-win prospecting method? You, the agent, have the opportunity to meet a potential buyer or seller. The homeowner receives something of value. You both win! Something of value for the homeowner can be as simple as information, a unique handout or flyer, home maintenance tips, a calendar of local events or anything that would be perceived as a fair exchange for the use of the homeowner’s time.

29. Dynamics Of Expanding Sphere • Make contact with 10 new people a day, 5 days a week, 50 weeks a year. • 50 per week x 50 weeks = 2,500 contacts • Divided by 15 years = 166 transactions a year • 10% = 16 transactions • Not include expose to their sphere of influence

30. Dynamics Of Expanding Sphere • You know or come to know 100 people. • They let you know of others wanting to buy or sell property. • Say that each of them know as least 20 people. • 100 x 20 = 2,000 people in your sphere of influence. • People move once every 15 years. • 2,000 divided by 15 equals 133 potential transactions. • Assume that each listing or selling commissions is worth $7,500 to a salesperson. That's $15,000 potential per transaction. • $15,000 x 133 transactions = 1.9 million potential yearly income from your sphere of influence. • 10% of 1.6 million is $190,000 per year! 5% of 1.6 million is $100,000 per year!

31. Sphere of Influence in Real Estate • Definition: A group of people upon which you have influence because they know you. Includes family, friends, those with whom you do business, fellow organization or club members, etc. • Increasing your sphere of influence should be an ongoing goal that will pay off in business over time. • Also Known As: SOI

32. Finding an Agent • The most common way for both buyers (40%) and sellers (38%) to find an agent is when a friend, neighbour or relative refer someone. • This reinforces the importance of • Staying top of mind with your past clients and sphere of influence, and • Asking for referrals. 2012 Profile of Home Buyers and Sellers (NAR)‏

33. Sphere of Influence • You already have a sphere of influence. • You have family, friends, schoolmates, business associates, soccer buddies, etc. • These are people that know you, and because of that, you have some influence on them. • You should always plan to grow this group. • This will become a huge source of repeat and referral business over time.

34. Sphere Of Influence • People would rather do business with someone they know and trust than with a stranger. • Most people use the same accountant, car repair shop and doctor again and again. • The same people who know you and like you automatically comprise a network that represents the strongest base of potential clients. • Not only potential clients, but referral sources.

35. Sphere Of Influence • We encounter new faces visiting clients, attending social gatherings, and waiting in line for a cup of coffee. • Always have your business cards with you. • May want to carry notebook or so you can write down names and contact information. • Wear KW career apparel and/or name badge.

36. Business Cards • 1,000 cards handed out • 5% respond = 50 responses • 10% of responses result in a transaction = 5 transactions • $10,000 commission x 5 transactions = $50,000

37. Make contact the way you usually do. • You could produce a nice letter in envelopes and mail via first class mail. • If you're making a really large contact list, many of them will be people you usually talk to via email, text messaging or phone. • Contact them the way you always have; split your list into groups by contact method.

38. Categorize by how you know them. • You want to have certain common types by which to identify contacts. • If you're using Outlook, you can use the "Categories" function for this. • You would have categories for Friends, Family, Vendors (doctor, lawyer, local grocer, etc.), Buyer Prospect, Seller Prospect, etc. • The buyer and seller prospect categories are for those new ones you're about to get.

39. Plan ongoing contact and do it! • Make a plan for how often you want to contact them. • This can vary by type, such as family will not need a lot of follow-up, etc. • Follow the plan and make regular contact. • There's nothing worse than finding out a good friend bought a home elsewhere because they forgot about you.

40. Do some quick list-building activities. • Get involved in community activities, go to homeowner association meetings, give out your business card to the person behind the dry cleaner counter. • If you go for coffee in the mornings alone, stop getting a table and sit at the counter. Strike up a conversation with the person next to you.

41. Define and Rate Sphere of Influence • A = someone likely to refer to you • B = someone who with a little more contact with you, would refer to you • C = Questionable • D = Delete

42. Send an Item of Value each month • What do you send to your sphere of influence? • Is it something you would want to receive and find valuable? • How many creative Items of Value can you come up with?

43. Make it a daily ritual • Calling daily some people out of your sphere of influence is essential. Even one a day is OK. • Call several times a day if you want your income to raise quickly. • Decide when to make calls and keep at it until you’ve reached the people you were trying to call. • Several weeks after doing this, it will feel a lot easier.

44. Overcome your blocks to calling • “I don’t want them to think I want something from them” • “I’m afraid they won’t like me” • “I don’t want to be like a telemarketer”

45. Overcome your blocks to calling • If you send an Item of Value , you are giving, when you chat with them and listen to what’s going on in their lives, you’re giving again. • At the end of the call, say something like, “Oh by the way, if you hear of anyone even whispering about buying selling a home, please give me a call with their name and number.” • “I’ll be happy to send referrals to your business, as well.”

46. Overcome your blocks to calling • After calling monthly (after mailing Items of Value) you’ll begin to know your sphere of influence and they’ll know you. • You’ll learn which are A’s, B’s, C’s and which ones to delete. • You’ll be in their stream of consciousness; the first one they’ll think of when they think of real estate. • Don’t be surprised if you get referrals in the first few weeks.

47. Making Contact • Ask them if they currently have any personal need of a professional Realtor in either the area of buying or selling their own residence. • Any friends, relative, neighbors or acquaintances that have a need of a professional Realtor? • Don't use the words “real estate agent.” “Professional Realtor” sounds better.

48. Tips For Working A Sphere Of Influence • 1. Meet people. Whenever you talk with someone, let them know you are in real estate. Make it a habit to work it into your conversation. • "The only way people in my profession come to know about people buying or selling real estate is through people kind enough to let us know when they hear of someone. Could you help me out? Do you happen to know of anyone who might be considering buying or selling real estate ?" • If the person says "no", give him or her a business card and say, "Here is one of my cards. If you happen to hear of anyone thinking of buying or selling real estate, will you keep me in mind?" If they say "yes" to this question, they have just committed themselves to helping you.

49. Making Contact • Don't just give people a business card; make a specific request of them to help you. • Rather than saying “please send me some referrals,” let your friends, relatives, acquaintances and contacts know that you are out to “build your business.” • Make this a specific request of your sphere of influence and look them in the eye and ask “can I count on you for it?”

50. Making Contact • When you see the same people again, they are going to have a sense of wanting to do something to help you. • When they say “Hey Susan, how is the real estate business going?”, you have a response of “Well, it's going all right. By the way George, I want to make sure that you still have my cards and my promotional brochure. Do you need some more ?”