Imagine two powerful prospecting techniques—farm mailing and cold calling—joining forces to supercharge your pipeline. That’s what it’s like when you use circle prospecting as a part of your lead gen efforts. With careful planning, strategic thinking, and a little marketing magic, you can connect with more potential clients and build your business. Check out my eight strategies and some scripts to help you get started.
What Is Circle Prospecting?
Circle prospecting is a real estate strategy that agents use when trying to generate more leads. The goal is to laser-focus on a smaller area surrounding a specific property, making building solid and lasting relationships easier. Plus, you can showcase your experience in the area by leveraging closed transactions. Using this prospecting technique gives you a reason to reach out to potential clients, making it feel more like a warm outreach rather than using the cold call method.
Before You Begin Circle Prospecting
Circle prospecting is a great way to connect with more people, but without strong systems in place, it may not live up to its potential. I get it—you’re eager to start filling your pipeline, but it’s crucial to take the time to establish a solid foundation for maximum prospecting success. To prepare, make sure to do the following things:
- Scrub your database for any numbers on the “do not call” list.
- Create a solid system for outreach and follow-up.
- Establish the goals you want to accomplish with the circle prospecting method.
- Practice your circle prospecting scripts.
- Choose a tool, like Vulcan7, to help you with lead conversion and follow-up.
Vulcan7 is a lead generation platform that provides agents with seller leads and tools to convert leads into clients effectively. Agents can leverage its circle prospecting software to target neighborhoods and access reliable databases.
Circle Prospecting Tips & Scripts
Now that you’ve got everything set up, it’s time to take the next step and start building connections with potential clients. With these eight easy steps and helpful scripts, you’ll not only bring in more leads but also improve your conversion skills.
Tip 1: Don’t Make Your Circle Too Large
Filling your pipeline in real estate is often a numbers game, so it may seem counterintuitive to keep your circle small rather than cast a wide net. However, focusing on a smaller group of between 20-50 homes near the subject property is actually more effective. You target homeowners with a vested interest in the area by focusing on the immediate vicinity. This targeted approach ensures you’re concentrating on connecting with people who genuinely care about your listing and the neighborhood you’re working in.
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What to Do:
Use your MLS or a site like Zillow to create a radius around the subject property. This pinpointed focus will help you gather the addresses of the homes you want to focus on and build your database.
Tip 2: Know the Market
Stay ahead of the game with daily market research. Keeping up with the latest trends will help you provide valuable information to the people you interact with—from your social media followers to your current clients and sphere of influence. By focusing on recent sales, new listings, property values, and local amenities, you can position yourself as the ultimate expert in your field and your circle prospecting area.
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What to Do:
To really get to know a community, it’s essential to become a part of it. Spend time in the places you want to work in and keep an eye on the market trends. Immersing yourself in the community will help you discover the best schools, restaurants, and shops and stay updated on real estate trends.
Tip 3: Use Multiple Outreach Methods
Create prospecting letter templates for outreach and mix things up using postcards, texts, phone calls, and door-knocking to increase your chances of success. It’s important to plan and spread out your outreach attempts so as not to overwhelm potential clients. Include details about recently sold listings, exclusive open house invitations, or a list of off-market properties. Make sure your focus includes offering something of value, like a comparative market analysis (CMA) or a new neighborhood amenity announcement, to the people you’re connecting with.
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What to Do:
Send postcards 2-3 times a year or whenever you have a sale in the area. This outreach should be in addition to your monthly newsletter and regular calls and texts. You can even get ahead by batching your postcard mailings so they’re all set to go when the time is right.
Tip 4: Leverage Tech
You can’t do it alone, and you shouldn’t have to! There are plenty of options for incorporating circle prospecting and client relationship management (CRM) software into your lead gen efforts. Using a CRM like LionDesk, you can keep track of your outreach, stay organized, and effectively manage your leads. This system will help drive your success and make your job a whole lot easier.
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What to Do:
Sign up for a circle prospecting or CRM software. This step is a great way to keep all your contact information in one place and stay organized.
Tip 5: Use Scripts
When using a circle prospecting script for real estate, don’t overthink it. Think of it as a friendly conversation starter or a tool to kick-start and sustain a conversation. Remember, it’s all about building relationships. As you continue to nurture your leads, it will start feeling more natural. So, don’t hesitate to use scripts as a gentle nudge to start a great conversation.
Here’s a quick and easy neighbors-only open house invite script:
“Hi, this is [your name] from [your brokerage]. I just wanted to let you know we’re hosting an open house at [listing address] on Sunday, and I wanted to personally invite you for a neighbor-only sneak peek. The market is picking up again, so I wanted to give you a chance to see what [price of listing] gets you if you’re considering making a move in the next year or so.”
Here’s a simple “just listed” script you can use to keep the conversation going:
Agent: This is [your name] with [your brokerage]. I just listed a home in [community name], and I was wondering if you knew anyone who might be moving to the neighborhood.
Homeowner: No, I can’t think of anyone right now. Sorry.
Agent: No worries. The market is a little tricky right now, but I am just trying to get my client the best possible price for their home. That’s the commitment I made when I got the listing, and I want to do as much as possible to make them happy. Just out of curiosity, when do you plan to move?
Homeowner: We just moved here last year and aren’t looking for a new house anytime soon. Sorry.
Agent: I wouldn’t either. It’s a great neighborhood and not a lot of homes come on the market. By the way, I send all my clients a monthly [off-market listings update or market report]. Even if you’re not moving, seeing what’s happening in the market is a great resource. I can send it to you in a text message if you want.
Here’s a script perfect for circle prospecting around a listing you just sold:
“Hello, sorry to bother you. My name is [your name], and I am the listing agent for the property down the street [point in the direction of the property]. We received multiple offers, and, of course, we can only accept one. The home sold well above the asking price, and these other buyers are still looking for a home in [neighborhood]. Who do you know who would like to sell their home in this hot market?”
Here’s a script crafted by Tom Ferry and Christina Griffin to leave a message on voicemail:
“This is Christina Griffin with the Griffin Group at Coldwell Banker. We just listed a home in your community, [neighborhood name]. If you know anyone looking to move, give us a call.”
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What to Do:
Use these scripts as they are or as a guide to create your own. Once you choose what script you want to use, take some time to practice it so it sounds natural.
Tip 6: Form Relationships
Circle prospecting is like planting seeds of opportunity. Although you might not see immediate results, with some nurturing, those seeds will start to sprout. Ultimately, circle prospecting is all about building relationships. The goal is to connect with more homeowners and establish yourself as a reliable and well-known presence in the neighborhood.
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What to Do:
Be yourself! People can tell when you’re genuine. They’ll appreciate your knowledge, guidance, and expertise, and they will also connect with who you are. Share a text or email with a link to an article that you think they’d like, or drop by with a gift card to a great new local hangout.
Tip 7: Don’t Forget Door Knocking ← This One’s Important!
Sure, door-knocking can be a bit intimidating, but there are ways to make it easier on yourself and the homeowners. Instead of just showing up unannounced, start by using a circle prospecting script to make a call, send out postcards, or leave door hangers. This way, when you knock on doors, you’ll already seem more familiar and welcoming. It’s all about making a positive connection and giving yourself something tangible to reference when they open the door.
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What to Do:
Check local laws on door-knocking before visiting homes, and then prepare to engage with homeowners in the best way possible. Bring an informational flyer to leave behind and start providing value immediately.
Tip 8: Get Comfortable With Follow-Up
Follow-up is key in real estate relationships. Converting leads into successful deals requires skill and an effective lead nurturing approach. Using modern technology and reaching out to prospects through different channels will build strong relationships and grow your business. With this strategy, you can experience the potential of circle prospecting to drive leads and propel your business forward, even if you don’t have a sphere of influence to work with.
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What to Do:
Leverage a CRM system to track every interaction with your prospects. Mix things up by using various outreach methods and tailoring the information you share with each follow-up.
Benefits of Circle Prospecting
Real estate circle prospecting goes beyond simply connecting with potential clients. It can also significantly impact establishing a strong presence in the target community where you want to work. Let’s look at the numerous ways you can benefit from circle prospecting in real estate.
- Develop local authority: When people see how well you know the neighborhood, including all its features, property values, and more, it builds a sense of trust that makes them comfortable turning to you for help with buying or selling in the area.
- Build relationships: It’s important to stay in touch with people not only to work with them directly but also to get referrals. Building genuine relationships is key to generating more leads.
- Long-term lead generation: Having a consistent pipeline of business coming in is a goal for many agents. Circle prospecting is a great way to help you achieve that.
- Genuine lead nurturing: Staying in touch with potential clients is a great way to build strong connections and ensure you remain top-of-mind. These efforts will definitely help boost your business in the long run.
- Increase presence: Having a strong, recognizable name and brand in your target community can make all the difference! It builds trust and confidence that you’re the right person for the job.
Frequently Asked Questions (FAQs)
How often should I be circle prospecting?
It’s best to be patient and consistent when starting any new lead generation effort. Circle prospecting requires time, as you will practice this technique at least every three to six months.
What is the best circle prospecting tool?
There are many options for CRM or circle prospecting tools, so it depends on what each agent likes. Every agent runs their business differently and finds different tools useful.
Bringing It All Together
Circle prospecting is a great way to establish yourself as a go-to person in the neighborhood. Incorporating this lead gen method into your business allows you to tailor your marketing efforts and form genuine connections.
Have you had success with circle prospecting? Or maybe you know a great real estate agent who creatively leverages new (or old) technology to generate listings and leads. We’d love to hear from you; let us know in the comments!
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