The average realtor follows up with a lead within 40 minutes and only follows up twice. These numbers are just not good enough for any agent to ever be able to create a profitable real estate business. As you read in Creating Real Estate Success: Lead Generation and tracking, the average realtor only converts .5% of leads into a closing. More on predictable lead generation systems here.
But as you have demonstrated by your dedication to learn to perform at the highest level in the real estate business, you are not the average realtor.
Let’s now dive into what steps you can take to turn your leads into appointments and point them toward closing.
Consider these averages about lead follow-up:
-- You must follow up with a lead fifteen times before that lead will reach back out to you.
-- Each lead will reject an appointment five times before ever agreeing to meet with you.
-- Every consumer is sold to 2,000+ times each and every day.
You must be diligent about lead follow-up. I recommend, at a minimum, that you follow up with every lead 21 times in the first 30 days. You can use any combination of phone calls, emails, and text messages, but the key is to reach out 21 times in the first month of your relationship with a lead.
Plan to get voicemails and few responses. That’s okay and is expected industry-wide. You can only focus on and control your actions. So your job is to continue to follow-up via phone, email, and text until you can get a lead to respond to you. At that time, you can work with that lead to identify goals, expectations, and time frames for purchasing or selling a home. More on how to turning conversations into appointments here.
In real estate as with anything else, hard work and persistence are key.
Thanks for reading!
Joshua Smith, Realtor/Mentor/Entrepreneur
-Voted 30th Top Realtor in America by The Wall Street Journal
-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily
The real estate market has changed drastically in the past year, and as a realtor, you always need to think on your toes to bring in more leads.
The unfortunate reality is that the vast majority of realtors do not understand the amount or type of actions that are required to generate business (or to stand-out amongst competition).
But all is not lost.
You have come to the right place to learn how to grab a slice of the massive amount of business that top agents and teams are responsible for. There’s plenty of room for an agent who is willing to work relentlessly with the right tools and appropriate knowledge.
Perhaps the most foundational concept for building a real estate business is effective lead generation systems and data trackingSo, let’s start there.
Without setting specific goals that you want to achieve, it can be difficult to meet your expectations. First you must create a lead generation action plan. Consider these stats:
So let’s use these stats for our example and split the difference. For the example, let’s say you can convert 1.75% of your leads into a closing, or basically one for every 60 leads. To convert at this level, of course, you must know how frequently to follow up with leads. That said, you can do a rough calculation of the amount of leads you need to convert one closing, so you know how many leads you need to accomplish your goals.
Let’s say your goal this year is to close 36 homes. Based on the above conversion rate, you must generate at least 2,160 leads this year to hit that number.
You can then break things down further for more easy to manage targets. This will equal out to 180 per month and 44 per week if you take off two weeks per year. You can even take it down to leads per day, if you would like. The important thing is to stay on track and make sure you are regularly hitting your numbers.
Pro Tip: The only way to win the year is to win enough months. To win the month, you must win enough weeks. To win the week, you must win enough days. So every morning when you wake up, just think about winning the day!
Successful businesses are built on predictable and practical systems. And in real estate, lead generation is the number that fuels your growth.
Are you ready to exceed your lead generation goals this year? Schedule a lead generation demo to propel your real estate business forward!
This blog was originally published on March 20, 2020 and has been updated for clarity and with the latest information.