Posted on behalf of Peter McCullough, Real Estate Training Specialist at HomeGain.
‚ÄúA sales lead is the identity of a person or entity potentially interested in purchasing a product or service, and represents the second stage of a sales process. For a sales lead to qualify as a sales prospect, or equivalently to move a lead from the process step sales lead to the process sales prospect, qualification must be performed and evaluated. Typically this involves identifying by direct interrogation the lead’s product applicability, availability of funding, and time frame for purchase. If a sales lead eventually makes a purchase, this is called conversion and a closed sale. The ratio of sales leads that convert is often referred to as the conversion rate, a way to measure the effectiveness of a sales process, sales team, or sales person.‚ÄĚ
OK. This is straight from Wikipedia.com. It is a straightforward description of a lead and it is relevant to the real estate community. However, I feel an analogy would help further reinforce what a lead is.
Everyone is familiar with the famous detective Sherlock Holmes. As well as real estate agents, Sherlock required leads to solve his cases and close them. A lead pointed him in a specific (or vague) direction. It was not necessarily the solution to the case, but it gave him something to pursue.
Real estate related leads are the same. They are not a closed deal; they point agents in a direction and give them something to pursue. In Sherlock‚Äôs situation, he could not afford to sit on the information contained in a lead; time was of the essence. Such is the case for real estate leads. Continue reading this post