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...
Jennifer,
I'm looking to the next installment of this blog.
No mystery to me, Jennifer.
You still built the relationships, mets or have not mets. You didn't have to sell them anything but you.
I would suggest even the strangers soon became part of your SOI.
As I contemplate joining a top producer as her buyer's agent, part of the allure is NOT having to go after expired listings or FSBOs...even though my one listing DID come from a FSBO. I like the idea of working with the leads she already gets from her many listings...they're still strangers, but I don't have to cold-call or bug anyone. I just have to answer their inquiries and help them find a house...which is why I got into this business in the first place!
So yes...get some sleep, and then tell us more!!
LOL...leave it to John Mac for a morning chuckle.
Jennifer, I understand where you are coming from and it's okay, REALLY...I think most of us are just happy hearing the part about "not pursuing strangers for business"! LOL I'm totally cool with strangers - heck, I talk to strangers all the time, waiting on line, in stores, in coffee shops, you name it, I'm talkin' to them. But ask for business? Uh huh! Not going there! LOL Maybe there is a ton of missed opportunity there, but hey, not my style and I am not going to intentionally inject any uncomfortable moments into my life. Enough occur naturally!
Jennifer, it has always amazed me how some veteran Realtors say 90-100% of their business is from sphere and referrals. If that is enough business for you then it works. Others think "strangers" or new customers should account for 40 to 60% of your business. There probably is no right answer, but whatever works for you. SOI definitely seems like less marketing cost for you though. I am interested in your thoughts as we move forward.
Also, strangers are just future members of your SOI.
Well, I still consider those "strangers" to be SOI, so I'll say that my business was indeed 90%+ SOI. It's just a slightly different definition of SOI than the traditional ones we hear - even the one I've been spouting all this time.
I'm dying to finish this blog, but things are crazy here... yay!