Why do so many of you make lead conversion so difficult?

Mitch · 12-21-2008, 05:05 AM

I've been on here now for a few months and put in my two cents when I feel it's needed. Between my Real Estate company, The eHomes Realty Network and my 100MPH Marketing Software just launching I don't have as much time as I would like to follow all the posts. However, every time I come on here I notice multiple people discussing these complicated ways of trying to conquer lead conversion. It's just not that hard. It all comes down to exceptional customer service for every single lead that comes through your pipeline and figuring out which ones are going to buy a home. It may sound daunting, but it's really simple.

I'm going to give you the very basics here of what you need to do. Our system now has more involved drips for different categories, but for 7 years prior to launching our software, we used a very simple easy to implement system that converts at around 4-5%...even in this bad real estate market.

I think one of the problems for many is the lack of patience. It takes a good 4-6 months of building your database and following a system to start getting results. I had a new member to my Network two weeks ago who has received about 30 leads since joining. He is having issues because he hasn't shown any property yet. I have had a couple others who have received less than 15 leads in a month and can't figure out why they aren't selling any homes yet or why they can't get hold of their leads. Keep in mind that the average internet lead does not convert to a sale for around 6 months. We don't start looking at our stats for new agents until they have been working the system for 6 months. Our Agents receive about 40-60 leads per month each. Once they are rolling for 6 months, we expect at least a 1 out of 50 conversion rate for their first year (most are doing around 1 out of 40). After that the conversion number becomes stronger for two reasons. One they have more leads in their pipeline and two they become stronger in follow up and being a Realtor. Almost all of our second year Agents are converting at 1 sale out of 20-25 leads. The ones who are not, are trying to reinvent our system and now have been cut off from leads until after the first of the year and I reevaluate their status with my company.

Of course I can't give away our step by step process for everything on here as it wouldn't be fair to my members who have joined the Network. But, I want to give you a couple of drip ideas that work and are very simple to use by just using Microsoft Outlook if you don't have a drip system.

1. Make sure you call every single lead, leave messages and call at least 4 times before just putting them in your drip system. If they don't answer twice during the time you are calling, then try calling them in the opposite time frame.

2. Send a monthly newsletter along with links to your listings and your search page. Always encourage them to use your site in the newsletter.

3. Every 6 weeks send them an email that reads just like this:

Hi (customer)!

I just wanted to check in to make sure you are getting my updates. If you have any questions at all, please feel free to contact me as I am always here to help. Keep in mind I can show you any home in the area.

I look forward to helping you!

(your name)

Some of the drips I have seen written on here and as well as some of the first emails are killing your conversions. A drip needs to be very relevenant and it must be a paragraph at most. I received one the other day that read like a book. They lost me at hello.

I don't want to pretend that I know everything about lead conversion or Internet marketing or whatever. I do know that I have been perfecting this system for almost 8 years now and our closed transactions have grown each year. I opened my Brokerage in 2005 (arguably the worst possible time) and within our second year became the number 1 brokerage out of 500 offices in buyer transactions in our county. And believe me, being in Brevard County (Melbourne and Cocoa Beach area) has been no picnic as we are considered one of the worst hit markets in the country.

I don't tell you this to brag about how good I am and I hope you don't take it this way. Everyone on here is paying a lot of money for your websites and most of the people I talk to are doing a decent job on capturing leads. I just want you to maximize your dollars. If you just make the small changes I suggested above, you will see an increase in sales. It's not going to happen overnight. It's an investment in time and money. That's what building a business is all about. I don't care if you follow my system or someone elses system...it's about sticking with it and riding it out. The Internet is not a get rich quick scheme. However it's a huge business building opportunity.

Just remember one thing....keep it simple.

As always, I'm always available to help you guys and gals with any questions. Those of you who know me know that I do what I do because I love teaching this stuff and I love helping Agents and Brokers get it. I spent a lot of time and money to figure it out. I also hope you don't look at this as self promotion because that wasn't my intent with this post. I just want you to try thinking simple and don't complicate the matter so much. I know you all have it in you to be excellent at conversion and I hope to keep watching your posts over the next few months as more and more of you realize that it can actually be fun to watch the business roll in!

Micheal Pannell Realtor · 12-21-2008, 08:15 AM

Great Post, GUY & Gals it works. My Oldest Realtor ( My Mother) Has 6 Contract for the Next Year Already. She is 66 and one of my top producers. She will sell 24 to 30 next year. It is her Third Year in the Business. She did 18 this year.

MikeNY · 12-21-2008, 10:16 AM

Mitch, care to share your phone script? Lets say a lead signed into the IDX search and you get the new IDX user notifcation (or however your leads come in), what is the next step you do? Thanks.

Micheal Pannell Realtor · 12-21-2008, 10:19 AM

Mitch doesnt like scripts. It is more about being personal. Dont sound like a computer. He does have some example of some but i am sure you will have to join our group to see them.

Mitch · 12-21-2008, 10:26 AM

Thanks Mike, Yeah, I'm not a big fan of scripts. I put a couple on the site that are very basic because a few of our members wanted them. The key to success with any phone work is being yourself. As much as some people think they need a script, it's just a safety net. Instead, write yourself a guideline that helps you cover the points you want to cover. In a past life I used to open telemarketing centers for companies. The first thing I did was have everyone pick up their scripts, tear them up, and throw them into a pile to get rid of them! It was a very freeing experience for them and they always did much better with production. Of course the owners of the companies were not ever very happy with me at the beginning as they spent a ton of money having these developed.

All you need to do is create a list of talking points to make sure you cover them. For instance, the first call all you are really trying to find out is if their search criteria is solid so you can send them listings and what is their motivation and time frame for buying. That allows you to stick them into a follow up system.

Justin Havre · 12-21-2008, 04:56 PM

Great post Mitch.

Converting leads into transactions is an Art and something we will always learn from what didn't work and what did work. I find that a quick phone call to the lead works great and people respond to it. No scripts, just a personal hello and welcome to our site conversation.

Mitch · 12-21-2008, 06:25 PM

Justin, that's 90% of the battle. As soon as you sound like a salesperson you might as well throw the lead away. Consumers are much to smart. They are only looking for guidance and listings until they decide it's time to take the relationship to the showing homes stage. We are positioned excellent right now for the market comeback. Our average Agent is showing 8 different buyers per month. Currently we are only selling 1.5 homes per agent per month, but we know that will turn into 3-4 sales per month once we get any type of rebound. I'm keeping my fingers crossed we see this in 2009!

Cleo · 12-22-2008, 12:55 AM

1 out of 20 would be great. I try to be as honest as possible with my buyers - not like a salesman as you sugsested, but dealing with mostly all foreign/non English speaking buyers it is a bit difficult to relate at times. If you have any pointers on that please let me know.

jen.bas · 12-22-2008, 01:26 PM

Yes, it's important to gain trust from your clients, giving them sugar coated deals won't do any good.. Thanks for the tips here!

RussReynolds · 01-13-2009, 08:14 PM

Patience and following a proven system will outweigh a good script anytime.

The key to marketing is consistency.

Great post, thanks.

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