Where do leads really come from? The important lesson you can learn from lead generation data.
I know what you want.
We can dance around it, but the reality is that you want is more clients. I’m talking about a steady stream of cash-in-hand, ready-to-go, seriously-motivated home buyers, sellers, mortgage borrowers, and customers.
Don’t feel bad because if you didn’t want that, you wouldn’t be any good at what you do.
The simple fact is that new clients are the lifeblood of any business, whether you’re selling houses, refinances, alarm systems, tires, or ice cream.
But before you can sign up a new client, they need to first come in as a lead, or prospect that’s looking for information or representation before they sign on the dotted line.
But where do those leads come from?
In the real estate and mortgage game, the answer may seem a little nebulous, as we try everything from open houses to door knocking, newsletters to networking meetings, and plenty of marketing via the internet in an attempt to attract and convert a prospect into a happy client.
It certainly can become confusing as you try to allocate your focus, time, and budget to the marketing and lead generation methods that will yield the most leads.
Luckily, we have some fantastic information to help you do just that.
Here, I’ve assembled the findings from several credible studies and surveys of Realtors and mortgage lenders into one simple graph for you.
So, where do real estate professionals get their leads?
Top Listing Lead Sources
68% Contacts and referrals
7% Vendors and professional referrals (B2B)
7% Open Houses/For Sale signs
4% Internet leads and other paid ads
How about for home buyer clients?
Top Homebuyer Lead Sources
57% Contacts and referrals
12% Open Houses/For Sale signs
11% Internet leads and other paid ads
8% Vendors and professional referrals (B2B)
And mortgage lenders; I haven’t forgotten about you.
Top Home Loan Lead Sources
42% Past clients
2% Paid ads and services
1% Company or broker leads
Of course, this will vary depending on the market, how long you’ve been in business, your target demographic, “farm,” whether you have a team or are flying solo, and, frankly, what you like and are good at.
There is no one “right” answer when it comes to marketing or lead generation for real estate professionals, but I did want to point out one thing:
The top one or two categories for listings, buyers, and home loans include:
What can we learn from that?
The most efficient way to get new leads is to work your existing database, past clients, and contacts. There’s still no replacement for networking, building relationships, and the personal touch.
Of course, you can use social media, websites, email marketing systems, and other technology to network, expand your reach, provide value, and "touch" more people in an organized, systematic way (the exact reason I write and send out this blog you're reading right now!).
But please don’t fall for the fallacy that you can pay a few hundred (or, a few thousand) dollars to any company or service and they’ll do all the work for you, handing you a steady stream of new leads that are actually convertible and will end up as dollars back in your pocket. If it was that easy, anyone could be a successful Realtor or lender, and we both know that isn't true.
That’s a shortcut, and you’ll never find a seasoned, successful agent or lender who attributes their career growth to shortcuts.
However, we do know this:
Investing into your marketing efforts into your past clients, referral partners, and ever-growing database is the best way to survive and thrive long term – in any market or economy.
I hope you find this information helpful and, if nothing else, it will confirm what your broker or mentor keeps telling you.
Now the fun part: creative and cost-effective ways to reach those segments and generate new leads!
Contact me if you’d like to chat about your marketing or just exchange some fun ideas and strategies.
I don’t sell real estate - I just make you guys a whole lot of money!
As a Realtor, mortgage lender, or any business owner, you have a lot on your plate when it comes to marketing. For instance, by now, you have a Facebook page and a business Instagram profile (if you don’t, then contact me ASAP!).
Instagram will soon surpass Facebook in terms of prevalence and reach, and it’s a perfect way to engage the under-35 demographic of home buyers (about 80+ million strong!).
So, you really want to grow your following on Instagram as well as cross-promote to your existing friends, past clients, and database.
Luckily, Instagram has a new feature that makes it easier to spread the word about your IG account and get new followers: Nametag.
Playing off of the QR code technology, it’s basically a digital signature in the form of an image that shows your Instagram profile name.
You set it up in about 30 seconds through your Instagram (I’ll show you how at the very bottom of this blog) and then, can share the image anywhere you like – Facebook, Pinterest, your website, via email or direct message, etc.
You can even print out the image and people can scan it and follow you! Some smart agent will eventually put their Instagram Nametag on a billboard!
When people see the image, they only have to go to their Instagram and scan it and voila! They are following you.
When you go to the Nametag screen, you’ll see the default color background. But you can change colors, use fun emojis in the background to stand out, or even take a selfie and use your own image for the Nametag (even better for personal branding!).
Once you’ve set up your Nametag image, Instagram lets you save it to your phone’s camera roll, share it, or email it.
When someone sees your new Nametag (like let’s say you share it on Facebook), they only have to go to their own Instagram account, go to the nametag feature, and press the “Scan a Nametag” feature at the bottom of the screen and then hit Follow.
Again, the QC scan technology is pretty versatile, so you can now share your Nametag image through:
-Facebook, Pinterest, and other social media
-On your YouTube channel
-Email (how about on your email signature?)
-On the sidebar of your blog
-On your website
-On CMAs or other special reports
-Even in print form, like on flyers, a sign in your office window facing the street, on envelopes, attached to gifts or gift baskets, on banners at fairs, festivals, conferences, client appreciation dinners, networking events, etc.
-On your business card!
-Or even on a magnetic sticker on the side of your car!
-As part of a free giveaway, raffle, or contest?
-How about at open houses or home buyer workshops?
Sorry, I’m getting a little too excited about the possibilities for outreach and brand awareness through Nametag. Remember that marketing is just math, and if you have a 10,000-person database that you’re touching frequently with quality content, you’re bound to sell far more homes and close more loans than if you had a 1,000-person database.
Think BIGGER and use tools that help you get there, like Nametag.
Contact me at firstname.lastname@example.org if you have any questions or want some help!
P.S. Oh, and here's my Instagram Nametag for the account @RealEstateMarktingHelp. See if you can scan it and follow me!
How to set up your Instagram Nametag:
Here is how to do it:
1. Go to your Intagram account on your mobile device (doesn't work on the desktop version).
2. Click the menu icon in the top right corner.
3. Click Nametag
4. Instagram will produce an image like this:
5. You can change the style/colors etc. by hitting the Color button or save/share the image by hitting the button in the top right corner.
6. Save the image to the Camera Roll on your phone.
7. After saving the image to your camera roll, simply email it, share it on social media, print it out, or whatever you’d like!
The real estate market is set to crash.
It’s going to be 2008 all over again – or worse.
The sky is falling.
It’s definitely not the time to buy/sell,
or even leave your house for the next five years if you can avoid it!
I’m sure you’ve heard all of these lately, since just about everyone – and especially the media - seems to be sensationalizing a possible real estate bubble burst. Whether it’s true or not (it’s not), it’s YOUR job as a Realtor or lender to share accurate information and context with your clients so they can make the best possible decisions.
But without your voice of reason, this public misperception will turn into fear, and fear into paralysis.
So, how can you turn the tide of housing market negativity?
Here are 10 data points that you can use each and every day on social media, while chatting over coffee, and in conversations and correspondence with your database.
Read them, understand them, and personalize or rephrase them to make them yours.
10 Points to bring up to combat market negativity:
1. The economy may be in for a downturn or even Recession (probably around 2020) but this time, it has little or nothing to do with the housing market – and there’s still plenty of opportunity for buyers and sellers. In fact, home ownership rates are near 30-year lows (around 64%) with plenty of room to rebound and members of the massive Millennial demographic are starting to buy en masse.
2. People need to live somewhere and people will always need to buy or sell. The system is not fundamentally broken at all (like it was circa 2008) so the seesaw probably will just tip from a seller's market to a buyer's market, or find a healthy balance within. In fact, experts predict more real estate transactions in 2019 than there were in 2018 or even 2017, which was a banner year!
3. The other alternative is renting. But in most markets, rents have increased just as fast (or faster!) than housing prices. With rent, you also don’t benefit from tax deductions and capital gain exclusions, future appreciation, and loan principal paydown, etc.
4. Mortgage rates are still excellent. Historically, they are extremely favorable. Likewise, banks and lenders seem to be making responsible underwriting decisions with lending parameters neither too tight nor too loose, and we aren’t plagued by 100% financing loans, adjustable rate loans, cash-out refinances, and options arms, etc.
5. The Fed has been raising interest rates, and mortgage rates have climbed from all-time lows (3%+) to just-plain-really-darn-good (5% range). It's crazy when people see that as a negative since it allows the market to let off a little steam, making sure it DOESN'T keep growing too fast, superheat, and explode.
6. Our homes aren’t underwater! In fact, “tap-able” equity (over 20%) is up 21% over the high point pre-recession, and an astounding 48% of U.S. houses have at least 50% equity!
7. There is still more demand than supply in most major markets, with new home building, urban in-fill, homes that fit senior and generational family housing, etc. being built. In fact, economists estimate that there is still a demand for 2 1/2 million houses to be built.
8. So, you’re going to invest in the stock market instead of real estate? Get ready for a roller coaster ride and A LOT of uncertainty that even the experts can’t predict.
9. Just a year or two ago, everyone wished for a more balanced market with slower price growth and more listings. Congrats. Now you have it. Enjoy!
10. This might be the most telling statistic: a recent survey polled 100+ of the most esteemed economists, analysts, and experts with this question:
Will housing prices go up over the next 5-year period?
94% said yes, prices would go up,
2% thought that prices would remain basically neutral,
And only 4% believed that prices would depreciate slightly.
That’s more than 9 out of every 10 unbiased experts predicting positive price growth – doesn’t sound like a housing crisis to me!
So go out there and help some buyers and sellers!