In real estate, circle prospecting describes a lead generation strategy of contacting people in a particular area to ask them whether they are planning on moving soon or if they know anyone who would like to move. Real estate agents usually use a specific listing to initiate conversation and aim to create social proof to make it easier to sell the property or gain future business. Using a combination of strategy, planning, and marketing knowledge, you can also learn how to use circle prospecting effectively to boost your lead generation efforts.
The benefits of circle prospecting
The goal of circle prospecting isn’t to make an immediate sale, but rather to build a relationship with potential homebuyers and sellers in an area to increase the chances of them enlisting you as their agent in the future. It also cements you as a leader in your field and reduces a great deal of competition you’d face by allowing you to directly contact potential clients as opposed to competing for their attention through other mediums.
Steps to take for successful circle prospecting
- Find phone numbers to call
The first step in circle prospecting is to find phone numbers to call. You can purchase leads based on geographic location from a variety of companies that sell leads, but it’s important to keep in mind that not everyone you call will be a converted lead. Added to this, checking the National Do Not Call Registry to make sure that you don’t call people who are not interested is also key.
- Adopt a positive circle prospecting mindset
Calling people you don’t know can be quite daunting, even for the seasoned real estate agent who’s used to conversing with potential clients on a daily basis. The key to successful circle prospecting is to adopt a positive mindset to increase your chances of forming a meaningful connection with your prospects, which will likely lead to them being receptive to what you have to say.
You should also keep your intention at the heart of everything you do to motivate you while circle prospecting. Think about reaching your financial goals, helping your family and most importantly, helping potential clients find their ideal homes.
- Follow a general script
The script you follow shouldn’t be too rigid, but you should have a general idea of what you’ll be saying to your prospects. A natural, positive tone along with the ability to hold a conversation is a significant part of a winning script.
A general script would include saying the lead’s name and mentioning that a home was recently sold or listed in their area, asking them if they’re perhaps keen on selling, and if they answer no, find out when they’d consider moving. After this, you should ask them if they know anyone who plans on moving into the area and what characteristics their ideal home has. This information goes beyond prospecting, but will also give you an idea of what people are currently looking for in a home.
- Be sure to follow up with your prospects
Real estate agents who are the most successful at circle prospecting are those who follow up with their leads. Following up nurtures leads and keeps you top of mind and the best part is, you don’t necessarily have to do this manually because there is software that automates the whole process. Ask us about our CRM, Cultv8. 😉
Consider adding circle prospecting to your current lead generation strategy to increase your chances of converting leads. This form of marketing is also an effective way to build a good reputation in your area and designate yourself as the go-to real estate agent for all property-related matters. Please feel free to email us at info@coates-communications.com if you have any questions or need help with implementation.
