How many real estate classes truly walked you through the process of developing and converting leads as a new realtor. The Real Estate firm that I work closely with pays an average of $74 per lead. This is a TON of money just for “a chance” to do business. How many $74 dollar bills do you have to throw at the wall before you actually get a conversation with someone??? How many $74 dollar bills do you have to spend to actually reach a “HOT” lead??? Most new realtors don’t have the kind of reserves necessary to throw any money at chasing unproductive leads. New realtors…ANY realtor actually…needs lead generation activities that are cost effective and produces convertible leads. Here are a few real estate tips that will help you make it in this business!
Here I’m going to focus on what to do once you have the lead…. Lead Conversion Plans…
Acquiring leads is the primary focus of so many realtors. Most NEW realtors look to develop leads through more cost effective methods like their sphere, open houses, and social media. All of which are great avenues to build your database as you’re starting out. But once you have the lead…what do you do with it??? That is where a lot of agents have the potential to fall short. Here are a few steps that you can take to make sure that you are capitalizing on every one of those leads.
Plan to Converting Leads
Think about anything successful…a business you’ve visited, a house hold you’ve witness, a classroom you were in as a kid. What made that environment successful? Break it down. You’ll see that successful entities have highly effective organization structures in place that consistently execute their Action Plans. Successful Realtor are no different. Every successful realtor has developed detailed conversion plans for each type of lead generation. Here are a categories that we break down our Real Estate Resources into….
- Open Houses
- Social Media
- Pay Per Click (PPC)
EACH of the leads generated in EACH of these categories should have a specific action plan to convert this particular type of client. This is a HUGE Real Estate TIP. A lead generated from an Open House will look very different from a lead generated from action intended to recruit Renters. For that reason, your conversion plans should look very different. Those plans should address the specific needs of each of those different types of leads. Sure, there will be some similarities in the text of the action plans, but you want your potential clients feeling like you…ONE, understand the challenges that they face and TWO, you are equip to serve them better than the competition. A “Top Notch” conversion plan will communicate these two points to every potential client without fail…NO MATTER where they are coming from.
Not only should you have Actions Plans specific to each different source of lead generation, but you should also have sub-plans for different categories within the Lead Generation type. For example, leads acquired from an Open House should be broken down into categories;
HOT- buying within 30 days
NURTURE- buying within 30-90 days
WATCH- buying within 90 days to 6 months
These leads all come from the same source…HOWEVER, they all have VERY different time tables. For that reason, you want to make sure that you can show them immediately that you AGAIN; ONE, understand the challenges they face, and TWO, can serve them better than the competition. You certainly can’t treat a “WATCH” the same way you would treat a “HOT” …that could be catastrophic!!!
3 Pieces to Converting Leads
There are three essential pieces that should be incorporated in any conversion action plan; Call, Text, and Email. Each of your action plans need to include each of these 3 different methods. For some people, they’re on their computer all day every day…email could be very effective method to reach them. Others NEVER check their email. Some people make the choice to screen all phone calls…BUT, will text until their thumbs fall off. Point is this, if you’re not executing with all three methods you are losing leads.
Creating all these different Conversion Plans can seem pretty intimidating!!! However, once you have them created you never need to do it again. You’ll just need to make adjustments. Not only that, but you only have to do one at a time. For example, I would start with a conversion plan focusing on Open House leads in the “HOT” category. If one of those comes through the door you want to make sure you’re READY!!!
Check them out!!! See if they inspire you to create more!!!
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3 HINTS to Converting Leads
- Be careful with the amount of emails that you are sending to your leads. If you are inundating them with emails that they DON’T want, they will be more likely to “opt out” OR unsubscribe to your mailing list. This is where properly categorizing your leads is critical. “HOT” leads should be getting emails a minimum of every two days… “ARCHIVED” leads should be getting them once a month. If I was a Renter with bad credit and working to improve my credit score for a purchase of a home a year from now…I wouldn’t want a daily reminder of what I’m missing out on.
- Communicate with your lender and title company to make sure that they aren’t also sending email drips to your clients. The contact information that you gain could be used by multiple agency. You can ask your lender to use a different CRM or drip campaign manager to make sure that there is no correlation between yours and theirs. If a lead unsubscribes from your lender…you don’t want that to impact you.
- Use Video as much as possible!!! You should always be focusing on building relationships and trust with your clients. So much can be lost in a text and phone messages. As opposed to sending simple text emails to a potential client, you can utilize the services of BombBomb. This service allows you to send videos embedded within your email that will start once your client opens it. No clicking on the link is necessary. Another method of incorporating video into your conversion plans is through your text message. As opposed to typing into your text message you can take a short video that covers the same information. These text videos should not be complex; it could be as simple as a thank you for stopping by your open house or just a confirmation of an upcoming appointment. The video is a great way to allow your potential clients to get to know your personality, your commitment, and your creativity. If you creative in your communication… How creative will you be to serve them as a buyer or seller.
Hopefully, the information here helps you set the stage to develop Action Plans for converting leads. This is a critical step in the process that you should be willing to dedicate some time to. A well-developed plan that is consistently implemented can increase your lead conversion percentage significantly. Converting just 5 more leads a year will make it well worth the time spent…this is just another effective way to spend your Open House “down time”.
Here are some other sources of inspiration for you to check out as you begin to develop your plan…