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!