Your own research is a good starting point, but it’s easy to start wondering if you’re doing everything right. Here are a few questions to ask yourself:
It doesn’t really matter whether you’re using a sales representative or a sales team lead. The point is that you need to be using the right lead source.
You’re not going to get a quality lead just by driving by the house with a clipboard and calling out your offers.
The best way to convert a lead into a customer is to use a lead-generation technique that has been proven to work in real estate.
Realtor lead conversion rate example
Let’s take a look at some data to show you how it works.
Let’s say you have a single-family home in a desirable neighborhood. You’re trying to sell it for $500,000.
The lead-generation technique you use might look like this:
- You drive by the house for two days before you call and offer a $50,000 commission for the sale
- Two days later, you show up and offer the seller $500,000 for the house, and ask for their price on the property
- The seller says no
- You don’t buy the house
The next day, you show up again and offer $500,000
- The seller says yes
- You close for $500,000
- You pay a commission of $50,000
The next day, the seller makes a counter offer of $500,000
- You say no
- The buyer walks away empty-handed
- The seller sells the house for $500,000
Three days later, the buyer comes back to the office and offers $500,000 for the house
- You offer to pay $50,000 commission on the sale, if you close the house within 24 hours
- You close the house within 24 hours and pay $50,000 commission
A few days later, the buyer sends you a check for $500,000
You look at the sale and see that you netted $50,000 in commissions
The lead conversion rate for this process the number of leads you acquired divided by the number of leads you sold would be 50%.
Why realtor lead conversion rates matter?
As a real estate agent, you’re used to selling thousands of properties a year. You’re on top of your game, and you’re ready to make a good living.
However, if you’re not careful, your income will come from commissions alone.
So, it needs to be earned.
As a realtor, your goal is to get more leads than you sell, which means you need to do two things:
- You need to sell more than you acquire leads
- You need to acquire more leads than you sell
If you can do both of those things, then you’re doing great.
If you struggle to achieve both of those things, then you’re in trouble, because it’s not easy to do great work if you struggle at both ends of the spectrum.
You can’t do great work if you don’t have a great lead-generation technique.
That’s why it’s important to use a lead-generation technique that’s proven to work.
The best way to get those results is to use a strategy that’s been proven to work in real estate.
What can you do to improve your lead-generation technique?
You can look at your own data, and you can look at the data of other real estate agents, but you can’t be satisfied with a process that didn’t work for you.
You need to be looking at the best method for your market, and you can’t let a technique that didn’t work for others discourage you from improving your own lead conversion rates.
That’s why lead conversion rate data is so important.
If you can do better than the market leader, or if your leads are converting better than the average real estate agent, then you’re doing great.
If you’re not there yet, or if you’re struggling, then you’ll need to change your lead-generation technique.
As a real estate agent, you can’t just sit back and expect to sell more than you acquire leads.
You need to improve your lead-acquisition techniques so that you can sell more leads, too.
It’s not enough to sell a few leads and call it a day.
You’ll get better results if you can get a few leads and make them customers.
If you’re serious about improving your lead conversion rate, then you’ll need to put a little more time and effort into those lead-acquisition techniques you’ve been doing.
That means you’ll need to use a lead-generation technique that’s proven to work, and you’ll need to work on your lead-acquisition techniques.
The more you do it, the more you’ll improve, and the more you’ll convert leads into customers.
How to use lead conversion rate to improve your lead-acquisition techniques?
Lead conversion rate is one of the best data you can use to improve your lead-acquisition techniques.
Let’s look at a few real estate lead-acquisition techniques that you can improve with lead conversion rate data.
Get more out of your leads
Most of the time, the best people to send cold-call leads to are people who have been looking for a house recently.
For example, if you have a house that’s been on the market for 90 days and you haven’t sold it, then you should send cold-call leads to people who have been looking for a home lately.
If you can do that, then you’ll get a lot more out of your leads.
You can get a lot more leads out of your listings by using lead conversion rates to target your lead generation.
For example, let’s say you have a listing for a multi-family apartment in a nice neighborhood. You’ve been using a lead-generation technique that’s proven to work in real estate, and you’ve been getting about 100 leads a month.
If you look at your lead conversion rate, which tells you how many leads you’ve acquired divided by how many you’ve sold, it’s 1%.
That means you’re making about 1% of what your competition is making.
As a result, you’re paying $100 a lead, while your competition is paying $200 a lead.
You need better than 1% of leads so that you can get a better return on your investment.
What’s the takeaway?
You need better than 1% of leads to get a better return on your lead-acquisition efforts.
That means you need better than 1% of leads to sell more leads.
Images by Freepik
Generated by AI