Hi foks. I am always reading and hearing about leads.
How do you get them?
What do you do with them?
Have you bought leads from this or that company?
Well, this got me thinking about.... what is a lead? A lead to me is someone that contacts me and tells me they want to sale or buy a house in the next 30 days and they were given my name by so and so whose house I sold last year. Leads are gold. Leads are money in the bank. They are ready to buy or sell and they are ready to work with you. Leads will turn into customers or clients and if satisfied will result in more leads by referring your services.
If you could get a couple of leads a week you could easily covert them into 3 to 5 closings per month. Leads can't be bought. Leads come from hard work and a loyal customer base that is built over years from providing honest and professional service. And from keeping in touch with past customers and clients.
Usually, when we are talking about leads, I think we are really talking about prospects. A prospect is someone that may be interested in selling or buying, sometime in the future, when Venus aligns with Mars. These are the people who spend days on the Internet contacting every Realtor they can. Or call off the yard sign while riding around on a Sunday afternoon. You can buy prospects. There are many large web based "lead mills" that are wanting to sell you what they call "leads."
Folks these are not leads they are prospects. To pay for these types of "leads" in my opinion is a waste of money. If these prospects were truly leads they would not be selling them to you for a few bucks.
So, save your money and concentrate your efforts on keeping in touch with past customers and networking with people in your community. Always provide honest and professional service and before you know it you will have a steady stream of leads. Remember leads can't be bought they must be earned.
I wrote this post over 2 years ago and still believe it to be true today. What say you?
I did HouseValues when I moved to a new city. I was able to close several people from this but the percentage was very low for all of the reasons you listed above. You are 100% correct. Now I do get a lot of prospects from my website and many of them are good prospects but very few comes as a lead, gift wrapped and ready to shop. A referral will always be the best lead as far as I am concerned.
BB,
I've never bought one lead in my life. Ok...maybe one...it was a referral from my family so I had to buy the family member a very expensive dinner...but that's it...anything I do is earned...I wish someone would throw me a free bone or even an owned bone...well....
I considered investing $$ into a lead generating system but feel the same way you do... Personal referrals and networking will be your best bet for solid leads. Prospects are calling every day off our For-Sale signs, but it's the personal referral that's solid.
Staying in touch with past clients is wonderful. However, if you give good buyers and sellers to agents in your company, they are the ones who benefit from past client follow-up.
So, I no longer to past client follow-up. Strange, though, how many former buyers and sellers contact me after 5-10-15 plus years. If they are smart enough to Google my name, they find me.
I was recently contacted by a former buyer from 1997 whose son is attending college in Texas and they purchased a condo for him.
They find me.
Broker B, I was playing the video at my office a few months ago, and a crowd gathered around my computer. Laughs all around. I totally agree with you. Don't wanna work with strangers - unless they're buddies of buddies or blog buddies.
Bryant I have never bought a lead and never will. My leads (and these represent at least 80% of my business) come from Realtors that I have done Loans for their Buyers. I receive several leads from them every week, and as I do more business with new Realtors, the leads increase. Therefore my focus is on calling on these Realtors every week and making sure that I take the best care of their Buyers that I possibly can.
Broker Bryant, I remember the first time you posted this video. It was funny then and it's still hilarious. I do agree with you in that leads should not and can not be bought. They come by OUR hard work. This way we appreciate them better.
Dear Bryant, As you noticed, I am back again ! :), you have a great point here, leads need to be earned, it could be a referral by family, friend, someone who trust on you because you have pleased him/her, buy a lead? Simply is not the same, it does not have the same strenght, great blog ! Ray Saenz
I don't know about you, but I cringe when I hear the word "leads". For me, it takes the human being out of the equation.
I prefer to work with human beings - as a partner and an advocate. Perhaps that's why I love being a buyers agent so much. I don't pay for "leads". I keep in contact with people and work with people. Or, just folks, as Lenn Harley would say.
It really gets my goat that someone would buy a bunch of keywords, spend a lot of advertising money to get "leads" and then try to sell these "leads" back to me. What a waste of time and money. I'd rather spend the money having a nice party for my past clients & sphere of influence...It may not generate "leads" right then and there, but at least I get to have some fun...
Broker Bryant, as one who has tried everything, paying for zip codes has never worked for me. I've spent a ton of money on wanting the latest and the greatest. Then I found Activerain....
Now I do PPC, spend a ton and 42% of all my closings are from those campaigns. So that means 58% is past clients, and referred clients.
IMO, past clients, referrals from past clients and friends are my bread and butter. But, people coming from my PPC campaign are the internet shoppers and it is up to my team and myself to convert.
Hey Bryant! Good post! As you know, I am all about lead generation and last year my office had 193 sales all from Internet "prospects" and this year we will have over 250 sales all from those Internet "prospects".
You are 100% right when talking a referral being a great lead. It sure is. In fact we get tons of referrals each year...however they are almost always coming from a past customer...which started out as an Internet "prospect".
To be successful I believe you need to do a little bit of everything thrown in with a lot of lead generation to keep the pipeline full! For many Realtors, myself included when I started, I didn't know anyone in my area. I had lived here for two years but traveled daily for my Internet Company I owned at the time. The only people I knew where I live and work was my girlfriend, now my wife and her mother. Not much for a circle of influence to kick start my career. For that reason, I did two things. I learned how to be successful on floor calls (28 of my first years 36 sales came from floor calls) and then implemented my lead generation programs which kicked in my second year in business. That year, through all those pesky Internet Prospects, I sold 50 homes...and I know of another 50 that I had lost because I couldn't handle all the business. The third year of my business I sold around 75 homes and was a maniac. At least I had hired an assistant at that time. The next year I started my team and the rest is history...I did all this with Internet Prospects and mixed in a few seminars, joined some activities like Baseball, Ping Pong, Bowling and started golfing. I received sales from all these sources...however, nothing, and I mean nothing, has skyrocketed my business than those Internet prospects.
Because of the above, I now have over 35,000 prospects in our two databases. In reality I could stop marketing today and still be very busy for the next two years. By building a large pipeline, I am almost guaranteed success for years to come. Last year I personally gave away over $5 million in sales to my Agents from my past referrals. I haven't taken a lead since 2004 and I could still live on my past leads and referrals.
So don't pay for leads when you can grow them yourself! Build your pipeline while you are cultivating your circle of influence. Join different groups that you enjoy and receive business from having fun. All of these work and work great. But if you want to grow your business into the next level and you don't know a ton of people, start a lead generating program today.
Of course you can learn all this at The eHomes Realty Network (www.eHomesRealtyNetwork.com). By being a member of the Network you will have access to all our training and tools that have made us number 1 in the county!
BB, I like the way you define leads vs. prospects. Lead is definitely overused, especially by those "lead generators" and lead sellers. One thing, for agents like myself who used to have a referral only business and then moved to a new state, it takes time to get a foundation of leads so work hard, keep in touch with your past clients and blog. I have some great "prospects" from my blog who are well qualified and loyal but their time-frame is longer than a referral might be and yes, sometime they decide they want to move to another lake. But, blogging is still the next best thing to a direct referral!
BB: Couldn't agree more with your assessment and unfortunately companies that sell leads feed off the fear that new agents experience. They will clean you out if they can and it is a great thing if we that are experienced in the business can help to stem the tide of new agents who come into this business and then spend their life savings to purchase prospects, and many bad ones at that! Thanks for the great post!
OK yo guys aren't forgeting to send off those checks are you?
Mitch, I believe what you do is different than paying for leads from a housevalues or homes.com. Getting business from the internet by utilizing available tools is different than paying for name and a number. Don't ya think?
Sorry BB, but I'm a wholesaler, I'll pay 2.5 cents on the dollar for the phone book leads. You do guarantee them leads , or you will buy them back for 5 cents, right? LOL
You are exactly right! Go out there and get in front of the people you know, works every time. Now, to get the "lead" generation companies to stop calling me. Funny, thing I "pull their chain" and let them show me their stuff and than say "Nope, not going to pay you for what I do better myself". Then they go into the hard sale and I learn from them what "not to do". LOL
I think we pay for enough today. I don't want to pay for prospects! I have taken a slower approach to building my real estate business, and it has worked just fine to balance my family responsibilities (2 small kiddos!) with my career. Luckily,after 3 years, leads by referral are my major source of business.
EXACTLY!!! I did actually buy into the idea when I was a new agent. I bought a year contract for HouseValues. I got hundreds of 'leads' but I only closed two of them. In the end, I broke even...but business is not about breaking even for me...I want to come out ahead!! GBU!!
Nice post...where did you get that outfit in the video? I have bought a few leads in my time....do not think any one of them amounted to much. Thanks for the refresher course....man you should be on infomercials.
Excellent point- there is a difference between prospects and customers. If different agents in your office are getting inquiries from the same customer via the Interest, sign response, and generic buckshot are they a lead or a prospect?
BB, good post on leads v/s prospects. I think many people forget that in a sales business you have to get out there and do the serious work of prosepecting to fill up the sales funnel and focus on client follow up and service after the sale. Thanks again for the great post!
The difference can make or break a new agent running with prospects and missing a lead because you think you are busy. Learn to qualify and only work with leads is great advice.
Bryant: I have to agree with you 100%. I have tried the paid lead service in the past and lost alot of money. People are just signing uo to get information and many will never buy, some are already working with someone. and so on......
Referral leads from old clients or friends are always the easiest to work with as well because someone they know trusts you or has already done business with you.
Bryant, we receive over 500 leads per month, 50% are bogus, out of the 250-300 left I would not even call them propects. These are suspects. Approximately 1 in 50 make it to the prospect stage. These numbers are actually better as this system has been in place for 5 years. Pay for leads? Good Luck! Happy Holiday, love the vid...
Hi Bryant, re "when we are talking about leads, I think we are really talking about prospects. A prospect is someone that may be interested in selling or buying, sometime in the future"...
I see this topic come up all the time in the marketing group, essentially people asking "what do you think of purchasing leads from XYZ".
I have no idea why more people don't understand that "leads" are like relationships, you can't buy them (no crude jokes please) you have to start your own and grow them. Sort of like lead seeds! I hate seeing people getting burned on all the CRAP (copyright TLW) being sold out there.
Say hi to Billie for me and please let Blogging Bertha out for the holiday to get some sun & fresh air! ;-)
I say AMEN! I haven't spent a dime pauing for leads from all the idiot telemarketers. I get plenty of good leads from past clients and friends. I'm careful about where I spend my money.
Thankfully I'm not desperate enough to purchase leads. Even if I was, I think I'd spend the money on some training. Anything to help you be a better agent will give you long term growth in your business.
I used to be in the lead selling business for mortgage brokers and I think there was a definite missunderstanding of their purpose. I mean we can only get so much out of a person who has been contacted or contacted us by means of a television commercial or telemarketing. When it comes to people's knowledge about what they even want or are prepared to do that can also be limited. I completely agree that the only time that I ever knew a sale was a near definite was when someone called me off of a referral. The rest is like a bite on the hook, but that never means you can reel it in or that they really want what you are offering.
In my 40 years in the mortgage industry I have never dealt with leads. I have never purchased one. To old to start now. I have always dealt in referrals. Referrals are warm and fuzzy! They have contacted me based on a referral from a past client or a Realtor or I have called them after they already knew my name and they were expecting to hear from me.
Maybe purchasing leads and cold calling works for some but I cannot wrap my mind around it....although I have been tempted during moments of weakness. :)
Bryant,
I'm sure there are companies out there who have made a "pretty penny" selling a shortcut like the one in your funny youtube commercial; good on them, true entrepreneurs. But I think you are right, it's probably a waste of money.
Best to you!
Howard Tennyson
www.acehomeinspection.biz
That's it!! I'm cancelling the reotrans account. I'm not giving them any more money.
Yeah, I have to ask my sphere when they are going to buy or sell or do they know anyone who is. While I'm asking, I'm sure someone will find me or send me a referral.
45% prospecting, 20% presentation, 20% product knowledge, and 15% professional development is what is involved in getting leads/sales. 65% involves telling people what we do.
I'm going to play the video to the other agents in my office. It's funny too.
Well hey there everyone!! You know I am one of the original members of homegain. I haven't worked it in quite a while and when I did I only worked the seller side. I didn't pay them for leads though...I paid a referral fee when I closed transaction.
I know Mitch has a good thing going on with Homegain but I've yet to checkout this program.
And Missy didn't you tell me that you were having success with Homegain as well? You use it to keep your buyer agents busy.
I guess the key is knowing what to do with these "leads" once you get them.
I love Homegain; I get about 5-6 closed transactions a year and pay for the Buyer Link and the Agent Proposal programs. I have become friends with the folks I've met and they have referred additional business. I am a fan of buying leads, they are people and they buy/sell just like everyone else.
Bryant - A lots happened since this morning. I actually enjoyed a nice day off with my family for a change! Yes, I agree, I would never pay for leads. I have tried HouseValues.com and didn't get even an appointment out of them. I have tried house.com and realized they were a total scam that took me months to get my money back. If I could find a better way to generate leads without me doing it, I would do it. However, I just don't see it happening.
I have been extremely successful with Homegain's BuyerLink program as you know. This year we are on track to have over 250 transactions by using this program. Last year we had 193 transactions with almost all of them coming through leads generated through BuyerLink.
The best part of BuyerLink is it does exactly what it's supposed to do. It sends me traffic to my site and depending upon how good I am at it, will depend on how successful I am. Luckily we have developed our 100MPH Marketing System as part of The eHomes Realty Network (wwww.eHomesRealtyNetwork.com). This system has us converting at 1 sale out of 24 leads. One of my agents is closing at 1 out of 10 leads which is unbelievable. I wish I could clone her! The reason we developed the 100MPH System was to ensure no matter who I hired as Agents, they became successful. It has bee great so far. Our Agents show an average of 8 different buyers per month. We know once the market comes back our sales will be 4 out of 8 at least versus just 1 or so out of 8. My guess is when we reach those numbers we will be closing at a rate of over 10%.
These days I spend my time teaching people how to be successful with leads through The Network. Last week I was in Denver training a group. Tomorrow I'm in Virginia training a group and then Kansas and more. I take care of my members and don't charge them to much to come out and train them. I believe that's where almost every Realtor falls short. They aren't patient enough to follow through an Internet lead to close. It's a good 4+ months to incubate an Internet lead. We look at that time as a great opportunity to build rapport and loyalty.
If anyone out there would like to chat about how to convert more leads (prospects) to sales, feel free to call or email me. I'm always available to answer questions!
Oh, I did forget to say two things. One, BuyerLink traffic converts to leads at almost double Google and Yahoo traffic. Also, as a member of The eHomes Realty Network, you save 5% off your Buyerlink Purchase. I spend $6k-$10k per month. Saving 5% is really worthwhile and pays for your monthly membership to the Network!
I say you're right. It's just like weight loss...there's nothing you can buy that will make it magically happen (unfortunately, or I would've bought by now!). It comes from hard work, perseverence and a never-give-up attitude!
BB - good repost! You've written so many good posts over the last couple of years it's a shame to deprive the last 90,000 or so members of your early pearls of wisdom. It's back to the basics, isn't it? No magic pill.
The best way to generate leads is to get listings. Listings create more buyer and seller leads. The second best place for leads is from referrals and word of mouth.
i had forgotten about this one. and its just as good now as it was when we first saw it. when those lead clowns call us, for some reason i don't understand, it's just hard being nice to them. but it sure is fun putting them on, and slammin' them down. Jerks!
So it was YOU on the phone the other day offering to sell me leads in my zip code for a mere $350/month! Thought I recognized the voice, but i couldn't quite place it.LOVE the t-shirt!
LOL love the outfit and sales pitch! You know I always joked around when my co-workers complained about leads and told them to get the phonebook...its so true leads can be worthless but great pospects you already have acess too is priceless!! great post and video!~
BB, I agree, the best leads are the ones where your phone rings and they want YOU! I don't do floor duty or accept referrals. My phone rings every day with buyers and sellers who want to talk to me about working with them. I wish they were all ready to list or buy within the next 30 days, but most are longer term prospects. What I appreciate most is that the calls coming in now are from people I don't know, but who know of me either through AR, referrals from friends, or see my listings online. We can only personally know so many people, so it's really important that word gets out beyond my SOI. That's now happening and if the lenders would just give out some money, perhaps I could have a few more sales!
I wish I would've known two years ago about Active Rain,then I would not have wasted my money on lead generation companies- Big Rookie mistake. Great post BB.
Hmm... I know a Las Vegas real estate agent in our office that just signed up for a lead service and picked up two listings from it... Not too shabby for a minimal amount of time and about $30 a month....
I say, this still rings true today...you really put it into prospective for us. Thank you for the post. And you know, we've all been there... buying "leads" (you're right, if they WERE leads, they would not be selling them to us for a few bucks!)
I will never buy 'prospects' or 'leads'. I am not interested in buying strangers! When someone calls us from our blog posts, they know, like and trust us. I do not ever suggest for a moment for anyone that I coach to buy prospects.
It depends on how and where you spend your advertising dollars and or lead generation dollars. I have used various combinations and have fine tuned my marketing plan to produce more fruitful leads, mostly through the internet and making it the top ranked website among real estate agents in my service area as based by Google, AOL and Yahoo. I started with pay per click, then optimized my website where I had growing popularity and the most relevant content to achieve high ranking across many keywords and phrases. Because of that, I was able to eliminate completely pay per click and use my monies elsewhere.
I guess the key is knowing what to do with these "leads" once you get them.
Hi Bryant,
You're absolutely right. Lead generation is only one third of the story. To be really successful, you also need to have effective lead incubation and lead conversion. By the way, and this might come as a surprise to some agents, internet leads/prospects/suspects (or whatever else you want to call them) are NOT for everyone. Some agents get rich off internet leads, while other agents go broke.
Unfortunately, many people believe in these lead generators - and don't have good systems to incubate. We prefer to get our business by referral. Loyalty is high and we get people who already know what a great job we are going to do!
Oh yeah .. I have learned this the HARD way! I have bought the leads and it turned into a few sales but NOTHING beats personally touching people in some way, either with blogging, school, church, functions, social events, neighbors, friends or family .. find your voice! Thank you!
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Reserved parking for TLW.