In the real estate drama Glengarry Glen Ross, Alec Baldwin’s character Blake famously said, “These are the new leads. These are the Glengarry leads. And to you they’re gold, and you don’t get them.”
If you’re a real estate agent looking for those sought-after leads but coming up short, keep reading to learn what a lead is and how to get real estate leads.
What are real estate leads?
As a real estate agent, it’s more productive to pursue a client who is interested in buying or selling than chasing after everyone with whom you come into contact. After all, the latter group will include many who have no intention of making a real estate transaction. For this reason, effective real estate agents rely on real estate leads to drive their business.
A real estate lead is a potential buyer or seller who is motivated to take action. The motive itself varies between real estate leads. One may want to buy a property for professional reasons; another may want to sell one for personal reasons. But what all leads share in common is that either an interest in or a concrete goal of buying or selling has already taken root in him or her.
The five ways to get more leads
Five proven methods for how to get real estate leads include:
- Build a real estate website: A high-traffic business website allows real estate leads to find you even before you find them. The keys for how to get real estate leads through this method are to optimize the website structure and content so that they rank high in search engines and to create and maintain a blog with relevant and engaging content.
- Rely on referrals. Give satisfied former clients your business card and encourage them to refer your services to their friends and family. Likewise, form relationships with local bankers or real estate lawyers and ask them to direct business your way. Don’t forget to partner with real estate listing websites like Trulia to gain online referrals.
- Scout out FSBO listings: For Sale by Owner (FSBO) property sales are complex, and the sellers who undertake them sometimes find later in the process that they need a real estate agent. Searching real estate websites for FSBO listings is a good method for how to get more real estate leads because you may be able to persuade a seller to ditch his solo sales strategy and use your services.
- Become a social media maven: Take a two-pronged approach to generate real estate leads through social media. Post engaging content on your own business profile page to encourage your followers to use your services. At the same time, use the search features of these platforms to look for people who are on the market to buy or sell. Then, reach out to them and learn more about their needs and how your services align with them.
- Attend open houses: Most people who attend an open house without an agent of their own can be considered real estate leads. Visiting a local open house and introducing yourself and your services may be all it takes to convert these leads into clients.
Should I go for more leads or fewer, better leads?
It’s true that the more leads you find, the more opportunities you have to convert leads, generate revenue and grow your business. That said, your ability to convert a lead is more dependent on the quality than the quantity of leads you amass. This is because not all leads are equal. Leads can be classified as cold, warm or qualified.
Cold leads have likely never heard of your services and have little to no motivation to buy or sell; these are people whom you must contact through outreach because they have certain attributes you associate with interested buyers or sellers. Having a large number of cold leads is not useful because chances are you will convert few, if any, into clients.
Your odds of conversion increase if you have a moderate to a large number of warm leads. These are people who have demonstrated an interest in your service. For example, a warm lead might follow you on social media, subscribe to your business newsletter or download your latest e-book.
Qualified leads are the most desirable because these people have sought you out and are ready to act on a purchase or sale. Having a few qualified leads is preferable to having a moderate number of warm leads or a high number of cold leads because the probability is high that you will be able to convert a qualified lead into a client.
MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.