For many real estate agents, using technology for relationship building is often overlooked or not prioritized correctly. Technology is best used to maximize your most profitable revenue stream first and foremost. Consequently, this will lead to trying other sources when appropriate for your marketing budget.
What are these streams? Data from the National Association of Realtors, gives this data:
Typically, you see over 60% of your lead sources are from contacts / referrals on the personal and business side.
I was reading the articles posted on branding and value proposition, which got me thinking about how real estate agents should be maximizing time with the best potential lead source. As tech enthusiasts, it is easy to get distracted from the fundamental process of bringing in leads and the strategies that bring you the most business.
I know this has been a long time strategy in our office. Especially with new agents, we always try to start them networking in their own sphere of influence.
How many times have you heard the statistic, “90 percent of buyers begin their search online?” or statistics that show overwhelming numbers for social media usage. All they do is distract agents from building relationships and working their own database. Have you noticed the companies that support these statistics? Mostly companies that want you to consider their technology for help in social media, advertising, etc.
What is your best marketing sphere?
We are constantly pushed away (maybe without realizing) from what brings in over half of your business for a given year. Which makes me ask the question, when was the last time you considered where your time and marketing dollars are going?
Consider this: Invest in tools/technology that will help you maximize your own contacts and relationships. As a result, you can start investing in Internet leads, print, or direct mail campaigns. I know it sounds simple, but keeping an effective relationship with your own clients is an entire marketing strategy on its own.
Does that mean to completely abandon these lower percentage lead sources? No. Figure out a system that puts your focus in the most revenue generating sources. This will supply marketing dollars that you can reinvest back into your business. For example, Direct mailing campaigns are mostly for brand awareness as there are for a constant lead source. Farm your own sphere of influence before investing heavily into cold leads.
For those that have been in the industry longer, where have you seen your biggest shift in marketing dollars? Have you done less marketing in cold leads? Or more?
Have you ever invested in technology systems that help/assist with just working your business in referrals? I know agents in our office are generally happy to pay for this type of system, because it helps them stay on top of their clients first.
Finally, if you made a pie chart for your lead sources, would it look like graph above?