Lead Quality VS Quantity. Which is more important?

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Lead Quality VS Quantity. Which is more important?

  1. 1. Lead Generation – Quality vs. Quantity We all know that the quality of your leads helps determine your conversion rate – the rest of your conversion rate is determined by your sales skills. It’s better to have 10 “high quality” leads that convert into 3 deals than 100 “low quality” leads that convert into 1 deal. So lots of real estate agents try to concentrate on getting “high quality leads.” But that’s only part of the equation. You really want to focus on your net results at the end of the month. Which of the two numbers below is more important? a) How many leads did you get? b) How many deals did you get? For example, let’s say got 10 of those “highly quality leads” and wrote 3 deals. That’s nice, but what if you got 500 of those “low quality leads” and wrote 5 deals? The obvious answer is that 5 deals is better than 3. So in this example, the agent who got the “low quality leads” actually makes more money. And that’s the whole point of being in business. In his great book The Millionaire Real Estate Agent, Gary Keller says that top real estate agents tell him that when it comes to leads, “the quality is in the quantity.” Top producers know that it’s a “numbers game.” (Where have you heard that before?) The more leads you get the better. You want to find a way to get your name in front of as many prospects as possible because …. A National Association of Realtors (NAR) study a few years ago found 76% of all Sellers contacted only ONE agent and 16% contacted only TWO. And it’s the same story for Buyers. 59% of Buyers interviewed only ONE agent
  2. 2. and 22% met with only TWO. So more than 80% of the time Sellers and Buyer are choosing between only 1 or 2 agents! Why? Because psychological studies have shown that the human mind is constantly bombarded with advertising messages and it can only hold a limited number of messages at a time. For example, the maximum number of brands that the average person can remember for product category is 7. Based on the NAR study, it appears that maximum number of real estate agents that most Sellers and Buyers can remember is only 2. So you better get out there if you want to be one of those 2! Exposure and repetition are the keys to success in getting your message out there. If you have a limited marketing budget, Craigslist is a great way to put your name, face, phone number and email address in front of a lot of people for free. If you have a website, make sure you have a great lead capturing system built into it. You should give away something away for free in exchange for a name and email address (and hopefully a phone number). For example, you could give away a copy of the Real Estate Book that you can download for free from my Facebook page where you found this article. Don’t sweat the details … too many agents worry about having a perfect picture and a glossy presentation … it’s better to have a mediocre presentation seen by thousands of people than a great presentation seen by a handful. Richard Smith is a well-known Houston area real estate and mortgage marketing expert. You can contact Richard at (281) 994-4240 or richardsmith@leader1.com.

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