If you don’t follow up on your leads, don’t complain you are not converting leads.
Those who know me know that my only goal in life these days (ok, I have some non work related) is to have the highest conversion rate amongst Real Estate brokerages in the country. The better we become with our lead conversion (leads to sales) the more excited I get and the more detailed I get in teaching my Agents how to get the most out of their leads. It’s always a challenge.
Right now my biggest challenge is getting the right Agents who have the work ethic to become successful.
I’ll give you an example. I have a new Agent, I think this is her 8th week with me so far. She has her second closing tomorrow and she wrote 3 contracts this past month. That gives her basically 5 transactions by the time she finishes her first three months with me (she has 120 leads in her system). Pretty amazing.
I have another Agent, who started with me 5 months ago. He has closed 3 sales, has 4 contracts on the short sale board and wrote 4 more contracts in October. Both these Agents have just started their Real Estate career. They are brand new Agents!
Now let’s look at my 5 bottom Agents. All had at least 4 years experience in Real Estate when they started working for me. All these Agents have now been cut off from leads and will be forever. None of these Agents has more than 5 sales this year and two of them have 2 sales this year. Amazing. My top 15 Agents never sold a home prior to coming to work for me, my bottom 12 had 4 years experience before coming to work for me.
Hence my quest for only new agents. I will hire other Agents, but they will not be on my lead system.
So the question is how can I and you, maximize your lead conversion?
We know that if you follow a strict follow up system, like our 100MPH Marketing System we use, you will have success. The only difference between my two groups is work ethic…that’s it. To me, it comes down to this. If you are not good at following up leads, then it’s important, actually vital, for you to hire a person to make your calls.
We know that the average lead is taking 180.5 days to buy a home. If you are not in control of the follow up, how many of those leads will remember you 6 months from now. Even my two rookies are going to come to a time where they will be to busy to do great follow up on their leads.
I was a little hesitant when I started our LCA (lead conversion administrator) program. I was adding a salary plus commission job that I had no idea how to make work. Luckily I had a great person who started this with me and she has helped me tremendously to figure out what is and isn’t working. For the first year of the program I gave her the Agents with the lowest production. I figured that if she is making their calls, then they would be more successful.
Unfortunately it didn’t work.
They were just as bad and I wasted a lot of money. (The reason it didn’t work is our LCA would give the Agents things to do, like answer questions for their leads, and they failed miserably at doing so.) After her first year with me, last December, we changed her group of 5 Agents to Agents with medium success. All her Agents, with the exception of one, did better, but not much. In June of this year, we decided to change the way she did business completely. She was making all the first calls for the Agents up until this point. We believed that the first call was the most important call. Then we left it up to the Agents to make the follow up calls. They didn’t.
Our switch in June is showing great results. Our Agents now make the first phone calls. Our LCA’s make all the follow up calls. This change showed immediate results with our first month of doing new format, we saved 8 sales that we could track. Pretty amazing. I immediately added another LCA and took more of my Agents with some success to add to the program. So far it’s hard to tell the impact for those Agents since our new LCA is only 2 months into her calling.
One might wonder how many contacts the LCA’s are making for each Agent to see such a great response. Believe it or not, it’s only 3 actual contacts per day with 10 calls per Agent per day.
So let’s look a little bit at your own business. If our LCA can increase the business of our Agents by just talking to 3 different buyers per day. What would happen if they talked to 5 or 10 buyers per day? What would that do for our business? What would it do for your business if you talked to 5 to 10 buyers per day? If it resulted in 1 extra sale per month, 2 extra sales per month, would that change your life?
I know it would change most of my Agents lives if we can increase their sales from an average of 1.5 per month to 3 per month.
Ok, so I did a lot of rambling trying to get one point across to you.
If you are going to be spending money on Internet marketing and lead generation, you need to have a great system of follow up to convert those leads.
If you are not converting at least, and I do mean at least 1 out of 50 leads to a sale, you need to become stronger.
If you are not making phone calls daily to your older leads, you are missing the boat. The easiest way to measure this is simple. How many emails have you received that say, “thanks your help, we bought a home”. To me that’s the worst email you can get in this business. It means you didn’t do your job.
My goal in 2010 is to get less of these letters. Will we eliminate them? I doubt it. With most of my Agents approaching 2,000 leads in their system, the chances are slim we will retain all those who are going to buy. Our goal is to get as many as we can!
It all goes back to the only training I received my first day as a Realtor. Follow up, follow up, follow up.