For the sake of organization, we have split lead generation methods into two
large groups: traditional methods (printing materials, phone and mail
advertising, networking and others) and modern methods, that take advantage of
the continuous growth of the importance of internet for home buyers and sellers.
Traditional methods
Use your friends
If your friends don’t trust you enough to do business with you, then who will?
So talk to them about their real estate plans, get their contact information and
ask for referrals and testimonials. Your friends have other friends and family
as well, so this circle will keep expanding with a domino-like effect. You might
even get 100 names or so, at the very least and they will come with a trust
factor already in place.
The disadvantage? There are many people that believe in keeping business and
personal life separate, so they might refuse dealing with you professionally for
various reasons. However, you can still ask them for information and feed-back,
even help if the situation occurs.
Face-to-Face contact
This classic method involves basically going around the neighborhood and
knocking on doors. Stay for a short chat, let the people know you and in the
same time, you will get to know them. Don’t use the aggressive approach (“Hello,
do you want to sell/buy a house? Then come to me, the greatest realtor on this
side of the Atlantic.”). You’re not a door-to-door salesman. Farming a community
is a long-time process.
So start slow, explain that you wish to become the trusted neighborhood realtor.
Ask for information, let them tell about their experience with other realtors,
their plans for the future. The idea is to introduce yourself first and
foremost. Then ask if they wouldn’t be interested in getting a monthly
newsletter or printed material with useful information of general interest or
specific information about buying or selling. If they say yes, then your effort
paid off. Take their contact information (email, phone number) and continue to
keep in touch, coming back to chat every two months or so and regularly sending
them the promised leaflets or emails.
Disadvantage? It’s time consuming most of all.
Networking
First of all, what is networking? Networking is the process of finding out about
potential clients from friends, business contacts, co-workers, acquaintances,
and fellow members in professional and civic organizations. Sounds simple
enough. But where do you go to practice your networking skills?
Well, there are various opportunities from family gatherings, to business
cocktails, to seminars, conventions or presentations. The important factor is to
determine whether you will find possible leads at these events. For example, you
are sure to find people interested in getting in touch with a realtors at a
neighborhood barbecue or an open house but less so at a medical congress.
Be sure to bring plenty of business cards and brochures.
And remember, networking is about planting seeds. Do not expect to find the next
big deal, instead nurture a possibility of a collaboration at some point in
time.
Cold calling
Cold calling involves basically plowing through a list of phone numbers and
hoping that the people that don’t slam the receiver right away might be willing
to meet with you. It’s not a method we recommend. It might have been efficient
in the past, but today’s consumers have no wish to waste their time listening to
someone blabbering advertising text on the phone. This is especially true where
real estate is concerned. Who wants to entrust their home over the phone?
Still, there might be some benefit to it, if you carefully choose your target.
So, if you decide to do it, we recommend you treat it like a real conversation.
Instead of reciting memorized scripts, recognize that there’s a person at the
other end of the line and talk to them normally. Sell yourself and try to get an
appointment that way, don’t sell your services. Or give them the URL of your
website or article page and then let them decide if they want to get in touch.
Direct mail
Direct mail is also know as mass mailing and involves sending your sales letter
or brochure to a targeted mailing list. It’s usually pretty efficient in getting
your name out there, though it can cost quite a lot, since the best response
rate is around 1%.
The key is to make your letter stand out against all the other junk mail your
targets receive. Be sure to write your sales letter with the client in mind.
Instead of detailing your great skills, try to address their concerns and give
them a possible solution. This will give them the reason to contact you, which
is your primary goal.
Take great care of the appearance of the envelope and the contents. They need to
look as professional and as official as possible. You need to create a serious,
trustworthy image.
You can always try postcards instead of letters. One of the most important
advantages of this method is the direct impact. Your targets will see the
attractive design immediately. Use creative and compelling copy on the back and
include testimonials if you have the space. The text, combined with the
appropriate visuals will increase the possibility of your postcard being read.
Don’t forget to ask your recipients to take action. It’s a detail many forget.
Ask them to contact you or to visit your website.
Direct mail can be also used to keep in touch with your prospects and the
neighborhood you are farming. Remember, constancy is tantamount in building and
keeping trust. Also, you need to contact your target as many as eight times
before they will consider doing business with you.
Business cards
Your business cards, often overlooked, can be a very effective means of
collecting leads. Beside your contact information, you can also include on the
back: pitch phrases, your website’s URL, a call to action, a freebie offer and
many more.
Try to make your card stand out. That way, you will ensure it does not end up in
the trash.
Modern methods
These modern methods have appeared with the advance of internet. More and more
homebuyers and sellers use the web to acquire information.
Direct marketing (email)
Email marketing is very similar to classical direct marketing, except instead of
paper you use electronic text. The greatest difference? It’s FREE. And you can
change the design and content as often as you like.
Email can also be used with a feed-back form. It's much likelier to have your
targets whip up a quick email with a couple of questions than write a letter, or
even give a call.
You can use it to offer a free gift such as an e-book, or free courses or a
chance to subscribe to your newsletter.
Newsletters
The newsletter is an excellent way to get and keep good leads. Since your
recipients need to subscribe first, they will be already interested in your and
your services, for the future at least.
But put together a real newsletter. That means to include quality, informative
articles, not self-promotion. Your recipients don’t like to be cheated. When
they sign for a newsletter, they will expect a newsletter, not a sales letter.
Don’t worry if you’ve never written an article in your life. It’s easier than
you might think. Draw from your experience and you’ll be sure to obtain a good
result. You can also take articles from free-for-reprint resources.
Website
Having a website will ensure you have a 24 hour connection with your prospects.
Include information about yourself, showcase your listings, put up testimonials
and of course, lots of quality information with your special insider’s tips.
Don’t forget to add a subscription box for your newsletter.
No matter which methods you will end up using, remember these three important
aspects:
1. Even if it’s ultimately about you, always develop an approach that is about
them. In other words, your targets do not care how great you are, they only want
to know what’s in it for them.
2. Your primary goal is to acquire contact information (name, address, phone
number, email address) and the permission to use them. That way, you will ensure
your leads are actually valuable, being people genuinely interested in doing
business with you.
3. Always follow up. The results of an one-time campaign of any kind are very
low and the impact decreases exponentially.
