Lead Generation and Lead Follow Up
The most valuable real estate marketing strategy that any real estate professional should know how to do effectively is lead generation. We’ve identified over 2,000 sources that you can use for yourself but highly recommend about 109 of them. Zillow.com and Realtor.com both profited greatly by filling the gap that realtors had when it came to generating new leads for their business. Most realtors are quite bad at lead generation, and what they do is they just write a cheque to these companies so that they can get them. The sad part about it is that once they do get the lead, they’re even worse at the second strategy, and that’s Lead Follow Up.
If a lead comes in from whatever source you used online, you need to be in front of that lead within 30 seconds. That’s how fast you need to follow up with a potential client, because guess what, if you wait three or four minutes before you send that text or you make that call, they’re already talking to someone else. You might think that you’re buying exclusive leads, but there’s no such thing in today’s market. People looking for homes online aren’t going on one website, they’re checking out multiple sources to compare listings. And guess what, if you’re late to get in front of that person, someone else is definitely closing the deal instead of you.
The Double Dial is a calling technique that Michael says can get a lead on the phone 83% of the time, and it’s a pretty nifty hack that you’ll surely want to try for yourself. Now let’s say you get a new lead emailed to you, what do you do? You call the right, and most of the time, you leave a message because you assume they’re not available. That’s wrong, according to Michael, you need not leave a message or text, nothing. What you do is you drop the call, and you try calling again. If they still don’t answer, the next thing you do is you send the message, “Is this so-and-so.” The reason is simple; almost everyone who has kids who get this message will immediately think there’s a problem and will call you back right away. It may sound devious, which is a little bit, but it’s an excellent way to get your lead engaged on a call. And once you’re on the phone with them, you can go ahead and make the necessary introductions and pitch. If you do get someone who’s startled and asking you why you did that, you simply respond with, “Oh gosh, I’m so sorry. You had reached out to me on 123 Main Street, and I just wanted to make sure I wasn’t dropping the ball on my end.”
The third thing that Michael found realtors struggle with is converting the leads once they get them. He compared how drug dealers are much better at conversions than realtors for the simple fact that they offer them what they want. For example, if a dealer asks what you want, they give it to you. Let’s say as a trial for the first time, and then you have to pay after that. A lot of the time realtors, when they follow up with the lead, they want to prequalify them and get them started on the process. Don’t do that; don’t force your leads into your system. You need to adjust to their timeline. If they want to see the house without getting pre-approved, show them the house. Remember, the house isn’t the product your selling. You’re selling yourself. If you’re able to build a good rapport with the client the right way, once they decide to make a purchase, they’ll do it with you.
A common pushback that Michael gets with his clients is that they don’t want to waste their time on unqualified buyers. Well, he has an excellent script for you to use if that’s the case, and it’s: “If you could save ten to twenty thousand on your mortgage, would you be interested in chatting with one of our lenders?” So that’s Lead Generation, Lead Follow Up, and Lead Conversion. Every realtor needs to spend 90% of their time on these tasks to become successful.
Profit and Loss
No matter what stage you are in your real estate career you need to have a clear view of your Profit and Loss margins. It’s always good to review them at least once a month so you know where you’re getting your money and where you’re spending them. It’s important that when times get tough and you’re on the red you keep things that make you money intact and spend less on expenses that can be cut off. Three things you should never cut when times get hard are: lead generation, training and coaching, and quality staff. There are always going to be team members that are just empty seats and slackers, but there are those that you need to keep no matter what because they’re the people that are going to get you through the tough times.
Taking Care of Your Family
Michael closes with his last advice and that’s making sure you take care of your family. You need to learn to separate your business from your family and focus on them whenever you’re home. If you make a profit at the cost of your family, that’s not good. Find a good balance that works well for you and your family so that you can invest quality time with the people you love. If you want to check out more from Michael, you can go to his website Club Wealth.