If you're using lead generation software to instantly create lists of potential new clients, it's time to stop.
Sometimes people use the term "lead generation software" to refer to marketing or customer relationship management software, like REW CRM. That's software that allows you to capture and manage leads from your own site and landing pages, and it's not what I'm talking about in this post.
Instead, this post addresses the type of lead generation software that tempts you into filling out a form or handing over your credit card information, in exchange for an instant pile of leads. Some lead gen software is "free", and some isn't—either way, it's bad news.
While even just one good reason should be enough to deter you from using lead generation software, here's three:
1. Generated Leads Don't Want You
The fastest way to find ice cold leads is to source them from a list of unsuspecting names. Why? Because they didn't want to connect with you.
Imagine how you feel when you get an email from a company you've never heard of, or a telemarketer phones you at home? If you're anything like me, you'll delete the emails, screen the calls, and ultimately never get in touch. And that's the best case scenario.
Most people who want help from a real estate agent will go out and seek it. Whether they look online, in the phone book, or ask a friend, they take the first action when they want to hear from you.
Even then, it's hard enough to convert people who voluntarily hand over their contact info, so why waste your time on leads who didn't want to hear from you in the first place?
2. Generated Leads Don't Trust You
Real estate is all about relationships. When you build a genuine connection with someone, they want to do business with you and they'll do so happily. That's why referrals and networking are so important to the real estate industry.
But when you contact someone out of the blue, you're starting from scratch. In fact, you may even have to rebuild some of the trust you just broke by contacting them in the first place...
Email inboxes and voicemails are sacred places. They're a type of address we give out when we want someone to be able to reach us. When strangers enter one of these addresses without permission, it's a violation. It gets our guard up, we're suspicious, and we're uncomfortable.
Lead nurturing and conversion requires trust, and having someone buy (or source) your private contact info doesn't get your relationship off to the right start—if you're able to build one at all.
3. Generated Leads Are Wasting Your Time
And finally, modern marketing is all about reaching the right person at the right time within the buying cycle. The right time is even more specific than a season or even time of day—it can be a very specific moment.
When we collect leads through search engine marketing, we're connecting with people who are looking up real estate in that very moment. That's when the time is right, and that's when we need to be connecting with leads.
By contrast, generated real estate leads aren't actively looking up homes in that moment. And if someone isn't in the right mindset when they receive your call or email, your message goes straight to the trash.
Lead generation software puts you in touch with leads at the wrong time, and that means it's a complete waste of yours.
The Right Way To Generate Leads
While automated lead generation software is not going to help you or your business, there are lead generation tactics that are effective and lucrative. As a first step, look into search engine marketing strategies like SEO and PPC.
SEM is a phenomenal way to find new leads, and increase your business success. Check out the blog posts below to learn more about it!