We live in a society of convenience. Technology will accelerate this trend in 2017. Why turn on your lights when Google can do it for you? Why go to the Grocery Store when Fresh Direct can do it for you? And why invest in lead generation when you can simply buy leads outright? Buying leads is certainly an easier approach to lead generation than creating a system that attracts, converts, engages and nurtures over time. That’s why so many real estate professionals continue to buy leads. It’s easy and for many, it’s effective.
But if you are investing in both digital marketing and buying leads from a third party, you could be spending money on the same customer several times over. In real estate and beyond, it’s known that generating your own leads has slightly more upfront costs, but costs your company less over time. Purchasing real estate leads – through companies like Zillow or even things like PPC advertising – will likley increase over time. Here’s an example chart from the internet marketing company FourandHalf.
Let’s break down the costs. A qualified lead today costs nearly $500 and has an 85% chance of closing within 12 months, according to Trulia. You hear complaints however, that some leads are given to multiple agents or are still “kicking tires.” So while you may invest in purchasing leads, you have little control over the quality of that lead. You also have no repertoire or credibility built up with that consumer, so the chances are better that they might choose another real estate professional in the end.
Consider taking that same spend and investing it in your own online presence. Build up an online community of followers through engaging content, accurate listings, and local information that is relevant for consumers no matter where they are in the sales funnel. For the same spend, you now control the conversation for the entire life of that transaction. You build up referrals with that credibility and soon your business begins to snowball. Don’t believe it works? All you have to do is look at a company like Zillow to see how successful this approach is in real estate. It works for them and it can work for you too.
It costs less to build a better mousetrap than purchase your mice outright. A better mousetrap simply means doing a few things with a little more thought and intent:
- Creating more focused landing pages
- Including area information on properties so you become an area expert
- Incorporating an automatic personalized nurture system so no lead is lost
- Attracting a variety of leads through your site or pages regardless of where they are in the process
All of this will cost less and yield more for your real estate business.
If you’re interested in this approach, fill out the lead form below and you’ll get access to our complimentary eBook, Don’t Buy Leads. It’s full of five easy things you can do for your real estate business today that will yield better results that simply buying your next lead.