The Touch Stone: How Hunting "Hot" Leads Is Bad For Business

Have you trained your brain to shoot yourself in the foot???

Let's start with a little story........

As a young boy, Tan had always heard of stories handed down by his father and his father's father of a magical rock that, when held by someone, would grant them any wish. It was called a 'touch stone'. (A person would know they found the touch stone because the stone would be smooth and round...like a ball...and warm to the touch.) And, as luck would have it, it was said to be along the shore of a small lake near the village that Tan grew up in...

After hearing these stories for his entire life, Tan decided he was going to make it his mission to find this magical 'touch stone'. So, he started walking around the lake. Every stone he saw, he would pick up, feel it for warmth and visually inspect it for shape. If the stone didn't adhere to the physical attributes that Tan wanted, he would pitch the stone into the lake so he didn't have to worry about having to check it again. Over time, Tan had convinced himself that he knew instantly if a stone he had grabbed was the mythical touch stone or not and would immediately hurl the stone into the lake.

Days; Weeks; Months went by and Tan had cleared thousands of stones from the shore of the lake....picking up each one and then pitching it into the lake.

Finally, one one cold morning, Tan grabbed a stone that was warm to the touch. And the stone was round like a ball. And, at that moment......Tan pitched it into the lake.

(Pause for reflection)

The moral of the story???  Treat every stone like it is a 'touch' stone.

Let me explain...

If Tan had gone about his quest with the idea that every stone that came across his hands was the touch stone, he would have known immediately that he had found the stone when he came across it. Instead, Tan had trained himself into thinking that every stone he found was not the one he wanted...and by pure instinct and practice, threw them all away...including the one he really wanted.

According to NAR, only 7% of ALL clients that indicate they want to buy a home actually are interested in buying right now....a "HOT" lead, in other words. (In case your math skills are lacking...that means that 93% of ALL clients are going to be buying or selling outside of 30 days!!) And, that is also true for internet leads. NAR also states that less than half of all internet leads are actually contacted by an agent.

Agents have to re-learn. Agents have to re-group. Agents have to retrain themselves.

Instead of viewing every internet lead like a rock...treat it like gold. Treat it like a touch stone. Treat every lead like it is the best lead you have ever had. Follow up with the client diligently, timely, and with respect. Give them the information they require when they require it and work hard to make yourself THE resource that the lead thinks of when they need something. Do this every time. Without fail. Every time.

Why would you do this, you ask? Why would you spend so much time working on something that might take months to get to a closing rather than looking for something that will close in a shorter amount of time??

Well...aside from just being good business, the main reason is to train yourself...to train your mental and physical reactions so that, when you do grab that ball-shaped stone that is warm to the touch, you don't automatically toss it into the lake because that is all you know to do with it...because that is all you have practiced. It is all you know.

Make sense yet???

 

If you would like more information on how RECR can help you find that touch stone, please contact Clint at 800-977-7058. Or, fan us on Facebook. And, if you are on Twitter, you can connect with Clint there also.

87 commentsClint Miller • June 22 2010 09:03AM

Comments

Very good point and all agents should read this. They often get discouraged when a lead does not immediately make them money

Posted by Charlie- All Mountain Realty 2 months ago

Charlie -- I had to edit this comment....First off....Thank you so much for the kind words. Much appreciated!!

In my industry, we see this hundreds of times a day. Agents want something that closes right now. (Doesnt everyone???) And, by constantly seeking that one golden egg, they break dozens of perfectly good ones along the way...

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Eggscellent advice, Mr. Miller! It is so difficult to remember that lead management controls our income. 

Posted by Debbie McBee 2 months ago

Debbie -- Thank you very much! :-) And yes...without leads, you really have nothing in this industry. Literally. Managing the ones that you have is KEY to success on just about every level.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

I have buyer leads in my search program that started looking over six months ago.   I check in with them to see if they have seen anything that interests them and every now and again one of them "warms up" and turns into a an active buyer client.  It doesn't take that much time for me to stay in touch with them and it lets them know that even if they aren't ready today, they still "count" to me.

Posted by Lesley Lambert (413-575-3611) Real Estate Agent,Realtor,Westfield, MA, (Park Square Realty serving Western MA) 2 months ago

Lesley -- Exactly how it is supposed to work. And, I am better, by doing this on a regular basis, you have increased your income, knowledge base, and client base in the process. Awesome testiment to how working your leads properly can lead to deals. How much money would you be leaving on the table without this practice in place???

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago
not that my little 2cents maters, but I agree. As a newer agent I hear about  dropped leads alot, s**t, give em 2 me, I'll help them. Some companies even teach new agents to ignore or refer clients that are 90 days out. Why? Think of the referrals youre missing. They may not be ready yet, but maybe their friends/family are. Alot of opportunity missed.
Posted by Kelli Spangenthal 2 months ago

When I was with a smaller but very active mortgage banker my job was (and still is) to generate leads for the company. I expected the lead to close ratio to be somewhere between 2% and 3% within 30 days, 5% and 7% within 60 days and 10% within 180 days. I mean nobody, anywhere, doing any volume, closes 100% of their leads in the first 60 days (in the mortgage and real estate business). Anyone who closed 3 deals out of 100 leads in 1 month definitely got first look at the leads next month. Sure, you'll have people tell you that number is low but the facts are the facts. If purchasing those leads from a lead source I would pay around $2,500 to $3,500 for 100 unverified leads. With 3 deals closed I would be "just breaking even" but my originators would be doing okay. We meticulously tracked leads so we knew exactly where they came from, who all engaged them, how long the process required and details of the final result.

It's all about expectations and realistic views. Heck, if 100% were the rule I would run an ad in every Sunday paper in the nation. If every person who read the ad (a cost to me) and called me I'd be loaning money to Bill Gates and Steve Jobs.

Posted by Ken Cook, 678-439-8683 2 months ago

Clint - This is your favorite topic to blog about...for obvious reasons I suppose.  The parable that you start with is easy to understand, especially when you combine it with all the self-help types out there drilling it into our heads that you need repetition to make something a habit.  Even though I know you and we've discussed this issue a million times over, I admit, I'm still not always consistent with it.  Unfortunately for agents, we tend to forget the little things too often.  We can change that, but I find that we (including myself), don't remind ourselves often enough of what we want to change and how we are going to change it.

I think you're great at giving us those reminders, but as a friend, client, and reader of your blog, I have an idea.  Why don't you write a post about followup - not to do it, but a solid plan for how to do it.  I think you'd be able to come up with one hell of a plan.  Don't make it too generic or people will say "oh that's easy" and then never do it.  Give your readers actionable steps and I think you could be on a path to writing an epic post that people need.

Ben Kinney wrote some great steps in his ebook, Soci@l, I thought.  His idea of 10 days of pain spoke to me on a personal level that made me rethink some of what I was doing.  Now, of course, I need to make it habit instead of just a good idea.  That's what I envision you writing.  You're honest, upfront style will speak to people and your knowledge of the how to will be quality I'm sure.

Even if you never write that post, I definitely got something out of this one...so keep it up.

Posted by Matt Stigliano (RE/MAX Access (210) 646-HOME) 2 months ago

Kelli -- I would whole heatedly agree...a lot of opportunity missed. And, you mentioning that people are teaching others how to NOT follow up is just irritating to me. Shame on them and anyone that is allowing them to continue on that road.

Ken -- The thing that amazes me the most is how few people realize the magnitude of tracking their leads and following up diligently. If people are in this as a business, it needs to be treated as such and tracked just like any other form of inventory. Your leads are your inventory. And, just as with any inventory, it has to be rotated, checked for quality, culled out, and protected from theft and spoilage. It's a constant thing, not a one time thing....or even one time a week thing...

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Matt -- I love that story. It really rings true to setting up POSTIVIE practices rather than expecting negative results and basing your actions on that. If you go to every game thinking you are going to lose, why practice at all, right??

Wanting to change and actually taking the steps to advancing that change are two entirely different things. I was once taught that you should write down your goals...physically write them down on a card. And, the reason was simple....it was the very first thing you did to move toward that goal....the first physical step you took to get there.

I will work on that idea for that post for you. I think you are on to something there and I might be able to pull that off......

Thanks again for the insightful comment and friendship. Happy to have you around, Matt. ;-)

 

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Smack me in the face!  When I first started working internet leads I treated each one like gold.  As time has passed I am now looking for immediate gratification.  You are right, the key to success is a lead management system.  Clearly, I need one.

Posted by carolynn santaniello (Seven Gables Real Estate) 2 months ago

Morning Clint,  Another very well thought out and presented post.  Pretty well defines the difference between " short term " &  " lang term " agents !

Posted by Bill Gillhespy Fort Myers Beach Realtor (Century 21 Tripower Realty) 2 months ago

I have pushed IDX solutions for lead generation for the last 3 or 4 years. To say patience is reuqired is an understatement. We expect that many will be a year off or more in some cases but how you handle the intial sign up is extremely important, and trampling them with emails, phone calls, and pusing them is I believe counterproductive. I always liked the fact theat walmart always believed that when you walk in a sotre someone says welcome without pointing you to a sales rack.

Posted by Joe Pryor.com REALTOR® Oklahoma Investment Properties (Redbud Realty) 2 months ago

Good things rarely happen in an iinstant..good things take time, effort and patience. Thanks for the reminder, and your writing drew me right in.

Posted by suzanne welch (Coldwell Banker) 2 months ago

Great post! Loved the analogy!  All agents should read this and I'm emailing the link momentarily to get it out to ours nationwide!

Posted by Michelle Gardner (Advance Realty USA) 2 months ago

Great Post.  I work with a lot of first time buyer who first of all do not really understand the process, second need to the brought through the process slowly.  I has taken me up to 2 years with some clients to find the home they wanted.  But it was worth it!

Posted by Lesley Wagstaff - For Real Estate and Mortgages (Re/Max Results Realty in Vancouver, BC) 2 months ago

Comments # 8 & 9, bring up some good points. I know that my pipeline has been affected by not being consistant and persistant.

Posted by Lorraine or Loretta Kratz-Certified Negotiation Consultants (Crescent Moon Realty, Inc. & Land N Sea Auctions.) 2 months ago

Right on.  This article I think is about the exact same differnce in apporach: sales is about relationships,, that only start with a lead:

http://www.associatedcontent.com/article/5511920/free_auto_consignment_com_a_new_attitude.html?cat=27

Posted by Israel Rothman (SocialMediaSystems.com) 2 months ago

I agree. Follow up is the key to success. So many folks give up after a call or two and move on. Work what you have and the new stuff - you will succeed.

Posted by Nicholas Goraczkowski - Your Mortgage Resource (720) 83-RATES 2 months ago

Great article Clint. It's a refresher that a lot of us probably needed.

Posted by Michael Bertoldi (@Homes Realty Group) 2 months ago

Carolynn -- LOL! Didnt mean to...sorta. ;-) Lead management is the key to success. Every lead is gold. Without them, you are out of a job. ;-)

Bill -- Thank you very much, my friend. Glad you enjoyed the post.

Joe -- I completely agree. Good Walmart reference in there...might use that in a post somewhere. ;-)

Suzanne -- Thank you so much for the kind words on the writing. ;-) I dont consider myself a good writer, so to hear that is very re-assuring.

Michelle -- Thank you so much!! Very happy you liked the post that much...And, thank you so much for the emailing the linkage. Very appreciated!!

Lesley -- And, the 'worth it' part is the part everyone needs to remember. Prime example...thank you.

Lorraine -- Tenacity is the measure of success with lead management. You have to be tenacious with your follow-up in order to reap a huge reward from your lead generation efforts.

Isreal -- good article. I like it, so I will keep the link active. Thanks!

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Nicholas -- Yes. Yes it is. And you are dead on right there...and how much money are they giving up in the process???

Michael -- Thanks! Glad you liked it.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Fantastic story...you could create a book of little tales like these just for agents :-) This was just the inspiration I needed today...thank you.

Posted by Shannon Lewis, Realtor® Champaign-Urbana Homes (Prudential Landmark Real Estate) 2 months ago

Shannon -- Thank you so much! I am happy that you liked the post as much as you did. And, Im always happy when I can inspire people to be better than they are....;-) Let me know anytime you need it..LOL! :-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

I think that it is especially important for those of us that are Generation X and Y.  We are used to instant gratification so of course your buyers are too!  Keeping up with them in a non-intrusive way is difficult and can be time consuming.  But consistent follow up is key.  I cannot count how many times someone told me that they decided to wait until "next spring" only to have them call me a month later because of an email that I sent about the market and the low interest rates.  Giving them timely information is the only way to stay on their radar.  Great post!

Keep smiling,

Karen

Posted by Karen Feltman (Skogman Realty) 2 months ago

I think one reason I have been so successful is that I have always given attention to what is in front of me.  I answer questions, get details and deal with what is on the plate before looking for seconds.  The payoff is that I always have buyers, some take longer to get to contract.  Case in point, UC this week from a web customer from 2006. Two new lisitngs this month and  I am taking another listing this weekend from a past client.  It is not all about beating the bushes, sometimes it is just being available.  cw

Posted by Cheryl Willis, MO BROKER Mt Vernon, Monett, Aurora, Barry & Lawrence Co. (RE/MAX Solutions- OZARK MISSOURI) 2 months ago

Karen -- That's actually a really valid point. In this world of "get what you want and get it right now", it is important to realize that a good majority of life does not operate that way. It needs to be approached less like getting a burger at a drive-thru and more like tending a garden and then reaping a harvest. :-)

 

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

That's a memorable analogy.  I bet a lot of potential clients feel like they are being thrown into a cold lake of lousy leads when we respond without enthusiasm for their business.

Posted by David Gabris (Lyon Real Estate) 2 months ago

Cheryl -- But, that is how it is supposed to work! You're doing a great job and an awesome service to your clients....even those that havent spent money yet....or decided to spend money yet. Great job!

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Great points. These leads are money in the bank. Everyone of them should be contacted promptly and treated like gold.

Posted by Erik Elsea-Jones & Co. Realty 2 months ago

David -- Yeah, it was for me also....I heard it the first time when I was a little kid in baseball practice. And, you have a valid point. I bet they do...

Erik -- That is exactly right...they are money in the bank. And should be treated as such...excellent points. And, you are drinkin my kinda Kool-Aid, my friend. ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Clint, your post makes perfect sense to me. Here's why:

Relationship building. Establishing rapport with that customer so that they will become your client.

The problem I see is that, unfortunately, the need for immediate results. In other words, if I don't close this buyer/seller and make the sale, my house goes into foreclosure, my car repossessed, my children starve, I lose all of the luxuries to which I've become accustomed.

Not to get into that debate, but it is the saving grace of "part-time" agents..who recognize it and are willing to work their butts off to build those relationships...because they can afford to spend that time doing so.

Posted by William James Walton, Sr. Greater Waterbury Real Estate (Century21 Access America) 2 months ago

Clint - I had to read all the way to the end but I finally got it. Sometimes people have a hard time if they don't see instant gratification.

Posted by Mike Saunders - Athens, Ga & Surrounding Communities (Keller Williams Realty - Greater Athens) 2 months ago

My first broker told me, "Stick with em' till they buy or they die."  Still good advice.

Posted by Margaret Goss, Realtor Winnetka & North Shore Real Estate (Baird & Warner) 2 months ago

William -- That is what this business is about....establishing a rapport. Being the expert. Being the top-of-mind choice when a client needs something. Do that, you will never fail.

Mike -- :-) Yes, it hard. But, nothing in life is worth having if you dont have work for it, right? ;-)

Margaret -- I think I love your first broker. ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

One of the things that I have noticed with ActiveRain is that clients seem to find us much sooner than the ones who come from other sources. (Referrals, sign calls, etc.) They are the ones who tend to fall into a 'long term" plan and need follow up and nurturing until they buy.

I end up with alot of out of state leads who fit this profile.I have closed deals for buyers who originally contacted me a year before the sale. I think that it is well worth the time to touch base with them on a monthly schedule.

Posted by Mark Hall Vancouver Washington Real Estate (Elite Realty NW - Keller Williams, Vancouver Washington) 2 months ago

Mark -- I completely agree with you. I have sales with agents I have met on AR two...three years ago that have come through this year. Leads are leads the world around...and sticking with them is what can make or break you in good or bad times.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Clint. thats a great story. The number that is amazing is that 50% of the Internet leads are not contacted.

Posted by Ted Tyndall- FL Homes for Sale-Palencia, World Golf Village,Nocatee,St. Augustine (Davidson Realty Inc.) 2 months ago

Hello Clint,

Excellent story and how true to our industry.  So many times I get focused on the "here and now" in the daily tasks that I forget to treat each call like a long term relationship.  It's good to read posts like this to help you refocus.  Thanks!

Posted by Jason M. Keith (WR Starkey Mortgage) 2 months ago

Clint - Love this one, dude.  I have tried to preach this concept for years, but agents are easily discouraged when they don't get immediate results.  This probably stems from our society at large, and the instant gratification we can get from food, technology, etc.

Posted by Jason Crouch, Broker - Austin Texas Real Estate (512-796-7653) (Austin Texas Homes, LLC) 2 months ago

Well you know where I stand on this. Very few people are ready when you first CALL.

Most agents give UP.

The problem isn't the amount of leads it is the follow up.

Posted by Missy Caulk-Ann Arbor-Realtor® Ann Arbor Real Estate (Keller Williams-Ann Arbor) 2 months ago

Clint,

Real estate is not a get rich quick scheme and clients should not be treated as such.  We should always have the pipeline filled with clients in different stages of the buy/sell cycle for a long term sucess strategy.

Marcy

Posted by Marcy Moyer (Keller Williams Realty Palo Alto Probate & Trust Specialist) 2 months ago

I have put many people into my drip system who stay there for months or years before they're finally ready to do anything.

Posted by Christine Donovan Costa Mesa Real Estate Broker/Attorney 800-610-7253 DRE01267479 (Donovan Blatt Team - Donovan Group Realty) 2 months ago

Ted -- Yeah...I got that stat from a NAR report from last year. Craziness for sure.

Jason K. -- My pleasure! Happy that you found the post useful.

Jason C. -- It's almost like I know what Im doing, huh? LOL! Yeah, I completely blame McDonalds for this...

Missy -- Amen....Preach on, Sistah! :-)

Marcy -- No...No it isnt. And, you are absolutely correct on that statement.

Christine -- And that is the whole idea behind lead MANAGEMENT versus lead GENERATION. Anyone can get leads. It is what you do with them from that point on that is important.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

This is absolutely correct!  I have fallen into this self defeting mentality only to find that the "not so hot leads" close with someone else.  So I am consistently pushing and calling the old leads while trying to balance the new ones, but its the only way to have a steady pipeline. 

Thanks for the great article!!

Posted by Phil Stevenson - Reverse Mortgage Expert (Mortgage Bankers of Florida) 2 months ago

Phil -- Glad you liked the post! And you are right....the ones that dont close right away, if left to their own devices...will close...with someone else. :-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Very good article and oh so true.

Posted by Keller Williams - 512.669.5599 2 months ago

Nicely put. It makes a lot of sense.

Posted by Bruce Swedal = Denver Real Estate (Re/Max Southeast, Inc.) 2 months ago

Don -- Thank you so much!

Bruce -- I appreciate that. Thank you.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Good Advice.  I had heard the statistic about the lack of lead follow up from agents and I always ask myself "Why"?? Made no sense to me.  Any lead is a good lead.  

Posted by Catherine Condon (Integrity Residential Brokerage) 2 months ago

Catherine -- I agree. All leads are good leads until proven otherwise. And, the only way you can prove they arent good is to work them until you figure that out. :-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Clint- Great Reinforcement- I have been working internet leads since 2006 and it is now accounting for over half of my business- The most difficult part is consistent follow-up- am still trying to get a handle on that- I actually enjoy calling leads as it is a warm call since they have come to my web site and signed in-  A lot more work but so is our industry today!

Posted by Margo Marshall (Re/Max Specialists) 2 months ago

Truth: I have ran across 1000's of Realtor's in my time and only about 15% of them have a Lead retention program like ACT: Top Producer or anything else that might work to keep in touch with their clients- until they buy and afterwords.

You have a Goldmine with the IDX system, but Gosh forbid pay $50.00 to $99 a month to grow your business!

Guess what- those 15% always seem to be the Top Producers!

Having Internet Leads with out a touch system to stay in touch with them is like having a boat with out a lake!

Good Post!

Posted by Ben Yost (Castle & Cooke Mortgage) 2 months ago

Margo -- Thanks! The industry as a whole is hard, you are right...and it makes it even more important to work every lead you get...every one is a potential sale. And, it needs to be thought of that way rather than it being hard work or a waste of time.

Ben -- I love ACT! I used to use their old program GOLDMINE a lifetime ago...great stuff. Good analogy with the boat on a dry lake...excellent point.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

So true. A great example was an internet lead I received several years ago - it was just a name and an email address, and an odd one at that. I followed up with that person for 2 years, often wondering if there was a real person behind the email address. However, after that 2 year period, the "prospect" called me (her family had been living out of the country for that 2 year period) - I listed their house for $625,000, and found them their move up home for $1,350,000!!

Posted by Tricia La Motte - Santa Clarita Real Estate (Keller Williams VIP Properties) 2 months ago

Tricia -- Wowzers!! You should write a blog post about this and use this example as proof that lead follow up is valid and important. Amazing work on your behalf...good job!

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

You have to work them...and training yourself is exactly right...every mistake you make you have to make a mental note and do better with every call til you have it down to a science...I have a system now and seldom get off the phone and feel like I failed at the opportunity...try this, when a lead calls from, say, realtor.com, and wants to see one of your listings, make the appt and bring a fistful of similar listings and, if possible, even try to have it set-up to go thru some of them on the fly (maybe an empty REO or SS)...worst case see if you can get a drive-by out of them and if they like it they'll schedule a showing from there...I do this every time and once you start trucking around with them and getting them into homes they didn't plan on seeing...you'll own them.

Posted by John Zappia (Johnson Realty) 2 months ago

Good point.  Sticking with someone occasionally and differentiating between a hot lead and a future buyer is a good way to run your business.  We have to stay connected so that the next time we are "there" when we should be.  Good story!

Posted by Jan Green, RE/MAX Excalibur, Scottsdale, AZ (RE/MAX Excalibur, REALTOR,CDPE,SFR,ABR, EcoBroker,Scottsdale) 2 months ago

John -- Great ideas!! You should write a blog post on this, my friend!

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Jan -- Thanks! Glad you liked the story. And yes...you are right. Stick with em til the buy or die. ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Great Analogy!
Treat each prospect as the unique person they are!  Each one is a ‘touch stone'.
I have learned through experience over the years that appropriate and consistent follow up does carry me through the dry spells in the buyer pool! 

Posted by Cecilia Allan Burklow (Perry Homes - Austin TX) 2 months ago

Thank you Clint for a topic that is obviously at the top of many agent's lists! 

My company does not take listings so we have no signs, open houses, no MLS listings to attract phone calls and inquiries.  We are an exclusive buyer agency and my company web site is our 24/7 open house for buyer leads.

The effort and money I have spent to develop a good web site with helpful content, search engine optimization and a registration that is simple and doesn't require a phone number (optional) is a long road to the point where a web site visitor actually stays on my site and gives their contact information.

Every lead is important and deserves follow up with no pressure.  I am closing on a transaction tomorrow which is with a buyer who originally signed up on my website 2 years ago!  Buyers who are ready now are great but having leads in the pipeline for future months/years is the key to survival in our business!

Posted by Paula Howard 2 months ago

Excellent post! I have been working with my real estate agent partners to develop the means and mind set to thoroughly work the "B and C" leads and when the A lead falls into your lap be thankful. But, it is the constant and consistant lead generation and cultivation of those home buyers and sellers that are down the road that will make you a consistant producer.

An example is a real estate agent that we have been working together to generate about 100 new leads every month. Those leads go into a consistant, relavent, informational, drip marketing campaign sprinkled with call to actions. After the third month she receive two calls from people who she had been 'speaking with' who were now ready and wanted to buy a new house with her because she was always there for them. The next month she had 3 instances just like this.

Her comment to me was, 'these would have been leads that I would have ignored or thrown away because they were not ready, now'.

If you want to guit that peaks and valley commission ride, start generating a lot of leads and put them through a long term cultivation process. Eventually, no more valleys and your peaks become higher.

Thank you for a great article!

Posted by Bob Rutledge zero down home loans, jumbo loans (Cherry Creek Mortgage) 2 months ago

Yep, makes sense. Looking for that one 'good now' buyer throwing away hundreds of others.  Not a good strategy but many agents play this way.  I think as you become seasoned you get better & better at figuring out who is going to buy now, soon, maybe soon, and never.  Nevers are permanent shoppers & you leave them standing at the edge of the lake with the other rocks!

Posted by Lyn Sims - Northwest Suburbs (Schaumburg Homes - RE/MAX Suburban) 2 months ago
Clint: Great idea and good thoughts.
Posted by Tom Waite, Broker, Short Sales & Investments (Thomas Waite Real Estate Broker) 2 months ago

Good point.  Some of my best sales have come from people I had forgotten about and left on a drip.

Posted by Gene Riemenschneider East Contra Costa Home Sales 01492725 (Home Point Real Estate) 2 months ago

Clint, excellent post. 

I wonder if agents could cull their leads early on and set up specific and different drip campaigns for them.

Such as, for new buyers an educational drip campaign teaching them the process and educating the clients. For seller, a campaign on the steps needed to get the best value for their home, and for repeat buyers educating them on ones market. 

All buyers are not alike. With the tools and automation available to us today we can truly drive nearly personalized campaigns and lead management that will provide genuine value very inexpensively. 

 

Posted by Tom Royce (The Real Estate Bloggers) 2 months ago

Clint, I love this analogy. It's hard for most people to wrap their minds around the fact that an inquiry could result in a paycheck months or even years down the road. Would love to see your follow post on how to follow up effectively. I am really good with some leads, not so good with others. Maybe you have a secret to teach me :)

Posted by Frank & Sharon Alters, CDPE-Short Sales Jacksonville-Orange Park-Fleming Island (Watson Realty - Clay County, Duval County, St. Johns County ) 2 months ago

Great post, and I appreciate the link to the "10 days of pain"!  This business is not for "get rich quick" agents, they need to be in for the long haul.  Unfortunately the long term payout is hard to see when you are starving! 

Posted by Sue Follansbee (Exit Twin Advantage Realty) 2 months ago

Awesome post Clint!  I am going to send a link to it to all agents in my office!  Great reminder about not taking things for granted!  I should get a smooth rock and put it on my desk to remind me of this. Living in AZ we have a few of those to choose from.

 

 

Posted by Mary Roberts (Keller Williams Arizona Living Realty, Lake Havasu City, AZ) 2 months ago

Cecilia --Thank you so much! I heard that a long, long time ago. ;-) You are right...do it right and it will never fail you. ;-) Keep on it!

Paula -- You are so welcome! Thank you for the awesome comment. ;-) You sound like you have set yourself up for a great future!! Keep up the good fight!!

Bob -- Thanks!! Constant and consistent is the key to any of this follow up stuff. Without that, you have nothing, really. Awesome example included as well....great testiment to the post and the idea as a whole. :-) I love comments like these!

Lyn -- LOL! Happy to hear that it does. :-) No, it is not a strategy that will lead to any form of success, that's for sure.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Like for instance, when a lead calls you and leaves a message, call them back...treat them like gold! Get an email, write them back. It's not rocket science.

Posted by Jennifer Kirby, the Luxury Agent (Exit Realty Ventures) 2 months ago

Tom -- Thanks!

Gene -- A drip campaign is a good start. Id bet your conversion would go up if you added a phone call once a month....just to check in. ;-)

Tom -- I couldnt agree more. With technology today, you could tailor an infinate level of responses and scenarios to treat every client individually AND not lose anyone along the way.

Frank and Sharon -- Aww, Im glad you liked it. I thought it was fitting. It is hard for people to think that far into the future. But, that is exactly how lead management needs to be thought about...and held to that standard of continual, consistent, PROPER follow-up to ensure that you never ever leave a buyer hanging. Do that...you will be buried in clients from here til Doom's Day.

Sue -- I love the "10 days of pain" concept. It is a great way to screen clients and seperate the 'wheat from the chaff' as it were. The key to being successful is what you do with them from that point forward. That is where lead management really plays it's key role.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Mary -- Awesome! Glad you liked it!! :-) Actually...that is a great idea with the rock on the desk....brilliant.

Jennifer -- Yes. Just like that. ;-) My boss calls it "Rocket Surgery" ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

there are a ton of scams with leads. I have "bought" leads in the past the HOT and Exclusive only to find they were yrs old and many people have had them. I use to purchase leads from a variety of places, at all different volumes ($200k in a month once in 2005)....If your gonna purchase you have to find good sources....

Nothing in my opinion is better than good old word of mouth and depending on ur biz...COLD CALLING

Posted by Robert Vazquez (Americas Loss Mit/StoneHill Financial Inc.) 2 months ago

Robert -- Workin in the lead gen field like I do, you dont have to tell me that. ;-) And yes....if you are going to buy leads....do your homework. I could go on and on on this subject...thats another post, I fear. ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Very nice story and to the point.  I try to instill in my agents that everyone needs a place to live and to never loose touch with anyone that they come in contact with. Treat everyone with respect and as a potential buyer.  The harder part is two fold. First, to also train them to catagorize their contacts and not spend too much time with the clients who are not yet "hot" and secondly, lead generation takes time. That's why its called farming. Sometimes your sowing and sometimes your harvesting.  Just because someone doesn't get back to you right away, doesn't mean that someday they won't buy. Thanks for the post and good luck to all. Woody

Posted by Woody 2 months ago

I believe that every person who inquires about real estate has a genuine interest in buying or selling, or they wouldn't waste their time.  I make it my job to find out what they think they want and why.  What they believe they can do and why.  And if they believe they can't but I realize they can, I make sure they understand how they can.  Usually, then they are my client.  I'm hopefully writing an offer for a client tomorrow who called on a sign last Oct.

Posted by Carol Neu, SFR, RCS-D Big Bear Foreclosures (Exit Realty) 2 months ago

Woody -- I would agree on the two fold part. You certainly dont want to over-work people that are not at the buying stage yet...and being able to pick which one is the right one is a learned skill, for sure. I think you are doing a great job with your agents and their lead management. nice work.

Carol -- Ummmm.....you should have written this post. ;-) You hit the nail dead on with that comment. And, do it every time...on ever referral...without fail. Awesome. ;-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Clint:  It absolutely makes sense! We've worked with clients for a year, or even more, before we closed.  And we've worked with clients for a significant amount of time and they decided to move to another state.  But it doesn't matter, we give them our best always! Thanks - Carrie

Posted by Carrie Sampron, ABR SFR & Kathy Sampron (303) 931-3629 or (303) 931-3780 (Home Real Estate) 2 months ago

With all of the technology we have available, we should never let a lead slip by.

Posted by Wade Kawahara (Dominion Real Estate) 2 months ago

Carrie -- Good to hear. ;-) And you always should, Carrie. Nice work.

Wade -- I certainly agree.

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

That makes perfect sense! You never really know which lead will be a closer or not, but they all need to be treated as if they are gold.

Posted by Georgina M. Hunter R(S) e-Pro Maui Real Estate Sales (Jim Sanders Realty Inc. - Maui) 2 months ago

Georgina -- Exactly! :-)

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

Excellent post!  I have a buyer prospect who I began working with 3 years ago...the timing has not been right for them, but I stay in contact with them...last year I closed two transactions from referrals from this client.  This is a relationship business, and maintaining relationships is the key to success.

Posted by Robin Husney (Allen Tate) 2 months ago

Robin -- Thank you so much! Nice work on the continued follow-up and you obviously see the rewards for doing so...I completely agree with you! Awesome!

Posted by Clint Miller (Real Estate Client Referrals, LLC (RECR)) 2 months ago

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