Want to generate new, high-quality leads for little to no cost? Networking can help! In this article, we’ll take a look at how powerful networking can be to your real estate business, how to identify networking opportunities, and some tips for improving your networking prowess.
Understanding the Power of Networking
Networking is an important aspect of any successful career, especially for real estate. It helps generate leads, get more referrals, and build relationships within your community. Here’s a brief overview of how networking can be a powerful tool for real estate brokers.
Networking for lead generation
One of the keys to earning more income as a real estate broker is having a steady pipeline of leads. And with the average lead conversion for real estate professionals a mere 2.4%, that means for each closed deal, you will need approximately 500 leads in your pipeline. But where can you find so many people? One way to gather leads is through paid lead generation services, but these can be expensive, and you may not get the highest quality leads. Another way to generate leads is through networking. It may be more time-consuming than a paid service, but it is significantly cheaper, and you are more likely to close on leads you meet in person.
Networking for referrals
Most people you meet will not be in the market to buy or sell a home–but they likely know someone who does. Networking helps generate referrals both from leads who may not be in need of a real estate broker at the moment and fellow real estate brokers who may have a client in need of buyer representation. Real estate is all about trust, and people are more likely to trust someone they meet in person, which networking helps facilitate.
Networking for community relationship-building
Finally, networking within your community is a great way to expand your network dramatically. Local business owners, community organizers, and civic leaders typically have many connections, making them a valuable source for referrals. Networking helps give you an “in” with these influential community members, from whom you can build lasting and mutually beneficial relationships.
Common Misconceptions About Networking
If you’re not thrilled about networking, you probably have heard some misconceptions about networking. Let’s debunk three common misconceptions associated with networking.
Misconception #1: You need to be an extrovert to enjoy networking.
While extroverts may be more excited about talking to new people, introverts can enjoy networking, too. Still, if talking to strangers makes you anxious, you can always bring a friend or colleague along for support.
Misconception #2: Networking is boring.
When people think of networking, they often think of stuffy cocktail parties with dull conversations. However, today’s networking events are usually laid back and involve a fun activity or game that helps foster organic discussions.
Misconception #3: Networking can only be done in person.
If the pandemic taught us anything, it’s that most jobs can be done from home. The same is true of networking. All you need is a reliable internet connection, and you can start networking with people all across the globe.
How to Identify Networking Opportunities
One of the biggest challenges that new and seasoned real estate professionals face is finding networking opportunities to attend. However, finding networking opportunities is quite easy once you know where and what you want. Here are some common networking opportunities specifically for real estate brokers.
Industry events, conferences, and seminars
Attending industry events and conferences can be great opportunities to network with other real estate professionals. Some of the most popular events for real estate include the National Association of REALTORS® NAR NXT national conference, which features speeches from top real estate agents and business leaders and educational programs, and the Institute for Luxury Home Marketing’s Leaders in Luxury conference, which celebrates real estate agents and brokers who have excelled in the high-end home space. In addition to national meetings and events, you can find more local and state-specific events, such as the Washington REALTORS® Fall Business Conference, which focuses on more Washington state-specific topics and issues.
If you’re interested in improving your networking skills while increasing your real estate expertise, seminars (including those that qualify as continuing education) are a great way to accomplish these two objectives at once.
Local business mixers and chamber of commerce meetings
Attending local business mixers and chamber of commerce meetings is another great way to make your mark in the community. Simply search your local chamber of commerce website for their event calendar to find upcoming events. You can also browse your city’s cultural magazine or newspaper to find events like grand openings, award ceremonies, and presentations.
Online networking platforms and social media groups
While it’s important to network in person, networking online can also be very beneficial. Online networking platforms (e.g., Meetup and Eventbrite) and social media groups (e.g., LinkedIn and Facebook) are great places to connect with people in your community and beyond. You could join communities specific to the real estate industry or partake in non-industry-related groups. Both are great ways to increase your network.
Community involvement and volunteer opportunities
Getting involved in your community or volunteering with local organizations helps you meet new people and shows that you are invested in helping your community thrive. If you don’t already volunteer, research organizations that fit your interests.
For example, if you like gardening, you could volunteer at a community garden or help landscape at a nearby park. If you are passionate about animals, you could volunteer at a local animal shelter or help sponsor a fundraising event. There are countless ways you can enrich your community and meet potential clients in the process.
Building Your Networking Strategy
With just about anything in life, you are more likely to be successful if you have a strategy to guide you. Below are some key ways to develop a networking strategy so you can get the most out of your time and effort.
Set clear goals and objectives for networking activities
Simply finding and showing up to a networking event is just one part of a successful networking strategy. You need to set clear goals and objectives for what you want to get out of each event. How many people do you want to talk to? How many business cards do you want to give out? Maybe a goal is to set up at least one follow-up meeting with someone you met at the event. Whatever goal you set for yourself, you’re more likely to achieve it if you write it out and commit to it beforehand. Plus, once you’ve met your goal, you can leave or simply relax and enjoy the event without any pressure.
Identify target audiences and key contacts
Another part of a successful networking strategy is identifying your target audience. For instance, if you want to enter the luxury home market, you will want to attend events where you are more likely to meet high-net-worth individuals (like galas or charity fundraisers). Likewise, suppose you want to become more well-known in the real estate industry. In that case, you’ll want to seek out events where you’ll meet other real estate professionals (like real estate conferences or associations). Furthermore, look up some of the main organizers or leaders of the event ahead of time, as these people tend to have a lot of connections. So, introducing yourself to one of these “connectors” could expand your network exponentially.
Develop an elevator pitch to communicate your value proposition succinctly
An elevator pitch is a verbal statement that describes who you are as a professional and what sets you apart from someone with the same professional experience. It’s called an elevator pitch because you should be able to hit all the key points you want to make during a typical elevator ride (between 30 and 90 seconds).
An elevator pitch comes in handy, particularly at networking events, where you’ll introduce yourself to many people. It can be an actual script that you memorize or a few key bullet points to keep in the back of your head to help you hit the most critical points. The key is to practice it before you go to a networking event where you’ll get the customary “So, what do you do?” question. With your elevator pitch ready, you can easily answer that question, creating a lasting impression on everyone you meet.
Create a networking plan with specific actions and timelines
It is easy to put networking on the back burner when life gets busy. That’s why creating a networking plan with specific actions and timelines is important to help you stick to your networking goals. Create a calendar on your phone or computer that specifies key events or milestones you want to hit and set reminders for yourself. Once you hit a milestone, take some time to celebrate. This will help keep you motivated to hit the next milestone.
Effective Networking Techniques
Now that you understand how to develop a networking strategy, it’s time to put your skills to the test. This section outlines four effective techniques to help make your next networking event a smashing success.
Engage in active listening and meaningful conversations
One of the most important aspects of any relationship is the ability to engage in active listening. Active listening goes beyond simply “hearing” what someone is saying. Instead, you attune to verbal and nonverbal cues to understand where that person is coming from.
For instance, active listening allows you to pick up on an interesting detail from their story and ask more about it after they are done speaking. Additionally, when you actively listen, you maintain eye contact and refrain from looking around the room or glancing at your phone or watch. In both cases, your conversation partner should be able to tell that you are engaged in the conversation and that you genuinely care about what they have to say, improving your odds of building a mutually beneficial relationship.
Ask open-ended questions to learn about others’ needs and interests
The best way to start a conversation is to ask an open-ended question instead of a yes or no question. An open-ended question allows the respondent to provide more details and background information, about which you can then ask follow-up questions. Moreover, these types of questions can help you ascertain their needs and interests, allowing you to address these needs if possible.
Offer value and expertise without expecting immediate returns
Offering your expertise with no strings attached can go a long way in your career as a real estate broker, especially with potential clients. Giving your expert opinion or offering to sit down with them to answer any real estate-related questions they may have are two excellent ways to establish yourself as a trustworthy and helpful professional. Even if they are not currently looking to buy or sell their home, your generosity will help them think of you next time they need to hire a broker.
Follow up with contacts and maintain ongoing relationships
Finally, follow up with the people you meet to maintain these relationships. You can even put reminders in your calendar to contact them every couple of months or so to keep in touch. This also shows that you care about their wellbeing
Leverage Technology for Networking
Networking can be time-consuming. Luckily, you can take advantage of existing technology to streamline your efforts and open up new networking opportunities. Here are some useful tools to help you improve your networking capabilities.
Utilize social media platforms
As a real estate professional, having a social media presence is crucial, especially with popular sites like LinkedIn and Facebook. Moreover, these platforms are great for networking. Search Facebook and LinkedIn for groups that appeal to your interests or career goals and request to join them. You may be surprised by how active and spirited these groups can be.
Join online real estate communities and forums
Joining online real estate communities and forums is a great way to discover new tips and insights from professionals across the country or even the world! Here are some popular online communities you might want to consider joining as a real estate broker:
- Lab Coat Agents: With over 165k members, this private Facebook group is a great place to get tips and insights from real estate professionals nationwide.
- Real Estate Professionals Group: This public LinkedIn group has over 125k members and is an excellent tool for networking with other real estate professionals.
- National Association of REALTORS® YPN: If you’re part of the younger generations, you may want to join NAR’s Young Professionals Network private Facebook group, which has 25k members.
- Washington Real Estate Professionals: If you want to network exclusively with other Washington real estate brokers, this private Facebook group is your best bet.
Use customer relationship management (CRM) software to track and manage contacts
One of the best ways to keep track of clients and contacts you meet through networking is with a customer relationship management (CRM) software service. There are many different types of CRMs at many different price points. There are even CRMs made specifically for real estate professionals. A CRM generally helps you automate tasks like sending follow-up emails, storing documents, and more. Your brokerage may have more advice on which CRM they suggest for brokers.
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