Online leads are what you might call the “black sheep” when it comes to real estate lead generation. Some agents write them off as “trash” and don’t even bother investing a dime. Some swear that it’s a worthy investment that can generate 10-40+% of their business. So what’s the bottom line? First and foremost when dealing with online leads, perspective is key. Think about that arcade game with the electronic claw. It’s incredibly tricky to successfully scoop up a stuffed bear and “win.” It almost feels impossible. A waste of time. But maybe after 5-10 tries, you finally win the bear. Online leads are similar, in that they’re a calculated risk. It’s an investment that requires patience, strategy, and measurement. At the end of the day, you may only convert 4% of those leads – but if the commission on 4% of those leads is a great enough return on investment, most agents would say that it’s worth it. The number one complaint with online leads is the quality. Too much “trash.” And there are two ways to combat this frustration: You can’t work an online lead in the same fashion that you might work a new lead from an open house or a referral. While they gave you their information, it was more than likely begrudgingly, so they may not be thrilled to chat. Or they may just be “browsing and not quite ready to buy.” These are not the type of leads that will convert on a silver platter. The single most important strategy with online leads is follow-up. It’s critical that you are reaching out to new leads within minutes and that your follow-up is seamless and regimented. Consider this. How is your speed-to-lead? You have a small window of opportunity to hook an online lead and become the “go-to” agent. In fact, your chances of converting a lead drop by 400% if you wait 10 minutes to respond. If you’re using a CRM, take advantage of alerts that notify you when a new lead has registered. Reach out immediately via text, phone call or email! Take a look at the following things: What is your lead nurture (follow-up) plan? How are you measuring the impact/effectiveness of your lead nurture? It may seem simple, but often when asked, agents don’t methodically follow through on both items. Your game-plan doesn’t have to be complex! Don’t overthink it. You just need a system that helps you pinpoint what’s going on. It can be as simple as keeping a spreadsheet.
Most real estate teams have a 14-day nurture plan, where they follow up with a lead every day for 14 days. Usually, a CRM automates most of that work. Now, this is where you have to measure/track. If you’re noticing leads are not at the quality level you want, ask yourself: At the end of the day it’s a numbers game. Put your absolute best effort into working your leads and following up effectively. After some time if your ROI isn’t worth your time or money, perhaps online lead generation isn’t the right strategy for your business. And that’s fine too! Learn More About Paid Advertising Watch these videos from the BoomTown Library. Consider the ROI
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