Good bye lead conversion. Hello engagement conversion?

I could not agree with you more in terms of the direction things are going in.  We still need our websites and SEO, but now for our blogs and SM.  Interacting with people through SM has to be ultimately better then directing them to me through a website

Whatever it is, there needs to be focus on lead conversion from relationships, engagements and/ or referrals.

Maybe there could be some recognition, old or new school, of the fact that Social Media Marketing and / or Search Engine Optimization are business tactics.

If tactics don't eventually translate to actual sales, then [new or old] they're all potentially a waste of time - see Want More Sales? It's Time We Get Serious And Analyze Traffic Data!

Chris

Great post on the importance of social media in business today. I believe that social media is what is driving the younger business crowd most of us are looking to attract. A website is great for getting more info out there than say a 140 character tweet, but the interaction is going on in the social media. I have twitter, facebook, and linked in accounts, and over half of my business comes from those sites. The rest are word of mouth and networking. If you aren't in the social media game you are truly missing out.

I do not think it has to be one or the other.  It is great to have multiple lead generators, like diversifying your personal portfolio.  Social Media, like any other lead generator may come and go, but it is free and fun, so why not add it to your work portfolio?

Marcy

Alex,

Its really rude to look at someone's legitimate criticisms and just dismiss it off hand. Do you want to respond to my criticism of the way you have framed your post or do you want to avoid the issue (like you did in your previous post) and give the same canned answer (again)? 

You present the old way (albeit a very flawed model of it) and yet you have (again) no proof to back it up. 

Can you point myself or anyone in the community to a case study / whitepaper showing a real world example where someone doing SEO only vs. someone who heavily uses social media was outsold? 

Also let's look at a recent tweet from your twitter account:

"Real estate listing spam just took a bad turn ... I'm starting to get spam about Facebook business pages for new listing/open homes"

So you're saying social media is the next great thing but heaven forbid someone invite you to look at their listing? What does that say about how much you really value Facebook? How come you aren't saying "Hey here's an innovative idea, business pages for individual listings?"

I don't want to debate you because I'm a jerk, I want to start a debate because it helps the community to understand the issue. Do you want to debate or do you want to ignore me?

Hi Alex, an interesting post as was your Edgerank post.  I'm just a little confused by this line.

"- The reason I value Social Media as a marketing vehicle is that it is not a lead generation dynamic.  It is a referral sphere builder.  So ultimately we'll measure it on how many referrals it generated"

When you say Social Media do you mean Facebook/Twitter?  I was thinking that social media was more than that, including my website and blogging.

If you just mean Facebook/Twitter than you are referring only to those platforms as not lead generations and more of a sphere of influence? Similar to face to face social networking?

I prefer to think that all platforms I use for what I perceive to be social media/networking are potential lead generators. 

The SEO I am getting from consumers searching keywords and longtails that appear on my website and in blogs does drive consumers to my blog and website.

Your presence on the web gives you credibility or at least the perception of.  This takes a lot of time and effort but the rewards are there.

As for the sphere of influence and referrals - they know where I am.  I don't have to be on Facebook or Twitter for them to find me, although I am.  I don't see those platforms as a place where the majority of consumers looking for homes would find an agent.

I do feel that Facebook is a great spot to keep you top of mind for those that are following you, and for you to stay current with the daily ongoings of your clients, friends, etc. that you also follow. 

Good Post

Although I am not trying to be rude or judge who is rude I found some of Williams comments valid, however, Social Media is growing fast.  I think there are some format changes to come, not sure what but I think it will evolve some more and become more intergrated with the rest of our Web sites and activity.

Well, I'm fer all of it.  Personally, I think websites will bring in tons of traffic if done right...and I use facebook for friends and aquaintences...I'm sure more business is done on facebook than I know though.  I'll just flit along and keep hammering...something will work eventually.

Loved the back and forth. Thanks to all for your input. I am working on a new business plan and trying to work out budget and time btween web, blogging, facebook and twitter.

I agree with William's points regarding lead generation vs social media referrals. What I can't understand, is how agents with low conversion rates, from targeted leads, will all of a sudden become successful in building business relationships with totally random people trough social networking. If you can't get in touch with a lead from your own site, find out exactly what they want, provide them with relevant information, manage to be there for them when the time is right, how the hell you're going to get better results by standing on the street of social media and starting conversations with random people? Looking for a quick sale? You might get a better luck by sitting in other people's open houses (you can tweet from there too).

For those agents that can convert generated leads via blogs and their sites, try a different approach to SM. The old way of retaining clients through annual follow ups (letting them know the value of their property now etc), keeping it touch (major events like b-days) - put that in perspective of social media - if you don't abuse your past clients' trust (don't spam), they might appreciate your efforts and you'll have a better chances of getting referrals that way.

Now, think about the buying life cycle of your prospective client. We'll take a basic one:

1. First idea to buy a property -> 2. Research and figuring out what will it take. -> 3. Preliminary search for desired home. -> 4. Viewing properties in person. -> 5. Signing contract.

We know that on average this whole process can take from 6 month up to a year. At what step a prospective buyer would be opened to listen to your social media channel? You're not a Bachelor or LOST, people don't become fans of Craigs List like they do with Lady Gaga - they only use it when they need it. Your channel is boring for day-to-day "normal person's" social behavior. What would be a life cycle of a real estate agent follower? If there was one, it would probably last during the most important months of research and Q&A period. That's it. Is that enough for you to establish communication and build a fruitful relationship? If you can't do that with the same person coming via your web site, guess what... there is no magic bullet.

Now, it's only half of a cycle. The second half:

6. Leaving in the house on average form 3 - 5 years. -> 7. First idea of moving on - selling and buying a new one. - back to step 1.

You have much better chances utilizing social media with your past clients starting from step 6 just because you already have a relationship with them. And even then, social media may not fit everyone - you might need to have a different system. But if you come up with a good strategy, there is a chance you'll stay it couch with majority of your past clients socially, be there for them if they need advise, and get exposure in their social circles that way. Which means referrals. Not random - targeted, because you knew exactly what you were doing.

One of the fundamental questions is "What does your customer want?" You can't be everything to everyone.  Who is your target market(s) and how do they typically communicate?  I am using video as much as possible now to communicate with my first-time homebuyers and Yuppies (is that even a word anymore?). Skype is a great way to have a conversation!  If I am working with retirees looking to downsize, I wouldn't dream of communicating with them even by email, unless we specifically discuss it first.

There is no one right way to develop relationships and communicate with them.  The old advertising folks using print, radio and television mixed it up, and we should be able to do that also!

I have just started using social media and hope to start reaping the rewards soon.

Hi Alex -- Social Media is a great way to stay 'top of mind' with our sphere and clients. They like it (or they wouldn't be on it,) I like it, it's fun and engaging. Friends from long ago have contacted me with real estate needs because of our engagement on Facebook. I keep in mind the necessity of making it easy for customers to think of me for their real estate needs. Social media is great for that. My web site is a wonderful tool for prospective clients to check me out -- but they find me first from a referral from a friend, an open house meeting, Active Rain or other social media.

Great discussion in the comments.  The debate helps me learn.   Thank you

Thanks for the post. I will have to reevaluate my approach.

Once you have an engine in place to process transactions from leads, the focus must be on lead generation to fuel the engine!