How can you make $$$ from your leads? A ‘lead generator’ is anyone or thing that generates leads for you. There are two types of lead generation:
Pro-Active: You go find the lead (like calling on for sale by owners)
Re-Active: You wait for the leads (like lead generating companies,
floor time, and open houses)
Too often, agents like George (see my earlier blog) blame the re-active lead generating source for lack of quality of leads. On the other side, lead generating sources (like relos and agent rainmakers) feel that agents don’t convert enough of the leads provided. Instead of blaming each other, we can take positive steps to assure that you can screen your leads effectively, and turn good leads into appointments. Now, both agents and lead generating sources are happy!
The First Principle: Follow Up on the Lead NOW!
A web site lead costs $215 to generate, on average. Yet, a majority of real estate agents don’t even get back to a ‘lead’–ever! (The National Association of Realtors says 1/2 the leads NEVER get a response!) Why? I think there are three reasons:
- Agents mistakenly think that the lead will be theirs forever—that there’s no time sensitivity to answering that lead
- Agents believe there’s no competition for the lead
- Agents don’t know the cost of a lead—in both time and money—so they don’t treasure that lead as if it were gold
Reply Now or Forget It!
With the instant information age, you can’t just get back to a lead three days later. The consumer today expects to get a reply quickly. In fact, the majorit expect a reply in 2 hours or less!
I’m constantly amazed when someone thanks me for responding quickly about a product or a question about our coaching. Our standard for answering product and coaching inquiries is within the day. What’s your standard for answering lead inquiries? (Which require much faster responses, in my opinion, than my ‘leads’).
There’s Competition for that ‘Lead’
A few days ago, I was visiting with my cousin, whose daughter just went into real estate (she’s twenty-two). She has immediately put technology to work, creating an awesome database and contact management system. She’s selling up a storm—and making the agents in the area mad at her. Why? Because she’s getting to the consumers before the other agents do. They thought they ‘owned’ those consumers’. But, my cousin’s daughter is proving that no one owns the consumer. She’s demonstrating that those who put technology to work effectively today capture the consumer’s attention and loyalty.
Bottom line: If you want to make money from your leads, create a rapid response system–and use it!
