Prospecting – Using a Demographic Farm Campaign
When we think of a farm area, we typically think of a specific neighborhood or geographic location. If you know an area has 100 residents, and on average, 8% of them move each year, it means you have eight opportunities to sell a home in that neighborhood each year.
A demographic farm area works the same way, except the focus isn’t on a neighborhood, it’s on a specific group. With any group you work with, there will always be a certain percentage of people that will move in any given year. It’s usually somewhere around 6-10% of the group that will buy or sell real estate each year.
The best demographic farm for you to focus on includes your sphere of influence and past clients. Because these people already like and trust you, you’re much more likely to get a higher percentage of the ones that move to work with you in buying or selling property. For example, If 10 people move in a neighborhood you are farming, you may only get two or three of them to do business with you. If however, 10 of the people you know are moving, you should be able to get most of your friends and associates to do business with you. The conversion rate with your sphere of influence is significantly higher than with other groups because these people already like and trust you.
As you grow your business, using your sphere of influence as a demographic farm is the most efficient way to prospect for new business.