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.
Right now, many agents seem to be focusing almost exclusively on generating leads inexpensive leads. The problem is, I have found that these inexpensive leads tend to be lower-quality leads.
Here's a telling finding from my own 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.
For my own business, the ranking of the quality of leads is as follows: (Ranked from highest to lowest quality)
1. A referral
2. Joint Venture Endorsement
3. Registrants for a special class
4. Leads responding to an advertorial advertisement
5. Leads responding to a "solo" email or "pay-per-click"
6. Leads responding to a classified or home buyer magazine advertisement
7. Leads responding to a free internet ad (Craigslist or similar)
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 even 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?
It's a downward spiral for these other agents. Focusing on lower-quality leads means not selling very many homes. And with limited home sales, funds will get tighter and they won't be able to afford marketing that does attract higher-quality leads. You can gain a long-term economic advantage just by turning your focus to high-quality leads now.
The bottom line for you is this: A lead is not a lead. A comprehensive marketing campaign will let you focus on attracting higher-quality leads, which will mean more sales. Let your competitors fight over those lower-quality leads.
Right now, many agents seem to be focusing almost exclusively on generating leads inexpensive leads. The problem is, I have found that these inexpensive leads tend to be lower-quality leads.
Here's a telling finding from my own 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.
For my own business, the ranking of the quality of leads is as follows: (Ranked from highest to lowest quality)
1. A referral
2. Joint Venture Endorsement
3. Registrants for a special class
4. Leads responding to an advertorial advertisement
5. Leads responding to a "solo" email or "pay-per-click"
6. Leads responding to a classified or home buyer magazine advertisement
7. Leads responding to a free internet ad (Craigslist or similar)
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 even 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?
It's a downward spiral for these other agents. Focusing on lower-quality leads means not selling very many homes. And with limited home sales, funds will get tighter and they won't be able to afford marketing that does attract higher-quality leads. You can gain a long-term economic advantage just by turning your focus to high-quality leads now.
The bottom line for you is this: A lead is not a lead. A comprehensive marketing campaign will let you focus on attracting higher-quality leads, which will mean more sales. Let your competitors fight over those 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
