Let’s start off with a statistic. Roughly only 5.6% of all real estate leads covert to clients on the first phone interaction or meeting. Very low number. That doesn’t mean that the other 94.4% of the people don’t buy or sell real estate over time (they do) but with conversion numbers so low it is easy for a real estate agent to give up early in the process and move on to lower hanging fruit. I don’t necessarily fault agents for doing that as your time is important, but I can tell you from experience…you are leaving money on the table. Lots of it. As a Title Sales Rep, it is very similar as we talk to agents and lenders and if we don’t get their business pretty quickly, we tend to move on. Mistake! When it comes to converting real estate leads or any type of lead, the real money is in the follow-up process. Here is why following up is so important and how agents can expand their business at a rapid rate.
Have a Process for Follow up
When I meet with my clients or new prospects for Stewart Title, I ask them “What is your process for follow-up and to stay in touch with your past clients/sphere of influence?” “Do you have/use a CRM”? The answer to this question is the foundation for their business. When Realtors tell me they don’t really use a CRM or they don’t have a set process to follow-up with their sphere, past clients and leads, I now know WHY they are having issues being successful or breaking out to that next level. They are literally throwing away money…thousand and thousands of dollars in lost commissions. The very same goes for Mortgage Lenders and Title Sales Reps. In regards to CRM’s, check out Wise Agent, Top Producer, Contactually, and more. USE THEM to market and follow-up with your book of business. Doing so will yield clients coming out of the woodwork and extra business you never knew was there.
Most of what I do as a Title Sales Rep is following up. I follow-up on deals coming into my office, deals closing, agents and lenders on those transactions. Following up on referrals I receive from clients, and with agents who attend the classes I teach. If I didn’t do this and just sat around picking off the lowest hanging fruit possible my book of business would be very small. Having a process is very important and working that process.
If you don’t Follow up…someone else will
This is true. In many instances it might take 8 or more interactions with a prospect before they commit to becoming a client. That seems like a lot, but think of the phone calls, face to face chats, and emails you might send to that person before they commit to working with you. People usually don’t make rash decisions about buying or selling a home. When agents stop following up after 2-3 times, that is where the money goes out the back door because someone else will keep following up and earn that business…and commission. Converting real estate leads aren’t easy, but it does take work and most of all persistence.
When it Rains…it Pours
That is true in most businesses, but in real estate you will see this happen once you start implementing your follow-up systems. Whether you are targeting your sphere, FSBO’s, Expired, or Cancelled listings, having the right system in place will take your business from 1-2 deals a month to 3,4, or 5 deals a month. You didn’t become a better Realtor to make that large business jump, but you did become better at business implementation strategies. You will also find that there is plenty of clients and commissions out there you were missing before.
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