Real estate has changed a lot over the years including the way consumers search for properties, ultimately changing the way we generate leads. Consumers have less of an attention span, there's more technology available and buying habits have changed. What myths exist about real estate leads? Let's take a look a them and see how you can turn them into profits.
Myth #1: Guaranteed Number of Leads For Your Budget
There is no guarantee that you will generate a specific number of leads based off of the amount of money you're spending on lead generation. There is too much fluctuation between the housing market, the economy and supply-and-demand to ensure you'll receive the same number of leads month after month.
No matter how many leads you generate, make the most out of the them. Look at your lead generation budget and calculate your cost-per-lead and the return on your investment. For example, if you're spending $1000 per month on lead generation, converting 1 lead out of 10 into a sale, and earning $20,000, you're getting a lot for your investment.
- Earn $20K/month on a $1K investment
- Pay $100 per lead
Myth #2: Online Leads Are Mostly Fake
If you're buying online leads that haven't been verified, there's a higher likelihood that they will be fake but the majority of leads will be real. When you work with companies that verify contact information, you have the highest chance of receiving real leads. If you're generating leads off of your website vs. lead service, talk to your provider about putting measures in place so that visitors cannot enter fake emails.
To get the most out of your online leads, buy verified leads and call them within 5 minutes of receiving them. If you aren't buying verified leads and you aren't calling them right away, you're throwing money away.
Myth #3: Unable to Verify or Qualify Online Leads
Verifying and qualifying online leads isn't impossible although it may feel that way at times. To save the most time and hassle, take advantage of companies that verify leads before sending them to you. Most importantly, if you follow up with leads within 5 minutes of receiving the lead notification, you will find it easier to verify the lead.
When generating leads from your own website, include questions which will provide qualifying information and make the followup easier. Questions like, "When are you hoping to purchase a home?" or "Have you been pre-approved for a loan?" allow you to prioritize leads based off of their answers. Call qualified leads first.
What you do with a lead after you receive it will contribute to your ability to convert them into a sale. Regardless of whether or not they're qualified, give them what they ask for (ex. new listings in their area). When they know you're willing to accommodate their needs, they're more likely to trust you and build a relationship which could lead to a sale.
Myth #4: More, More, More
When we first start out in real estate, we feel like the more leads we generate, the more money we'll earn. In reality, we learn we're not only spending a lot of money on leads, we don't have the time to manage all of the leads we're generating. Generate 60 leads today, call 60 leads today. As a solo real estate agent, it's difficult to manage so many leads.
Take a look at the number of leads you're receiving and how many you can comfortably manage. If you are receiving lead alerts all day long and can't call them within 5 minutes, you're not managing your leads effectively. Consider hiring an assistant who can focus on calling leads quickly, or cut back on the number of leads you're receiving from various sources. You will not only save money and increase your chances of making contact with more leads, but you'll increase your odds of converting them into sales.
Myth #5: It's All About Lead Generation, Not Lead Management
Generating leads is only the beginning of converting them into potential sales. When you have a ton of leads but only a small percentage are converting, you might want to re-evaluate your followup and nurture process. If you fail to properly nurture your leads, you'll forever be chasing the next new lead and then the next. Because the majority of your leads will not be warm (ready to buy/sell), implementing a good lead management system is essential to the future growth of your sales funnel.
To build your sales funnel, categorize your leads into buyers and sellers then segment them based on information you've collected about them (ex. location, age, stage of buying/selling). Create email nurturing campaigns that will apply to specific subgroups (ex. buying within 1 year; saving for down payment; selling within next year). By making an effort to nurture your leads, you will increase your sales potential not only in the near future but after years of nurturing too. Imagine getting 10 sales a year from old, "cold" leads that you've continually nurtured.
As you can see, there are many myths about real estate lead generation. It takes a lot of work to turn leads into sales but if you call them within 5 minutes, you're greatly increasing your chances of conversion. As you listen to their needs, give them what they ask for. If they aren't ready to buy or sell, categorize them accordingly and place them in a nurturing email campaign. Although it could be years before a "cold" lead turns into a sale, it's worth the time and effort. Your investment in lead generation will help grow revenue if you are persistent in lead management. Time to make some calls!