In prior articles, I've gone over the necessity of consistently generating leads. I've shared that my own goal was always to generate 400 new leads per month. This article will turn the attention 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:
Lower-quality leads appear attractive because not a lot is spent on the "front side" to generate the leads. However, what ends up happening is higher costs on the "back side" spent trying to convert lower-quality leads into sales. The "back side" is the marketing you deliver to new leads once they are generated. This includes special reports, sales letters, e-mail campaigns and more.
In my own business, the quality of leads is ranked as follows: (Ranked from high to low)
1. Referrals
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 responding to a free internet ad (Craigslist or similar)
It's a problem that so many agents seem to focus on Craigslist or classified ads that attract the lowest-quality leads. What ensues is a struggle to convert these inexpensive leads into appointments and sales.
To be successful, your marketing campaign must include leads from each source listed above. In fact, I might even suggest that you invest more resources on the top 4 or 5 strategies for higher quality leads. The amount invested to generate the lead will be higher, but the amount invested to sign a new client or sell a home will ultimately be lower.
If you want to see less competition in your area, heed this advice. The majority of your competitors will continue to put the emphasis on the inexpensive ads that bring in the lower-quality leads. Let them work with those leads. How many agents in your market are putting together joint venture marketing campaigns? How many are running advertorial advertisements? I would guess there probably aren't too many.
Why is this?
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:
Lower-quality leads appear attractive because not a lot is spent on the "front side" to generate the leads. However, what ends up happening is higher costs on the "back side" spent trying to convert lower-quality leads into sales. The "back side" is the marketing you deliver to new leads once they are generated. This includes special reports, sales letters, e-mail campaigns and more.
In my own business, the quality of leads is ranked as follows: (Ranked from high to low)
1. Referrals
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 responding to a free internet ad (Craigslist or similar)
It's a problem that so many agents seem to focus on Craigslist or classified ads that attract the lowest-quality leads. What ensues is a struggle to convert these inexpensive leads into appointments and sales.
To be successful, your marketing campaign must include leads from each source listed above. In fact, I might even suggest that you invest more resources on the top 4 or 5 strategies for higher quality leads. The amount invested to generate the lead will be higher, but the amount invested to sign a new client or sell a home will ultimately be lower.
If you want to see less competition in your area, heed this advice. The majority of your competitors will continue to put the emphasis on the inexpensive ads that bring in the lower-quality leads. Let them work with those leads. How many agents in your market are putting together joint venture marketing campaigns? How many are running advertorial advertisements? I would guess there probably aren't too many.
Why is this?
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 this 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 this entire book for free by visiting Renegade Millionaire Strategies for Real Estate Agents
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