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I’m Buying Leads, Now What?

By
Services for Real Estate Pros with Reply.com

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First and foremost, thank you to all of the agents who have been taking the time to respond to our posts.  Your feedback is incredibly valuable.  As most of the AR community knows, we're introducing RealtyNow to the market; for a nominal membership fee, you'll get access to unlimited leads. Instead of paying for each lead, you'll pay an advertising fee for qualified transactions.

Program Highlights are as follows:

  • $99.95 monthly membership fee gets you access to the program
  • You build the coverage area you want to target by cities, counties, zips, or a combination of all three
  • We send you unlimited leads in real time, which means you'll receive the lead less than 10 minutes after the consumer submits  their request
  • If you close a transaction through RealtyNow with a property price of $150K or more, you'll pay a flat $1000 advertising fee.
  • If you close a transaction that is less than $150K, you won't pay anything other than the monthly membership fee
  • Extremely low-risk, cancel at anytime

(To learn more about RealtyNow or to sign up, please visit www.realtynow.com or call 925-983-3400 x 1011.)

The key to making any lead program work is the follow-up process you apply to each lead.  Whether you're buying Internet leads direct from a lead generation company or you're running print ads in a local publication, the goal is to generate leads. But what should you do once you get the lead?


In today's post, we'd like to open up a discussion about the initial follow-up that agents find to be successful; not just with our programs, but with any lead program they've used.  Consider your initial follow-up as your "virtual first impression."  There are elements to a successful first contact: what you say, and how quickly you say it.  As soon as you receive a lead in your Inbox, two things need to happen:  1.) You respond via email, and 2.) You follow up with a phone call.  In this post, we'll discuss email. 

What you say

Make no mistake; most agents would agree that the selling is done over the phone.  While some agents claim to set up all their appointments via email before ever meeting the client, most would agree that there needs to be a level of human interaction (voice to voice) in order to earn the prospect's trust and ultimately influence their willingness to work with you.  However, we're still dealing with an Internet lead. With Internet leads, we need to be more subtle in the way we engage a prospect compared to a phone lead or a traditional referral.   Sending an email to the consumer lets them know you received their inquiry and sets the stage for what will transpire moving forward. 


A good email will:

  • Respect the consumer's privacy
  • Identify the service by which the lead was received (e.g. RealtyNow, HomeGain, LeadToRealty, etc).
  • Use a template for ease of sending, including a photo of yourself
  • Confirm that the process is underway (setting the stage and tone for future correspondence)
  • Target the prospect's motivations
  • Establish urgency
  • Warm the prospect up for a phone call


Here is an example of what a first email response might look like:

 

Hello _____,

 

My name is __________. I am a real estate professional at XYZ Realty Company.  I just received your real estate information request from (lead source here) and found it intriguing, because I specialize in working with clients in the (neighborhood or city here) area.  In fact, I recently helped a family in (same neighborhood/city, or even add the actual address of a recent transaction) (buy or sell) a beautiful (2bd/1ba) home and they were surprised at (how easy it was, or something unique about the transaction). 

 

Before I go any further, I want you to know that I will always respect your privacy.  If you would just like information at this stage or prefer to communicate via email, that‘s fine.  Please let me know how you would like to communicate at this stage and I will completely respect that. 

 

If I don't hear back from you by email, I will follow up with a quick phone call to make sure you've received this email, and answer any questions you have.  With today's spam filters, I always like to make sure people are able to receive my emails. 

 

Sincerely,

______________

XYZ Realty Company
925-983-3400

 

PS - if this is an urgent matter, please reach me on my cell phone at ______.
[PICTURE/LOGO GO HERE]

 

How quickly you say it

Once you've created an email template that works for you, make sure you use it.  Most email programs allow you to set up an auto-response message, but I always recommend sending it yourself.  These days, people are used to auto-responses; they expect them.  An actual, real-time response from you will surprise them.  Even if your message is the same to each lead, they'll be impressed that you took the time to send it versus having a computer send it for you.  We recommend you send your email within 30 minutes.


In one of the next posts, we'll discuss the second step - the welcome phone call.  In the meantime, I'd like to hear what other AR bloggers are using as their first contact via email.  Are you sending one?  What message are you communicating?  Do you use a picture or not?  Why?  Have you ever set up a first appointment through email? 

I look forward to your feedback.
Feel free to reach out to me directly at rudd.lippincott@reply.com or 925-983-3427.

Rudd Lippincott
Director, Retail Operations
Reply! Inc.

Comments (42)

Better Properties Brokerage
Better Properties Brokerage (Serving Washington & Oregon) - Vancouver, WA

Thanks to everyone for sharing the best tips and practices for following up on a lead. These are tools all agents can use.

Better Properties Brokerage

Jan 09, 2010 05:35 PM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I think depending on the market, the money might be a little much for a monthly fee.  In my area, I might not get a good lead that leads to a sale for a couple of years.

Jan 10, 2010 01:35 AM
Dana Scanlon
Keller Williams Capital Properties - Bethesda, MD
Bethesda MD- Award-Winning Bethesda Realtor

Sorry, I tried your program and the leads were really pretty useless, I felt like I wasted quite a bit of time trying to follow up, or should I say chasing after people,  who either were not really looking, or else had ridiculous expectations, like buying a home in the DC metro area for $200,000 in the Bethesda school district where median prices are four times that...

Jan 10, 2010 06:36 AM
Anonymous
Mitch Ribak

I have found that pretty much anyone can create leads.  We get about 1500 per month using Homegain.  However, it really doesn't matter if you get 25 leads or 1000 leads if you don't have any systems to follow up the leads.  We have worked hard over the past 8 years or Internet lead generation and conversion. We operate at around a 3%-4% lead conversion and are always working with our systems to become stronger.  Yes, lots of work but to me and my brokerage very worth the effort with 311 sales in 2009 from our Internet efforts.  Follow a system and stick with it if you plan on succeeding in the Internet lead conversion game.  

Jan 10, 2010 07:11 AM
#27
Matt Anderson
Dream Realty - Frisco, TX
Matt Anderson - Dream Realty

Realty Trac, Homegain, Lead to Realty, etc.....  I have tried them all and it was not until I decided to build my website, learn SEO, and network a little harder... I found success.

NEWBIES, DON'T BUY LEADS FROM ANYONE!!!!!!

Take the thousands of dollars you will waste and build a good website, learn SEO, blog, and watch the leads flow in.

Jan 10, 2010 09:36 AM
Kirk Dirksen
Assist-2-Sell S.D.R.E - Sioux Falls, SD

If you could get me the 46 or even the 20 leads that were mentioned above and 25% of them turned out to be legit I would sign up, but I don't think you will be anywhere close to that in my market.

Jan 10, 2010 10:48 AM
Song San
Coldwell Banker Dynasty - Rosemead, CA
Broker, MBA

  Yeah the leads that I got wanted to buy 3 or 4 bedroom homes in Arcadia for $300,000 or less when the average property is over $700,000. Another lead wanted to buy 4 bedroom in Rosemead for $100,000 with a credit score of 520.

  I found out that many of the leads are bad because they have no intention to buy or sell but just wanted to get a free CMA. And Reply and other generators would sell you as leads for $55. If the phone number or email works, you have to pay. That is what I found out. Lesson learned and do my own leads instead. 

Jan 10, 2010 11:15 AM
Coe Krutsch
@Home Realty Network - Logan, UT

I have never bought any real estate leads, but I have bought leads for other industries.  My experience has been marginal with buying leads.  If you can create them for yourself you will be much better off.

Jan 10, 2010 11:40 AM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

So if I pay Active Rain money I can get my blog Post on a highlighted permanent feature?  Capitalism at its worst.

Jan 10, 2010 11:45 AM
Dana Couch-Davis
Kendall Haney Realty Group - Memphis, TN
CRS, GRI, ABR, SRES

Probably so Jim.  I had a very bad experience with Reply!. com and would never use them again.  I am sad to see that AR seems to be endorsing them.

Jan 10, 2010 01:37 PM
Song San
Coldwell Banker Dynasty - Rosemead, CA
Broker, MBA

  Dana, you are right. I along with a few other agents in my area got the same treatment from Reply!. Unfortunately it is true of the saying, there is always a sucker out there. I was one of them but I learned.

Jan 11, 2010 02:40 AM
Ron Parise
LocateHomes.com - Cape Coral, FL

My grandmother made all the clothes for my mother and uncles, as well as as the quilts that kept them warm at night. She was able to make a better product and do it cheaper than buying from the wish book (sears catalog) . And with just a few exceptions my grandparents raised everything that the family ate on their farm. They also maintained all their equipment (tractors etc)   There is no question that I could learn from their example and do everything that needs to be done in my business myself. Everything from changing the oil in my car, to fixing the computers, to prospecting and even the selling ( I know some listing agents that have a team of buyers agents to do the heavy work for them) . But I have found that there are some things I am better off paying someone else to do either because they are better at it, or do it cheaper than I can, or because I just dont like doing it.

I think in general terms we buyers agents do two completely different jobs in real estate, one is prospecting and the other is selling. Both are full time jobs One I do well and enjoy, the other not so much...so I outsource the prospecting.

I wake up every day with folks to talk to. Folks that have asked me to call them about real estate. I like that

Im so happy there are so many skeptics out there that wont even consider working with a company like Reply. That leaves all those buyers to me.

Jan 13, 2010 10:01 AM
Joseph Keech
Blue Atlantic Properties - Leland, NC

I think the post is a fairly good post, with important fundamentals of what you need to do for prospective leads. As far as paying for leads, definitely up to the individual. I feel the leads you can generate on your own will definitely prove to be the better leads. If someone contacts me, and I return the contact within a half hour, there is already some established trust. If a person contacts XYZ website, that website sends me the lead, and then I contact the lead, the trust is harder to establish. For the record, I use SEO, Google Adwords and other non-internet marketing tools to drive people to my site. My subscriptions to other totally legit websites to help get leads has been second rate as per the quality of my leads.  

Jan 15, 2010 12:21 AM
Lelis Navas
Exit Realty Prestige - Davie, FL

Love your email template. Thanks for sharing it .  It is true it need  a  lot of work and commiment but it is like farming it take time. 

Do you have any recomendation for  calls follows?

 

Regards

 

Lelis

Jan 15, 2010 01:50 AM
Steve Cook
Reecon Advisors - Silver Spring, MD

 

Here;s some great information on the latest issue affecting closing:

 http://www.bankrate.com/finance/mortgages/new-form-helps-to-estimate-closing-costs-1.aspx

For more on all the issues surrounding closing costs today, you might check out this blog...

www.theclosingblog.com

 

 

Jan 15, 2010 04:42 AM
Jason Romrell
Business Attorney and Success Advisor - Los Angeles, CA

Cool that you would share your email template. Great tips on how to use leads.  I work with lead vendors and reinforce urgency and consistent follow up over and over.  In your case, however, I'm curious why "real time" is up to 10 minutes?  Do you do some sort of manual screening on the lead that's not computer automated?

Jan 15, 2010 04:49 AM
Reply.com Marketing
Reply.com - San Ramon, CA

Joseph Keech - you make some great points.  I agree, leads that you generate on your own will ALWAYS be far superior to third-party leads, and I don't think we've ever said anything otherwise. Rather, our program is intended to supplement what you're doing on your own, as many agents find it difficult to generate leads on their own, if at all.  Thank you for sharing your comments, glad you appreciate the post.

Do you have any recomendation for  calls follows?  Lelis - I'm not exactly sure what you mean here, but happy to help.  Can you clarify?

I'm curious why "real time" is up to 10 minutes?  Do you do some sort of manual screening on the lead that's not computer automated?  Jason - thank you for your comments.  The leads are sent in real-time, but can sometimes take up to 10 minutes to be received.  To be clear, we do pass our leads through an automated validation process hosted via TARGUSinfo or "Targus."  Targus is the same company that powers the 411 directories.  Targus will try to match the name, address, and phone to public and non-public info, and then we make a decision on whether we accept or reject the lead based on Targus' response.  Targus isn't perfect, but it's the best way to validate leads in real-time.  At the end of the day, agents SHOULD expect to receive invalid leads; afterall, we're asking a machine to do a human being's job. 

Anyway, the validation process typically happens in less than 1 second, but I say "in less than 10 minutes" because sometimes there can be other factors that delay a lead from being sent out (server issues, too many leads coming through at the same time, etc.).  Most of the time, the lead is received in 1 - 2 minutes, but I have seen rare instances of it taking up to 10 minutes. 

Hope this answers your question.

 

Rudd Lippincott

Director, Retail Operations

Jan 15, 2010 05:42 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

I used to be very leery of Reply! too. All the negative comments made me paranoid about their validity.

After just 1 week of being a customer I just, yes JUST negotiated a contract for $119,000. My seller was ecstatic that we got a buyer in just 6 days.

Monday, I have another Reply! Listing Appointment for about 140k.


Our avg deal is about 152k.


Leads come from everywhere. I've worked thousands of them in the past and I can tell you it's all about YOUR SYSTEM that counts, not the srubbing, quality or origin of the "lead."

Thanks Reply!

And no, I wasn't asked to post this comment! ;)

Jan 15, 2010 07:32 AM
Reply.com Marketing
Reply.com - San Ramon, CA

Greg - Thank you very much for sharing your experience with everyone.  Much appreciated. 

Jan 15, 2010 11:28 AM
iNet Real Estate Brokers, Inc.
iNet Real Estate Brokers, Inc. - Dallas, TX

Never used it personally, but several agents in our office swears by it! Sounds like it's a good service might consider it in the future.

Sarah

Jan 15, 2010 03:51 PM