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Got a minute? If you're a busy manager, that's about all you have. That's why Carla Cross, management coach, speaker, and author, has created this blog just for you, with ready-to-use tips to master management through people.
May
09

Real Estate Trend: Lead Generation is STILL King! Here’s Why…

By

little girl with phoneReal estate trend: Lead generation is STILL King!

Dearborn Education Company just published my 5th (!) edition of Up and Running in 30 Days. It has lots of updates, including updates on 10 trends that I think newer agents should recognize—and know the pros and cons. Here’s an excerpt from my new edition of the book.

Trend Three: Lead Generation is Still King

In their excellent book, Game Plan: How Real Estate Professionals Can Thrive in an Uncertain Future, authors Steve Murray and Ian Morris also name this trend as one of the top ten for the next five years. In my view, lead generation is always king (I can’t see how it wouldn’t continue to be a number one trend and priority). But, Murray and Morris’s point is that real estate professionals who want to be successful can’t depend on leads just coming their way. Instead, they must actively go after them. That means creating systems, disciplines, priorities, and goals for capturing, working with, and keeping leads—forever. Here’s what they say:

…contact management, lead cultivation, and customer relationship management systems can and will play a huge role in determining which agents and companies are most successful.

A recent study by Active Rain (a popular real estate blog and tech information center), showed that agents who spent more money on contact relationship management (CRM) made significantly more money. It just makes sense. Agents who capture their leads via a database and then keep in touch with them via contact management software assure they keep their names in front of their potential clients, and are able to management and help many more clients.

Agents who try to organize their clients via pieces of scrap paper and remember to call them once in awhile are woefully inadequate when it comes to staying in meaningful contact with their potential clients. Which agent would you prefer working with, as a client? An agent who regularly contacted you and kept you abreast of the market, or one who either never called you or contacted you irregularly?    In that Inman Select survey I mentioned earlier {in the book}, How to Fix New Agent Onboarding, 47% of respondents stated lead generation is critical in initial training. And, they observed most new agents struggled with lead generation.  That’s why this Up and Running start-up plan is so important to follow to the letter!

Here’s what Kyle Kovats, that great ’30 under 30’ nominee, {one of my top agent contributors to the book} said: “Get out there and just do it.  Try different forms of prospecting and see what works. An ounce of action is more powerful than a ton of planning.”

Positives: For those of you who intend to be successful in sales, this trend should be a comfort. That means, if you invest in yourself, your work ethic, and your systems, you will be ahead of the pack. In Up and Running in 30 Days, I’ve laid out a plan of action for those of you who do intend this success. I’m not being facetious here. Some agents are surprised that, in fact, one must lead generate to be successful in this business.

Watch out for: Companies and/or managers who tell you that leads will simply come to you—or that they will provide them to you . That would include all those reactive (you sit and wait for the lead) lead-generating strategies:

  • The traditional ones, such as open houses and floor time or relocation leads
  • The technologically driven leads, such as software and programs that capture leads for you (they don’t just sell themselves; you must have an effective capture, engagement, and follow-up program)

Isn’t There an Easier Way?

Unfortunately, interviewers use the “we will take care of you and give you leads” strategy to convince new agents to work with them. Then, after the agent is with that office, the agent learns there is no free lunch. Do I mean that you shouldn’t accept various types of leads from others? No. (Just know that you will be paying for that lead).  But, consider this. If that lead source goes away, what are you left with? You are a first-day agent all over again! The Up and Running program will protect you from that, helping you build your own business so you always rely on yourself, not someone else.

Note: It’s very, very important that you capture your leads in a database, or better yet, in a CRM (Client Relationship Management) program from your first week in the business. Why? Because you can’t remember who those people are, and you certainly can’t remember how and when to stay in touch with them! I’ve provided a list of various databases and CRM programs in Section 14: References and Resources. I’m not endorsing any one of them. I’m just providing you several to research and to choose. See your manager for recommendations.

When I asked those agent and team leader contributors what technology is important to incorporate, here’s what they said:

“CRM and lead management tools”—Diane Honeycutt

“A really good and easy-to-use CRM”—Cerise Paton

“A good CRM”—Chris Cross

So, don’t be like the majority of new agents (and even seasoned agents!): Start using a database, or better yet, a CRM your first week in the business.

* Big Idea: To build a strong long-term business, order takers need not apply. To be successful, you must create relationship continuance, no matter your lead-generating sources.

Managers: Do you have a robust, precise lead generating program to start your new agents to success fast?

Up and Running_5e largerClick here to see the updates in my fifth edition of Up and Running in 30 Days.

 

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