Circle Prospecting in Real Estate
Even in this digital age where half of our interactions involve a “like” and/or emoji, there are still traditional strategies that work (albeit with more sophisticated tools ). Circle prospecting is one of these strategies.
Why does it still work? It’s the power of building relationships via good old-fashioned conversation AND it’s targeted to specific location where there’s conversation-worthy real estate activity.
So how can you implement a circle prospecting strategy that delivers results? Look no further! In this post, we will explore the key elements of a successful circle prospecting strategy and outline tactics you can start using right away. Get ready to take your lead generation to the next level!
Here’s what we’ll cover:
- What Is Circle Prospecting?
- Circle Prospecting Scripts
- Tools and Software for Circle Prospecting
- Training and Learning
What Is Circle Prospecting?
Circle prospecting is an approach in real estate that focuses on outreach within a radius of a specific listing. One common case involves reaching out to all homeowners within the vicinity of a recently sold listing, with the objective of showcasing the agent’s competence and success in closing transactions. The goal is for these prospects to think of you first the next time they need to buy or sell or even get real estate related advice.
This strategy doesn’t just involve a closed listing though. It could be for an upcoming listing or an Open House. And agents don’t need to be the listing agent for this tactic to work either…so a lot of creativity is possible in the approach.
The outreach is commonly done via phone and, from a sales standpoint, amounts to cold calling residents within a certain geo. So persistence and thick skin is crucial…as is regular follow-up in order to establish a relationship. Circle prospecting goes hand in hand with geographic farming and door knocking.
Agents practicing circle prospecting leverage various resources, such as dialer tools, scripts, and role-playing and more which we’ll go over below.
Circle Prospecting Scripts and Cold Calling Tactics
Cold calling is a proven prospecting strategy that has stood the test of time, even with the rise of more digital communication and social media. Plus circle prospecting is well suited for cold calling because you can get phone number lists for residents within a geographic area and start up a conversation shortly after.
And while most people are turned off by unsolicited calls, having the right scripts and tactics can help you convert annoyance into engagement, which is a great start towards securing a new client.
One key decision when circle prospecting is why you’re calling that resident:
- Is it a successful sale in the neighborhood you want to recap?
- Do you have a lot of buyers that want to move into that area?
- Is your team hosting an Open House and you’re personally inviting all the neighbors?
These are all legitimate options to use when cold calling a neighborhood. Just make sure you’ve got this picked out so you can incorporate it into your circle prospecting scripting.
Also IF you’re planning to use the Open House invitation approach, try Curb Hero’s free digital Open House sign-in so you know exactly who attended. It’ll also be great to track who from your circle prospecting actually visited.
Now when it comes to scripting here are a couple videos that show proven tips from agents and coaches. This YouTube video from Ricky Carruth is long but it’s actual live calls with him circle prospecting. You’ll see that the list is all people from his geographic farm so it definitely makes some of the calls less “cold” and therefore less resistance on the other end. Check out the example that the video starts with because it’s a great example of how to build rapport and pave the way for deeper engagement.
By providing this valuable information, you can establish yourself as a knowledgeable resource, increasing the likelihood that they will turn to you when they are ready to buy or sell.
Now if you just want the magic words so you can up and going, here’s a great video that goes over a great circle prospecting script along with scripting for objection handling that will undoubtedly come up.
Another important part of cold calling is timing. While different agents have found success at different times, a notable trend among agents that find success with circle prospecting is late afternoon calls, particularly between 4-6 pm. At this time, many people are finishing up their workday and may be more receptive to taking a call or setting an appointment. Experiment with your timing and keep track of what works for you.
Here are a few other tactics to keep in mind as you dial in your cold calling approach (couldn’t resist that pun!):
- Have an optimistic mindset and convey as much enthusiasm as possible. Standing up, smiling while talking and also moving around can increase the positive energy you convey on the call.
- Similarly, resist the urge to sound too scripted; instead, focus on pausing to let your prospect respond and talk. Listen actively and repeat back bits of what they said so they know you’re genuinely listening.
- Developing rapport while also being assertive and confident in your approach is an important balance. This balance takes practice, but if you can master it, you’ll see engagement improve especially when you transition the conversation from the initial niceties to “the business”.
And our list of phone prospecting scripts and tactics wouldn’t be complete without using an MBA cliche right? Well you only manage what you measure. Seriously since circle prospecting for real estate clients takes a significant amount of time, determining the ROI is a must. Whether it’s with your CRM or Dialer (see tools in the section below), keeping track of how many calls you make, conversations you have, appointments you set, and clients you close transactions for will be key to know if your efforts are paying off.
Cold calls may seem daunting, but with the right circle prospecting scripts and tactics you’ll get a unique opportunity to connect with potential clients on a personal level and build rapport.
Training and Learning
Training and learning are essential components of circle prospecting success. Scripts like the ones mentioned above are a highly valued tool among participants in circle prospecting. According to a study by the National Association of Realtors, agents who practice their scripts regularly earn significantly more than their counterparts who don’t rehearse their words. Role-playing with colleagues or a coach is also helpful.
By sharing scripts, strategies, and tools, agents can learn from each other’s experiences and expertise. In addition to shared scripts, there are other valuable resources available for circle prospecting agents. One such resource is https://CircleProspecting.com, a website devoted entirely to this approach for generating leads. This website offers training tools, scripts, and access to a community of experienced agents who share tips and strategies for success.
Another useful resource for training and learning in circle prospecting is https://scriptsjedi.com/. This platform provides daily practice scripts to improve communication and persuasion skills. It’s a helpful tool for agents looking to refine their skills and stay sharp.
Finally, role-play practice over Zoom was another recommendation made by circle prospecting participants. Role-playing is an excellent method for honing skills and building confidence in your ability to persuade potential clients. As the saying goes, practice makes perfect, and regular practice using these tools and resources, whether through online platforms or in-person role-playing exercises, can lead to significant improvements in your circle prospecting results.
Tools and Software for Circle Prospecting
You better believe there’s an entire category of circle prospecting software tools and resources to streamline the process and maximize results. Several popular tools that agents use in their circle prospecting efforts include Mojo Dialer, Vulcan (aka Vulcan7), and RedX.
What exactly do these tools offer, and how can they benefit your circle prospecting strategy? The core feature in the most popular circle prospecting apps is a “power dialer” that speeds up the calling process dramatically through the following:
- No dialing needed: calls will be automatically started for you based on the list of contacts you select or upload
- Voicemails are automated: if you get their voicemail, a pre-recorded message is sent in the background while you’re already calling the next contact
- Contact info that’s easy to see and edit : you can see the contact’s info and have the ability to add notes right within their application. All of this can be synchronized to/from your CRM so you maintain all needed context to continue to develop the relationship.
- Some dialers even have the ability to dial multiple numbers at once! This is a tricky one though as prospects can be greeted with a pre-recorded message until you jump in to take it from there.
- Also if you don’t have a list of contacts or phone numbers for the geo that you want to prospect some dialers like Vulcan7 and RedX can also pull a list for you based on many attributes that can be helpful to target your dialing. Cole Resource is another platform that’s great for generating these lists that can be uploaded into a separate dialer tool. Some of these data providers can even get contacts for FSBOs, Expireds, and pre-foreclosure listings.
It is also important to note that there are numerous other sales dialers on the market. It is worth researching them to find one that meets the specific needs of your business and provides the necessary features to boost productivity and drive successful results. And when doing your research, remember that the Fortune is in the follow up.
[drink up if you’re playing the Marketing Cliche Drinking Game]
So while the act of cold calling is almost universally despised, it’d be damn foolish to squander these relationships that you build when circle dialing. This is where synching your dialer and CRM are key. You want your contacts and conversation notes to feed into your CRM so you can follow up properly in one or more of the following ways:
- include the person on your regular email newsletter
- putting them on a text or email drip with the goal of setting an appointment or completing a CMA
- inviting them to local events: Open Houses, Shredding Events, Community Events etc
- delivering a small branded gift
Any of these will serve as a reminder of a positive conversation and help establish a more meaningful connection with the prospect.
Lastly there are a couple warnings on using circle prospecting software such as dialers :
- As effective as these dialers are, there are legal risks around using multi-line dialers, ringless voicemails, spoofing phone numbers and calling prospects that are on DO NOT CONTACT (aka DNC) lists. Most of the dialers mentioned above do have configurations to avoid all of these risk areas but it’s worth noting especially as these features are also attractive options for agents looking to maximize efficiency. Check your local rules to make sure you’re in compliance and not risking fines and other penalties.
- Also these dialers can make the calling process intense! It can feel like you’re being force fed call after call so make sure you’re mentally prepared and set aside a block of time to make these calls. Any distractions will interrupt your flow and reverse the efficiencies that these circle prospecting dialers provide.
Potential fines and phone call force feeding aside…incorporating dialer tools into your circle prospecting strategy can lead to real time savings giving you an edge over the competition. And with your new found “free time” you can focus on more on connecting on a more personal level with the prospects that are receptive to your outreach AND providing them outstanding service.
Trademark infringement warning: the mantra “Just Do It” applies to circle prospecting even more than running shoes. Consistency and persistence are crucial for success in real estate circle prospecting. One of the biggest challenges of this approach is that the results don’t always come immediately.
Any agent that’s seen success with circle prospecting will note that it often takes time to see results, and that it’s important not to give up too soon. So while it can be discouraging to deal with repeated rejection and continually force an upbeat attitude for the next cold call, remember it’s a numbers game. Even the best real estate agents, like Tom Toole – who leads a Philadelphia mega team and is known for his phone sales skills – has a 10% success rate when cold calling.
Above all, maintaining a positive attitude and staying motivated is key to success. When you encounter setbacks or challenges, it can be tempting to give up. However, by cultivating a mindset of determination and resilience, you can weather any difficulties that come your way and emerge stronger on the other side. Stay focused, stay consistent, and keep going – the results will come with time.
In conclusion, circle prospecting remains a vital part of a successful real estate agent’s toolkit. Wielding modern technology alongside traditional communication methods allows agents to leverage the benefits of both worlds. By practicing scripts, creating a compelling value proposition, and utilizing tech tools, agents can develop a winning circle prospecting strategy. So start building those relationships today, and watch your business grow!