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Jul

27

What does it take to make real estate leads work?

Posted by Adam Carabetta, Director, Retail Real Estate Operations
Filed Under Lead Generation, Real Estate

In last week’s blog, we asked for feedback to help make our online lead generation program better. In that discussion, there were many great ideas and a couple of recurring themes. You requested transparency about what a real estate lead generation program can and can’t do.

Here is what we believe is essential for transparency:

To be effective, a lead gen program will cost approximately $1,000 per closed deal
On average, an agent will close between 2%-8% of the total leads received
Close rate will vary based on: lead quality, follow-up, selling ability
Success requires patience, about 50 leads over 6 months is necessary before transactions close
With online leads, many phone calls (5-6 per lead) are expected to an individual lead
For 100 leads, the approximate breakdown you will receive is as follows:
1. You will be able to reach 50 leads
2. 30 will be interested in your services
3. 2-10 will close
Develop a system to measure return on investment for your spend on this and other marketing programs so you can compare apples to apples
Once a close rate is achieved, if you want to sell more houses, you can simply purchase more leads based on your processes and return-on-investment
Following the above steps will allow you to proactively grow your pipeline and build consistency in your business

You don’t have to take our word that Reply.com works, please review our testimonials. If you give lead generation enough time and follow the process – you will close sales.

Reply.com Testimonials from real estate professionals who have used our service:

“One third of my current listings came through Reply!. It is definitely a numbers game, so you cannot plan on every lead working for you. But you can plan to develop relationships with the leads, and get them comfortable with the work you can do for them. This has been a great source of business for me, allowing me to meet and develop new clients.” – Mark Griese

“Over the last year I have done $2 million in sales and have gotten a $30,000 return on my investment from the Reply! program. Currently I am working with two sellers and one buyer I met through Reply!. I would recommend this program to anyone who is persistent. It may take buying a few prospects, but the transactions will follow!” – Debbie Leiba

“Working with Reply has been very good. Unlike other companies who promise a certain quantity of leads and don’t come through, Reply! always fills my quota. My goal is to have a quality conversation with at least one potential buyer every day, and Reply! helps me do that. Reply! is a great tool to help you build your pipeline and make some sales in this market!” – Matt Green

Let’s look at the various potential earnings (assumes an average commission of $5000/house sold):

4 Deals Closed – 8% Close Ratio = $20,000 in commissions Total Spent: $2,750 Profit = $17,250
2 Deals Closed – 4% Close Ratio = $10,000 in commissions Total Spent: $2,750 Profit = $7,250
1 Deal Closed – 2% Close Ratio = $5,000 in commissions Total Spent: $2,750 Profit = $2,250

In their own Words (video of Agents who have been very successful with us):