With a Little Help From my Friends…
httpv://youtu.be/nCrlyX6XbTU
Friends
We’ve all got them. We’ve got friends down the street, in the next city over, across the nation and around the globe. We have a social network (or networks, as the case may be) that we rely on for support, information, encouragement and correction. Your social network could be as simple the folks on your block or as complex as the various social media platforms you interact with on-line.
My point is that we all have social networks. The term social network has been used, nearly exclusively, to describe services like Facebook, Twitter or Google+. While the term social network certainly does apply to these great services, it should not be used to exclusively describe just these services. If you are a member of the Chamber of Commerce, you are a part of a social network. Go to church? Yep, that’s a social network too. How about the local board of real estate agents? Yes, that’s a social network too.
Good Friends
Why the definition and context of social networks? Well, there has been a long ranging, and frankly, tiresome conversation about the return on investment (ROI) of social media for business. Over on our franchise website, we dedicated a whole month to industry leaders responding to the “question” of ROI in social media. Typically, in this discussion about the ROI of social media, the “social media” is limited to the online services of Facebook, et al. For me, this conversation is tantamount to asking if there is a return on investment for breathing…
I’d like to subvert that first, base assumption, that social networking is limited to online services. Social networking does NOT depend on the technology used.
Social networking is just as old as mankind itself. When the cavemen were gathered around the fire, plotting out the day’s hunt, they were networking with their peers to achieve a common end: food for their tribe.
Real Estate
Huh? What does ANY of this have to do with real estate?
Well, one thing that I have noticed over my ten years in real estate, is that the bulk of my business in any given year comes from clients that I have helped in the past. On top of returning or repeat business, I have also noticed a high percentage of my business comes from past clients referring their friends and family in my direction. I’ve also noticed that the pace of these referrals has quickened in the last few years.
Why?
I am convinced that the online aspect of my social networking makes it much easier for my clients, family and friends to refer my services to their friends. Put another way, social networking allows me to be interviewed, without taking part in an interview. Since a satisfied, mutual friend is making the recommendation, there is already a level of trust built into the recommendation. As has happened a few times this year, clients have mentioned that they were able to watch me online, read my thoughts on the real estate market and come to the decision that our mutual friend was on to something to put us in touch with each other.
Brass Tacks
Ok, so I’ve made it clear that a majority of my business is repeat or comes from referrals, but just how much of this business is influenced by my online social networking? I could easily argue that ALL of my business comes from some form of social networking, but let us simply focus upon the online social networking.
For purposes of these numbers, social networking is defined as my blogs, twitter, facebook, and Google+ (yes, already!). Of the clients from social networking I am working with or have worked with this year, they have either been referred to me by a mutual friend from online, or have found me via online searches.
To date:
- 24 total clients so far this year: a mix of buyers and sellers
- 9 buyer clients from social networking
- 10 selling clients from social networking
So, 19 clients via online social networking divided by 24 total clients equals 79.2% of my clients to date.
79.2%
I’m sorry. What was the question, again?
Want to connect online? Here is my online profile.
Comments feed
The question is how do you quantify this and connect to your Klout core?
If I may dust off my soapbox, I think we all need to stop answering the question. The people that don’t understand yet, will more than likely never understand. That, and I’m tired of seeing people take good Twitter handles & URLs, write one blog post, tweet 20 times, and then abandon their efforts.
No more mud in the waters.
Sorry, Jason, your Klout score was not high enough and my spam filter snagged your comments…
I agree with your assessment that we need to stop yammering about this question. The time to put up and shut up has passed. As you’ve witnessed and expressed the proof is in the pudding.
Nothing to see here. Move along…
You guys are pioneers. And pioneers can’t waste time convincing the haters. It’s not good for your Klout score
Also, I like that you use the caveman/networking reference. I gave a talk at a local 140Conf comparing social media to Clan of the Cave Bear
Todd – An excellent post. It doesn’t surprise me that almost 80% of your business was generated via social networks. You do a great job of leveraging transparency (i.e. being who you on-line be the same person you are off-line) which builds trust with out even meetings people IRL.
I talk about how the old fashioned recipe for success in sales is when people know, like and trust you and the “trust” is the hardest to create and earn. But now, with social networking, would you agree that you can earn the “like” and “trust” part of the equation before you even “know” someone? Case in point – our relationship. I have never met you (in fact, today’s Google+ hangout was the first time I have even seen you in person via webcam) yet I like you and trust you when it comes to being a social media voice and fellow Realtor.
Now switch to thinking if I was an active Buyer or Seller in Southeastern Michigan and I would have no problem seeking out your services before we even meet.
Now the key is to make sure you fill that other 20% of your business with strangers that you can add in to your social networks to create a never ending fountain of friendly leads.
Thank you, Sean. Your words mean a great deal to me. And yes, come to think of it, that was the first time we saw each other in “real-time.” I swear that SM seems to obliterate geographic and even collegiate boundaries!
You said it correctly; the use of Social Media (and the internet, for that matter) has made it easier than ever to cultivate trust even before meeting for the first time. It is that level of transparency and willingness to learn, teach, discuss that attracts us to others in real life. Why should it be different via Social Media?
Safe travels, my friend. We will meet IRL at some point!