How to Build a Sphere of Influence (SOI) Contact Database for Real Estate Agents
As a new realtor, your Sphere of Influence (SOI) is the most valuable resource for generating leads and building your real estate business. Your SOI consists of people who already know, like, and trust you—making them more likely to refer you to others or work with you directly when they need real estate services.
In this article, we’ll dive deep into the process of identifying and organizing your SOI. By the end, you’ll have a clear path to create a contact database with at least 50 contacts to jumpstart your real estate career.
Why Focus on Your SOI?
Studies consistently show that the majority of real estate transactions come from people you already know, which includes referrals and repeat business. According to the National Association of Realtors (NAR), 65% of sellers find their real estate agent through a referral or use an agent they’ve worked with before. This statistic highlights the importance of maintaining strong relationships with your SOI.
As real estate coach Brian Buffini says, “Your database is your business.” When you invest time and effort into building and nurturing your SOI, you’re creating a sustainable source of leads, referrals, and repeat clients.
Scott Stratten, author and marketing expert, underscores this idea with his powerful statement: “If you believe a business is built on relationships, make building them your business.” This quote perfectly captures why focusing on your SOI is not just a strategy but a philosophy that can guide you to long-term success in real estate.
Step 1: Identify Your Sphere of Influence (SOI)
The first and most crucial step in building your SOI contact database is identifying the people who belong in it. These are the people you already know—family, friends, neighbors, colleagues, and acquaintances. To make this process easier, we’ve created a complete table below to guide you through the different categories of relationships that should be part of your SOI.
SOI Relationship Categories Table
| Category | Description | Examples | Notes |
|---|---|---|---|
| Family | Immediate and extended family members | Parents, siblings, cousins, aunts and uncles, in-law extended family | High trust, likely to refer you to others |
| Friends | Close friends and acquaintances | High school friends, college friends, social friends | Often willing to help and support your business |
| Neighbors | Current and former neighbors | People living on your street, in your building, and your neighborhood | Great for local market referrals, geo-farming options |
| Former Colleagues | People you've worked with in previous jobs | Past coworkers, former managers, past business connections | Valuable connections for referrals within their networks |
| Current Colleagues | People you currently work with | Other realtors, mortgage brokers, home contractors, service providers | Can refer clients to each other, collaborate on deals |
| Social Connections | People you know through social media or clubs | Facebook friends, Instagram, online community groups, sports teams, other clubs you or your family belong to | Expand your reach beyond your immediate circle |
| Service Providers | Professionals you interact with regularly | Hair stylist, dentist, car mechanic, accountant or bookkeeper | Often have extensive networks and can provide referrals |
| Local Community | People from your local community, organizations, or church | Church members, school parents, community groups, local/event volunteers | Strong connections within the community, great for local referrals |
The table above is designed to help you systematically think through all the people you know and identify who should be in your SOI. Your goal is to start with at least 50 contacts (which should be easy now), but don't stop there! The more people you add to your SOI, the more opportunities you create for referrals and future business.
Let’s break down each category further and provide actionable steps to help you compile your list.
Family
Description: Immediate and extended family members are some of your strongest connections. These are people who know you well and trust you implicitly. They are likely to refer you to their own friends, colleagues, and acquaintances.
Examples:
Parents
Siblings
Cousins
Aunts and uncles
Grand parents
In-Laws
Action Step:
List out all your immediate and extended family members. Don’t forget to include relatives you may not speak with regularly—family connections are often strong and can lead to referrals.
Notes:
Family members are great for early referrals and may even become your first clients.
Friends
Description: Close friends and acquaintances form another vital part of your SOI. These are people who are likely to support your business and refer you to others because of your personal connection.
Examples:
High school and college friends
Social friends
Former classmates
Friends of your friends
Friends of your family members
Action Step:
Think about your closest friends, but also consider acquaintances you’ve kept in touch with. Make a list of at least 10 friends to add to your SOI.
Notes:
Friends are often willing to help you succeed, so don’t hesitate to reach out for referrals.
Neighbors
Description: Your neighbors, both current and former, are part of your local network and can be valuable for local market insights and referrals.
Examples:
People living on your street
People in your neighborhood you know, community geo-farming
People in your apartment building
People you know from a previous home
Action Step:
Write down the names of your current neighbors and anyone you’ve maintained contact with from previous residences.
Notes:
Neighbors can provide local market referrals and may introduce you to others in your community.
Former Colleagues
Description: People you’ve worked with in previous jobs, internships, or projects can be a rich source of referrals, especially if they’ve moved on to other industries or locations.
Examples:
Past coworkers
Former managers or business partners
Action Step:
Make a list of former colleagues who you’ve stayed in touch with. Reach out to them to reconnect and let them know about your real estate business.
Notes:
Former colleagues can provide referrals within their own professional networks.
Current Colleagues
Description: Your current professional network, including other realtors, mortgage brokers, and service providers, can help you find clients or collaborate on deals.
Examples:
Real estate agents
Mortgage brokers, banking representative
Insurance agents
Home Inspectors and appraisers
Home Services connections and contractors
Home Staging services
Lawyers
Action Step:
Add your current colleagues to your SOI. These are people you interact with regularly and who may have opportunities to refer clients to you.
Notes:
Strong professional relationships can lead to valuable business collaborations and referrals.
Social Connections
Description: Social media has expanded our networks significantly. People you know through social media, clubs, or other social activities can be added to your SOI.
Examples:
Facebook friends
Instagram followers
Social media groups or communities
Sports teams or clubs
Action Step:
Go through your social media accounts and list the people you interact with frequently. Add those who you think could be potential referrers or clients.
Notes:
Social media is a powerful tool for expanding your reach beyond your immediate circle.
Service Providers
Description: The professionals you interact with regularly—such as your hairstylist, dentist, or mechanic—often have extensive networks and can be great sources of referrals.
Examples:
Hair stylist
Dentist
Doctor
Mechanic
Accountant, bookkeeper, or banker
Home cleaner
Personal trainer
Action Step:
Write down the names of the service providers you regularly visit. These are people who know you and may be willing to refer you to others.
Notes:
Service providers often have their own extensive networks and can provide valuable referrals.
Community Members
Description: People you know through community organizations, your church, or other local groups can be powerful allies in your real estate business.
Examples:
Church members
School groups and parents
Local volunteers
Members of community organizations
Community events
Action Step:
Make a list of people you know from your community involvement. These individuals often have deep connections within the local area.
Notes:
Community members are often well-connected and can help you build your presence in your local market.
Step 2: Compile Your SOI List (Workbook)
Now that you’ve explored the different categories of your SOI, it’s time to compile your list. Use the table and the action steps provided to help you reach your goal of 50 contacts. Here’s a simple process to follow:
Create a Spreadsheet or Use a CRM: Start by creating a spreadsheet or using a simple real estate CRM like RealOffice360 to organize your contacts. Include columns for name, phone number, email address, physical address, relationship category, and additional notes. If you prefer, here’s a free real estate contact database spreadsheet to download.
Go Through Each Category: Work through each SOI category in the table above and list at least 5-10 contacts for each one. This will help you reach your goal of 50 contacts.
Prioritize Personalization: For each contact, include personalized notes, such as their interests, important dates (birthdays, anniversaries), or anything that could help you build and maintain a strong relationship. Read more how to prioritize your real estate contact database.
Review and Expand Regularly: Your SOI is not static—it should grow and evolve over time. Regularly review your contact list, update information, and add new contacts as you meet people through your work and social activities.
Conclusion: The Foundation of Your Real Estate Business
By focusing on your Sphere of Influence (SOI), you’re building the foundation of a successful and sustainable real estate business. Your SOI will provide you with a steady stream of leads and referrals, helping you grow your business organically and with less stress.
Remember, the key to success in real estate is building strong, lasting relationships. Your SOI is the perfect starting point for this journey. As you nurture these connections and expand your network, you’ll see the rewards in the form of new clients, referrals, and repeat business.
Start building your SOI contact database today and watch your real estate career flourish.
References
National Association of Realtors (NAR) Statistics - NAR Research and Statistics
Brian Buffini on Databases - Brian Buffini Blog
Tom Ferry: Leveraging Your SOI - Tom Ferry Blog
By following this step-by-step guide, you’ll be well on your way to building a strong and effective SOI contact database that serves as the foundation of your real estate success.