In previous articles, I’ve stressed the importance of consistent lead generation. I’ve also shared that my goal was to generate 400 new leads each month. In this article, we will focus on lead quality.
In this day and age, agents seem to be putting all their eggs in the basket of inexpensive leads. I have found, however, that inexpensive leads tend to be of lower quality.
This is what I have found in my business:
Lower quality leads are attractive because you don’t have to spend a lot on the “front side” to generate the leads. However, you end up having to spend more on the “back side” trying to convert these lower quality leads into clients. The “back side” is the marketing you deliver to the leads once generated. This would include special reports, sales letters, and more.
In my own business, the quality of leads is ranked as follows: (Ranked from high to low)
1. A referral
2. Joint Venture Endorsement
3. Registrants for a special class
4. Leads responding to an advertorial advertisement
5. Leads responding to a “solo” email or “pay-per-click”
6. Leads who respond to a classified ad or home buyer magazine ad
7. Leads responding to a free internet ad (Craigslist or similar)
The problem is that most agents are now focusing on Craigslist or classified advertisements which attract the lowest quality leads. They then struggle to convert these leads into appointments and/or home sales.
To be successful, an agent’s marketing campaign must include leads from each of the sources listed above. I would evn suggest that more resources be invested in the top four or five categories, in order to capture higher-quality leads. The amount invested will be higher, but the higher-quality leads will mean less invested per lead to convert them into clients/buyers.
Follow this advice, and you’ll soon notice that you have less competition in your market. This is because the majority of your competitors will still be focusing on inexpensive ads that attract-lower quality leads. How many agents in your area are setting up joint venture marketing campaigns? How many are running advertorial ads? I’ll bet there aren’t very many.
Why is this the case?
Because focusing on the lower-quality leads will ultimately mean fewer sales. Fewer sales means money will get tight and agents won’t be able to afford ads to attract higher-quality leads. You will have a long-term economic advantage by putting your focus on higher-quality leads.
The bottom line is that a lead is not a lead. There are different qualities in the leads you generate. You should create a comprehensive marketing campaign that focuses on generating higher quality leads and let your competitors fight over the lower quality leads.
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