Creating an
effective lead follow-up system can be the backbone to a consistent real
estate sales business. The more effectively you handle the leads you
generate, the more production you will achieve. Too many agents are spending
too much time trying to find the leads they generated. They know the
leads are on their desk somewhere. You need to be able to put your hands
on your leads immediately when needed.One of the best ways to track leads
is by a contact management software program. These programs are designed
to help you keep information that will enable you to sell more efficiently
and effectively. There are many on the market, some of the best are ACT!,
Top Producer, and Online Agent. Select a system you are comfortable with
that will grow with you and your business.
If you are unable
to afford a computer and software, you can do this manually
with 3" x 5" note cards in a shoe box. I started
to track my leads this way when I started real estate sales
many years ago. Sometimes we can get too fancy and technical
for our own good. We become excited about all the new technology
and gadgetry and forget "old fashioned" sales skills.
The key is to meld the technology with quality sales skills.
By doing this you will achieve spectacular results.
One of the critical
questions to ask yourself is what is a lead? What is your definition
of a lead? Each person’s definition will tell a great deal
about where he is in the business. When I first started into
business, my definition of a lead was someone who wanted to
buy or sell. It was a very simple definition. It was also a
very broad definition and excluded very few people. My definition
today is someone who wants to buy or sell in the next 14 days.
My definition has changed dramatically over the years. How
did I get from one very broad definition to one that was quite
narrow? Let’s take a look at the process.
When I first started,
like most new agents, I had very little knowledge of the business.
I was chasing after any and every deal I could find. Because
my definition or philosophy about a lead was so broad, everybody
on the face of the earth was qualified as a potential client.
Even though everyone qualified as a potential client, I had
too may potential clients to work with. Most of my potential
clients honestly would never buy or sell a home, let alone
one through me.
I spent a tremendous
amount of time trying to persuade people to buy or sell who
really never were going to buy or sell. I learned to tighten
down my definition to anyone who would buy or sell within a
year. Then tighten to anyone who would buy or sell within six
months. Then tighten down to 60 days, 30 days, and finally
to 14 days. If I had tightened my definition from the beginning,
I would have saved myself from a lot of mistakes, anguish,
and lost income. Do not wait to clearly define a lead in more
specific terms of now business. Spend the additional time working
to find more leads through prospecting. Having fewer good leads
is better than having a bunch of marginal ones. Quality is
the name of the game versus quantity. If your desire is to
sell a home a week, you only need two to three now leads weekly
to accomplish your goal. Think in terms of qualified people
who want to do something now!!
All the time I spent
working with people who were too far out, cost me a lot of
money. We have all spoken with people many times or even put
people in our car to show property who did not have the motivation
to buy or sell now!! Do not continue that process, change today!
There are people who
want to buy and sell today; our job is to go find them and
help them do it. My goal was to list or sell a home every day.
My job every morning when I got up was to find that person,
every working day. It is truly no more complicated than that.
At the same time I was looking, I would find people who were
two weeks away, ten days away. If I filled my pipeline with
these people, I always had great leads to work with. I did
not have lots of leads, but the ones I had were highly motivated
and someone was going to get a listing or sale in the next
week or two. My goal was to ensure it was me by incorporated
sales skills and effective follow-up. You might call it relentless
follow-up. Do not let go of a good lead. Have you ever tried
to get a bone away from a big dog? Develop that attitude with
good leads.
You must clearly define
your definition of a lead. Here is a little hint for you, it
should be someone who wants to buy or sell in 60 days or less.
Any further out and you are not creating closings for the near
future. You are also likely to be investing in someone who
will never buy or sell. You are investing your time, your most
precious commodity, into someone who may not buy or sell. Do
not waste your time for anyone or anything. We are all only
given so much time in life. You and I only have so many days,
do not waste them with people whom we cannot help. If you have
too many future potential clients rather than now clients,
you will have a high level of frustration and no control of
your business, not to mention the financial loses you will
face. Keep your number of long-term or "project clients" down
so you can invest your time finding people who need help now.
I define "project clients" as someone who is:
Looking for the "perfect
house." I guarantee they will never find it.
Looking for a "tremendous
deal." The deal rarely is good enough for them to move
today. If the deal is so tremendous some other smart agent
has bought it already.
Waiting for the right
house so they will put their home on the market. If they do
not become motivated to sell after showing them a few houses
that meet their criteria, you need to reevaluate whether they
will sell in the near future.
You call them back
a few times and their motivation to buy or sell has not increased.
We have all spent
large amounts of money on mailings to people who are not moving.
We have also spent large amounts of time following up on poor
leads. Stop working with people who are not committed to doing
something now. The old belief of "great salespeople should
be able to sell ice to an Eskimo" is false. Great salespeople
have clear definitions of what constitutes a lead. They clearly
follow their narrow definitions. They prospect enough to keep
a constant supply of leads flowing, so they can qualify and
define them carefully. As it says in the Bible, "Jesus
separated the wheat from the chaff, gathering his wheat in
to the barn and burning up the chaff." We must separate
the good kernels of wheat from the chaff of unmotivated sellers
and buyers. The kernels of wheat have value, the chaff has
no value. The wheat will feed your body and mind. The chaff
will provide zero nourishment.
What happens when
you do not separate effectively is you get so bogged down with
future business that never happens, you miss the now clients,
or you do not have the time to find them because you are hoping
this future business will work out. You often feel like you
have so much invested in future business you can not just cut
your losses now even though in your heart you know it is right.
Always remember the least painful loss you will take is the
one today.
Take the time today
to reflect and clearly define what a lead is to you. Reevaluate
and review your definition every quarter to see if it has changed.
Stick to your guns. Do not compromise, because most of the
time you will be burned. There is nothing more painful then
to compromise and then not get paid for your effort. The pain
in the pit of your stomach is like no other when you compromise.
Once in a while you will find that person you excluded will
buy or sell with someone else. More often than not, you just
saved yourself time and frustration.
Above all do not be
concerned if you made a mistake by over qualifying or over
defining which causes someone to use another agent. Great sales
people do not worry about the transaction or closing they never
had. They focus on the key four letter word, in sales, NEXT.
For more information and help on mastering leads, click here.
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