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From Contact to Advocate: Building Your Core Circle
Chapter: From Contact to Advocate: Building Your Core Circle
Introduction
This chapter delves into the process of cultivating relationships within your real estate database, specifically focusing on transforming initial “Mets” (people you’ve met) into “Core Advocates,” who are a consistent source of referrals and repeat business. We’ll explore the underlying principles of relationship building, the strategic application❓ of communication, and the long-term commitment required to nurture these crucial connections. We will be applying theories from social psychology, marketing, and network science.
1. Understanding the Spectrum: From Haven’t Met to Core Advocate
The journey from a cold contact (“Haven’t Met”) to a fervent supporter (“Core Advocate”) is a gradual progression, built upon trust, consistent engagement, and demonstrable value. This progression can be visualized as a series of concentric circles, expanding outward from “Haven’t Met” and contracting inwards towards “Core Advocate”.
- Haven’t Met: Individuals with whom you have had no prior interaction. Your initial goal is to transition them into a “Met” through targeted outreach and value proposition.
- Target Group/General Public: A segmented group of “Haven’t Mets” based on demographics, location, or other shared characteristics. These individuals can be targeted with specific marketing campaigns.
- Network: Individuals who you have made contact with, but have not yet established a meaningful relationship.
- Met: People you’ve met and added to your database. The goal is to move them towards advocacy through consistent communication and value delivery.
- Allied Resources: Strategic partners such as mortgage loan officers, home inspectors, or contractors. Building strong relationships with allied resources can provide valuable referrals.
- Advocates: Clients and contacts who are satisfied with your services and willing to recommend you to others.
- Core Advocates: The innermost circle represents your most loyal and active supporters. These individuals consistently refer business, sing your praises, and act as brand ambassadors.
2. The Science of Relationship Building: Social Exchange Theory
The foundation of transforming contacts into advocates lies in building strong relationships. Social Exchange Theory posits that relationships are formed and maintained based on a cost-benefit analysis. Individuals are motivated to engage in relationships where the perceived benefits outweigh the perceived costs.
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Equation:
Relationship Value = Perceived Benefits - Perceived Costs- Where:
- Relationship Value > 0 indicates a positive relationship with perceived benefits exceeding costs.
- Relationship Value < 0 indicates a negative relationship where costs exceed benefits.
- Application: To build strong relationships, consistently deliver value to your contacts. This includes providing relevant information, personalized service, and genuine care for their needs. Minimize perceived costs by being reliable, responsive, and respectful of their time.
- Where:
Practical Example:
Offer a free market analysis to a potential client (benefit). Ensure the analysis is accurate, insightful, and easy to understand (value). Communicate promptly and professionally (minimize cost).
3. The Power of Consistent Communication: The Forgetting Curve and Spaced Repetition❓❓
Maintaining consistent communication is crucial for solidifying relationships and moving contacts towards advocacy. The Forgetting Curve, a concept introduced by Hermann Ebbinghaus, demonstrates the exponential decay of memory retention over time. Without regular reinforcement, information is quickly forgotten.
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Equation (Simplified):
Retention = e^(-kt)- Where:
- Retention = Percentage of information retained
- e = Euler’s number (approximately 2.718)
- k = Forgetting rate constant (varies per individual and context)
- t = Time elapsed since initial exposure
- Where:
Practical Example:
A client who has a positive experience with you will gradually forget the details of that experience over time if you don’t stay in touch.
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Spaced Repetition: Combatting the Forgetting Curve requires Spaced Repetition, a learning technique that involves reviewing information at increasing intervals. This reinforces memory and strengthens neural connections.
- Application: Implement a structured follow-up system (e.g., the “8x8” and “33 Touch” programs) that ensures consistent communication with your Mets. Vary the content and delivery methods to keep the interactions engaging and relevant.
Experiment:
Track the response rates to different communication frequencies over a 6-month period. Compare the engagement levels of a group receiving weekly communication versus a group receiving monthly communication. Analyze the correlation between communication frequency and referral generation.
4. Segmentation and Personalization: Targeting for Maximum Impact
Not all contacts are created equal. Effective relationship building requires segmentation and personalization. Categorize your database based on demographics, interests, past interactions, and potential for referral.
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Pareto Principle (80/20 Rule): A significant proportion of the effect comes from a minority of the causes. In this context, it means that 20% of your database will likely generate 80% of your business. Focus your efforts on identifying and nurturing this key group.
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Application: Use the “FORD” technique (Family, Occupation, Recreation, Dreams) to gather detailed information about your contacts. This allows you to tailor your communication and value offerings to their specific needs and interests.
Practical Example:
Send birthday cards to contacts with young children with tailored information about local family-friendly events, sports or hobbies they enjoy, and community activities.
5. The Conversion Funnel: Measuring Progress and Optimizing Strategy
Visualize the process of transforming contacts into Core Advocates as a conversion funnel. At each stage of the funnel, a certain percentage of contacts will “convert” to the next level.
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Equation:
Conversion Rate = (Number of Contacts at Next Stage / Number of Contacts at Current Stage) * 100% -
Application: Track conversion rates at each stage of the funnel to identify bottlenecks and areas for improvement. Analyze the effectiveness of different communication strategies and adjust your approach accordingly.
Conversion Stages:
- Haven’t Met to Met: Conversion rate from initial contact to database entry.
- Met to Advocate: Conversion rate from database contact to satisfied client.
- Advocate to Core Advocate: Conversion rate from satisfied client to consistent referral source.
Experiment:
Implement A/B testing on different email subject lines or call scripts to determine which strategies yield the highest conversion rates at each stage of the funnel.
6. Long-Term Commitment: The Power of Compounding Relationships
Building a strong core circle of advocates is not a quick fix. It requires a long-term commitment to consistent communication, value delivery, and relationship nurturing. The effects of this investment compound over time, leading to a sustainable and thriving real estate business.
- Compound Interest Analogy: Just as financial investments grow exponentially with compounding interest, so too do the returns from nurtured relationships. The more you invest in building trust and goodwill, the greater the long-term benefits.
Practical Example:
The document describes the potential results from applying the IGNITE strategies. It suggests that in 200 working days you can make 2,000 Mets that can be the base of a Millionaire Real Estate Agent.
Conclusion
Transforming contacts into Core Advocates is a strategic and scientific process. By understanding the principles of relationship building, applying consistent communication, segmenting and personalizing your approach, tracking conversion rates, and committing to the long-term process, you can cultivate a powerful network of advocates who will drive the success of your real estate business.
Chapter Summary
Scientific Summary: From Contact to Advocate: Building Your Core Circle
This chapter focuses on the systematic development of a real estate❓ database to cultivate “Core Advocates” who will drive business growth through repeat transactions and referrals. The core concept is transitioning contacts from initial acquaintances (“Haven’t Mets”) to active advocates (“Mets,” ultimately forming an inner circle of “Core Advocates”).
Key Scientific Points and Strategies:
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Database Segmentation: The chapter employs a classification system dividing contacts into “Haven’t Mets” and “Mets,” further refining “Mets” into general contacts, target groups, network❓ contacts, allied resources, advocates, and finally, Core Advocates. This stratification allows for targeted marketing and relationship-building strategies. “Haven’t Mets” are typically sources of new business, while “Mets” offer repeat and referral opportunities. The long-term goal is to convert “Haven’t Mets” into “Mets” and “Mets” into “Core Advocates.”
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Lead Generation and Conversion Rates: The document presents quantitative data on lead generation requirements, citing the “Millionaire Real Estate Agent” model. This model suggests specific ratios of “Mets” and “Haven’t Mets” needed to achieve a target number of closed transactions (320 per year). The text also highlights conversion rates (e.g., 12:2 for “Mets” worked through an 8x8 and 33 Touch program, 50:1 for “Haven’t Mets” with a 12 Direct program). While these ratios are presented as guidelines, the summary emphasizes that achieving them requires consistent and persistent communication over time (2-5 years). The document suggests aiming for 10 new contacts each day, adding them to the database.
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Database Building: The document provides practical methods for building both “Mets” and “Haven’t Mets” databases. “Mets” databases are built from existing networks like family, friends, and business contacts. “Haven’t Mets” databases are built through purchased lists from title companies or third-party vendors.
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Data Collection and Enrichment: The chapter stresses the importance of gathering detailed contact information. It advocates for obtaining basic information like name, address, phone number, and email. It introduces the “FORD” technique (Family, Occupation, Recreation, Dreams) as a framework for gathering more in-depth personal data. This information is used to personalize communication and strengthen relationships. The document includes checklists of essential buyer and seller data to collect, underlining the need for regular database updates.
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The 80/20 Principle: The summary mentions the 80/20 principle, suggesting that 20% of the database can generate 80% of the business. The goal is to identify and nurture that top 20% into Core Advocates.
Conclusions and Implications:
The chapter concludes that strategically building and maintaining a contact database, combined with targeted communication and relationship-building, is crucial for generating leads, converting contacts, and cultivating a loyal network of Core Advocates. This approach is not a short-term fix but a long-term investment. The implication is that real estate professionals should adopt a systematic, data-driven strategy for managing their contacts and prioritize activities that foster strong relationships. Failure to consistently “feed” and nurture the database will limit its potential for driving business growth.
