I posted this elsewhere in response to a question about lead generation and whether it works. Here is my response, in a blog that more people I believe will read then other forum I posted on:
I have to say, I have had great success with housevalues and other lead generation products. Like Paul says, you have to treat the leads differently, and as he also mentioned, most people don't have the patience to wait 9-12 months for things to start paying off. I think it's a combination of most agents trying the service don't really have the $$$ to start a long term approach of 500-1000 month outgoing and also 80% of all agents quit real estate before their 2 year anniversary.
Here is some examples of my success: I am just thinking of a few I have closed or will close in the next few months:
- Lead asked for 700k home listings. From Housevalues. She is a local Dr. She should be buying a 600-800k home from us in the next few months, then we are selling her 250k home. She also has a commercial piece of land that she wants us to sell worth about 500k. Now this lead turned into gold immediately, like the first contact. Others take years to cultivate.
- Another lead, all I had was a name and an email address. He received listings from us for 2 years. He left me a message one night, I didn't even remember who he was(I have about 1,500 people in my automated database). I had to pull his info up to refresh my memory. He said he was now prequalified, and was ready to purchase. We closed him a few months ago for a 100k home.
- Another lead from housevalues two months ago. Wanting 250k homes. She was impressed with my follow up, and bought a home from us about 3 weeks ago for 252k. i am selling their previous home now as well, worth about 210-215k
- Another lead---looking at 300-325k homes. My wife met with them last weekend, they will be buying from us as soon as their home sales in Michigan.
- Lead two years ago from Housevalues, bought 275k home from us. Will be selling same home next summer and relocating back from where they came from
- Lead from my website, bought three investment properties from me 3 months ago, he moved here from Las Vegas, worth about 200k overall
- Lead from California, so far purchased two properties from me, looking to purchase 3-4 more. worth about $1million in sales at the end of the day
- Lead from my website, from California, met with two weeks ago, meeting with this weekend, looking to buy commercial property worth between 500k-$1million
- Lead off my website----I found out it was someone I went to elementary school with 22 years ago!!! A friend of theirs has bought a duplex from me, and they are looking as well.
- Another housvalues lead from 2 years ago. Looking for 400-800k homes. I had never talked with him, and he told me he preferred emails only. He then called me out of the blue and I have shown him several homes over the past few months. They will buy when they find what they want. I hope to sell their current 400k home as well.
I could go on and on, but it does work, it just takes patience and make sure you have a good follow up plan, both via email, drip campaigns, calls, thank you notes, postcards, etc.
I have found that buyer leads seem to work much better online then home sellers. I have had hardly any luck with seller leads at all...I am not for sure yet what I am doing wrong, or have yet to figure that part out. My goal right now is get the buyer leads, and my listings have been coming from a lot of these referrals.
How much do I spend on housevalues each month? About $400/month. Just based on a few leads I mentioned above, I have grossed at least 50k in commissions from these leads and at least another 100k in the works. Seems like a pretty darn good return on investment to me.
Follow up is key, follow up is key, follow up is key!!! I try to respond to emails within minutes(easy with broadband card on my laptop and email on my Treo 700). People are impressed with my service and blown away with my follow up.
I do no cold calling, heck, sometimes I feel like I am not even working, it seems all I do is market myself on the internet, respond to email questions and comments, then go on appointments with clients. I have never cold called and don't know how to even do it!
Another thing I have had succcess with is with dropping off flyers at homes with "free cma of your home at ZionsvilleHomesOnline" or whatever area of town you are in. Of 250 I dropped off, I got about 15 responses for CMA's. T'hat's a great return and it only cost me about 8 hours of a college girls time, or about 65 bucks. I need to do more of those in the future, but been so busy with online lead generation, havn't had time.
I havn't had a lot of luck with postcards, even with postcards I sent out with "find the value of your home", or "free home listings via email". I may try more of that in the future, but it's all a numbers game.
Okay, enough of my ramblings...
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