Selling Soulfully with Jennifer Allan

My wonderful home-in-the-country-on-4-acres is on the market. It's in Newton, Alabama, about 15 miles outside of Dothan, which is in the southeast corner of Alabama, close to both the Florida and Georgia state lines. The blue waters of Panama City Beach and Destin are 90 minutes away, but there's a white-sand river beach on the Little Choctawhatchee River just 5 minutes away!

It's 2300 sqft, 3 bedrooms/2baths, gorgeous antique wood floors, Jacuzzi tub, walk-in closet, tons and tons of storage and a custom built sunroom to die for (we called it the Tree House). Price? $248,000.

I was very happy there. I know the new owners will be, too...

Here's the listing

The other day I wrote a blog, basically admitting that I've lied all this time when I said that virtually all of my real estate business came directly or indirectly from the people I knew, otherwise known as my sphere of influence (SOI).

As part of my re-entry into the wonderful world of real estate sales, I've been more closely analyzing where my business came from the first go-around and had an AHA moment of... "wow - I got a lot of business from strangers!" Now, don't get me wrong, I hadn't forgotten about these Very Important Clients; I just kinda forgot how I met them since, of course, they all ended up in my SOI and many became friends or semi-friends.

But the difference is... I never prospected for the business of strangers. Never cold-called, door-knocked; rarely advertised or farmed. I never, ever approached a stranger with the intent to prospect to them.  All of my Business from Strangers was serendipitous...

They say that luck is when opportunity meets preparation. BINGO!

Opportunity: Being out in the world with a smile on your face and your antenna up.

Preparation: Being ready to hand out your business card and spout your elevator speech? NO!!! Preparation means being ready to speak intelligently and knowledgeably about the local real estate market without a hint of a sales pitch.

Don't want to prospect? Then don't. Spend that time learning the heck out of your market. Preview, preview, preview. Read neighborhood newspapers. Preview some more. Visit neighborhood grocery stores and shopping districts. Preview. Visit new home communities, attend meetings on Transit Oriented Development. Preview. Know your office inventory inside and out.

When a Stranger Calls...(on one your listings or while you're on floor duty), you'll get ‘em. When an open house visitor expresses in an interest in the neighborhood... you'll get ‘em. When another guest at a wedding wants to talk real estate investment... you'll get ‘em.

KNOWING YOUR MARKET is the best way to "prospect" to strangers. No fancy business card, well-rehearsed elevator speech or slick closing technique will beat the confidence that exudes from you when you know your stuff. It's magnetic.

p.s. remember the part about leaving out the sales pitch. If you impress someone with your market knowledge, then hit ‘em with a sales pitch, you'll likely un-do all the good you just did. When you're confident and enthusiastic, people will ASK for YOUR business card. It's a beautiful thing.  Right, Susan?

For over a year now I've been extolling the virtues of an SOI business model - that is - basing your business on the power of your personal relationships instead of the power of your marketing budget. (If you don't believe me check out my tag cloud under "soi").I've claimed that I ran a nearly 100% SOI business literally from Day One - a business that was very successful by anyone's definition - in which virtually all of my business came directly or indirectly from the people I knew. I've implied (or outright said) that I never pursued business from strangers.

Well, since arriving in Denver last weekend, I've hardly slept. My 40 year old body has not yet adjusted to the altitude and I can't seem to stay asleep more than a few hours. Can't nap either. So, in my sleep-deprived haze, I had a stunning revelation this morning.

I've been lying to y'all. Didn't mean to, but I have. Sorry about that.

Here's the thing. A lot of my business DID come from my SOI, no question about that. I was lucky to have a large circle of acquaintances when I entered the business and was able to generate quite a bit of support among the people who knew me. God bless ‘em.

However, upon closer reflection, I realize that a not-insignificant amount of my business through the years came from total strangers. People I had no personal relationship with, nor did we know anyone in common. While I've always referred to these sales as SOI-generated, technically, they really weren't.  THESE PEOPLE WERE STRANGERS TO ME.

But I'll stand behind my statement (modified slightly) that I never actively pursued business from strangers.

I never cold-called, I never door-knocked, I rarely advertised. I never called a FSBO. I didn't farm.

Yes, I GOT business from strangers, but that business was never the result of PURSUING it.

Stay tuned...

As regular readers of my blog know, I'm getting ready to launch the first-ever-in-the-history-of-real-estate SOI* Reality Show. Because this has never been done before, I've had a lot of questions from interested agents about the structure, process and expectations.

How is your program different from the other referral-based programs out there?

The primary difference between my SOI philosophy and that of the other relationship-based prospecting programs is that I show you how to attract business to you, without ever asking for it. Systematically prospecting to the people you know with outright requests for referrals is uncomfortable for many agents (myself included) and is actually counterproductive to your ultimate goal of becoming your SOI's favorite real estate agent.

You advise taking your SOI to lunch....
... but I really don't want to go to lunch with most of the people I know. Do I have to?

NO! Only go to lunch with people you want to go to lunch with! That may be a very small percentage of the people in your SOI. My "take-to-lunch" list has maybe 25 names on it, but my entire SOI is much larger than that. There are two groups in your SOI - the people in your social network, and "everyone else." Your prospecting strategies are different for each.

You advise taking your SOI to lunch...
... but not to talk about real estate. So, what do I talk about?

It's a fine line between sharing your excitement over your career and giving your friends a sales pitch. Excitement is good; a sales pitch is bad! Yes, you want your friends to support your real estate career, but you don't want to put them on the spot or make them feel uncomfortable. Talking about your career without a hint of a sales pitch isn't rocket science, but for many agents it may take a little practice to unlearn old habits and learn new ones.  Don't worry; this will be a topic of much discussion during the program and it will come naturally to you very quickly, I promise.

What should I expect to accomplish from the SOI Reality Show?

If you commit to and complete the 12-week program, you will have laid the foundation for a successful career based the strength of the personal relationships in your life. You will be the agent of choice among your friends and will be referred to your friends' friends on a regular basis. You will be comfortable meeting new people and will know how to inspire them to care about you and your real estate business. You will have a plan in place to stay in touch with your social network, as well as those with whom you don't socialize, but who know you and know that you sell real estate.

In short, in addition to meeting our goal of having an SOI of at least 100 people by the end of the program, you will have developed the knowledge, skills and habits necessary to implement and maintain an effective SOI business model, for life.

All of the Sell with Soul products and services are 100% satisfaction guaranteed. If this program does not meet your expectations for any reason, just let us know. We will promptly refund your money.

How much time will I have to devote to this?

The time commitment required for the SOI Reality Show is completely up to you. However, the first month will be a bit labor intensive as we put the building blocks in place. We'll have 4 projects to complete which will require some focus and dedication. After that, you'll probably spend a few hours a week on the program. If you'd like to get started early, contact me and I'll get you going.

Can you give me an idea of what the program looks like?

Absolutely! Below is a preliminary syllabus for the first month of the program. Detailed explanations of your assignments will be provided via the Reality Show Blog Forum and email, as will the daily journal of my SOI activities and outcomes. We'll also hold weekly live teleconferences which will be recorded in case you can't attend. Occasionally we'll have a guest speaker in a separate teleconference.

Below is a rough outline of the first month, which will be the most structured part of the program. Starting in April, we'll be done with the nuts & bolts and will really focus on the "Seduction of Your SOI;" that is, getting us out there reconnecting with our friends and making new ones. The Seduction portion of the program lasts eight weeks, at the end of which, you'll have developed lifelong SOI habits that will carry you thru the rest of your career.

March 1 - March 7

                Welcome & Overview
                Purchase your SOI Supplies
                Order new business cards, if needed (count on it)
                Create your database (or clean up the one you have)
                Choose a Contact Management System
                Make five SOI contacts
                Get help, if needed, for data entry            

March 8 - March 15

                Group your contacts
                Enter contacts into system
                Start writing your reconnection letter
                Make five SOI contacts

March 16 - March 23

                Finish letter and send it out
                Celebrate! This is a huge accomplishment!
                Make five SOI contacts

March 24 - March 31

                Create your SOI Business plan
                Set your SOI goals
                Begin the Seduction!

What if I'm new to town or have a small SOI? Will this program work for me?

Yes! There are two general, overall activities in an effective SOI campaign. The first is reconnecting with the people you already know. If you don't know anyone, then you won't have to do much of this yet. The second is meeting new people. This program focuses equally on both.

Is The SOI Reality Show Right for Me?

Yes, no, maybe.

It's definitely not right for everyone.  

•·         If your other prospecting methods are working fine for you and you're happy with them, or 
•·         If you feel strongly that business and pleasure should be kept separate, or
•·         If you don't want to meet new people, or
•·         If you enjoy prospecting for new clients more than serving the ones you have, or
•·         If you truly aren't excited about an SOI business model...

Then this program is not right for you.

However,

•·         If you've tried traditional prospecting and it didn't work for you, and/or
•·         If you've tried traditional prospecting and hated it, and/or
•·         If you're an introvert and hate the idea of pestering people, and/or
•·         If you enjoy having a social life, but you don't seem to have time for it, and/or
•·         You love selling real estate, and/or
•·         You are Very Good at your job, and/or
•·         You're excited about an SOI business model...

The SOI Reality Show will change your life.

Will the program be customized for me?

Yes... and no.

Let's start with the "no." The SOI Reality Show is a group effort and therefore, not a one-on-one mentoring program. Although I will be available via the blog forum, please know that I intend to be selling some serious real estate and will be very busy! Yippee!

But... also... yes. This program WILL be customized for you if you want it to be.  All you have to do is take my ideas, suggestions and assignments and make them yours.

*SOI = Sphere of Influence = People Who Know You

Sherry Spengel made the following comment on my blog from yesterday... "Give us a blog about your March 1st 12 week journey!!  I would love to read more!" Of course, I'm happy to oblige...But, be forewarned... it's a bit of an info-mercial;-}

* * * * * *

My life is about to change... and if you want, maybe yours can, too!

On March 1, 2008 I will reactivate my real estate license and head back into the trenches with all of you. That is, I'm gonna sell some real estate! And guess who I'm gonna sell it to? Yep, my Sphere of Influence (my SOI).

But y'know what? I have some reconnecting to do. I've been away for almost two years and I suspect I've been forgotten by some of the *Very Important People Who Knew Me.

How about you? Could your business use a little kick start? Did you promise yourself that THIS year you'd do a better job staying in touch with friends and past clients? 

Wanna do it together?

Click here to read more and be ready - this is going to be cool. And potentially life-changing... for both of us!

See you on March 1st!

I'm a do-it-yourself-er kinda gal. I like things done my way, and the best way to make that happen is to... well, you know.  Do it myself.

Wellllll... some things should be left to the professionals. Stucco-ing a house, for example. Repairing a bad dye-job. Selling your house. Oh, and, creating your professional image.

I created my first image - my logo, my website, my business cards, all of it. Without help from anyone, can you believe it? Yeah, you probably can. Now that I have a new look, my friends are coming out of the closet and tactfully telling me that I should have done this a long time ago. Thanks, guys.

With that, I am pleased to introduce you to Jennifer Allan's NEW Sell with Soul.

It's been a ton of work for my ad agency (Jon & Inna , you rock!), entailing lots of sleepless nights (for them, not me, nothing interferes with my 9pm bedtime), hundreds, if not thousands of emails, a few tears, a few, shall we say, differences of opinion and several bottles of sake. (Yes, Inna, I know I owe you a case).

To celebrate the new look, I'll be holding a scavenger hunt for my new website with some very cool prizes to the winners. But in the meantime... wouldja' mind taking a look? It's much more streamlined and navigable than my previous site, so it will only take you a few minutes. I'd love your thoughts!

Thanks for all your support. It's been a magical journey, and I suspect it's only just begun.

http://www.sellwithsoul.com/

I'm getting ready to move across the country from Alabama to Colorado, and need to sell my beautiful home-in-the-country-on-four-acres. Not being an active real estate agent in Alabama, I hired my local agent, Millie Miller to get it done for me.

This is only the second time in my life I've not sold my own property myself. The first time was a new construction townhouse assign & flip deal in Steamboat Springs (Ski-Town USA) which wasn't even built yet, so that doesn't really count. This time... it's the real deal.

It's SO enlightening to be on the Other Side.  When Millie came out to look at the house, it was in shambles. Painters painting, boxes everywhere, an as yet unrepaired hole in the ceiling from a plumbing leak and a trashed yard with land mines (I have 4 dogs) and piles of old wood.  I could see the dismay in her eyes and could imagine how I would feel in her shoes. It sure didn't look like a place that buyers were going to fall in love with! Yes, I promised her it would be clean, tidy, sweet-smelling and land mine-free by the time it went on the market, but we've all heard THAT before, haven't we?

(BTW, this breaks rule #13 in my book about listings: "Insist on a showing-ready home before you price.")

Ah, yes, the price. "Well," I told her, "I owe $225,000 on the house, so I need to sell for at least $240,000." (Go ahead, roll your eyes at me; I deserve it.) Luckily, she was going to suggest $248,000 (as long as I get it clean, tidy, sweet-smelling and land mine-free). Check out Broker Bryant's seller-dictated pricing formula here. It's a hoot.

So, Millie gave me my to-do list (paint the blood-red closet and the purple master bedroom, fill in the holes dug under the fence, replace the ceiling fans on the porch, etc. etc. etc. etc. etc....). I found myself arguing with her about the importance of some of the items, but she respectfully reminded me that: "Buyers want to fall in love. The more maintenance or cosmetic items they notice, the less likely they're going to fall in love. You can't price a home (nor should you want to) to compensate for leaving little things undone. Do you really want to risk losing the few buyers we have in this market because you didn't want to paint a closet?"

Okay. Yeah, I get it.

I crack myself up. I wrote a whole book on how to get your listings sold and overcome seller objections to your recommendations... and here I am, being the typical argumentative seller.

It's good for the soul to be on the other side - I'll keep you posted!

 www.sellwithsoul.com

I recently read on another forum where a new agent was heartbroken (and subsequently outraged) that his brother-in-law hired someone else to sell his home. Because he was brand new, he felt his B.I.L. owed it to him to give him the listing so that he'd get some much-needed experience. The new agent was bad-mouthing his B.I.L. to the rest of the family and swearing to avoid him at the next family get-together.

OUCH!

How fast can you say "Kiss Your Family's Business GOODBYE!?"

No one on this planet is obligated to work with us, regardless of any personal relationship. Instead of whining and sulking and pouting about the situation, our new agent should have taken all that energy and asked himself WHY his brother-in-law didn't hire him. And made an effort to do better next time.

Was it personal? Maybe, maybe not.  Although with this guy's attitude, it probably was. The minute I get a sense that someone feels I'm obligated to hire them (or even refer them), I'm turned off. Yeah, I'm contrary that way, aren't you?

Getting business from your SOI, particularly your family SOI is an art that once mastered, will seem oh-so-obvious and natural. But if you approach the people you know with the attitude that they owe you something because you're related or went to college together or because you sent them a pretty calendar last year, your SOI efforts will crash and burn.

What I would have advised the new agent to do (had he asked) would be to graciously accept defeat and cheerfully offer his assistance. I'd have told him to be pleasant, supportive and complimentary of the other agent's efforts. Sweet as sugar. Because... at some point, the B.I.L might just get frustrated with his listing agent and be open to talking again.

But instead, look what this guy did. He alienated his B.I.L. and gave the entire family a great reason to wonder about his professionalism. I'll bet that it will be a long time before anyone in that family dares to talk to him about their own real estate needs!  

*SOI = Sphere of Influence = The People Who Know You

http://www.sellwithsoul.com/

The other day I presented seven deadly objections to running an SOI-dependent business (SOI = Sphere of Influence = People Who Know You) and asked for your comments. THANKS for all of them! JMac pretty much summarized my thoughts on the matter - actually he nailed them - eliminating the need for this follow-up blog! But I'm in the mood to talk SOI, so I'll do it anyway. 

Here are seven objections I listed and my responses:

1.       "I don't know anyone who wants to buy or sell right now and even if I did, how can I base my entire business on them?" 
In my first year, I sold 25 houses, all to my SOI. Of those 25, all but three were to people I didn't know the day I got my real estate license. They were people I met as a result of the personal relationships in my life. Some were referred directly to me by my SOI; others I met at weddings, parties, etc.; yet others were service providers in my life who weren't my friends, but knew I had a real estate license.

As JMac alluded: Your SOI is Everyone Who Knows You and Knows that You Sell Real Estate. Not just your friends, family and past clients. And if you add up all those Who Know You and figure out how many other people they know... that's a lot of potential business! (Read Teri Lussier's great blog on this topic.)

2.       "I refuse to be one of those annoying real estate agents that the family avoids at parties."
So don't be! Contrary to popular belief, an effective SOI strategy is not about bothering your friends for their business. Sure, that's a common tactic, and many real estate agents give up on their SOI because they suspect their friends are sick of hearing from them - and they're probably right. Just be a genuinely nice person with a good head on his or her shoulders... who happens to sell real estate for a living.

3.       "My friends would expect a discount or kickback because they know me."
So? I do, too! When appropriate (and I do know the difference), friends DO give friends discounts or freebies! I don't have a problem making my good friends and family feel special by giving them a deal, especially if they've been supportive of my business or are frequent buyers or sellers. But in reality, it doesn't happen nearly as much as you think it will, especially if you have confidence in your value and abilities. I get much more commission objection from strangers than I do from my SOI.

4.       "I don't believe in mixing business with pleasure. If the deal goes sour, I could lose the friendship."
Could happen. Probably won't, if you take great care of your business. Yes, things go wrong, but if you can fix the problems professionally and competently, you'll probably win even MORE brownie points from your friend than if the deal went 100% smoothly. Anyway, if you do a great job for someone who knows you and cares about you, you'll get GREAT PR in your social circle for it! I'll take that risk because I have faith in myself.

One caveat here - DON'T take SOI business that you aren't confident you can handle. For example, if your buddy wants to buy a strip mall, and you're a residential agent, REFER IT. I don't believe we should "practice" on anyone, but especially not on our SOI.

5.       "My family doesn't take me seriously - they see my new career as just another phase."
This is actually a valid objection. Family can be tough; much tougher than friends. If you suspect this will be an issue for you, don't pursue your family's business until you've built a track record you're proud of. They'll come around (or not, which is okay too). There are plenty of other people in the world for you to WOW.

6.       "I don't want my family and friends to feel obligated to use me if they don't want to."
"Obligation" is a dirty word in our business. Never ever ever think that someone is obligated to use you and don't get hurt if they use someone else. It's probably not personal (people have lives outside of our real estate business), and if it IS personal, take the opportunity to figure out why. Always give your SOI the benefit of the doubt if they don't use you - for them, it was the right decision. Respect that.

If, in your heart, you feel that your SOI is obligated to use your services, they'll feel it and resist. Conversely, if you respect their right to "choose," they also feel that and will probably beat down your door!

7.       "My broker says I need to cold-call, door-knock and mail to a geographic farm - that selling real estate is a number's game, so I need to get my name out there everywhere I can."
Somehow we get the idea we need a shot at every piece of real estate business out there in order to succeed. But we don't. If this is your first year you really only need to sell 10 - 20 properties to have a banner year. That's only 10 - 20 people in your whole town who have to hire you! It's tough to get 20 clients by throwing doo-doo against a wall, especially for new agents on limited budgets. It's not likely there are 20 strangers out there sitting by their mailbox, waiting for your fancy farming postcard, but there certainly ARE 20 people in your SOI who would love to help you, if you approach them correctly.

So... there you go.

http://www.sellwithsoul.com/

As my beloved regular readers know, I'm passionate about SOI - that is - *generating business and referrals from the Very Important People Who Know You.

A lot of you share my passion and have experienced great success in your own SOI business models. But many agents object to the concept of "SOI'ing" (yes, to me, "SOI" is also a verb, as in "Do you SOI?"), because they've either heard or experienced horror stories of working with "friends."

Here are seven objections to SOI'ing that I hear frequently:

1.       "I don't know anyone who wants to buy or sell right now and even if I did, how can I base my entire business on them?" 

2.       "I refuse to be one of those annoying real estate agents that the family avoids at parties."

3.       "My friends would expect a discount or kickback because they know me."

4.       "I don't believe in mixing business with pleasure. If the deal goes sour, I could lose the friendship."

5.       "My family doesn't take me seriously - they see my new career as just another phase."

6.       "I don't want my family and friends to feel obligated to use me if they don't want to."

7.       "My broker says I need to cold-call, door-knock and mail to a geographic farm - that selling real estate is a number's game, so I need to get my name out there everywhere I can."

Do any of these objections sound familiar? Care to comment? I'd love to hear your thoughts! I'll share mine tomorrow.

http://www.sellwithsoul.com/

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Wanna SOI with me in 2008? Check out the SOI Reality Show, beginning March 1!