In the final of our five-part series, broker Nick Shulkwey looks at lead conversion. What is it? Why are so few agents good at this?
This is the last in a five-part series covering the four pillars of success in real estate. So far, we’ve talked about personal development, strategic planning, and lead generation. His fourth and final pillar to success in the real estate industry is lead conversion.
So what is lead conversion?
Definitions are important, but not everyone defines lead conversion the same way. So let me define a little bit what lead generation means to me.
I’m a realist, so I always focus on the “gist” or “purpose” of everything I do and include that purpose in my definition. The purpose of converting a lead is to solidify someone as a client who will work exclusively with you, and ultimately convert that relationship into a closed deal that allows them to pay you and continue your real estate sales business. .
Additionally, an additional goal of lead conversion is to establish that individual as a referral source and a passionate fan for years to come.
So what is a lead conversion? Someone “raises their hand” and says “I might be interested in working with you.” It doesn’t matter if it’s a phone call, email, text message, or internet lead. Maybe you posted an ad, sent us marketing materials, or a friend gave us your name.
So how do you go from getting them to say, “We might be interested in working with you,” to agreeing to work with you as an agent, to then signing a contract with another party, and then finally closing the deal? Can it continue until then? Closing table?
The process from initial inquiry to transaction completion can be a long and arduous journey. It’s rarely easy or simple. You’ll soon see why real estate agents get paid so much when they finally close the deal. If it were easy, everyone would do it and get rich.
Step 1: Schedule an appointment
The first step in the conversion process is often the most difficult for agents: setting up an appointment. The goal of conversations with prospects is to set up a face-to-face meeting. Only through a face-to-face consultation can you build trust and do the research necessary to solidify that person as a client.
So how do you make sure these people (often strangers) at least trust you enough to join the meeting?
Let’s say they agree to meet with you. wonderful. If you decide during the interview that you still want to work with them (remember, this interview is a two-way street), how are you going to get them to trust you as their exclusive representative?
prove yourself to potential customers
This process takes time and often extends beyond the initial meeting. Some buyers may require you to prove your product through showings, analysis, market knowledge, and possibly an offer, before agreeing to work with you. Also, any seller is likely to have multiple meetings and several conversations before signing the representation agreement.
Once someone agrees to cooperate with you, either explicitly or implicitly, you need to induce that person to enter into a sales contract with another party. Once the contract is finalized, it must go through an escrow process that includes inspection, appraisal, renegotiation, and title clearing. It can be a long and arduous process to give your clients what they need and get paid.
If there’s one thing I think is the most important aspect to understand when it comes to lead conversion, it’s that experience matters. Lead conversion is a skill, but lead generation is about willpower and a willingness to do work that is simply not fun, in the face of constant rejection.
On the other hand, completing a trade requires more patience, practice, and skill. Lead conversion is directly related to the first pillar of success in the real estate industry: self-development. Because without knowledge, expertise, and confidence, you will have a very hard time converting leads.
You must be comfortable speaking in front of others, have an expert-level understanding of the market, and understand how to market your property to attract buyers. Many of these skills require practice and take time.
The biggest reason why most agents struggle with lead conversion
Most agents never become proficient at converting leads because they simply don’t practice enough. They don’t get enough leads to properly practice in their day-to-day work, and they refuse to practice in “mock” scenarios with colleagues or friends. Because they think it’s embarrassing and boring (it’s not!).
We estimate that the typical agent will book no more than 50 to 75 listings over the course of their career. He doesn’t improve his skill or become good at something just by repeating it 50 times.
The biggest reason why top producers gain more and more market share over time is because they’re better at converting leads. They fulfill hundreds of commitments each year. Some people market dozens of listings a month. They learn exactly how to tailor their messaging, technology, and value proposition to get sellers to say “yes.”
quotes for pondering
“It’s much easier to double your business by doubling your conversion rate than it is to double your traffic.”
— Jeff Eisenberg
All these pillars of success work in harmony. The more you focus on your strategic plan, the fewer detours you will take and the faster you will get to your destination. The more you center your life around self-development, the more energy you will have to generate leads each day and the more influence you will have in lead conversion.
The more leads you generate and the more leads you work on, the better your ability to convert leads to clients and clients to closed deals. Experience matters. It’s important to have a plan. If you make the system work, the system will work for you.
Nick Shulkway is amherst madison, a real estate broker based in Boise, Idaho.Connect with him at linkedin.