Why Lead Conversion Rates are So Low

Reblogger Jill Watts
Real Estate Agent with Realty Pro, Inc. #96851
Thank you  for this great blog about getting leads. The average buyers/sellers do not understand that realtors work without pay for many months sometimes. Your blog explains sucinctly how it takes so much work to find a true buyer or seller because they sometimes have unrealistic expectations like, "closing within 30 days because their apartment lease is up!"
Original content by Jenna Dixon GA BrokersLicense# 277342

There is a wealth of information available via the Internet to prospective home buyers and sellers around Real estate lead conversionthe country.

Unfortunately, that wealth consists mostly of fool's gold.  

The ZRT portals feed the consumer false information about property values either directly through their faulty home valuation tools or indirectly by supplying outdated listing information.

Of course, there are the real estate gurus and hucksters to contend with that prey on the desperate, uneducated and credit challenged.  Promises of loans for basement level credit scores, no money down or down payment assistance, rent to own schemes and so much more.

When these "prospects" finally stumble upon their local real estate expert they are so clouded by false claims and mis-information they are nearly impossible to convert into bonafide buyer or sellers.

What is the local expert to do?

How do we communicate effectively with consumers when presenting information that conflicts with what they think they already KNOW?

The conversation always starts out the same...

Generic seller: "I'm ready to list my home for sale, I want to list it for and I need to sell it in "

Generic buyer:  "I'm ready to buy a new home, I recently filed for bankruptcy and I have no money down. I want a 4 bedroom home in and I want to pay no more than .  I need a great loan officer because I also need to close in 3o days or less because my apartment lease is expiring."

I'm not trying to be a "NEGATIVE NELLY", this is only an attempt to understand why our lead conversion rates are so low, 1% on the bottom to the stellar conversion rate of 4% with an average incubation period of 6-18 months.  Whether they are leads generated & captured online through our own marketing efforts or some form of purchased web lead through ZRT the results are about the same.

One approach that I have taken in an effort to overcome this issue of low conversion is to stop forcing registration on my site for information that the public wants.  

I don't need to capture a host of contact names, phone numbers and email addresses (40% of which are bogus in the first place) of people that I am going to have to endlessly chase down in hopes of converting them to an actual client.

I provide excellent local content for the areas that I service and valuable information on the niche markets that I serve.  I promote local businesses, review local restaurants and share information on local news and events.  I interact with my community via social media outlets such as Facebook groups, YouTube, Google+ and, of course, ActiveRain.  

Cobb County Real Estate HotlineI don't buy leads but I do buy a lot of postage and I generate valuable responses through my targeted direct mail campaigns.

I stay in touch with past clients and customers through email and phone conversations but I don't have them on an email drip campaign that bombards them with weekly or monthly contacts.  

My goal, above all, is to have my phone ring.  

I want consumers who are READY WILLING AND ABLE to participate in the market, who have determined that, based on my online presence, I am the person that they want to work with, that I am someone that they can trust and that I am someone who understands my local market area.

I may not generate 100 leads a week but the ones that I do generate are much more valuable to me than any 4% conversion rate!

Share your best advice for lead conversion...

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Jenna Dixon
Associate Broker
DRA Homes

Buy Cobb County Homes
JennaDixon@Outlook.com
(770) 374-4230

Fair Housing Act

DRA Homes - An affiliate of Maximum One Greater Atlanta Realty
5041 Dallas Highway, Suite 700, Powder Springs, GA 30127
Office Phone: 770-919-8825 ext. 318

 

 

 

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Rainmaker
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Jenna Dixon
DRA Homes | Cobb County Real Estate - Marietta, GA
Empowers You With a Better Real Estate Experience

Thank you for the compliment and the re-blog, Jill!

Jan 23, 2016 10:29 AM #1
Rainmaker
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Peter Mohylsky
PrimeSouth Properties - Santa Rosa Beach, FL
Let me help you find your path to the beach.

Thanks for the reblog

Jan 23, 2016 11:27 AM #2
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jill - Thanks for sharing this in a re-blog. Jenna makes a great point about quality over quantity when it comes to leads.

Jan 23, 2016 01:49 PM #3
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Jill Watts

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