Over the last couple of years real estate agents were able to grow their database by buying and closing online leads. The problem is real estate lead conversions rates are currently at an all-time low. On top of that, you have startups like OpenDoor going straight after the sellers with a direct offer to buy their home.
Despite that, we see tons of real estate lead generation companies out there promising that they can get you the best leads who are ready to buy or sell.
In business, there is no magic bullet, to be honest. Business is all about the art of taking a calculated risk in hope for a higher return. Your real estate venture is no different. Otherwise, anyone could do what top agents are doing and become multi-millionaires.
In this article, we will showcase 5 reasons why the real estate lead generation does not work like a charm anymore. The goal of this article is to make you (as an agent) realize why traditional ways of getting real estate business through the internet are dying and how should you adapt to generate more buyers and sellers.
1. Every Agent Is Using the Same Strategy To Generate Real Estate Leads (it’s not unique anymore)
Lead generation used to be a thing that only a few agents mastered back in the day. I am talking “2008 – 2012” and it’s often referred to as the golden era of real estate lead generation.
These days, too many agents are bidding on the same keywords. The worst part is that the top performing marketing funnels that made agents millions are now available as a downloadable blueprint anyone can copy.
In big cities you have hundreds of real estate agents bidding for high-value keywords like “price of my home”, “how much is my home worth” etc. making the cost per lead significantly high. Take a look the screenshot below.
Furthermore, all agents are using the same type of landing page forms that asks for their name email and home address to come up with a valuation.
2. Real Estate Agents Are Asking For Business Straight From The Beginning
The internet of 2018 is significantly different from what it was, 5 years ago. In order to get someone’s business you need to earn their trust. But, how do you earn someone’s trust as a real estate agent?
Well, we created an entire guide on this topic.
In a nutshell, the best way to earn trust on the internet is to give something of value first (to your target market) and then ask for the business second.
If you take a closer look at all the business coaches and real estate startups you will see that their first point of contact is always something of value.
It can be an e-book download, a free webinar or a checklist. The goal at this stage is not to generate leads but to ensure that they establish themselves as an expert in their field.
Similarly, when targeting homeowners and potential buyers, agents need to provide enough value before asking for their information.
Here are some of the best ways to earn the trust of homeowners:
- Create original local content for local residents and people looking to move to an area
- Share client testimonial videos on your website. Create a case study with your clients.
- Feature local business owners on your local neighborhood website. You can ask them a bunch of questions and create an interview format blog post.
- Create videos and blog posts about local real estate market trends.
3. Agents Are Not Using Videos On Landing Pages & Retargeting Ads
Successful agents effectively use video marketing to instantly build trust and convey their message to their audience. Without a personalized video on your landing page, you do not have a good enough reason for homeowners to remember you.
A well-branded video can help establish your unique branding in your local community.
Most agents do not invest in any kind of video marketing for 3 simple reasons:
- Believing you are not good at videos – Real estate agents believing that they don’t have what it takes to make compelling videos.
- Falsely believing that video marketing is expensive or time-consuming – The truth is video marketing does not require any additional investment to get started. Your smartphone is equipped with a camera that can shoot professional looking videos. There are many video marketing apps that can make your real estate videos look nice. You don’t need to hire a professional team when creating local content for your target area.
- Believing video marketing will not work – Finally, when you believe that video marketing will not work, then it can be a barrier to entry. You have to understand that over 65% of internet content is consumed as video and you need to create videos that help communicate your message to buyers and sellers in a crowded market with tons of agents doing the same thing.
4. You Are Not Investing In Your Lead Follow Up Strategy
Real estate leads go through a long sales cycle. In order to ensure that a lead converts into your customer, you need to invest in a follow-up strategy that works.
Fliers and mailers are obsolete techniques and do not have any real impact in retaining leads. Your only other option is to create a newsletter that generates unique local content.
The problem is that most real estate professionals do not understand patience is the key to success. Most agents do not have an effective follow-up strategy to connect with old leads to provide them some sort of a value when they come into your database.
Only a handful of all sellers will say “YES, list my home” the first time you call them after they fill out a form. These homeowners often, interview multiple agents and they are more likely to go with agents with a better follow up strategy.
5. People Trust Real Estate Professionals That Are Referred To Them
Real estate is a referral-based business. Most top producing agents built their database by getting referrals from existing clients. Unlike cars, clothes and other items, people only buy a home once or twice in their life.
Your home is the biggest purchase you will ever make and it’s difficult to trust someone who calls your right after you fill out a form on the internet. This is the primary reason why most people choose an agent that showcase local market knowledge.
The problem with internet leads is that agents are looking for instant gratification which is quite impossible. The 0.1% of agents who are crushing internet leads are spending thousands of dollars monthly buying those leads and hundreds of dollars a month on sophisticated follow up software and strategies designed to generate trust, even before they attempt to ask for business.
So, in order to get new business, your primary focus should be to give value to homeowners in your community and not ask for anything in return. Create a one-way value driven 90-day campaign and then focus on asking for business from these homeowners.