From Contacts to Core Advocates: Building Your Real Estate Network

Chapter: From Contacts to Core Advocates: Building Your real estate❓ Network

This chapter explores the crucial process of cultivating a robust real estate network, transforming initial contacts into loyal core advocates who actively contribute to your business success. We will delve into the scientific principles underlying relationship building and apply these principles to the specific context of real estate.

1. The Spectrum of Relationships: From Haven’t Mets to Core Advocates

Your network isn’t a monolithic entity; it’s a spectrum of relationships ranging from complete strangers to enthusiastic supporters. Understanding this spectrum is key to effective network management. We can categorize your contacts as follows:

• Haven’t Mets: individuals❓ you have not yet interacted with personally. This group represents potential clients and referral sources.
• Mets: Individuals you have met and interacted with. This is the foundation upon which your network is built.
• Network: A subset of your Mets with whom you maintain consistent contact and nurture a professional relationship.
• Allied Resources: Professionals in related fields (mortgage brokers, home inspectors, contractors) with whom you have established a mutually beneficial working relationship.
• Advocates: Mets and Allied Resources who actively recommend you and your services to others.
• Core Advocates: Your most loyal and enthusiastic supporters, consistently referring business and acting as brand ambassadors.

This categorization represents a hierarchy. The goal is to systematically move contacts from the outer layers (Haven’t Mets) towards the inner circle (Core Advocates). This movement is not automatic; it requires deliberate and strategic effort.

2. The Science of Relationship Building: Social Exchange Theory and The reciprocity principle❓❓

The transformation of contacts into advocates relies on fundamental principles of human interaction, primarily rooted in Social Exchange Theory and the Reciprocity Principle.

• Social Exchange Theory: This theory posits that relationships are formed and maintained based on a cost-benefit analysis. Individuals are motivated to maximize rewards and minimize costs in their interactions. In the context of real estate, providing value to your contacts (e.g., market insights, helpful advice, exceptional service) increases the perceived reward and strengthens the relationship.

  Mathematically, we can represent this as:

  • Relationship Strength (RS) = Perceived Rewards (PR) - Perceived Costs (PC)

  A higher RS increases the likelihood of the contact progressing towards becoming an advocate.
  * Reciprocity Principle: This principle states that people tend to respond to a positive action with another positive action. If you provide value to your contacts, they are more likely to reciprocate by offering referrals, testimonials, or repeat business.

  • Experiment Example: A study by Randy Garner (2005) showed that including a simple personalized sticky note on a survey increased response rates significantly, demonstrating the power of a small act of reciprocity. In real estate, a personalized thank-you note after a meeting or a small, thoughtful gift can trigger this principle.

3. Building Your “Mets” Database: Expanding Your Reach

The first step in building your network is expanding your pool of “Mets.” Here are strategies based on proven networking techniques:

• Leveraging Existing Connections: Start with your existing network. Sources include:
  1. Family
  2. Friends
  3. Neighbors
  4. Past Clients
  5. School/University Alumni
  6. People you do personal business with (e.g., doctors, dentists, retailers)
  7. Sports and hobbies groups
  8. Former employers, co-workers, suppliers, customers
  9. Organizations (clubs, associations)
• Proactive Networking: Actively seek out new connections.
  1. Open Houses: Engage with attendees, collect contact information, and follow up promptly.
  2. Community Events: Attend local events, introduce yourself to new people, and build rapport.
  3. Online Networking: Utilize social media platforms (LinkedIn, Facebook) to connect with potential clients and referral sources.
• The “Daily 10/4” Framework: As highlighted in the provided text, consistently adding new contacts to your database is crucial. The “Daily 10/4” (10 new contacts, 10 entries into database, 10 notes, 10 homes previewed weekly) provides a structured approach to network expansion.

4. Nurturing Relationships: From Mets to Advocates

Transforming “Mets” into advocates requires consistent and strategic nurturing. This involves providing value, building trust, and maintaining regular communication.

• The 8x8 and 33 Touch Programs: These structured marketing plans, referenced in the provided text, are designed to systematically engage with your contacts. An “8x8” program involves contacting a new contact eight times over eight weeks, while a “33 Touch” program involves 33 interactions over a year. The specific content of these programs should be tailored to the individual and their needs.
• Personalized Communication: Generic marketing materials are less effective than personalized communication. Use the FORD (Family, Occupation, Recreation, Dreams) technique to gather information and tailor your interactions.
  • Example: Instead of sending a generic market update, send a contact an article about a local sports team if you know they are a fan.
• Value-Added Content: Provide your contacts with valuable information related to real estate, such as market updates, home improvement❓ tips, or local community events. This establishes you as a trusted resource.
• Active Listening and Empathy: Demonstrate genuine interest in your contacts’ needs and concerns. Actively listen to their challenges and offer solutions.
• Consistent Follow-Up: Regularly follow up with your contacts, even if they are not actively looking to buy or sell. This keeps you top-of-mind and strengthens the relationship.

5. Identifying and Cultivating Core Advocates: The 80/20 Principle

The provided text highlights the 80/20 principle, also known as the Pareto principle, which suggests that roughly 80% of your effects come from 20% of your causes. In the context of your real estate network, this means that a small percentage of your contacts will generate a disproportionately large amount of your business.

• Identifying Potential Core Advocates: Look for contacts who:
  1. Consistently engage with your content.
  2. Offer positive feedback and testimonials.
  3. Actively refer business to you.
  4. Are enthusiastic about your services.
• Strategic Nurturing of Core Advocates: Focus your efforts on nurturing these key relationships.
  1. Provide them with exceptional service and personalized attention.
  2. Express your gratitude for their support.
  3. Offer them exclusive benefits or rewards.
  4. Seek their feedback and input.

By strategically building and nurturing your real estate network, you can transform initial contacts into loyal core advocates who contribute significantly to your long-term business success. This process requires a scientific understanding of relationship building principles, combined with consistent effort and a commitment to providing value to your contacts.