I have written quite a lot about selling real estate. In fact, a ridiculous amount!
Thousands of pages of content, speaking engagements, personal coaching, etc; and it all comes back to one thing.
Leads are the most important part of your business.
Do you agree?
Let me make my point. Which one of these people will sell more homes?
- Bob Smith. He spent 6 months planning out every aspect of his business. He has flow charts, closing checklists, listing packets; everything you could think of, he has set up to perfection. He currently does not have any leads, but he is networking with friends and family to bring in clients. He expects about 2 referral leads a month.
- John Jones. He just got his real estate license and has a decent amount of knowledge about real estate, but doesn’t really have any systems in place yet. He spent all of his time and marketing budget on getting leads. He gets about 20 leads a week (1,040 per year). He also expects to get some referral leads from his network. He realizes he will need some guidance along the way, and has an experienced agent at his office that has agreed to mentor him.
Bob Smith’s Leads per year= 24
John Jones’ leads per year= 1,040, plus any referrals he gets.
Obviously it is simple math. Bob would have to turn 50% of his leads into sales to have the same number of closings John would get by converting just over 1%. (I realize there are many other variables involved, such as average selling price of each home, marketing costs, etc… But you get the point.)
I am in no way advocating running a sloppy business. The point being made is that no matter how well your business is set up, you won’t sell anything without having leads coming in. If you have more than you can handle, you can refer them out to another agent while you get your business systems in place to handle that amount of work.
A lot of agents don’t focus enough on bringing in new leads. That really needs to be at the core of your business. Lead generation is the key.
Here are some posts I have written that discuss ideas on how to generate more leads: