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Do You Know the Cost of 1%? Industry Secrets on Conversion

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Real Estate Technology with realtor.com®

realtor.com value videoAs an industry, we’ve become hyper-focused on lead generation. Brokers, teams and agents invest valuable time and resources on website development, marketing strategies, SEO and systems to capture opportunities generated from online leads. Yet there are so many conditions that need to be met for these leads to result in a sale that as a whole, industry conversion rates hover around 1 to 2%. 

Consider this common dilemma: There are roughly 6 million home sales in the U.S. annually, yet there are approximately 15 million online leads generated. It’s mathematically impossible for all of these leads to convert. As such, many agents are reluctant to put a transaction-ready customer on hold to jump every time an online lead comes in. This only adds to the problem, as frustrated consumers send more inquiries hoping an agent will respond.


Despite these difficulties, 44% of homebuyers manage to find a property they purchase online - and many of them find the agent they transact with on realtor.com®.

A big contributor to this is starting with accurate data. You can’t sell a property that’s not really for sale. But, the ability to respond first and have a meaningful exchange in the critical first five minutes when the consumer is asking for help makes all the difference.

In fact, some agents are reporting that they have cracked the code on conversion and are able to close online leads that are a real struggle for others. 

It is this combination of top-quality leads that are further along in the home-buying process through realtor.com® Connection
SM for Co-Brokerage, innovative systems like FiveStreet that automatically respond to incoming leads within 5 minutes, and powerful lead nurture and management platforms like Top Producer® that allow our customers to report conversion rates in excess of 5%

Learn how you can get 5% conversion rates on your online leads.

 

 

Show All Comments Sort:
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

As an industry we have to always remember real estate runs on a business chassis. Your profit is often your expenses. It is a service industry, in being a little red hen. The "how can I help you" clock ticking for information delivery. On the property listings, the local area they populate.

Leads are fine but not is follow up is missing. Or what you do provide the buyer or seller is skimpy, too general and if looks thrown together with lots of holes in what they need. Well, they flit, find another wearing a different off shade of blazer jacket.

Hey, we have an enhanced realtor dot com site, all the bells, whistles. Had one long struggle getting the enhanced site media package to look professional though. Rolled out before it was ready I was told. And the peel back corner page option, slug among the listings was missing during part of the struggle which surprised the realtor dot com folks we talked to. To find it missing but we were still being charged all the same for the digital page tweak. Finally got the art work done correctly from your end after creating it to your specs and wasting time with the time in photoshop with sizing, etc. And now months later up and running but billing for a missing or faulty product. Not hearing back from bookkeeping for a pro-ration. Buy a product from realtor dot com and Zing... all over getting the credit number. Servicing the agent, broker REALTOR and well, not so hot to trot. Calling realtor dot com again today... but the calls should be going both ways for communication. Not the first to hear having same issues. Happy New Year. 

Dec 29, 2015 02:33 AM
Realtor.com® - A division of Move, Inc.

Hi Andrew Mooers ! You're absolutely right about the importance of follow-up, great input.

I apologize that you had a difficult experience getting the enhanced site media package configured correctly. I am going to have a customer service representative reach out to ensure that these issues are alleviated.

Happy New Year Andrew!

Dec 29, 2015 08:32 AM
Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

You can't do anything if you dont have the right tools and systems to convert these leads into closing, Serious changes will be made in my Real Estate Business come 2016. Thanks for sharing this. Great post.

Dec 29, 2015 08:18 AM
Realtor.com® - A division of Move, Inc.

You're welcome Lanre-"THE REAL ESTATE FARMER" Folayan. 2016 is going to be a great year! Happy New Year!

Dec 29, 2015 08:36 AM
Keith Strawn
www.ExploreBeaufortRealEstate.com (Ballenger Realty) - Beaufort, SC
www.ExploreBeaufortRealEstate.com

Sometimes, I feel so focused on  lead-generation, that it is to the     detriment of the transaction-ready clients. Difficult balancing act, indeed.

Dec 29, 2015 08:11 PM
Realtor.com® - A division of Move, Inc.

A difficult balancing act indeed, Keith Strawn. I wanted to share with you our free guide to managing leads while working with another client. I hope this resource helps stabilize the balancing act. Have a wonderful New Years Keith!
http://marketing.realtor.com/Tips-pdf/?lp=leads

Dec 30, 2015 02:55 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Haven't heard from anyone but we've been waiting since November 4th! When it got a ticket, before it got lost after many calls, being put on hold and promises of getting it resolved. Ouch! Realtor dot com dropped the ball. Not your fault, it is a different person each time promising follow up that is missing. Good luck. You are on cog in a very big, impersonal system. 

Dec 30, 2015 02:51 AM
Kevin Rupp

Hello Andrew Mooers. My name is Kevin Rupp, and I am the Community Media Manager for realtor.com®. I do apologize that you've been waiting since November 4th to hear from someone about the difficulty you've been experiencing.


Many of our Customer Service Representatives and Product Specialists are out of office today and tomorrow for New Year's weekend.


Transparency, communication and accountability are paramount. I would very much like to be the cog that bridges the impersonal gap you've been experiencing.


I currently have limited resources because I too am out of office. However, I would like to help you with the best of my ability. I will ensure that a Product Specialist or Customer Service Representative follows up with you first thing next week.


Happy New Years Andrew!

Dec 31, 2015 05:56 AM
MaryBeth Mills Muldowney
TradeWinds Realty Group LLC - Braintree, MA
Massachusetts Broker Owner

Leads are a vital part of our business and the internet lead is a real plus - my favorite is of course a satisfied Buyer and Seller!

Dec 30, 2015 06:52 AM