Even the best real estate agents and brokers need a reminder of the basics when turning leads into clients. Although the basics seem like simple skills on the surface, they are the building blocks for a strong business.

As a real estate trainer I am often surprised at how many agents do not have an effective plan for acquiring leads, following up with them and then nurturing them to become future clients. Too many agents are simply stumbling over leads and crossing their fingers in hopes that the lead will pick them for representation with their future real estate transactions.

This column may be a wake up call for some agents but hopefully it will be a reminder to most that succeeding in today's real estate market is a far cry from the days of elementary school when we crossed our fingers that we weren't picked last for dodge ball. If you want to not just survive but thrive in the real estate business then you need to demand that you are picked first, especially now as the number of licensed real estate agents continues to inflate.

As we all know there has been a dramatic increase in the number of licensed agents over the past few years. According to the National Association of Realtors® their membership has increased from 766,560 in 2000 to 1,265,367 last year. These numbers if any should make you recognize the need to stand out and prove to leads why you are better than the next agent in the dodge ball line up.

So, for those agents who need to kick-start their lead generation plan here are some basic tips. For those agents who have already achieved some success in turning leads to clients, I hope this gives a good refresher of the basics.

What is a Lead

Definition of a lead: Consumer that is interested in possibly using your services either now, or in the future.

Sometimes we forget that the definition of a lead is as simple and open ended as that. Of course there are all different types of leads; buyer leads, seller leads, for sale by owner and refinance leads. Depending on your marketing initiatives, leads can come from many resources. A direct mail piece could develop into a cold lead or your website could generate a hot lead who is interested in viewing one of your listings.

Like many agents, in the past I encountered my fair share of Mickey Mouse leads and I often use this as an example with agents. What would you do if you received a lead from Mickey Mouse? I am disappointed when agents say they cast it off as a bogus lead. What better way to break the ice with a potential lead than to drive up to the lead's house and present your information to Mickey Mouse himself. The lead will remember your humor and he will more than likely tell his friends about the incident, leading to more potential referrals. A call to Mickey Mouse can also elicit a positive response and the building of instant rapport. Remember that if nothing else, the seller or buyer will almost always provide a current address along with their faux Mickey Mouse name. Don't be afraid to do a little detective work to get a contact number or name for a lead, start with whitepages.com.

A Lead is a Client in Training

Depending on the lead's origin they can range from cold to hot leads. Keeping this broad range in mind, clearly means that all leads need to be treated on an individual basis. The same basic guidelines apply however.

Every lead that comes across your desk should be viewed as a potential client. This means each lead should be treated with the same attention that you provide to your top clients.

It can sometimes take days, months and even years to transform a lead into a client. However, the consistent and aggressive professional will have the greatest success at seeing leads all the way through to client status. Believe each lead is the beginning of a long-term relationship.

Leads will take notice of how responsive you are before they've even committed to your services. Working for the lead makes the difference between getting a listing and losing a lead to a more attentive agent. If the lead is impressed with your commitment you may have just turned them into a client.

Above all a lead filled out a form, requested information, contacted your assistant; however they became a lead they made the effort to find out more. As a real estate professional you need to be accountable and respond to their request.

The sales industry is a numbers game and your business can only increase as you grow your potential client base.

Window of Opportunity - Rapid Response

Consumers increasingly expect an immediate response to their needs and requests, especially those using the Internet. According to the National Association of Realtors® 70% of those initiating the sale or purchase of a home begin doing so online.

That's an amazing figure, but what's even more amazing is that even as the Internet has become a powerful tool for agents to capture leads and generate business, nearly half of all Internet leads are not followed up by agents or brokers. According to the California Association of Realtors in its annual study of Internet buyers and sellers, 48% of Internet leads are being ignored. How many agents do you know who can afford to turn down potential future income that way? Use technology to help stay ahead. Your cell phone, PDA, email and the Internet are your basic marketing tools. I anticipate that within the next few years many agents will be "dodged" out of real estate if they can't adapt to our high-speed world.

You need to make yourself available to meet the rapid response demand of today's house sellers or buyers. It is imperative that you contact leads immediately. Best case scenario when a lead is received: drive to the lead while calling them on your cell phone for an appointment as your assistant is e-mailing the lead your contact information and drafting a letter of interest for their business.

When this scenario doesn't fit, call the prospect and make an appointment for as close to "now" as possible. The more time that elapses, the less likely you are to secure the lead. Another agent contacts them, they change their mind about listing, they are referred to their brother's agent. Whatever the case may be, if you are the first agent to reach them your chances of turning them to a client just skyrocketed!

Be Their Resource

Leads are searching for knowledge: should they sell now, what is their house worth, what school system is the best match for their kids? Listen! Try to hear everything they are saying so that you can anticipate their next request and become a source of knowledge for them.

Know not only your local real estate market but learn about your community. By being involved in your community and lending an ear to the occasional real estate question at the local charity event you will quickly be viewed as the local real estate expert.

Go a step further and establish yourself as an authority figure in the industry. Contribute to lectures or seminars within the real estate industry, join networking organizations, be active in real estate issues, these tactics will build recognition and your credibility.

Follow through on your commitments and show the lead that you view this relationship as a long-term relationship. Find out what their long and short-term real estate goals are and show them how you can assist them now and in the future.

Repetitive Contact

After you've made your initial contact and impression don't wait for them to contact you! Repeatedly contact the lead to remind them of your skills, services and superior knowledge. As a former agent, the moment I got a lead I entered it into my PDA for constant follow-up until I got an appointment. That means, calling, visiting and e-mailing daily until you make contact or get an appointment.

With every contact you make, dig deeper for what their true needs are so that you can become the perfect match. This is your opportunity to show them your skills and knowledge. View every encounter with a lead as a job interview. In essence you are interviewing for their business. Even if you know they may not need your services right now or for six months down the road, continue to stay in regular communication so that when they are ready to buy, sell, or both, your name is forefront in their mind.

Use a management system to manage your leads and implement a marketing plan to keep in contact through a newsletter, direct mail campaign or send e-mails with new listings in their area of interest.

Don't take no for an answer. As a former agent, I've been hung up on by leads and called them back stating that "we must have gotten disconnected," and then got an appointment with them. As a consumer wouldn't you want an aggressive agent to sell or buy your home?

They say real estate is all about location, location, location. But to be successful in today's competitive market agents need to remember that it is also all about being diligent, having determination and being picked first in dodge ball!

Published: November 15, 2006

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