What exactly is a ‘Sphere of Influence? In simple and effective terms, I would describe it as “a large data base of folks that know like and trust you.”
Most REALTORS® expect to be build a career based on their sphere of influence and management in many brokerages support this belief. Is this a myth? Let’s examine some of the challenges with this singular approach to building a successful REALTOR® career.
Here are three reasons why you might not succeed with your sphere alone.
1. You might lack credibility
Here’s your challenge if you are new to real estate. Most of your ‘sphere’ will think of you as the person in your former work. If you were a dental hygienist, a car mechanic or an oil and gas worker, that’s how your friends and family will think you. At first, they will NOT think of you as a real estate expert.
How can you overcome that? Insert new messaging into their minds. One approach is to send them a minimum of 8 and perhaps more than 40 outbound communications on a regular basis. Each piece will share some insight or tidbit of information related to buying or selling a home. After the exercise is complete, your ‘sphere’ will think of you as someone knowledgeable and worth approaching when it comes to all matter’s real estate.
Once your REALTOR® career is established, you have few worries. How does ‘established’ manifest? Time in market? Mastery of your subject? Time in market could mean several years of active service. Mastery according to Malcolm Gladwell in his book Outliers discusses “The Ten Thousand Hour Rule.” He suggests it’s not until a person has spent 10,000 hours working in any field that mastery be achieved. At 50 hours a week for 50 weeks a year that equates to 4 years of work. Full time work.
2. The rule of ten
How big does your database need to be? I spoke to this in one of my coaching videos. Here is a handy link How Big Should Your Database Need to Be?
Let’s look at this question in simple terms. Most folks move every 10 years. Therefore, if you know ten people well, one of them will be looking to move home this year. If you have credibility, they will likely collaborate with you. However, there is a problem here. If your goal was to serve 20 clients, this year you would need 200 people in your database.
Most new REALTORS® I speak to have less than 50 folks in their database. Can you see the problem yet? They only have enough for 5 transactions. Where will the other 15 come from?
3. Your friends may not want to mix business with friendship
The third and final challenge might be one of culture. Many ‘born here’ Canadians gravitate toward REALTORS® from their ‘friends and family’ group, which is why the industry promotes the myth that a career is built around a sphere of influence. There are cultures where privacy is valued. Where people don’t want their friends to know their personal business, their debts, their bills and their general financial status. I’m British and we are private folks. Most British people would prefer to sell or buy a home with a stranger than a friend. The thinking is that this attitude protects the friendship. I have heard that other cultures for example the Lebanese culture has similar values.
Are you feeling discouraged?
Don’t be. I came to Canada 20 years ago with no sphere. I quickly established myself as a full time REATLOR® by doing things differently and you can too.
Please reach out to me if you would like my help.
About the author:
You can read more about the author of this blog by clicking this link - Stuart Neal, Broker, Career Coach, REALTOR® & Team Lead.
You can watch and hear Stuart share other ideas on his You Tube Channel: Stuart Neal, Edmonton Real Estate Career Coach.
Follow Stuart on his Facebook coaching page: Stuart Neal, Edmonton Real Estate Career Coach Facebook.
Want more information about becoming a team member or Associate REALTOR® with Ambergate? Call Stuart our broker owner at: 780-760-2014 ext. 3 or go to our Careers page - Ambergate Realty Advisors Careers
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