You have plenty of real estate leads coming in from your website...but that’s where the action stops. They’re not interested in doing a walkthrough of your property, they’re not answering your emails, and you can’t seem to nail down a second phone call.
In this post, we’ll shed some light on why your real estate leads might not be converting to clients. Read on to find out if you are making any of these common mistakes!
1) You’re thinking of them as leads instead of people.
When you’re working in a CRM and dealing with heaps of data, it’s easy to forget that those names and emails and mailing addresses are connected to real people, just like you and me. And people are so much more than a collection of information—people can be busy, or skeptical, or overwhelmed; people have good days and bad days; some have a better sense of humor than others. All of these qualities factor into the way in which people will respond to your lead generation tactics.
With each lead, remember that he or she is a real person. Get to know them. Have a conversation and really listen to them. Focus on building the relationship first, and the transaction will follow.
Ethan Beute, vice president of marketing at BombBomb, emphasizes the value of a relationship-focused approach:
“Every person you connect with online is more a conversation opportunity than a conversion opportunity; you've got layers of opportunities to uncover.
The idea: each person filled out a form for a reason, but there are reasons behind those reasons. And there are other transactions and referrals available through that conversation.
For those who engage, there's a long game to be played that's rich with opportunities. And it starts with discovery and diagnosis through the initial conversation.”
2) Your follow up sucks.
“It's not your online leads that suck - it's your follow up and follow through that suck,” says real estate coach Travis Robertson. “Plenty of people make money working the same leads you're calling crap.”
If, after months and months of effort, your lead nurturing tactics aren’t earning you any clients, it’s time to make some adjustments to your approach. Revisit your email and text message templates to see what you can tweak or improve. Spend some time brainstorming new phone strategies. Take a look at your process as a whole and figure out what you can do better. Always be improving.
Here are a few resources to get you started:
- 9 Email Mistakes That Are Hurting Your Credibility (& How To Fix Them)
- 3 Tips for Real Estate Prospect and Lead Follow-Up
- 5 Steps To Growing Your Real Estate Business With “Warm Calling”
3) You’re neglecting your most valuable leads.
Some leads convert better than others.
According to NAR surveys from 2016 and 2017, only 9% of home buyers and 4% of sellers found their agent through a website.
These same surveys found that 64% of home sellers used a referral or the same real estate agent they had worked with in the past. Referrals continue to be the way most buyers find their real estate agents, too (52% of buyers ages 36 and younger, 39% of buyers ages 37-51).
Online lead generation can work...but it’s not nearly as effective as nurturing your past clients. These leads—the people you’ve worked with in the past—are much more likely to convert again (thus generating repeat business) or provide a referral.
Don’t neglect your most valuable leads—continue to follow up with your clients after the sale.
4) You’re throwing money at the problem.
A larger marketing budget isn’t the solution. “The money you spend on web leads is LESS THAN 50% of the investment,” according to Jack Miller, president & CTO of The Swanepoel T3 Group. “The rest is in your time and diligence in doing follow up.”
What you need is a lead nurturing process—and a CRM system like Realvolve to help you systematize and execute that process. (To learn more, check out the recording of our webinar: Game-Changing Reasons To Use CRM Workflows.)
5) You’re only focused on short-term success.
If you’re looking to get rich quick as a real estate agent, you’re going to be very disappointed. Real estate is all about long-term success—gradually growing your sphere of influence, nurturing relationships slowly over time, and serving as a trusted advisor long after the sale is done.
Here are what a couple of experts have to say:
“All agents should accept the fact that business is earned over a long period of time. We’re not entitled to something because we met a lead first or have a “for sale” sign in a yard.” - Nobu Hata, Director of Member Engagement, National Association of REALTORS®
“Even the worst lead can become a great lead given enough time (nurture) in the hands of a talented agent or team.” - Matt Fagioli, Founder of Xplode Conference
Forget instant gratification. Focus on the long-term.
Now that we've reached the end of the post...does any of this sound familiar? Have you been making any of these mistakes?
Remember, when it comes to converting your real estate leads to clients, it’s important to:
- Treat them like people, not leads. Focus first on building the relationship, and the transaction will follow.
- Recognize when your process isn’t working, and adjust your approach. Focus on continuous improvement.
- Prioritize your most valuable leads—past clients. Focus on repeat and referral business.
- Invest most of your resources in follow-up (rather than lead generation).
- Commit to the long-term goal of building meaningful, lasting relationships.
Be diligent. It’ll pay off tremendously in the long run.
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