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How to (Mis)-Manage Internet Real Estate Leads

If you’ve never checked out Chris Pollinger’s blog, you need to. His insights always impress me, and I’m a regular reader. One of his most recent posts is about why he is frustrated with the real estate industry, and it really hit home for me.

In case you didn’t know, the Christian Real Estate Network is a lead generation service. When you strip everything else away, that is what it really boils down to. We generate real estate buyers and sellers around the country that want to connect with a real estate agent. We then send out these leads to one of our members which totals around 1,600 currently.

I share Chris’ frustration when he isn’t able to get agents to follow up on leads. It is truly maddening to get a followup email 2 days later from the client saying that they were tired of waiting, and made an offer with another agent.

Why is that?? In such a tough market, I would think that agents would jump over their own mother’s to get leads, but it just isn’t the case. In his post, Chris talked about agents becoming jaded with lead generation companies, but I’m becoming jaded about the general service of real estate agents! I’ve grown up my whole life around the real estate industry, and I’ve seen enough to know that some agents simply get it done, and the other 90% just sit around and wait for deals to fall into their laps. It’s unfortunate that the 90% even exist, because they simply give the other 10% a bad name.

Here are some basic tips for the 90% of agents that don’t know how to manage real estate leads. (translation: common sense for the rest of us)

1. Pick up the phone, look at your fax machine, and check your email

Pretty incredible insight huh? Isn’t it the most amazing advice you’ve ever heard? I should tour the country as a motivational speaker or something. Of course I’m being facetious… or am I?

It is seriously shocking how hard it is to get in touch with some real estate agents. When we send leads out to our agents, we call, fax, and email the information just to cover all bases. But it never ceases to amaze me how many clients aren’t contacted.

2. Email and call the client immediately

Again… I should win a pulitzer for this stuff. I have a personal theory that 80% of internet based real estate leads are lost in the first 12 hours. And that is probably a huge understatement. People on the internet want instant satisfaction. They don’t want to have to register for something, they don’t want to fill out long complicated forms, and when they are requesting information, they want it now. Don’t make them wait, or you will probably miss out on the lead.

3. Be persistent, but don’t harass

Your average person is unlike your average real estate agent. They will actually return your call if they want to talk to you. If they don’t want to talk to you, they won’t call back. Calling them everyday for 2 weeks is not going to help. Be nice, be persistent, but know when to “take a hint”.

4. Put buyers into the loop immediately

Don’t wait until after you’ve had the chance to visit with the lead in person. You need to put them on a listing drip campaign immediately. This means you will need to get their basic criteria during the first phone call or email. That way, they will be getting active listings emailed to them right after you first talk which will gain their trust, and may even get you an easy sale if they see something they like. There is nothing worse then showing 50 properties with gas prices these days.

5. Long term clients still deserve the same level of service

This is one of my pet peeves. Just because you get a lead that isn’t ready to do something for 6 months doesn’t mean you should kick them to the curb. It’s just bad service. The best agents recognize that they can’t live paycheck to paycheck and will have solid effective ways to stay in touch with people over the long term. A simple email or phone call every couple months is sometimes all it takes to stay on someone’s radar screen. I can always tell a good agent… they are the ones that send us a referral fee from someone we sent them 3 years prior.

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If you are one of the 90% (you know who you are), please clean up your act. The simple courtesy of returning phone calls would be a good start.

Ok… my rant for Chris and myself is over.

To read the original article, click here:

How to (Mis)-Manage Internet Real Estate Leads

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Posted by Justin Smith | SEO, SMO & Blogging Consultant on 08/02/2008 09:50 AM

Comments (65)

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65 Comments on How to (Mis)-Manage Internet Real Estate Leads

AUG

2008

Absolutely the best advice possible- as to why most of your points aren't obvious is completely beyond me. In this market, you need to be available - "Just Be There !!!"

Thank you for sharing Justin. I am right there with you buddy! That 90% gives the rest of us a bad name and that needs to change! I follow up with EVERY lead I receive (not only internet leads) within minutes of receiving them. If I am in a meeting or an appt, I follow up the minute I get out. It also amazes me how many agents simply fail to follow up within a timely manner. The least they could do is simply pick up the phone and make a call! I have received a few prospective leads via AR and replied within seconds of them hitting my inbox, but I was still too late. I guess that shows that AR agents jump all over leads within seconds. The referral sender is then faced with a choice of "which of the few hundred replies do I give the lead to"?

Justin:

It is all common sense. It is so easy to become complacent in this business. The same prospect often times contacts several agents simultaneously and has the agents stepping on each others feet- showing the same properties. Id I could just know for sure that the prospect is faithful-

I'd jump through hoops to help them to the best of my ability.

NAR has done a study and if I am correct the average time it took to get an email respeonded to was something like 54 hours if it was responded to at all

Wow...follow up. Imagine that. If anything happens around my office it is follow up. We are persistent and know how to take a hint.

Justin - Thank you. Follow-up is key for sure. That is why all the technology is great because we can respond quickly. I respond within 30 minutes most of the time. Why wouldn't I? I have another business and if I had not follow-up I would have nothing now. Thank you. I love your posts and you encouragement.

I work closely with a lender who sends her leads to agents in the area. She has moved me to the top of her list. She has pre-qualified buyers that the agents just didn't bother to call....you've got to be kidding me. I've been working with a lead that she passed on to me 2 weeks ago and we will be writing an offer on a home tomorrow morning. I'm so glad I didn't ignore her!!! I don't understand why agents are afraid to pick up the phone.

Hi, Justin - By far, the majority of Internet leads coming my way are long-term ones. I find that a prompt initial response and a drip email campaign to keep the door open are two activities that DO generate loyalty, even if the communication is one-way. Sometimes it's as long as 6 months or more.

So true. Sometimes the easiest path is the one we resist the most.

Justin, I nominate you for the pulitzer....what a concept, returning phone calls, following up with buyers! Great info, so simple but so many are missing it and we really can't afford to be slackiing now.

Justin.....this is all so true and so simple. Maybe it is so simple we just don't get it on how to effectively follow up.

AUG

2008

Hi Justin! Always enjoy your posts. Nice to see you this morning. Wonder when clients will start contacting us on Twitter!

Hi Justin, love this entry and your writing style! You just picked up another subscriber. I'm pretty quick to STOP calling people if I don't hear back from them after the 2nd phone call. I hate the stereotype of PESKY REAL ESTATE AGENT and do what I can to dispel.

Great information and very pertinant. Thanky you for sharing this.

I think I am guilty of rule #4! We do a good job at staying in touch with leads but have not made it a priority to set this drip campaign up. Well I shouldn't say that... new leads get put into our standard marketing (2x a month video emails, every month mailer, and an email a month. So I guess that is dripping on them... but I feel like we need a more specific new lead drip. Thanks for the post!

Right on Justin! One of the best ways an agent or mortgage rep could improve internet lead capture is simply by using an automated follow up system. Just take a paper and write a flow chart detailing "if this...then this". From there create a check sheet and just follow it from A to Z for every internet lead and none of them will ever get lost again.

Paul Dunn
Tucson's #1 FHA Mortgage Lender
Arizona USDA Rural Home Loans

Not trying to stir up controversy, just wanting to know if anybody else sees things this way...The 10% of agents who are really doing a great job, who really "get it," don't tend to use internet lead gen services like HouseValues and the Christian RE Network.

I used those services when I first started (HouseValues, not the Christian RE Network) because I needed a way to get leads. As I became more successful (largely by following the simple rules you laid out in this post), it got to where I didn't need a lead gen service, I was generating plenty of leads on my own.

Could one possible reason for the poor showing of RE agents on the lead gen sites be because most of the agents using those sites aren't good at generating leads, and it therefore seems to fit that they're not good with handling leads?

I know the Christian RE Network has some standards of production that other lead gen services don't have, but I still feel that agents who pay for those services tend to be the agents who need a little push to get motivated; they're not necessarily the ones who handle leads well and are really self motivated.

Am I wrong, right, neither?

Brilliant, just brilliant. I'll comment here how I commented on Chris's blog... the silver lining is that it makes those of us who show up to work look really really good! Pity the bar is so darn low.

A few years ago, I tried to find an agent to help me buy a property in North Carolina. I wrote to the top five or ten agents who came up on my google search (this was before the days of AR). One, count 'em, one, got back to me and she was phenomenal. She even got her own section of praise in my book (sell with soul). Everyone else? Never even showed up.

And we wonder why the drop-out rate is what it is...

It pays you to follow up quickly -- the faster you followup the less conversations you have about commissions. Service is more important the commissions.

NAR says the first agent to follow up or touch bases usually gets the deal!

Make it a profitable day!

Internet leads work great if you're not a "deal to deal" type of agent. The difference between conversion and a lost connection is simple persistence. Great post.

Justin - You are correct, and this is not a new issue. I've know agents for years who will not answer their phine. Instead the designate times when they will return calls. I actually attended a CRS class when they teach you do that so you can be proactive instead of reactive. I think it's a bunch of bull. I sleep with my phone, and I'll answer it at 10:00 p.m. or 06:00 am. If you call between those times, you better be a family memebr in big trouble.

Great post and spot on. If agents follow this advice they will succeed.

The biggest issue I find that too many professionals in Real Estate feel they are "sales people". That's the first thing to cut out . . . they are managers and need to start managing. Brokers have forgotten that they are managers. They are failing to take control of their businesses. If you look at many Brokers, most have little or no idea where their leads are coming from. They do nothing to manage the persoanl wesbites that are out there. And quite often Brokers do not have an internal system to capture and "feed out" leads to their agents. The frustration many Brokers are expressing is that technology has lead to less control because agents find they do not need to be at the office (or the office doesn't exist). That does not mean that control stops. Just as much as technology allows firms to reduce overhead with building costs, technology also allows you to control your business when used correctly.

Justin, I am new here - that was a great post coming from a non sales background, I find that it's very important to have great follow up .. Thanks again for sharing

Justin, good post! Apparently there are agents that need this reminder, though most of my email clients thank me for responding so quickly....My computer is ALWAYS on. I do not read my email during the night, but then, there might be some agents who do. ;-)

Jason: Good reminders in your message. I love drip campaigns, they really do work.

www.kathytorline.com

systems, systems, systems, you need the right systems in place. Way too many agents don't have anything set up to respond to leads, ie instant text messages, mobile email, campaign specific drip emails. Many agent don't even know how their website is set up to capture leads. That's ok more for me

I have a personal theory that 80% of internet based real estate leads are lost in the first 12 hours. And that is probably a huge understatement. People on the internet want instant satisfaction.

Hi Justin,

Thanks for a brilliant post. I read a survey somewhere that you lose 50% of internet buyers after only 2 hours so your suggestion of losing 80% after 12 hours is probably in the ballpark. Personally, I recommend the 15 Second Rule to my clients. It's not quite INSTANT gratification, but it's very very close! :)

This is just so basic and has been hammered into real estate agents heads for years. If they still aren't responding properly by now I would guess they never will.

I so agree, pick up the phone and call if they leave a number, even before their hand leaves the mouse. To wait two days is unacceptable for todays buyers and sellers. If there not home, send an email. But, them in a drip campaign and stay in touch. Sooner or later they will be ready.

I think we can all get better at responding to buyers and sellers - Where some of us slip up every once in a while - others have a business model of slipping up - I have no clue why agents think buyers will wait for them...

I find that calling often gets me instant relationships if I can get the prospect on the phone. Emailing rarely yeilds results. Of course, sometimes I don't get a phone number, or a bogus number, so email is the only method of contact available. Great article. Thanks

Hi Justin! Congrats on the featured post. I always enjoy your tips as I work to shed my blogging training wheels.

Good for those of us who really take customer service serioiusly though:-). Funny true story: I received a call from a Realtor who was relocating to this area. My client first emailed another Realtor. When my client called back the agent said she was "busy" at the moment and could my client call back?

Subsequently, I got the clients email on my Treo and returned the call within the hour - $800,000+ sale. I think it was Woody Allen who said he attributed his success to "showing up":-)

great post..I agree with you..people like to do business with me because they can always reach me...

thanks for the reminder and review. makes me want to revisit how we're processing leads. Always a good thing to review that.

cheers

always good to revisit the basics, and I agree that most agents just don't seem to want the business, and can't understand why calling a lead 2 days after they got it doesn't get them the conversion rate they want

You have to figure with that level of (dis)-service, the 90% will manage themselves right out of real estate. As communication becomes quicker and easier (such as texting or Twitter), I expect the speed of response will have to increase as well.

I'm finding it hard to keep up with the internet leads that come in. If I'm out I give them a quick response from my PDA and then try and follow up with more details as soon as I hit a real computer. So many of them just disappear without any type of response. Just as consumers want information from us at least a "we were just playing" return email would be appreciated from their side as well.

Thanks for the great info. Calling them immediately is the best thing to do.

Something tells me that the amount of time to respond is going down as the number of agents decreases... Hmmm..

Good views. I know agents whose voice mail boxes stay full! They dont return calls or know how to check email. In todays technology, efficiency is a must!

All of your points are revlevant and on target. Internet leads are difficult and demanding.

I am amazed how often agents don't follow up on leads. I called an associate to give her a lead for a $500K+ listing and haven't had a call back for 2 days ... A beautiful home and a motivated seller. So, I called another colleague -- Done!

I actually had a walk in 2 weeks ago while on floor. He had tried to buy a condo from 4 local agents!!! They either blew him off, sent him condos he had already seen on the internet or did not fit his location or style desired. One would not even schedule a showing that day of HER OWN listing because it was too far away. (Could he come to the open next week!)

We had an offer accepted yesterday and he is thrilled. He thinks I am a great agent and I thought I was only doing my job, go figure!

This si so true - not only for leads we obtain via electronic means - how about the referrals, open house leads or just those we meet day to day and promise to get back to.

Leads are what makes this business hummmm

Unbelievable that some agents simply do not call back or respond to e-mails.

AUG

2008

Justin,

Has the Christian Real Estate Network been a good fit for you?

You're blog was well taken. There's always a nugget of new knowledge out there. Thanks for bringing it today!

You are so right about the fact that internet leads want instantaneous satisfaction. I try to get back to them in less than an hour, and sometimes feel that that is too long.

Thank you for a gentle nudge......I really can do better than I am at this.

Great post. I've ranted about the SAME THING on AR before. I don't know how some agents feed their families. One of the worst I've encountered is the MANAGER of an office! This person doesn't return calls to show her listings. HELLO?????? Then when you finally get her, she acts as if you're bothering her. So agents rude to other agents is a problem too...not just not returning phone calls to leads.

I my office, I vette the leads personally--getting name/phone/email and "interviewing" leads on the phone. Then I dole them out to the agents who best fit their profile. If an agent is poor at communication skills or does not return calls, they don't get leads. Period.

My latest client said that no agents called her back, but she called them repeatedly. Guess what? She had a $365k home to sell and wants to buy a condo under $200k...I got the listing and we are looking for that condo now. I can't understand why people didn't call her back, she's so sweet - but she was a live lead!! That's different in my book than an internet lead from a service.

I used to use HouseValues, but after a while, it's just defeating - so many leads, with nothing to show for all the rushing and follow-up. I listed one house and sold one house in a year, and yes, I worked very quickly and very hard.

I'm not really excited about internet leads at this time and I totally understand why agents would get discouraged. I broke even on my time and money invested, so it was hardly worth doing again. It would perhaps be better for someone with a higher average price home in their market.

Great Post. The leads are tough. I would suggest tho that your complaint ratio to leads generated is low. As one who follows up, I think maybe 1 in 20 respond to contact attempts.

I know I answer my rather quickly but then I am on the computer a lot. You tend to learn which oines need followup quicker than others. I do know when I share my leads with other agents the chances of conversion drops fast.

You made some great points.

Thanks for re-stating the basics. As they say no one ever gets caught breaking advanced rules. They always mess up the fundamentals.

Thanks Justin, Auto responders are great but personal touch helps. We set internet leads up on the auto email for new listings w/ tickler messages every month. Serves as a backlog of clients. They are well over a thousand. These are just the ones we keep, not the clients disbursed to our agents. Yes, we keep that info also Lol...

Great post. #2 is where most agents fall down on internet leads! You have to respond quickly.

I agree - people do want information and they want it NOW. Waiting to follow up is simply a choice to sit on the bench and watch others play. If a lead does not get what they want timely they will definitely get it from someone else - guaranteed.

As a matter of courtesy I make it a habit to return all calls - even those I know I can't help - like people relocating and looking to rent a home.

I always respond quickly to leads and people almost always say thank you for responding so quickly. What I want to know is what kind of email campaign do you use to stay in contact with people who are not going to buy or sell right away? Do you use a certain company?

Thanks for your common-sense post.

Good reminder about responding quickly. That's one of my greatest frustrations with other agents.

Great post. I recently wrote about leads as well. I am always amazed that people think if they have the leads the sales will just come to them. You need to work the leads and follow up. It is a process.

Isn't it amazing when you call a lead and they are SURPRISED that a response was quick and productive.

Char

AUG

2008

Its sad to see how agents let clients go on such an ease.

AUG

2008

Hi Justin,

It is pretty amazing how long people will let the internet leads dangle out there without a timely response. I agree the early bird gets the worm and the internet lead does not want to wait. Thanks for putting it all down for us. Have you had people carry two phones or a phone a blackberry to be able to react quickly to internet leads? Just wondering if someone had done that or not.

Thanks! Ken Jansen REALTOR Overland Park KS www.KCSmartMove.com

SEP

2008

I am with you 100% and strive to call my internet leads (or ANY leads for that matter) back within 15 minutes. The simple fact is that if you don't call, they will move onto the next agent or website. I will say that there are times where it just isn't possible and it is frustrating that there aren't two of me! For example, back-to-back closings, meetings with new / existing clients, home showings, etc. Sometimes I can't get back to my leads for 2+ hours and I do need to look into setting up an autoresponse system. Thanks for the great information -- as always!

SEP

2008

Justin,

Thanks for the post. As a broker I recently had to fire an agent who repeatedly failed to return calls, e-mails etc. It was hard for me to understand, because she repeatedly told me she needed to close some deals to make money, yet she would not return calls to customers and agents who wanted to show her listings. This is just a basic human courtesy, not to mention how you close sales.

Dave