We are just coming off our annual Leadership Retreat – AMAZING ideas coming out of there. I think all of you are going to be very stoked; I know we are! We have huge plans for 2017. More to come.
A few weeks back I was talking about lead generation and the response rate – I have received a ton of questions about it so I wanted to talk a bit more about some of the sources and some of the best practices for responding.
First – the Core 4. It’s a Tom Ferry thing. There are four general ‘pillars’ that all of the lead generating systems fall under. They look like this:
1.Open Houses – not just any general open house. This is a MEGA open house, done right, and done for a purpose. This requires a 9-10-day plan. When we talk about being prepared for these things, this is where it takes a step-by-step process. It needs to be specific enough to be able to be replicated by anyone. The goal is to paint ‘you’ as the dominant force in a market area. It’s a process, and it’s on purpose.
2.Past Clients/Sphere of Influence – Best practice = 33 touches per year, 20-25 of them set it and forget it, talk to them at least every 90 days, even better every 60 days, on the phone or face-to-face with 5 people in my SOI each day, hold events where everyone gets together as a thank you. Don’t forget to ask for the business! Use your Tom Ferry scripts and memorize them. Ask your MD if you need them. If you are challenged with asking for business, you need to change your mindset. You are here to do something amazing for your SOI and past clients – you already have! Remember that. They need your help. They will want to help their friends with your service as well if you’ve been ‘that person’ to them.
3.Online – we’ve talked a lot about it, but it’s the low hanging fruit. We are talking about Zillow, Trulia, realtor.com, Facebook advertising, retargeting, etc. There are a ton of systems out there. This can be an expensive one, and requires a specific type of person to respond. Understand – you’re not going to go spend a bunch of money and then not respond to the leads.
4.Farming – I know you’re thinking ‘direct mail’, and YES. Part of it. Identifying the right demographic and neighborhood is key. And then you need a plan. Best practice = the pieces need a call to action and drive someone somewhere, and you must do it twice per month. You can farm expired’s, FSBO’s, second home-owner’s, move-up home owner’s, door knocking (sweat equity).
There is no reason to do any of this stuff and put money into it, if you aren’t going to TRACK. The tracking and measuring is the whole point. Let’s just say I have a budget of $50,000 per year to spend on marketing, and I’m spending $40,000 per year online, and $10,000 per year on my SOI/Open House and I’m not tracking … What if $200,000 is coming in from my SOI and only $10,000 is coming in from my online efforts – am I getting a good return on my investment?
We talked a lot about that at our leadership retreat this year, on what we expect out of our marketing dollars, and here’s what we came up with. We want an average of 10x our investment. That’s an ROI of 10x. We will terminate any marketing that we do that doesn’t at least hit 4x – and we’re taking an average. Some will be higher, some will be lower, so by tracking, we can identify how many leads we are generating, how many appointments we are getting as a result of those leads, how many contracts are being closed, and how much you’re actually making. If you don’t have a document to that allows you to track – ask your coach or your MD for it. It’s called your “Lead CPL” tracker. That gives us the ability to identify where our money is best served. It also highlights potential areas where we can sharpen our skills.
Let’s talk about best practices for response. If someone from your SOI left you a message saying they have a friend interested in selling their home … how fast would you respond? Less than 30 seconds probably. And then following up like crazy. Why don’t we do this with all leads?
1.Process – every lead needs to have a step-by-step process on how those leads are going to be responded to.
2.Online leads NEED to be responded to within 5 minutes. If not, your chance of converting them goes down by 80%. Put them on the ‘6-day plan’: twice a day for 6 days, buy or die. It takes 9 conversations to convert someone. Be a warrior – you created this lead, go get it. Use your Home Valuation page within your IQ website as a place to drive people to to capture the leads. A home address is a solid lead! There are plenty of places to do the research. Find out WHY they want to know the value of their home.
This is a tough business, but what you do is nothing short of amazing. You help two families with every transaction you are a part of – remember that!