Acquiring leads is the single most important and difficult
aspect of the real estate business. Without a lead, there is no
client, so all realtors dedicate a significant amount of time to
collecting contact information and establishing relationships
with potential prospects.

There are many ways to generate leads, all of them with their
respective advantages and disadvantages. Whether traditional or
modern, it’s well worth your time and effort to try each one
until you find the best combination that is expense-effective,
time-saving and successful.

This articles aims to discuss the most common methods, the
decision ultimately belonging to you.

For the sake of organization, we have split lead generation
methods into two large groups: traditional methods (printing
materials, phone and mail advertising, networking and others)
and modern methods, that take advantage of the continuous growth
of the importance of internet for home buyers and sellers.

Traditional methods

Use your friends

If your friends don’t trust you enough to do business with you,
then who will? So talk to them about their real estate plans,
get their contact information and ask for referrals and
testimonials. Your friends have other friends and family as
well, so this circle will keep expanding with a domino-like
effect. You might even get 100 names or so, at the very least
and they will come with a trust factor already in place.

The disadvantage? There are many people that believe in keeping
business and personal life separate, so they might refuse
dealing with you professionally for various reasons. However,
you can still ask them for information and feed-back, even help
if the situation occurs.

Face-to-Face contact

This classic method involves basically going around the
neighborhood and knocking on doors. Stay for a short chat, let
the people know you and in the same time, you will get to know
them. Don’t use the aggressive approach (“Hello, do you want to
sell/buy a house? Then come to me, the greatest realtor on this
side of the Atlantic.”). You’re not a door-to-door salesman.
Farming a community is a long-time process.

So start slow, explain that you wish to become the trusted
neighborhood realtor. Ask for information, let them tell about
their experience with other realtors, their plans for the
future. The idea is to introduce yourself first and foremost.
Then ask if they wouldn’t be interested in getting a monthly
newsletter or printed material with useful information of
general interest or specific information about buying or
selling. If they say yes, then your effort paid off. Take their
contact information (email, phone number) and continue to keep
in touch, coming back to chat every two months or so and
regularly sending them the promised leaflets or emails.

Disadvantage? It’s time consuming most of all.

Networking

First of all, what is networking? Networking is the process of
finding out about potential clients from friends, business
contacts, co-workers, acquaintances, and fellow members in
professional and civic organizations. Sounds simple enough. But
where do you go to practice your networking skills?

Well, there are various opportunities from family gatherings, to
business cocktails, to seminars, conventions or presentations.
The important factor is to determine whether you will find
possible leads at these events. For example, you are sure to
find people interested in getting in touch with a realtors at a
neighborhood barbecue or an open house but less so at a medical
congress.

Be sure to bring plenty of business cards and brochures.

And remember, networking is about planting seeds. Do not expect
to find the next big deal, instead nurture a possibility of a
collaboration at some point in time.

Cold calling

Cold calling involves basically plowing through a list of phone
numbers and hoping that the people that don’t slam the receiver
right away might be willing to meet with you. It’s not a method
we recommend. It might have been efficient in the past, but
today’s consumers have no wish to waste their time listening to
someone blabbering advertising text on the phone. This is
especially true where real estate is concerned. Who wants to
entrust their home over the phone?

Still, there might be some benefit to it, if you carefully
choose your target. So, if you decide to do it, we recommend you
treat it like a real conversation. Instead of reciting memorized
scripts, recognize that there’s a person at the other end of the
line and talk to them normally. Sell yourself and try to get an
appointment that way, don’t sell your services. Or give them the
URL of your website or article page and then let them decide if
they want to get in touch.

Direct mail

Direct mail is also know as mass mailing and involves sending
your sales letter or brochure to a targeted mailing list. It’s
usually pretty efficient in getting your name out there, though
it can cost quite a lot, since the best response rate is around
1%.

The key is to make your letter stand out against all the other
junk mail your targets receive. Be sure to write your sales
letter with the client in mind. Instead of detailing your great
skills, try to address their concerns and give them a possible
solution. This will give them the reason to contact you, which
is your primary goal.

Take great care of the appearance of the envelope and the
contents. They need to look as professional and as official as
possible. You need to create a serious, trustworthy image.

You can always try postcards instead of letters. One of the most
important advantages of this method is the direct impact. Your
targets will see the attractive design immediately. Use creative
and compelling copy on the back and include testimonials if you
have the space. The text, combined with the appropriate visuals
will increase the possibility of your postcard being read.

Don’t forget to ask your recipients to take action. It’s a
detail many forget. Ask them to contact you or to visit your
website.

Direct mail can be also used to keep in touch with your
prospects and the neighborhood you are farming. Remember,
constancy is tantamount in building and keeping trust. Also, you
need to contact your target as many as eight times before they
will consider doing business with you.

Business cards

Your business cards, often overlooked, can be a very effective
means of collecting leads. Beside your contact information, you
can also include on the back: pitch phrases, your website’s URL,
a call to action, a freebie offer and many more.

Try to make your card stand out. That way, you will ensure it
does not end up in the trash.

Modern methods

These modern methods have appeared with the advance of internet.
More and more homebuyers and sellers use the web to acquire
information.

Direct marketing (email)

Email marketing is very similar to classical direct marketing,
except instead of paper you use electronic text. The greatest
difference? It’s FREE. And you can change the design and content
as often as you like.

Email can also be used with a feed-back form. It’s much likelier
to have your targets whip up a quick email with a couple of
questions than write a letter, or even give a call.

You can use it to offer a free gift such as an e-book, or free
courses or a chance to subscribe to your newsletter.

Newsletters

The newsletter is an excellent way to get and keep good leads.
Since your recipients need to subscribe first, they will be
already interested in your and your services, for the future at
least.

But put together a real newsletter. That means to include
quality, informative articles, not self-promotion. Your
recipients don’t like to be cheated. When they sign for a
newsletter, they will expect a newsletter, not a sales letter.

Don’t worry if you’ve never written an article in your life.
It’s easier than you might think. Draw from your experience and
you’ll be sure to obtain a good result. You can also take
articles from free-for-reprint resources.

Website

Having a website will ensure you have a 24 hour connection with
your prospects. Include information about yourself, showcase
your listings, put up testimonials and of course, lots of
quality information with your special insider’s tips.

Don’t forget to add a subscription box for your newsletter.

No matter which methods you will end up using, remember these
three important aspects:

1. Even if it’s ultimately about you, always develop an approach
that is about them. In other words, your targets do not care how
great you are, they only want to know what’s in it for them.

2. Your primary goal is to acquire contact information (name,
address, phone number, email address) and the permission to use
them. That way, you will ensure your leads are actually
valuable, being people genuinely interested in doing business
with you.

3. Always follow up. The results of an one-time campaign of any
kind are very low and the impact decreases exponentially

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