How to Convert Real Estate Leads: Learn the systems and processes that successful Realtors and top real estate teams use to turn online leads into clients.
Today we are going to talk about how to convert real estate leads into sales. From Facebook leads to call-in leads from people who saw your yard sign — today we’re talking about any lead that you don’t know. So, this means we are not talking about sphere of influence leads. Those usually have a relationship with us already to some extent, which dictates how we follow up with them. Today we are talking about a lead that we don’t already know, and you must systematize your approach so that it’s very similar for everyone involved.
In the video below, I’m speaking with a group that I coach via a Zoom mastermind session, and we’re discussing how to systematize your follow up plan to convert your leads into sales. As the saying goes, “the money is in the follow up,” and we’ll talk about why that holds true.
VIDEO: How to Convert Real Estate Leads Into Sales
When it comes to your follow up plan for leads, systematizing your strategy is a must. You can easily plug your contact plan into your CRM to keep you on track. This is key. If you don’t have any system in place right now, you may find that “winging it” is falling short of your expectations. Having a system in place will make a huge difference in lead conversion into sales.
Buying online real estate leads and how to convert them
If you get into the realm of purchasing leads, there are two categories. There are “Premium Leads” that you can buy on sites like Zillow or Realtor.com. Usually, they’ll cost you anywhere from $100 to $300 per lead. These Premium Leads have a higher conversion rate. The other category of leads are “Forced Registration Leads.” Someone comes to your website and you force them to register with their contact information for the right to look at your homes for sale. You’ll get a lot of leads from this method, but converting them is another story. With forced registration, it costs about $10 per lead.
With Realtor.com and Zillow leads, your lead is looking for homes, and they have asked to be contacted by a Realtor. These Premium Leads are likely more serious in their home search. This becomes a customer service phone call when you reach out to your Premium Lead. The lead requested a phone call, and you’re fulfilling their request! For this reason, it’s usually a much more comfortable phone call because they are expecting it. Jumping on the lead fast is absolutely crucial. Speed to lead matters. These leads are 10 to 15 times more expensive, but they’re also 10 to 15 times easier to convert.
With Forced Registration Leads, they can give you bad information just to get through and look at your site. And, there’s no expectation that you are going to call them. They did not ask to be called. All they wanted to do was see the homes for sale on your website. For this reason, it’s a more challenging lead call. You’ll need to do more follow up with this lead, and it’s going to be a lot more work. However, it is much cheaper than a Premium Lead.
The myth about online leads
Don’t think that working online leads is going to be any less work than working with FSBO or Expireds. Oftentimes, Realtors think that buying online leads is some kind of magic pill. You are going to make just as many phone calls with these online leads. Believe it or not, the internet has actually increased the need for phone calls. You will generate so many leads that you need to use the phone to filter through them. It’s weird, and it’s not intuitive, but the internet has created a higher demand for the telephone in this way.
Speed to lead
It’s worth saying again: speed to lead is key. Big time. When you’re learning how to convert real estate leads, this is a game changer. In the infographic above you’ll see that as time passes, the likelihood of converting a lead drops significantly. The gold standard is to respond to a lead within five minutes, and some say three. In today’s fast-paced world, your lead asked for your help. They are waiting for you to respond. After five minutes, they will likely move on to the next part of their day. And certainly, an hour later, they’re working on something completely different and not even thinking about real estate anymore. Or, even worse, they found someone else to help them that responded right away.
The lead follow up process: how to convert real estate leads
This process I’m going to tell you about will work for any non-SOI lead. So, whether you are buying leads (either Premium Leads or Forced Registration Leads), or if you are getting leads from your social media channels or yard signs, this process will work for you.
The key is to move fast and to continue to reach out to make that initial contact. Basically, you will break this process into two phases. You will have one system to make that initial contact. And then you’ll have a second system to follow up and nurture that contact over a period of time, weeks and months down the road until they are ready to buy/sell.
Phase 1: The Two Week Assault Plan
For your initial contact process, this Two Week Assault Plan is designed to be worked Monday through Friday for two weeks. It is designed to be worked on 10 business days and is labeled as such. It includes all the attempts you will make in order to try to get this lead on the phone. Each day includes a list of tasks, from calls to texts to emails to social media messages. And, after these daily tasks, you’ll see each script for each task is laid out. All of this can be customized, of course, but the point is to have this kind of system in place to continue to reach out until you make initial contact.
In general, remember that we are always trying to get them on the phone. Whether you reach out by email or text, ultimately you want to get them on the phone to speak with you. Once you do get them to the phone call, you will want to move them to a Zoom appointment or an in-person appointment. That’s the flow. We need to get face to face, either way, because that builds rapport in your relationship with them much more than text, email, and voice does. Ultimately on this initial contact, you want to determine how quickly this lead wants to make a move. How urgent is this lead? This will determine how you handle the next phase of your system.
At this point, when you’ve made initial contact or you’ve completed the Two Week Assault Plan, you are halfway done. Now, either you didn’t make contact and the lead goes into your CRM’s drip email system, or you did make contact and you are following up or nurturing your lead.
Phase 2: Lead Nurturing Follow Up Campaigns
The more times you contact your lead, the more likely they are to convert. It’s a fact backed up by statistics. Most real estate agents give up after that first phone call if the lead doesn’t end in a conversion. If you stick with your lead, chances are you will end up with a sale. This is how to convert real estate leads to sales.
The idea of nurturing leads is where most real estate agents are missing out. If you call a forced registration lead, realize that they are likely just starting the search process. Before the advent of the internet, Realtors never got leads this early in the process! You need to nurture these leads over time and come from contribution to help them see why they need you on their team. That way, when they are ready, you’re first of mind.
Now, the challenge lies in being consistent with your follow up or nurturing plan. To ensure that you are following up at the right pace based on your lead’s urgency (determined on your initial call), you must have a system in place. You can break it into categories based on urgency. For example, we’ve broken leads into four categories. “A Leads” would be the hot leads, and they plan to move this month. “B Leads” plan to move in 30-90 days. “C Leads” plan to move in three to nine months. “D Leads” are long term leads and plan to move in nine to 18 months. Once you’ve categorized your lead, you can plug all of this into your CRM to keep you on track.
For more help developing your system…
So, how to do you convert more real estate leads into sales? You get a system in place and you stick with it. Make a plan to get your initial contact and then plug your lead into the proper follow up and nurture category. For help developing this system for yourself or for your team, reach out to Icenhower Coaching and Consulting today for a free consultation with a coach: 888-932-8422