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

By
Real Estate Agent with Red 1 Realty 2012003089
https://activerain.com/droplet/4lhy

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!

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Rainmaker
2,938,465
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill 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 #17
Rainmaker
1,109,329
Paula McDonald
Magnolia Realty ~ Granbury - Granbury, TX
Magnolia Realty ~ 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 #18
Rainmaker
306,849
Ron Tissier
Chapman Hall Premier Realtors (404) 580-9069 - Atlanta, GA
Defining Homes. Defining Lifestyles.

Christopher,

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.

Cheers! 

Jul 30, 2014 12:05 AM #19
Rainer
140,049
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 #20
Rainer
330,896
Raymond Denton
Homesmart / Evergreen Realty - Lake Forest, CA
Foothill Ranch Specialist

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 #21
Rainmaker
645,623
Christine OShea
Christine E O'Shea Real Estate 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 #22
Rainmaker
381,063
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 #23
Rainmaker
381,063
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 #24
Ambassador
879,765
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, 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 #25
Ambassador
4,297,836
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 #26
Rainmaker
994,345
Corinne Guest
Corinne Guest, Realtor | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

I have said it before and I'll say it again, know your market. If I did your plan my conversion would be zero! Folks around here hate the typical Realtor follow up plans and the spammy no value canned emails. If they want something they ask! Real estate is local and real estate clients follow local trends too.

Jul 30, 2014 10:31 PM #27
Rainmaker
585,683
Claude Labbe
Real Living | At Home - 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 #28
Rainer
81,217
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 #29
Rainmaker
971,601
Christopher Lotte
Red 1 Realty - Lithopolis, OH
Central Ohio Realtor, 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 #30
Rainer
81,217
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! http://zurple.com/how-it-works/the-zurple-process

Aug 05, 2014 10:03 AM #31
Rainmaker
4,832,161
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Christopher....wow.... Corinne Guest hit that nail squarely.... if I followed that list, I would have had to return to teaching!!!  there is no offline marketing there...in 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 #32
Rainmaker
971,601
Christopher Lotte
Red 1 Realty - Lithopolis, OH
Central Ohio Realtor, 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 #33
Rainmaker
4,832,161
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

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

Aug 15, 2014 01:03 AM #34
Rainmaker
210,939
Joy Bender
Compass - La Jolla, CA
San Diego Partner - The Private Client Team

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 #35
Rainer
1,175
jolina mcconaughey
TRUE DISSERTATION - Junior, WV

By and by, when I get assaulted with an excessive number of touches in several days, I begin killing. Indeed, react rapidly. Give some esteem added data notwithstanding your presentation. In any case, don't over do it. Buy a Dissertation

Jan 19, 2018 11:23 PM #36
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Christopher Lotte

Central Ohio Realtor, 614-390-9243
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