Do you need to know how to convert real estate leads into sales?
If you hope to be successful in the real estate business, of course you do. Having dozens or hundreds of real estate leads can be a great thing, but if you are unable to convert them to actual sales, all the leads in the world will be useless to you.
In fact, leads you cannot convert are nothing but a drain on your time and resources, with no return on your investment (ROI).
90% of business is doing the basics of business right.
Always remember – lead generation is the easy part, lead conversion is what makes a Rocket Agent. (Internet leads are easy to come by, working the leads is where the rubber hits the road.)
How To Convert Real Estate Leads And Close More Sales, Just Like A Rocket Agent!
Do you know what the difference is between a “Rocket Real Estate Agent” and “All Other Real Estate Agents”?
I’ll give you some hints . . .
It’s not the size of their teams.
It’s not the number of people they know.
It’s not how long they’ve been in the business.
It’s not the number of their leads.
It’s not “luck”.
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It’s their ability to convert real estate leads into real estate closings.
- This is the key.
- So here’s the deal…
Converting real estate leads and closing more sales all come down to two things . . .
You are 100 times more likely to contact a client within 5 minutes versus calling within 30 minutes.
You’re the architect. Build something special!
Know your “A B Cs.”
Assing your leads into one of three categories. “A” leads are ready to buy or sell now. “B” leads plan to buy or sell in the next month or two. And “C” leads might buy or sell in the next three to six months.
Develop an action plan for each kind of lead. And don’t salivate over the “A” leads so much that you forget about the “Bs” and “Cs” – they’re your future business. So consider a “drip” e-mail system that automatically sends helpful e-mails to them every week or two – maybe information on homes that fit their criteria – and remember to get their permission before adding them to your e-mail list.
70% of online real estate leads report they are not followed up with effectively. The Key is: You need to separate yourself from the pack of agents that don’t know how to consistently build a strong brand, generate good leads, and refine their closing rate.
It’s that simple and, it’s that hard.
Apparently follow-up is so hard, 48% of agents never even follow-up once with a prospect. Not a single time. Never. Um, I’m wondering how agents expect to close a deal when they aren’t even attempting to contact a prospect even once. Not once!! Wow.
However, that does mean that 52% of agents follow-up with a prospect at least once. Well, at least half of real estate agents follow-up at least once. This is really a pathetic statistic. Makes me wonder why 48% of agents are “in the real estate business”.
Ok. What about twice? You know, you leave a message or respond to an email or text the first time, but what about a second time? Yeah, that’s even worse. Only 25% of agents contact a prospect a second time. They stop after the 2nd contact. Wow. Again. Maybe they think the prospect, who contacted them initially, isn’t interested? Or has changed their mind? Or they don’t have an effective method for keeping track of who to contact and when? Who knows. But still, it’s not like it’s that hard to follow-up with someone more than once or twice. Really. It isn’t.
Ok, let’s go just a little deeper. What about a 3rd contact? Only 12% of agents make three or more contacts with the prospect. That means 88% of agents didn’t bother trying to follow-up with a prospect after the 2nd contact. Wow. Yet, again.
Here’s the biggest kicker…
- 2% of sales are made on the first contact
- 3% of sales are made on the second contact
- 5% of sales are made on the third contact
- 10% of sales are made on the fourth contact
- 80% of sales are made on the fifth to twelfth contact
Do you know what this means?
It means that 88% of real estate agents share 10% of all sales, which also means that 12% of real estate agents are sharing 90% of the sales, simply because they contact their prospect three or more times.
Follow Up Phone Calls
Make at least 5 calls to your leads to try and contact them. Don’t give up after 1 phone call and leaving a message. Everyone is busy in this day and age, people appreciate professional follow up.
In many cases agents and teams are regularly making 0 calls to their internet leads, if this is the case aim for 3 to start with. Then once you master that step it up to 5.
Always be serving (ABS), how can I help you with your home search? ask probing questions like “why is that important to you?”. Deeply understand your potential clients needs.
It means you have GOT to get over your fear of offending a prospect by contacting them “too much”. Really. You’ve got to.
You are not badgering them. They communicated to you that they are an interested prospect. You must be there, when they are ready, willing, and able to consummate a transaction.
You can never follow-up too much. No, you can’t. Stop allowing your limiting beliefs to control you. If it’s too much for someone, they’ll tell you. They’ll say go away, or unsubscribe from your email, or something else. The key is, do not stop following-up until they buy, sell or say stop.
Real estate leads will probably never convert
The problem is there are simply too many people who are interested in real estate, but not interested enough to actually buy or sell a property. Think of it this way, even a great baseball player fails to get on base 70 percent of the time. Just because you are unable to turn all of your real estate leads into sales does not mean that you are a failure; that is simply the way it will be.
Be Patient, Be Persistent
Converting real estate leads into sales takes time. That time can vary depending on where the lead came from and how motivated they are. It may take six to nine months (or more) before a real estate lead becomes a client. You need to have a system in place to be able to follow up with them reliably and consistently. Getting great real estate leads, and converting them to home sales is an inexact science; even when you do everything right, some leads will never convert, and this is not your fault. Keep working at serving your current customers well, and word-of-mouth will go a long way toward bringing your future customers to your door.
Now that you understand what you need to do with follow-up, let’s look at fulfillment.
Fulfillment is what you are giving them. What questions are you answering, what needs of theirs are you meeting.
Their most important need is for you to be there when they are ready. This is accomplished through consistent follow-up. Their second most important need is for you to anticipate their questions and other needs, and provide answers, resources, and resolutions.
Fulfillment is much easier than follow-up, but fulfillment requires follow-up in order to accomplish it. Simply by following-up, you are meeting their number one need. By following-up you are there to answer their questions, as they have them.
By following-up you are anticipating their needs. By following-up you are able to provide answers, resources and resolutions.
So now that you know how to convert real estate leads and close more sales like a rocket agent, what are you going to do differently? What are you going to implement that will jump you into the 12% who close 90% of the real estate sales?
Remember with your reporting that the goal is to measure yourself based on your Real Estate Lead Follow-Up Plan, see what is not working well, and make adjustments. You also want to know what is working well.
When you really engage in this process of measurement and improvment, you are on the road to seeing a big increase in your real estate lead conversion rates as well as a great consistent ROI on your business.