Friday, September 16, 2022 / by Nick Waldner
The Fundamentals of Lead Generation
Lead Generation is not for new agents, it’s for ALL agents! In fact, this has been written, first and foremost, for agents that have been in the business for 5+ years! The ones with a large amount of transactions under their belts and many many past clients. This is designed to reconnect and reinvigorate your database.
Now, I also know there are many new agents who will read this. For you, I’ve added ways to instill the fundamentals into your practice from Day 1! Something most experienced agents wished they would have done!!
Growth comes from clarity, priorities and focused-action. The first two are preparing your mind for the action you must take.
When it comes to Lead Generation, we control three things:
Who we choose to follow up with.
By what frequency.
By what intensity.
Let’s break this down so that we truly understand what is needed to succeed.
First, the WHO:
Your goal is to compile a list of 325 names. (I’ll tell you why 325 later!) These should be people who would most likely transact business with you (again) or would happily refer you to the people they care about. They must KNOW, LIKE and TRUST you! As we compile our list, here are some tips:
Start with your past clients. The ones that have transacted business with you already. These people KNOW you, LIKE you and, because of the successful transaction, TRUST you! Someone who has had a great experience will always be more likely to pass along a referral than someone who has not. How many past clients do you have? Make a list or label them all in your CRM.
Next, create a list of anyone who has ever given you a referral. If they’ve sent you someone to help in Real Estate then we know they also KNOW you, LIKE you and TRUST you, otherwise they wouldn’t have referred you business! Many times we find these people are in a position to give us multiple referrals throughout the year. Reward that behavior and make sure they are part of your WHO. Have you reached 325 yet? If you are an experienced agent, you might have!
If not, we should now look to our sphere of influence. The reason we don’t start here is that many people like you as a person but don’t necessarily trust you as a realtor. You have formed trust in your personal relationship but not yet through your business. If you don’t have a lot of past clients or referral sources, your social circles are a great place to find your 325. What is key here is to prioritize. First include your immediate friends and family that you believe would absolutely refer you if given the chance. Then start looking for the “weaker connections” to people who KNOW, LIKE and would most likely TRUST you. This could be your brother’s best friend, your high school friend’s parents, the person who cuts your hair, a lender you work with, the manager at a local restaurant you frequent, etc. Try to think BROAD. We want quantity first and then you can go back and narrow it down to the quality depending on how many you still need to reach your goal of 325.
Number 2, the FREQUENCY
By frequency, I mean how often are these people going to hear from you. This group of 325 is NOT your current clients! It’s not people that are looking to transact in the next 2-12 months. For those people, you will set up reminders and contact points depending on their motivation and timeline. Our list of 325 people are the ones that know, like and trust you but haven’t given you any indication that they need your services just yet. Remember that the average person buys a home every 5-7 years which means the majority of the people on your list will not need your services as a realtor in the next 12 months. Most realtors try to focus on people who need to buy or sell in the next 30-90 days. Knowing how often people move, this leaves a vast majority of the people you know out! If we change our perspective to become their “realtor for life” then we need to communicate not only when they have a need but during the years in between home purchases.
You will need to be consistent with your follow up if you expect great results. Consistency comes from not thinking. How do you put yourself in a position to know WHAT to do without having to think WHO? Success comes from automatic reminders in a system that prompts you that it’s time to reach out again. Don’t rely on your memory or some rudimentary method of keeping track- find a CRM/Technology Platform that has the tools you need so that each day you are prompted BY THE SYSTEM as to who to reach out to today! This is a key step in the process. The greater the consistency, the greater the results. A wise man once said, “Success is simple.” so just follow the system!
Last, the INTENSITY!
Calling someone everyday who doesn’t have plans to buy or sell a home would be a bit too intense!! But, not speaking to someone for 6 months or a year would have the opposite effect. You can’t stay top of mind for referrals and won’t be remembered when they need help. So how do we create the right intensity without overwhelming or underwhelming our clients!? Most
experts agree that the highest form of interaction is face to face however, we also know this to be the least efficient. The next best option is to have a conversation. Yes, our pocket computers work for more than just email, social media and texting!! Our phones are the next best thing to face to face. You should set a goal to call and have a conversation with each person in your 325 at least once a quarter. But is 4 times a year enough? Most likely not. That is why I also suggest connecting with your WHO’s on social media once a quarter and sending a text or handwritten note once a quarter. Done successfully that is 12 touches in 12 months. Now, by varying the touches- Call, SM Touch, Txt, Call, SM Touch, Hand Written Note, Call, etc… We find a balance between consistency and intensity!!
The 5-5-5 Method
The simple solution for what we just learned is modeled in the 5-5-5 method. It alone takes care of numbers 2 and 3 above- Frequency and Intensity! So what do you need to focus on?? The “Who”! Your homework is to get started on your list of 325 people. Why 325? Because if you call 5 people a day, for an entire quarter (65 business days) you will have reached 325 people! Now follow the method and you will reach 325 people 12x’s a year without being too intense or suffocating!!
Get started today and see your results start to soar!!