Lead generation is the backbone of the marketing and sales strategy of any real estate business. Your business needs a steady flow of leads. That way, when you and your team sit down to make call or send out emails, you’ll actually know who to contact and don’t get stuck.
What is a lead exactly? A lead is defined as “a qualified potential buyer who shows some level of interest in purchasing your product or solution.” As these are the people who are potentially interested in your services, you should keep them close -- very close.
This means you need to track your leads and develop strategies to acquire more leads and better leads.
Here’s a few of the main lead metrics you should be tracking:
Number of leads generated per month. First of all, it’s important to track how successful you are at generating leads -- and make sure this number is rising month after month.
Cost per lead. For most real estate businesses, it’s hard to make an accurate calculation for this one. One way to do it is to divide your total marketing budget by the number of leads you generate for each month. For most real estate professionals, this is an imperfect metric, because some leads might come from other sources than marketing. Nonetheless, it will set a good benchmark for you.
Leads converted into instructions. What percentage of your leads actually turns into a property sold? No matter what the percentage is now, always look to increase it over time.
Lead source. For all your leads, keep a record of how you obtained them. This way, you’ll be able to track which source generates most leads for you. Once you know this, you can put more resources toward that source.
That last point is particularly important. It’ll help you to increase the number of quality of leads.
Next, make a selection of lead sources to focus on:
1. Source that has generated most leads
2. Source that has generated highest quality leads (i.e. Most leads converted into instructions)
3. Source that generated leads at lowest cost per lead
Then, spend at least three months focusing on these lead generation activities and try to improve them.
For instance, if you found that Facebook ads are a particularly valuable source of leads for you, see how you can optimize your ads. Maybe you can narrow down their targeting (say, at families, recent divorcees,...), or just test different kinds of wording and see what works best.
After these three months, you can then assess again and see if the activities you’ve been focusing on actually generated more and better leads. If so, keep going. If not, try replacing one focus activity with something else and try that one for another three months.
Whatever you do, don’t lose sight of your activities and keep testing!