7 Things You've Probably Gotten Wrong About Real Estate Leads
1. “Online Leads are Low Quality”
2010 called and they want their complaint back! But really, online leads are a lucrative part of nearly every top producer’s database. You just have to understand how to create a system to work them from the top of the funnel all the way down to when they’re ready to convert.
How do I build a system to convert my leads? Partner with the right real estate CRM that can help you qualify, categorize, sort, and work your leads effectively! It’s all about being in the right place at the right time.
2. Always Be Prospecting
Okay, okay. It is important to always be prospecting. However! It’s more important to always be nurturing. New leads are awesome, but what percentage of new leads that come through the door convert to a closed deal?
Your business will grow tenfold if you invest as much effort as you normally do into prospecting into your lead follow-up and nurture as well. Because your database is a goldmine!
Remember this: Yesterday’s “maybe” is tomorrow’s “yes”!
3. “It’s Difficult to Find Seller Leads”
It may be more difficult to find seller leads than buyer leads in a market with record buyer demand and low inventory, but it’s certainly not impossible! It’s all about getting creative in order to unlock standing inventory out there.
Need some inspiration? Here are 34 creative seller lead generation strategies to get you started.
4. “The More Leads the Better”
This one is half true, half false. When it comes to the individual agent, you don’t want to have more leads than you can comfortably handle! If you’re a team leader, consider leveraging a Lead Pond Account or a tool like SharkTank to dispense leads evenly and effectively to your agents.
As a business, “the more leads the better” is pretty accurate. In fact, there is a direct correlation between database size and production volume!
BUT! A growing database will only be fruitful if you know how to scale. Learn how to systemize your business so it becomes rinse-repeat.
5. “I Can Handle Lead Follow-Up On My Own”
90% of real estate agents will give up on a lead after the first four touches, despite the fact that 70% of the time that lead will go on to buy a home within the year, just with a different agent. (NAR)
That stat is pretty shocking, right? Make sure you’re not giving up on leads when they don’t convert on the first try.
Leverage automated nurture plans to continue engaging with leads, including e-Alerts (fresh, personalized listings!) and helpful market data, so that you stay top-of-mind even without lifting a finger.
Did you know...Responding instantly to inquiries can increase lead conversion rates by up to 391% (Zillow & MIT)? Yep, speed-to-lead is critical in real estate! Even with an ISA it’s impossible to handle effective, speedy lead engagement that services leads around the clock. Consider partnering with a Lead Concierge Service that can handle it for you. So you can rest assured your leads are engaged while you focus on your top-dollar activities.
6. “It’s Hard to Qualify Online Leads”
This is where technology is your friend. With an effective IDX website, you can leverage built-in qualifying questions that capture information when new leads register on your site.
- “What’s your timeline for purchase?"
- “Are you pre-approved for a loan?”
- Even, “Do you have a home to sell?” (to capture potential seller leads!)
Along the same trope that “online leads are trash,” comes the myth that it’s impossible to verify or qualify online leads. This may be difficult to do on your own, but if you are partnered with real estate technology, you may have the ability to verify your leads before they enter your database.
PRO TIP! Don’t ignore seemingly fake or “trash” leads. As long as you have one piece of real information (phone number or email address) you should still work the lead. Maybe offer a special prize for agents who can convert leads with names like Seymour Butz or NOTHANKS.
7. “Cost-Per-Lead” is Everything
Here’s the thing. As the consumer evolves, so to must the marketing practices. Here’s why you should focus more on ROI and cost-per-conversion vs just cost-per-lead.
First, cost-per-lead isn’t fixed! It shifts with seasonal trends, market forces (out of your control), location, competition, and demand. And second, getting a lead through the door means nothing if they don’t actually decide to work with you!
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