In the past, I've written articles about consistently generating a good quantity of new leads each month. For my business, this quantity was 400 leads every month. This article will shift the focus from the quantity to the quality of these leads.
This article is timely because many agents seem to focus exclusively on generating inexpensive leads. These inexpensive leads tend to be lower quality.
This is what I have found in my business:
Leads of lower-quality seem attractive because they are generated without spending a lot on the "front end" to generate them. However, what seems to be happening is agents are spending more on the "back end," which is the process of attempting to convert leads to sales after the leads are captured. This "back end" marketing includes sales letters, special offers, drip e-mail campaigns, postcards and more.
For my own business, the ranking of the quality of leads is as follows: (Ranked from highest to lowest quality)
1. Referral
2. Endorsement from a joint venture partner
3. Leads registering to attend a special class
4. Leads responding to an advertorial-style ad
5. Leads responding to "solo" e-mails or "pay-per-click" ads
6. Leads responding to a classified or home buyer magazine advertisement
7. Leads who respond to a Craigslist ad or a similar free ad
The problem is that most agents are now focusing on Craigslist or classified advertisements which attract the lowest quality leads. They then struggle to convert these leads into appointments and/or home sales.
To be successful, an agent's marketing campaign must include leads from each of the sources listed above. I would evn suggest that more resources be invested in the top four or five categories, in order to capture higher-quality leads. The amount invested will be higher, but the higher-quality leads will mean less invested per lead to convert them into clients/buyers.
If you follow this advice, you'll soon notice that you have less competition. This is because the majority of your competitors will be focusing on in-expensive advertisements that attract lower quality leads. How many agents in your area are consistently setting up joint venture marketing campaigns? How many agents in your area are running advertorial advertisements? I'll bet there aren't too many.
Why is this the case?
Because if an agent focuses on lower quality leads, they won't sell very many homes. With limited home sales, their funds will be tight and they won't be able to afford to run advertisements that attract higher quality leads. You'll gain a long-term economic advantage simply by focusing on attracting higher quality leads.
The bottom line is that a lead is not a lead. There are different qualities in the leads you generate. You should create a comprehensive marketing campaign that focuses on generating higher quality leads and let your competitors fight over the lower quality leads.
This article is timely because many agents seem to focus exclusively on generating inexpensive leads. These inexpensive leads tend to be lower quality.
This is what I have found in my business:
Leads of lower-quality seem attractive because they are generated without spending a lot on the "front end" to generate them. However, what seems to be happening is agents are spending more on the "back end," which is the process of attempting to convert leads to sales after the leads are captured. This "back end" marketing includes sales letters, special offers, drip e-mail campaigns, postcards and more.
For my own business, the ranking of the quality of leads is as follows: (Ranked from highest to lowest quality)
1. Referral
2. Endorsement from a joint venture partner
3. Leads registering to attend a special class
4. Leads responding to an advertorial-style ad
5. Leads responding to "solo" e-mails or "pay-per-click" ads
6. Leads responding to a classified or home buyer magazine advertisement
7. Leads who respond to a Craigslist ad or a similar free ad
The problem is that most agents are now focusing on Craigslist or classified advertisements which attract the lowest quality leads. They then struggle to convert these leads into appointments and/or home sales.
To be successful, an agent's marketing campaign must include leads from each of the sources listed above. I would evn suggest that more resources be invested in the top four or five categories, in order to capture higher-quality leads. The amount invested will be higher, but the higher-quality leads will mean less invested per lead to convert them into clients/buyers.
If you follow this advice, you'll soon notice that you have less competition. This is because the majority of your competitors will be focusing on in-expensive advertisements that attract lower quality leads. How many agents in your area are consistently setting up joint venture marketing campaigns? How many agents in your area are running advertorial advertisements? I'll bet there aren't too many.
Why is this the case?
Because if an agent focuses on lower quality leads, they won't sell very many homes. With limited home sales, their funds will be tight and they won't be able to afford to run advertisements that attract higher quality leads. You'll gain a long-term economic advantage simply by focusing on attracting higher quality leads.
The bottom line is that a lead is not a lead. There are different qualities in the leads you generate. You should create a comprehensive marketing campaign that focuses on generating higher quality leads and let your competitors fight over the lower quality leads.
About the Author:
Rob Minton, who reinvented his real estate sales business to sell 269 homes to a limited number of clients, has written a very practical book on how real estate agents can sell more homes For a limited time, you can download his entire book for free by visiting Renegade Millionaire Strategies for Real Estate Agents
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