The internet has really changed how real estate agents find and grow their business. In no way is that more apparent than sourcing online leads. Naturally, real estate agents and brokers saw the early potential of websites and social media to find prospective clients.
Unfortunately, the history of finding online leads isn’t so golden. People have spent thousands trying to win these leads, but faced increased competition and fewer results. What initially seemed like a gold mine has left a sour taste when it comes to generating online leads through referral websites, social media, and pay-per-click advertising.
Here’s the skinny
Are online real estate leads that bad and what should you do about them? Here’s our take:
The best way to build a strong real estate business is to constantly have new business in the pipeline. What deal will you close after the current one? In that regard, online leads have a purpose and use. Implementing an online leads strategy should be part of a wider plan for your lead generation. They should not serve as your sole source of lead generation.
When to start with online leads
The first focus on real estate agents and teams should be on earning referrals and repeat business. The vast majority of a real estate agent’s business will come from these referrals. Keep the people you’ve worked with happy, and they will keep sending more clients your way.
Use online leads to supplement your pipeline. However, without a proper lead generation and nurturing system in place, relying solely on online leads will result in overspending for the amount of business generated. It doesn’t matter how much you spent on that lead; if you aren’t able to nurture them and convert them into a client, it’s not worth the investment.
The final word is this: online real estate leads work as a long-term strategy to add to your lead generation pipeline. Only add them into your toolbox after you have worked your sphere of influence, have a solid lead generation foundation, and some extra money in the budget to spend on online leads.