As a real estate agent you need to have leads in order to grow your client base and build a sustainable business. However, the term “lead” has had many different iterations over the course of time with the advent of digital marketing and other platforms used for promotion. At Parkbench we’ve studied and conducted surveys to determine the types of leads that actually convert into loyal, long-term customers for your real estate business.
In this guide we’ll illustrate how Parkbench is a more effective marketing model than your standard digital lead generation model.Lead generation is the primary concern for every realtor. Not only is it tremendously difficult for new realtors entering the industry to acquire leads, but it’s even tough for top guns who’ve been in the industry for years. Even these realtors spend thousands of dollars on Facebook and Google Ads in an attempt to generate new home buyer and seller leads. Whenever you are investing money in lead generation campaigns you are essentially targeting “micro moment conversions”. The word micro moment was coined by Google during the digital mobile revolution referring to instantaneous user behaviour when they want or need something online. For Example: You are running a home seller campaign on Google Adwords where you target keywords like “sell my home” and “how much is my home worth”. When you launch the campaign you are paying when someone clicks on your link for these particular search terms. Sounds promising right? Not so fast. Here’s what’s really going on. On average, 25% of your daily budget is exhausted by other realtors clicking on your advertisement in top competing areas. The remaining 75% of your budget is for your local audience. Assuming that your leftover budget is $20 per day and your CPC is on average $4 per click, then you have just five chances to convert a potential buyer lead. Those who succeed using the lead generation model are those who’re continuously increasing their budget. Say you have a small budget and a potential lead is searching for home prices at the end of the day (in the evening after work) when you’re reaching the end of your budget, your ad position is more likely to drop. This means the only way to maintain a high ad position and keep up with your competition is to continually increase your budget. This can be very expensive. Another major problem with the lead generation model is that the leads aren’t referral based. If you were to ask any successful realtor about their key to success — they would undoubtedly say referrals. Selling or buying a home is one of the biggest decisions a person will make in his or her lifetime, and they want to use a realtor they know and trust. For this reason, acquiring leads not obtained through referrals requires a huge amount of money and is only a profitable marketing model for seasoned realtors. Digital marketing practices also have a steep learning curve. Trying to learn it all on your own is time consuming and requires you to constantly monitor and update to make sure your ads are fresh and relevant. This takes away from your meeting with clients, drafting offers, and other important real estate tasks. Ultimately, the only viable solution is to hire a digital marketing expert to create and maintain your campaigns. Now you take the cost of hiring a digital marketer, add that on top of your advertising budget, and the numbers can be daunting.