How Do Real Estate Agents Generate Leads?
Diverse Strategies for Real Estate Lead Generation
Your success in real estate depends on how well you can find new clients.
You have many ways to do this:
Google ads
Facebook campaigns
Buy leads
Host open houses
Talk to people you know
Each way has good and bad points.
The best choice depends on what you want, what you can spend, and who you're trying to reach.
Insights from Barry Jenkins
Barry Jenkins, our Realtor in Residence at Ylopo, shares his thoughts:
"Buying leads online is a fantastic way to scale your business. You're paying to talk to folks interested in what you offer."
But here's the thing - the cost for each lead can change.
It all depends on how clear the buyer is about what they want.
Finding the Right Balance in Paid Lead Generation
Some services offer special leads - buyers ready to buy a house in 30 days.
But these can cost a lot.
You might have to pay 42% of what you earn. That's a big chunk!On the other hand, you can get cheaper leads.
These might be people who click on house listings on Facebook.
They need more help to decide, and fewer of them end up buying.
But they cost less to find.
Barry's team chooses the second option.
They:
Buy cheaper leads
Spend time teaching people about buying houses
Do this through talks, meetings, and agreements
"For us, that's where we landed," Barry explains. "Ultimately, you've got to do what's right for you."
Open Houses: Are They Really Free?
Open houses are another way to find new clients.
You don't pay money upfront, but they take a lot of time and work.
Barry says it clearly: "It's a lot of work to generate the leads. It's a lot of work to cultivate them."
To make open houses work well:
Have a good plan to get visitor information
Keep in touch with these people over time
Offer prizes or gifts to encourage people to share their contact details
But be careful - it can be hard to turn open house visitors into clients.
Many already have an agent or aren't really looking to buy.
Building Relationships for the Long Run
Talking to people you know - past clients, friends, community events - can be cheap.
But it takes a lot of work to build relationships and meet people face-to-face.
Barry notes, "Client events are probably the cheapest, but they're the most demanding. Face-to-face interactions, planning events, dinners - it all adds up."
If you're great at building relationships and giving excellent service, you'll see good results.
You can get a steady flow of recommendations and repeat business.
Technology and Personal Touch
As real estate changes, using technology and personal service together will help you stand out.
What's coming next?
Marketing that uses data to find the right people
Computer programs that help nurture leads
Virtual tours of houses
Marketing with data will help you find promising leads based on:
Who they are
What they do online
What kind of house they like
Computer programs will help you send the right information to people at the right time.
This makes it more likely they'll become clients.
Virtual tours are becoming more popular.
They'll get better and more common.
This technology lets you show houses to more people, even those who live far away.
It gives a real-life feel that can help qualify leads and speed up buying.
Focusing on One Area to Find Clients
Focusing on specific types of real estate can be great for finding high-quality leads.
You can become an expert in areas like:
Luxury homes
Waterfront properties
City apartments
By focusing on one area, you become the go-to person for buyers and sellers in that group.Specializing lets you tailor your:
Marketing efforts
Networking events
Content creation
For example, if you specialize in luxury homes, you might work with high-end:
Interior designers
Landscapers
Home technology providers
These partnerships could lead to special events for wealthy clients.
If you become known as an expert in your area, you'll attract leads more likely to buy and earn you more money.
International Buyers: A Growing Group of Clients
Another special group with potential? International buyers.
The National Association of Realtors says foreign buyers bought $74 billion worth of U.S. houses in 2021.
The top five countries were:
Canada
Mexico
China
India
United Kingdom
To work with this group:
Build relationships with international investors
Partner with overseas real estate agencies
Understand what foreign buyers need
This might involve:
Learning about cultural differences
Understanding tax rules
Knowing visa requirements
Creating marketing materials in different languages
Providing extra-special services
If you help international clients understand the buying process, you'll stand out from other agents.Measuring and Improving How You Find Clients
No matter which ways you use to find clients, it's important to track and analyze your results.
This helps you get better over time. Here's how:
Set clear goals
Define what success looks like
Use tools to monitor how well each method works
Important things to track:
Cost for each lead
How many leads become clients
Return on investment for each way you find leads
Average time from finding a lead to closing a sale
How much a client is worth over time
Look at these numbers regularly. Make decisions based on data. Improve your methods. Use your resources more effectively. Grow your business.
Putting It All Together
Finding new clients is crucial for success in real estate.
There are many ways to do this.
As Barry Jenkins says, the best approach depends on your goals, resources, and who you're trying to reach.
Understand the good and bad points of each method.
Use technology and personal service.
Focus on special markets.
Always measure and improve your efforts.
If you do this, you'll develop a strong way to find new clients.
The result? Long-term growth and profit in your real estate business.
Remember, there's no one perfect solution for everyone.
Try different things.
Find what works for you.
Stay flexible.
The real estate market always changes. Your ways of finding clients should change too.