5 Circle Prospecting Tips for 2021

1. Don’t Make Your Circle Too Large

A common mistake that new agents make when circle prospecting is making their circle too large. They think if reaching 50 homes is good, then reaching 200 homes will be better. In reality, this strategy will be more costly, more time-consuming, and will likely get you worse results.

The reason why is simple. The further out you go from the home you transacted on, the less relevant that transaction will be to the homeowners you reach. Let’s say you closed a two-bedroom bungalow for 20% above asking in neighborhood X. Why would someone who owns a seven-bedroom mansion in neighborhood Y care? Worse, if you contact them with irrelevant news, they will assume you’re not very interested in their needs. To them you’ll just be another salesperson trying to make a quick buck.

Instead, try to target 50 homes or less, and make sure all or most of the homes you target are at least somewhat similar.

2. Don’t Overthink Your Circle Prospecting Scripts

Another mistake that many agents make when circle prospecting for the first time is overthinking their scripts. It’s a natural mistake to make because well, most agents want to do a good job and they study those scripts like their lives depend on it.

In reality, a script should be like an outline for a story. You should use them as a general guide to start and maintain a conversation, but never forget that this is a conversation. Yes, you want your lead to set up a listing appointment, join your email list, whatever. But if you overcomplicate your script, you’re going to come across like a robot.

3. Get Over Your Fear of Door Knocking ← This one’s important!

Door Knocker

Most new agents are scared of having a lead hang up on them during a cold call, but the fear of door knocking verges on phobia. If you don’t believe me, find a new agent and ask them to come knocking on doors with you next week.

The reality, of course, is that just like cold calling, the fear of door knocking is pretty irrational. Most people are not jerks, and you will be surprised at how many appreciate the courage it takes to knock on their door. It makes sense when you think about it. After all, you just proved to them that you’re a brave salesperson who isn’t afraid to work hard and risk rejection. Isn’t that the whole point of lead generation and marketing anyway?

👉Want to learn the ropes of door knocking or sharpen your skills? Check out our in-depth guide to door-knocking tips and scripts here.

4. Understand That Circle Prospecting Is Not Just About Getting Leads

Another mistake new agents frequently make with circle prospecting is giving up if they don’t get leads right away. After all, circle prospecting takes time, effort, and money. Shouldn’t you expect a return on investment (ROI)? Well, yes, but sometimes that ROI will come later rather than sooner. Circle prospecting is just as much about marketing as it is about generating leads.

For example, you might send out just-sold postcards in May, but get a phone call in September when a homeowner is thinking of moving. Or you might send out that postcard in May, then go door knocking in September and have the homeowner remember you from the postcard. So don’t freak out and quit if you don’t get leads right away. You will be increasing brand awareness and softening up prospects for future outreach.

5. Use Multiple Outreach Methods to Increase Your Response Rate

While Slybroadcast can work great, it won’t work great for everyone you reach. Some people are just not texters, might consider voicemails spammy, or just won’t respond when you call. In order to maximize your response rate, blend in other marketing materials like postcards, texts, phone calls, and door knocking over the next few months.

Over to You

Know a great real estate agent, broker, or team leader who leverages new (or old) technology in a creative way to generate listings and leads? Have a great circle prospecting story? Let us know in the comments or join our Facebook Mastermind Group for experienced agents here. https://www.facebook.com/therealestatemother