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 is an interesting finding from my business:
Lower quality leads are attractive because you don't have to spend a lot on the "front side" to generate the leads. However, you end up having to spend more on the "back side" trying to convert these lower quality leads into clients. The "back side" is the marketing you deliver to the leads once generated. This would include special reports, sales letters, and more.
In my own business, the quality of leads is ranked as follows: (Ranked from high to low)
1. A referral
2. Joint Venture Endorsement
3. Leads who register to attend a class
4. Leads who respond to an advertorial 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 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 the case?
Because focusing on the lower-quality leads will ultimately mean fewer sales. Fewer sales means money will get tight and agents won't be able to afford ads to attract higher-quality leads. You will have a long-term economic advantage by putting your focus on higher-quality leads.
Bottom line: A lead is not a lead. Different quality levels exist in the leads you generate. A comprehensive marketing campainng that stresses generating higher-quality leads will mean more sales for you, while your competition fights over the 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 is an interesting finding from my business:
Lower quality leads are attractive because you don't have to spend a lot on the "front side" to generate the leads. However, you end up having to spend more on the "back side" trying to convert these lower quality leads into clients. The "back side" is the marketing you deliver to the leads once generated. This would include special reports, sales letters, and more.
In my own business, the quality of leads is ranked as follows: (Ranked from high to low)
1. A referral
2. Joint Venture Endorsement
3. Leads who register to attend a class
4. Leads who respond to an advertorial 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 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 the case?
Because focusing on the lower-quality leads will ultimately mean fewer sales. Fewer sales means money will get tight and agents won't be able to afford ads to attract higher-quality leads. You will have a long-term economic advantage by putting your focus on higher-quality leads.
Bottom line: A lead is not a lead. Different quality levels exist in the leads you generate. A comprehensive marketing campainng that stresses generating higher-quality leads will mean more sales for you, while your competition fights 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
