Technology Changes Lead Generation

While traditional networking remains the favored source of leads for many agents, the internet and mobile tech tools have put many more resources for reaching potential clients in their hands. Taking advantage of the marketing opportunities presented by the internet makes perfect sense for any agent who is trying to generate more leads. After all, the NAR’s 2016 Profile of Home Buyers and Sellers found that 44 percent of recent homebuyers started their search for a home by looking online for properties for sale. Simply using technology and new media to stay in touch with their client bases can serve as a convenient way for agents to generate new leads.

Ashley Cox, a Realtor with d’aprile properties in Lakeview, also derives most of her leads from referrals but doesn’t limit herself to that method. “I’ve met clients at open houses, networking events, through community organizations and charities,” Cox says. “I also do all kinds of marketing similar to what most agents are doing, with social media, direct mail, email and more.”

A recent survey by the online agent referral network and data science company ReferralExchange and the Council of Residential Specialists revealed that about 40 percent of the 1,435 agents nationwide who responded said they received one to five referrals per year and that the typical close rate on a referral was about 50 percent.

Outbound referrals, which are unqualified leads, accounted for a median of 12.5 percent of respondents’ total annual transactions. Of those referrals, 58 percent come from past or current clients. The rest come from friends, family and acquaintances. Among inbound referrals (qualified leads), 40 percent come from other agents and another 40 percent is derived from people within the individual agent’s sphere of influence, including past and current clients.

Other leads can come in through a variety of channels, from online contact forms to advertising on billboards. A referral, however, has several factors that can be encouraging to an agent, according to the ReferralExchange study. The person referred is typically seen as serious about making a purchase, someone who already has a mutual connection with the referral and with the agent. The highest rate of success with referrals were those from within the agents’ own sphere of clients.

Getting a referral from a satisfied homebuyer isn’t automatic. Some agents struggle with finding a non-intrusive way to ask their clients to refer them to others who are looking for homes without appearing pushy.

Jones believes that agents must always be prepared to ask the people they know for leads. “If you eat out at a great restaurant, you tell all your friends,” he says. “That leap isn’t always made in real estate. With restaurants or good movies, you do that. In real estate, you have to plant that seed. It’s not always top of mind to refer somebody that helps you out. We have to do a better job of educating our clients and say, ‘Yes, please refer me and remember me when somebody says they want to buy or sell a house.’”