Buyer Leads

Many Agents have more buyer leads than theyexclusively by appointment. We must reposition
are able to convert effectively. They generateourselves as appointment only Agents.
them in large volume from the Internet, ad calls,Many Agents have bought into the concept of
sign calls, and floor time. Currently, the Internet is"by referral" only. The strongest position for an
the largest producer of leads. The problem withAgent isn't by referral only; it's by appointment
Internet leads is the conversion rate on them isonly. Driving a prospect to a face-to-face buyer
less than 1%. Agents invest a tremendousinterview allows us to serve them most
volume of time working to convert buyer leadseffectively. It also allows us to better ensure our
with a very limited return.ability to be compensated for our time, energy,
The reason the conversion ratios are so low onand expertise.
buyer leads is our approach. The strategy ofThe truth is there are an unlimited number of
most Agents is to send information to a prospect.prospects we can work with if we are willing to
Their hope is their information is better than thework for free. We must increase our value and
twenty other Agents who also currently possessshow that value to the prospect, so they have a
the same leads.desire to meet with us.
Champion's Principle in Lead Follow-Up: Don'tHere are some scripts that are effective at
assume for one second you are the only persondirecting and getting an appointment:
who has identified this prospect as a lead.1) In order for me to provide you with the
It amazes me how often Agents believe we arehighest level of service and representation, we
the only person who knows about this prospect'ssimply need to meet. Would __________ or
desire to move, even if we secured the lead__________ be better for you?
from a less than exclusive source. Every time we2) Having helped _____ families during my
acquire a lead from the Internet, we mustcareer and over _____ just in the last year, my
assume that person has been to ten otherclients have found that, by meeting with me, they
Agents' websites, as well. It is not reasonable tohave a greater knowledge of the current and
believe that we are the only Agent who has theemerging marketplace trends. They also have a
information from a buyer whose e-mail we justdramatically higher probability of living in the best
received or we met at our open house. It is alsoproperty for them and their family. Would
unreasonable to assume that an open homebuyer__________ or __________ be a better
will attend our open house exclusively. We musttime to meet?
assume they are gathering information fromThese are examples of how we can compel
many sources.prospects to meet with us face to face to
As a typical Agent capturing or following-up onconduct a buyer interview.
leads, we try to talk with them and attempt toFor any salesperson, the largest cost we incur is
build rapport. We capture these leads in person atthe opportunity cost we lose by working with the
our open houses; via e-mail when it's a web lead;wrong prospect. We spend vast amounts of time
over the phone for ad calls, sign calls, and floorand energy sending stuff to these "wrong
time calls. We tenaciously respond to our webprospects" that we cannot get in to the office.
leads through e-mail. We offer to send themMost of us have huge opportunity costs that
information. For lack of a better strategy, wecenter around two core areas:
send them "stuff"! We are holding out hope that1) Wasted time with low probability prospects.
our "stuff" is better than the "stuff" that tenThe way to quickly separate out the best from
other Agents are sending them.the worst prospects is to ask for an appointment.
Finally, we pray that someday all the stuff weThe last place a low-level prospect wants to be is
sent them will help us gain an appointment within front of a salesperson.
this lead. For most of us, we are relying on the2) Managing all of our created but not converted
volume and frequency of the information weleads. I read a marketing piece from another
send them to raise their desire to work with us.trainer the other day that I will use to illustrate
My friends, the truth is that the objective of anmy point. He was featuring a
inbound ad call, sign call, floor call, lead follow-upprotégé who was closing about
call, or face-to-face encounter at our open housesixty units a year. His protégé was
is the same. Plain and simple, the objective is tobeing marketed by this trainer as someone who
get an appointment. That appointment objective ishas it together in lead generation, because he
not to show them homes but to conduct a buyergenerates 1200 leads a month. Most Agents
interview. Because we are so single-mindedlywould be attracted to this training, so they can
focused on building rapport and sending themlearn to generate 1200 leads a month, as well.
"stuff", we often lose sight of the real objective .The truth is this trainer and Agent are living in a
. . to get an appointment.land of delusion.
When we analyze the true differences betweenFollow my thinking here:
Champion Agents and other Agents in the1200 leads a month X 12 months = 14,400 leads
business, the number of appointments makes thea year. That 14,400 leads a year yields 60
biggest difference. Champion Agents have moretransactions. UGH!! Who in their right mind would
appointments than other Agents.want to manage 14,400 leads to generate 60
We must to be able to convince the prospect ondeals? The guy must spend morning, noon, and
the initial call or initial e-mail that an appointmentnight following-up on leads! Yet, the rate of
with us raises the possibility of them:oconversion for this guy is .004%. That means his
Understanding the marketplace better.o Receivingconversion ratio is less than ½ of 1%. This
a high level of valuable service.o Securing antrainer is promoting his system as the way all
advantage when negotiating for a home.oAgents should operate. Give me a break!!
Securing a better lender for a smootherThere are only two options we have to conclude:
transaction.o Saving money in initial down1) There are a lot of leads, and the leads are
paymento Increasing their equity position initiallyojunk. It's easy to create a lot of junk leads. If you
Increasing their long-term appreciation becausehave to invest your time to follow-up on junk
they selected a better property.o Receiving theleads, you'll never be a Champion Performer. In
representation they deserve.the early days of computers, the techies had a
Any of these are valid reasons to do businessterm they use. The term was GIGO. It stood for
with us and to do it now.Garbage In . . . Garbage Out. That's exactly what's
The definition of a Champion Salesperson ishappening to this guy. Garbage Leads In . . .
someone who can convince a prospect to doGarbage Commission Out.
something that is beneficial to them and do so2) This Agent doesn't know how to manage,
more quickly than their competition. Peoplecategorize, follow-up, and sell the lead on an
perceive a true professional to be someone theyappointment with him. He is unable to drive that
meet with by appointment only. Their doctor,prospect to a face-to-face meeting where he can
dentist, attorney, and accountant meetmake a service presentation.