My Quest for a 5% Conversion Rate of Internet Leads to Closings

Real Estate Agent with eXp Realty 2012003089

I am on a quest to find a formula that yields a 5% Conversion Rate of Internet Leads to Closings. My background for the last 12 years has been generating internet leads for real estate agents.. and then almost 5 years ago I first got my real estate license to start generating leads for myself.. So generating internet leads is not my problem.. it's converting those leads to closings that is my problem..

Statistics show that the Industry average is around 1% of converting internet leads to closings.. I have worked with many teams and agents over the last 12 years, including some of the top teams in the nation.. and I find that stat to be very accurate.. sometimes as low as 1/2%..

However, I have also seem some teams / agents converting leads at the 5% rate.. so I know it's possible.. I just need to find a formula that works and would yield those kinds of results..

I would be interested in any comments / feedback from other agents that are finding the 5% conversion level of success.. I have researched and trained on many systems and the common themes I am seeing are:

1) Fast Response Time - Calling Leads Back Within 5 Minutes of Registering

2) Multiple Personal Touches - If you don't reach the lead the first time, keep trying... Don't give Up and Do a minimum of 12 Attempts..

3) Have a good System in place to Track your Leads, The Follow Up On Leads, and Accountability..

With that in mind I have come up with the following Action Plan:

Day Action
1 Initial 5 Min Call w/ Voicemail
1 Initial Text
1 Intial Personal Email
1 2nd Call Attempt
1 3rd Call Attempt
2 Phone Call w/ Voicemail
2 Text Message
2 Personal Email
3 Video Email
3 Phone Call w/ Voicemail
3 Text Message
6 Call Attempt
6 Facebook
9 Call Attempt
9 Linked In
12 Call Attempt
12 Twitter
15 Phone Call w/ Voicemail
15 Text Message
15 Personal Email
18 Call Attempt
18 Google+
21 Call Attempt
21 Pinterest
24 Call Attempt
27 Call Attempt
30 Phone Call w/ Voicemail
30 Text Message
30 Personal Email
60 Call / Text / Email
90 Call / Text / Email
120 Call / Text / Email
150 Call / Text / Email
180 Call / Text / Email
270 Call / Text / Email
360 Call / Text / Email

Please let me know what you think about this Action Plan and if you have any comments / suggestions, I would love to hear them!

Comments (35)

Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

While I think this is a great approach in general, I think it's overkill the first few days and I would be so annoyed as a client and never want to work with you.  I think you need to seriously relook at Days 1-3 as it is way too many contacts.

Jul 29, 2014 08:30 PM
Christopher Lotte
eXp Realty - Lithopolis, OH
Central Ohio Real Estate Agent, 614-390-9243

Thank you everybody for the great feedback!.. I know a few of you are thinking that Day 1 is a little agressive.. normally I would agree.. however, I have been researching a lot of the mega teams across the US and disecting their method of lead followup, and one of the consistant themes I am seeing is that 5 min phone, typically by an In House Sales Associate (ISA), and then a few more phone calls later that day... I forgot to mention that in addtion to that action plan I would be putting all leads on an automated home search drip, and probably an email drip as well.. I know a lot of agents often fear being too agressive becaue they don't want to scare the lead off.. however, for every 1 lead you may scare off, you probably picked up 5 addtional clients because you were agressive.. so the benefit of being agressive far outweighs the cost...

Jul 29, 2014 10:02 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Personally, when I get bombarded with too many touches in a couple of days, I start turning off. Yes, respond quickly. Provide some value added information in addition to your introduction. But don't over do it.

Jul 29, 2014 10:42 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

You will have to keep us posted on how it goes.  A good game plan that is executed well can never be a bad thing.

Jul 29, 2014 11:27 PM
Ron Tissier
Chapman Hall Premier Realtors (404) 580-9069 - Atlanta, GA
Defining Homes. Defining Lifestyles.


When you're on the receiving end, how do you handle similar situations from other industries that inundate you with aggressive calls, emails, texts, etc.?  Don't mind them? Turned off by them?

Agree, we all need a follow up plan but such aggressive tactics remind me of the annoying political robo calls during local elections.  People do not like them.  

IMO, if you have not made contact with a prospect by the third or fourth attempt and they continue to ignore your efforts, they're likely not interested.

I do like and use the email drips of listings for prospects to keep me "top of mind" because it's less, "in your face", prospects can reach out to me when they're ready and it works.

Keep us posted on your success.


Jul 30, 2014 12:05 AM
Brad Lauritzen
Santiago Financial, Inc. - Riverside, CA
Manufactured & Mobile Home Lending

I agree with Nina...I don't want to appear to be a stalker but impressed with your research.


Jul 30, 2014 01:26 AM
Raymond Denton
Homesmart / Evergreen Realty - Mission Viejo, CA
Casta del Sol Realtor®

Like you, Christopher, I started by developing lead generating websites for Real Estate Agents.  It was my hobby when I was an Engineer.  And like you, now I'm an Agent, but don't use the leads myself.  I still provide them to other Agents.  One of my communities is Casta del Sol, and all the leads go to an Agent that lives in Casta del Sol.  One reason for our success is because she's tech savy, and very responsive to leads.  Additionally, Open Houses aren't allowed in Casta del Sol, so Consumers must use an Agent to visit the homes for sale.  It's a good combination.

50% of Consumers contacting us via our websites convert into Customers.  The websites are community specific.  The URL contains the name of the community, and we use paid-per-click with google to achieve the first position.  Our target market are Seniors, in 55+ gated communities.  The Senior contacts us, we take them for a tour of the community, and show them some homes.  The tour takes approximately two hours, and the relationship is developed during that two hours.  And we never ask the initial questions I hear so many other Agents here at Activerain ask.  (ie:  have you been pre-approved, are you working with another Agent, etc.)  We don't have to, because they wouldn't be contacting us if they were working with another Agent in Casta del Sol, and most Seniors pay cash, or use a Reverse Mortgage, to purchase the property.

It's been more then 10 years since I've tried this strategy in a non-Senior community, but am preparing to launch a few of those websites too.  It'll be interesting to see how they do.

Jul 30, 2014 03:24 AM
Christine O'Shea
Christine E O'Shea Broker - Naples, FL

Wow, that is truly a lot of reaching out and touching someone!  I think it is a little too much, however, I have not tried it to that extent.

Jul 30, 2014 04:48 AM
Bruce Brockmeier
Internet Marketing Consultant to REALTORS® - Yorba Linda, CA
Coached By Crouch

However, I have also seem some teams / agents converting leads at the 5% rate.. so I know it's possible.. I just need to find a formula that works and would yield those kinds of results..

Good evening Christopher,

Have you asked those teams how they hit 5%?

P.S.  I recommend the 15 Second Rule.  If you respond that quickly, your buyers will never forget you!

Jul 30, 2014 01:30 PM
Bruce Brockmeier
Internet Marketing Consultant to REALTORS® - Yorba Linda, CA
Coached By Crouch

It seems to me that this thread should have a lot more comments!

I'm Subscribing to Comments now.

Jul 30, 2014 01:31 PM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Things are different for me as a lender, but the conversion % range is similar so I'm guessing the approach is similar.  I wouldn't text immediately, because it seems invasive (at least to me, I get bombarded with WAY too many texts that are unsolicited).  Speed of initial response & number of touches are probably the most important factors - when I worked leads I had a conversion rate in the 5-8% range - but many of the conversions were months, and some even years, after the initial lead came through.  Standing out as different is important, too - find what others are doing and DON'T do that.  If there are 10 voicemails, and 9 are the same, the 10th one is going to be the attention grabber.

For me, the trick was learning to understand the source of the lead, and developing a script specific for 'what it came from'.  For example, I'd use a completely different script/approach for one lead source compared to another.

Good luck!  5% with consistency is a tough target to hit with most leads!  Helps if you've got a great CRM and can maintain the occasional contact for months after the lead initially comes in.

Jul 30, 2014 02:23 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Christopher, yes, that's a great plan - and as you admitted, Day 1 is slightly more aggressive, however that is going to be defining the conversion, correct?

Jul 30, 2014 02:56 PM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

It takes a plan. Check.

It is work. Check.

You're working it. Check.

Aug 01, 2014 03:56 PM
Jessica Cates
Jessica Cates Creative - Gilbert, AZ
Real Estate Marketing Expert + Blogger

Do you use Zillow Premier or Trulia Pro? I might have a great resource for you... let me know!

Aug 05, 2014 04:29 AM
Christopher Lotte
eXp Realty - Lithopolis, OH
Central Ohio Real Estate Agent, 614-390-9243

No I don't.. I generate my own leads.. do they have a best practices guide or something?

Aug 05, 2014 04:32 AM
Jessica Cates
Jessica Cates Creative - Gilbert, AZ
Real Estate Marketing Expert + Blogger

No - a 3rd party software. Check it out and let me know if you're interested in a demo!

Aug 05, 2014 10:03 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Corinne Guest hit that nail squarely.... if I followed that list, I would have had to return to teaching!!!  there is no offline marketing my area, and I think in most areas, there is too much emphasis on online marketing to find business....both need to be used...our listings originate from my postcards....period...on occasion, when a homeowner receives several postcards, they WILL go online to see who has the best presence....we win there too.... we focus on listings and in my very humble opinion, that's the name of this game.... listings....if I had to spend all of that time and energy to convert buyers, I'm back to the chemistry lab!!!

Aug 14, 2014 09:09 PM
Christopher Lotte
eXp Realty - Lithopolis, OH
Central Ohio Real Estate Agent, 614-390-9243

Barbara Todaro I appreciate your feedback.. I do agree I do need to ultimately shift my focus to listings and sellers and I have a plan in place for that.. however, I have a goldmine with my website in that I am generating over 11K Unique Visitors per Month to my website which currently translates to 100s of leads per month (I need to work on my traffic to lead conversion as well)... and since I am not paying anything for this traffic and leads, it wouldn't make much sense for me to ignore it and go spend money to only get listings... The key is I am not doing this all myself.. I have a team of Buyers Agents that will be doing the bulk of the heavy lifting once I get the plan tweaked and working the way I want.. If my Buyers Agents are converting at the 5% they will be making over 100K / year income each.. so that is pretty hard to ignore..

Also, I am starting to see some great results from my action plan so far.. I have been importing my old leads into my new sytem and following up on those.. I made 45 calls yesterday, got 1 lead pre-approved, 1 lead already pre-approved showing homes this weekend, and 2 others that will be ready early next year.. so that is a potential 30K of income I made off of just 3 hours worth of calls.. and that was just 45 old leads.. I have 800 more to get to!

So I wouldn't dismiss the plan too much... especially if you're an agent whos focus is Internet Leads (which is who my target audience is for this post).. I am just building my plan off of agents with teams doing 100+ transactions per month in their market.. so I would have to give them and the system a benefit of the doubt for now...

Aug 14, 2014 11:32 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi have your plan in place and the results will be there.... good for wishes from me with it...

Aug 15, 2014 01:03 AM
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

Hi Christopher Lotte checking in to see how your 2015 went and your plans for 2016, and any lessons or best practices you've learned along the way.  

Dec 23, 2015 07:29 AM