We are learning more through our LCA program

[Mitch]

I'm sure I mentioned that a few months ago I changed our format of using our lead coordinator to make our follow up calls versus the first calls. It showed amazing changes immediately. Of course developing which people to call for each agent was probably a factor also.

The program worked so well we hired another LCA. She has been on the job for about two weeks and is contacting usually 3 different buyers per day per Agent, 6 days per week. We matched that with our seasoned LCA and the numbers were spot on. So what we have found with the calling is that our LCA's are able to get hold of 30% of the people they call daily. So what does that mean? It means that our future growth in sales will be based on the amount of calls we make from our LCA. Increase the calls will most likely increase the sales.

Since we started making the follow up calls through the LCA we have averaged around 38 contracts per month, up from 30 contracts per month. It's only been a few months, but it's been interesting to see. Last month we wrote a record high 44 contracts. Interesting I think.

One other note so you don't make the same mistake I made. If an Agent isn't working out now, don't give them the LCA and expect anything better. I had tried that in the past and changed it the beginning of this year. I was giving my LCA the worst five Agents thinking that with her follow up, they would increase their sales. Didn't happen. However, by giving my most successful Agents the LCA, their sales are increasing. Those other Agents no longer even receive leads anymore.

Ok, and one more note. I was talking with my top Agent about the LCA program. She has said that even though it's hard to tell sometimes why the customer converted, she believes that her calls may indirectly bring more buyers to the table. So even if the customer doesn't tell the LCA that they are coming to buy, they might contact the Agent directly. We find that happening often, but I'm not able to measure it. I probably could, but I don't have any desire to micromanage.

It seems to me, and I'm getting closer and closer to pulling the trigger, the more you keep the Agents out of the conversion process, the higher the conversion rate. Dedicated people to develop the leads as the Agents Assistant, and all the Agents job is, is to show property. Even though its still too early too tell, I'm extremely excited about the future of this project. I'm probably hiring my 3rd LCA in the next week or so. I have to see how much money I have left after opening our new office on the Beach this month. It's all fun!

[CarlosAT]

Looking good Mitch. I'm interested in seeing more stats on this as the months go by and after you hire more LCAs. I've always thought that if I had someone dedicated to just follow up my sales would be much higher. I've lost so much business due to lack of follow up even after spending hours showing property.

I do have one question. Which website do you feel is your most successful site and why do you think that is?

[Mitch]

It's been pretty interesting. My main site, www.melbournehomesearch.com is stronger than my other sites, but only because I gear most of my marketing toward landing pages within this site. Why is it successful for me? It has one function for me and only one function, capture leads. Simple is good.

As you mentioned, it's all about the follow up. The other thing, from a Brokers standpoint, is I only have to work with two or three Agents (my LCA's) to help affect 10-15 Agents. Most likely this will make it easier to implement new programs as I move forward and better conversion ideas.

[GregPDX]

Good job Mitch!

Does the LCA make several calls to each lead to qualify them then hand over to the agent? How long of a follow up period are you using? couple weeks of calls? or until the convert?

[Mitch]

One of the problems we have, although it's a good problem, but a problem, is that we have so many leads. Currently we are at over 32,000 leads in the system.

Our LCA's do two things. First, our system notifies the LCA by email who they need to call daily. Those follow ups go out for one year and the frequency is based on buying timeframes.

Second, they are in their Agents database daily to see who has been on the past 24 hours. Since many of my Agents have over 1500 and some 2,000 or more leads, this is the most efficient means of follow up we have come up with so far. Between the two, we should hopefully increase our conversion rates.

Once the LCA gets a date the customer wants to show, the lead is turned over to the Agent.

[CarlosAT]

are the LCA's licensed?

[Mitch]

Absolutely. It's the only way to be effective, at least by our Florida laws. Unlicensed assistants can't talk about Real Estate to customers. Our LCA's need to be licensed and knowledgeable about our area. It's vital.

[CarlosAT]

Makes sense.

Sorry to keep asking but this is very intriguing for me.

What type of personal traits do you look for when hiring an LCA? Why wouldn't they want to rather be your buyer agents if they are so good at follow up? I'm assuming the buyer agents, who just show the properties, make more money than LCAs. Which raises another question, are LCAs paid in commissions or salary?

Those answers will cap it, I promise.

[Mitch]

No problem. Personality and like to talk on the phone. Those are the two traits I look for in my LCA's. Most people in inquire about the job never get an interview. I strictly go by voice appeal. If they don't have that at the beginning it doesn't happen.

Why not let my buyers agents follow up? Unfortunately, even though my Buyer Agents are decent at it, they are far from good or excellent at it. It's almost impossible to do a great job by yourself with over 1500 leads in your system, showing properties and writing and closing deals. I'm looking for effiency. It cost me one deal per LCA per month to pay for their salary. Usually that's not an issue. We close more deals with them than without them.

LCA's are paid salary plus commission. I pay their salaries as the broker and the Agents pay them 5% of the total commission.

And yes, my Agents make more than my LCA's. LCA's last year earned around $45k or so. This year will be more.

I don't mind the questions. I'm always here to help.

[CarlosAT]

wow, great info Mitch. Thanks for sharing!