Why Lead Conversion Rates are So Low

Every lead I receive pretty much is generated from the internet, and I work with my buyer's agents on what to say, plus I hammer home reality to the prospects who call me, and my conversion rate is averaging around 32% to 35%. That's basically one out of 3, so it's worth it to me. Being not afraid to lay it out there for them is key, I think.

I also don't force registration on my site. If people need to register they will either leave for some other platform or put in false information anyway. I have always found the the really strong leads pick up the phone and call or register without needing to.

I have given it my best with 3 or 4 sources and they were all pretty much the same. The ones you could ever reach were surprised that you thought they were interested in selling or buying. Many were just playing around on the Internet and had no interest. Others would be interested when they got through their bankruptcy or in a few years. The money spent was a waste and I realized I wasn't willing to pay for leads of this quality and then have to nurture them for years. 

Jenna - Certainly quality beats quantity every time for me. No sense in getting hundreds of leads if they are all bogus. I would much rather have a couple legit leads to work.

Jenna Dixon one should work with the 'system' that provides them the best return on investment.

Working by referral by far is the best system that I can think of - no direct mail, no Internet advertising, no sign up for homes when they visit our IDX, no knocking on 'unknown' doors and no calling stressed expired!

Yes, provide them something of value regularly - and they will send referrals!

Just my two cents.

Registration is not required for IDX searches through my site.  Those who are serious buyers or sellers email me through the system, or call.  Most of my marketing is to my sphere and clients.  The majority of my business comes from that marketing.

Quality over Quantity, which nets you not only a better conversion rate, but a much more effective use of your time as well.

Well thought out approach.

Good morning Jenna Dixon . Congratulations on the feature. The Internet is both a blessing and a curse in our business.

Jenna - I agree, not forcing registration is better.  I let my customers self select and they tend to be higher quality.

If I were you, I would also look into strategies that keep customers on your site longer.  That will lead to stronger loyalty and higher conversion.

While I work quite a bit on improving my website (and no forced registration), my business over the years shifted from Internet-driven to referral-based. Over the yeals, my "meals" tab in my business expense have increased tremendously and will continue to do so.
Like you, I believe in building long-last relationships and for me - for the bigger picture. (Hence my latest blog post). 

Don't throw money at RTZ and expect the results you want. The best ROI is to blog, use video, link with a plan in the social media round robin and have the inventory. Inventory is king.

Your marketing is up to you as the local expert. Cover your local beat like no other and be the local authority. Plow the money you fork over for stale lists of leads that just make you spin and stay busy in an unproductive way. Plant those seeds to harvest better results from your own end of the funnel. Don't run everything through RTZ.

Provide your information delivery in a buffet rich of everything for any hour of the day on whatever device the buyer wants to use. No emails, addresses, names or retina scans to get it all. They will be back if they love what you prepared for them... like Grandma's cooking. Hook them with a better online presentation, experience. Treat them like you would want, expect to be treated.

I recently began using a forced registration and my conversions increased dramatically. Website traffic for return users is up and clients that I can call and talk to AND that are ready to buy is up too. I think that the site itself if better than what they are finding elsewhere so they LIKE to use it. Since the content and format are well designed ( thank you to my Tech guy) I get compliments that it is a great site. I think that is super important.  

Yes, there are tons of tire kickers, but I believe that is going to happen even with just someone that picks up the phone and calls for free information.

Some agents act like predators making the business they are in prey food

Jenna, you hit on the reason I quite requiring registrations on my website. So many of the sign-ins were bogus, or useless leads. It ended up being a waste of my time. 

Jenna Dixon - I am in agreement with you. Better to get 1 ready, willing and able lead than hundreds with only a 4% conversion low rate. Good thing takes dedication, persistence and hard work. There are no short cuts in the real estate business.

Jenna. Many excellent points. I like quality over quantity. The responses of so many are so good and interesting. I am looking forward to more of your  posts.   Dave 

Jenna,  You are so right ... the gurus teach agents that it is all about the numbers ... get 100 nos and you are closer to a yes. In the process agents are taught by the gurus to beg ... hound .. and invade privacy to get to people. There is a better way.  So glad to see this Featured.

You are right about not forcing people to register to see listings or keep your content behind a registration wall.

"Experienced" Realtors don't understand the sales pipeline is no longer 3 to 6 months.  It can be 2 to 3 years.  

You need a plan to keep your prospects educated and in touch for when they are ready.

I do have forced registration but I don't "hound" the registrants. Instead they get regular property updates from their saved searches. When they are ready to buy, they call. I find that buyers are happy to provide their real contact info if you provide them something of value as well. My bounce rate is low (under 30%) and my return visitors are high (60%) so I must be doing something right. Interestingly, 90% of my business last year came from the internet. BTW, I don't do any PPC or buy leads. All my leads are generated organically through my website and blogging.

Jenna Dixon 
Isn't vocabulary interesting? One has to define "Lead" - "Client" - "Customer" - "Contact" - in order to have this conversation. Jenna - thanks for brining up this subject! Corinne Guest, Managing Broker reblogged it and added some thought of her own. Great conversation! COngrat's on the FEATURE!!! Lynn