- Easier to Find Serious Buyers
- Amount of Referrals Goes Up
- Less Time On Marketing, More Time Serving Clients
- Frequently Asked Questions About Why A Smaller Number of Leads Is Good For Business
New customers and sales are the lifeblood of any business. It’s easy to see why most agents and brokers want to get as many leads as possible. After all, more leads drive more sales, right?
That is true, but in order to drive long-term growth you need the right kind of leads. Focusing your best time and energy on generating qualified leads makes a significant difference for your business. Here are three reasons why a smaller number of strong leads is good for business.
Easier to Find Serious Buyers
The first reason why a smaller number of strong leads is good for business is you’ll find serious prospects faster. When you use lead generation methods or email marketing tips that require more investment from people, you’re automatically going to receive higher quality leads. Take email opt-in forms for example.
Most email opt-in forms either only require a user’s email address, or their email and first name. This will yield a higher number of people filling out your form, but some of your leads won’t be interested in your offer.
If your opt-in form requires users to provide their full name, email, phone number, and mailing address, you’ll end up with serious buyer leads. People who are looking for an ROI on their time and energy are willing to share contact details that help you move the conversation forward.
It also indicates they trust you and see you as a great resource in meeting their needs. Make sure you use email subject line best practices, the best time to send an email, and email templates for real estate agents to maintain a great impression. Get all of our tips in one place with our ultimate guide to email marketing.
Amount of Referrals Goes Up
The second advantage of targeted lead generation is your referrals will go up. The more often you’re leveraging relationship selling in your deals, the larger your pool of satisfied clients becomes.
Satisfied (and certainly thrilled) clients are happy to recommend professionals, which drives lead generation for you. Statistics show that for every three referrals you receive, two of them will turn into leads.
The more diligently you serve your existing clients, the more they’ll appreciate you, and the more they’ll recommend their friends and family to you. This creates a semi-passive referral engine for your entire business that simply requires you to deliver excellent results.
Over time, your reputation will precede you. You’ll have buyers and sellers contacting you based on what they heard about you through their network–because your relationship selling techniques are strong! There’s no better feeling than knowing your clients couldn’t help but share their experience working with you.
This is an optimal position to be in because prospects are reaching out already trusting you. When you haven’t built a trusting environment yet, people won’t necessarily oppose you, but they may be reluctant. If they hear from several others how you got them results, they’ll know you’re the real deal.
Less Time On Marketing, More Time Serving Clients
The third reason why a smaller number of strong leads is good for business is you don’t have to spend as much time on real estate marketing ideas or learning how to master content marketing. This includes less time researching video marketing statistics and video editing tips, too.
It’s important to remain educated, including knowing what is a comparative market analysis, but with higher quality leads you can focus on serving your customers. When new leads only appear as a result of your weekly marketing activities, this means you have to invest that time to get new leads.
A lack of time is one of the biggest obstacles listing agents deal with. Therefore, it makes sense to use methods that don’t require as much time on your part. That’s where being fully present and professional at all of your appointments comes in.
Rather than solely chasing down new leads, work your network. Learn what the fastest way to get more referrals is. Also discover the 6 secrets to getting a real estate listing every day so you have the numbers when you need them.
Have authentic, but deeper conversations with your existing contacts. Ask them if they’ve been talking with friends and family who are also looking for homes. Putting in a little effort in the right areas can cause a ripple effect for new leads of similar quality.
By starting with a smaller number of high quality leads, you can channel your energy where it’s most needed. Serious buyers are ready to make a transaction soon, which means you can speak with them without anyone feeling pressured. This leads to a deal being closed sooner, your next commission sooner, and that’s more money in your pocket to grow your business.
Frequently Asked Questions About Why A Smaller Number of Strong Leads Is Good for Business
Real estate–just like any other industry–is filled with truisms. Some of these trite concepts include getting more leads, sharing your business via word of mouth, and asking for the sale.
While these aren’t falsehoods, they offer little in the way of business branding and gaining traction in your business. They also won’t teach you where to look for the most valuable leads you can benefit from.
If you want to get past all the noise in real estate, it’s all about focusing on fewer, higher quality leads. We researched frequently asked questions about why lead quality is so important. Check out our answers below:
How Many Leads Do You Need?
While there’s no right or wrong answer for the correct amount of leads, you can use several frameworks to develop a steady inbound flow. The number of leads that’s right for you depends on company size and the nature of your offer.
One school of thought recommends that you should have about two to three times the amount of leads as you have current customers. While your paying customers sustain your platform, you need to continually attract new buyers otherwise your revenue will grow stagnant. In this case, a company with 500 existing customers should have between 1,000 and 1,500 leads.
Another approach says you should only speak with leads that are prequalified. This means following through with leads that booked a demo, downloaded an eBook, or otherwise already expressed interest. Of course, this number can vary widely and is largely contingent upon demand generation.
Yet another mode of thought recommends capturing as many leads as possible, whenever possible. Some sources indicate as much as 98% of your leads are “dead”–meaning they’ve not yet made a purchase from you.
When trying to generate sheer volume, however, you need an effective lead scoring system in place. Otherwise, you’ll be pitching the same product or service to each of your leads. This is bad because it alienates them from their stage in the buyer’s journey and makes you look pushy.
Why Is A Good Lead Important?
A good lead is important for several reasons. One, it reinforces who your target customer is. Two, it holds you accountable to delivering quality in your services and products. Three, it gives you an ideal opportunity to close the sale. Let’s break each of these down into detail.
Being as specific as possible about who your business serves is the first reason why good leads are essential. Great leads are much easier to find when you know how to market yourself as a realtor. If you’re not attracting the kinds of leads you want, something is off about your offer or branding. You can create buyer personas to identify real-world characteristics of who will buy from you–and why.
The second reason good leads matter is because it holds you accountable to your brand. If you’re charging $999.95 for an enterprise-level product, you need to back this up with real-world results. Without the challenge of solving real-world problems for real customers, your product quality may suffer, and your leads will be affected.
The third reason why a smaller number of strong leads is good for business is they make simple sales. Prospects who are more or less ready to buy don’t need to be convinced of your brand’s value. When you close these kinds of customers, it’s a confidence boost for you and/or your sales team.
Why Do Businesses Struggle With Lead Generation?
Businesses struggle with lead generation for multiple reasons. One, it takes time, persistence, and sometimes money. Reaching out to strangers to drum up interest in your business demands thick skin, because rejection is common. This drives many businesses to relegate lead generation or forgo it as soon as they have paying customers.
Two, it doesn’t always produce the types of leads one wants. With digital technology taking over much of the consumer landscape, lead generation has become more difficult. More choices means consumers have more control over who they talk to, where they shop, and why. As a result, it’s harder than ever to capture leads’ attention and keep it. Remember to use the ABCs of relationship selling at the right times so you stay top of mind with clients.
Small Pool of Leads, Big Results
Targeting the right leads is one of the most challenging–and exciting–parts of business. It takes time to understand who you’re best suited to serve, as well as building trust and rapport with clients.
As you develop rapport with clients, remember to put their needs first. This will help conversations develop naturally, which leads to mutual success in no time.Back to Top