Create-To cause to come that would not naturally evolve or that is not made by ordinary processes.
Generate-To cause to come that would be by a vital or natural process.
It’s always interesting to me (from a coaching stand point) the have’s and the have not’s of this business. As unbalanced as an Irishman at a Wake (wait for it…), the number of small business owners (Yes, that includes Real Estate Agents) successfully generating leads is incredibly out of whack!
Creating Leads vs. Generating Leads.
I was doing some consulting the other day with an agent when I happened to peak over at his facebook wall at a post that struck me. Seems there was an agent who proudly commented on their wall that they had made 60 FSBO appointments. He exclaimed, “Now that’s someone who is doing it.” Doing what?
What this agent was doing was creating leads. What do I mean? Well, since we already know these folks want or need to sell their homes, there was little in the way of generating anything…including a lead. In my view, all this agent was able to do was convince 60 people who already have (or had) their homes on the market to talk to them about their homes…on the market! So, unless this agent has some super fix-a-FSBO formula that magically solves their problem, she is working very hard and not very smart!
So, why do very few new and or struggling agents (or small business owner) commit to a true, honest and successful lead generation program? You see, as I illustrated with the FSBO appointment taker, generating leads takes time. It takes lots of effort. And, it means having a little something called patients! With 4 out of 5 successful sales usually not coming to fruition until the 8th to 12th time your talk to that person, most of us don’t have the fortitude to truly build rapport nor establish the trust and worth needed to generate a lead.
If it’s what we have to do to be successful…why don’t we just do it?
Many of us don’t like to Lead Generate! It’s hard and many of us don’t do it very well…if at all. So let’s look at it like this, if you were to talk to someone you knew and asked how their day was, that’d be easy, right? Now do that with someone you don’t know. My experience is you’ll probably not have the same conversation. Why? Because the person you don’t know is automatically defensive or at the very least, not too forthright with their answers. Generating a lead is the same thing. You’ve all heard the old saying, “People don’t care how much you know until they know how much you care.” Generating a relationship based on trust and caring is lead generation. Talking to someone with an agenda other than their well being is tantamount to Creating a Lead…that’s the difference!
The ‘X’ factor.
So, what makes lead generation so tough for some? Why do some of us suck at it so badly? Is it because we don’t know what to say? Probably…but we can fix that! Is it because we don’t like to hear the word “NO”? Certainly…but we can fix that too. So, what’s the reason so many do so poorly at Generating Leads? It all starts with your motivation to call the lead. What are you thinking about? What’s your mindset? Is it about money or is it about building a relationship? Those two are not always mutual so perhaps the breakdown begins there?
When I’m presenting my listing clinic and I ask the question, “What is the first thing you think of when you meet the sellers at a listing appointment for the first time?” The responses vary from the ordinary to the extreme but very few ever get the right answer. I tell them, “The first thing you think of is your commission!” The general look on everyone’s face tells me that’s exactly what most of them think of! And, when you waltz into that appointment with only one thought…”What is 3% of $500,000?” You’ve already lost the listing.
Lead generation is hard for some because they don’t try (or want to) build rapport. They don’t try to build a relationship or connection…they just want to create a lead that gets them paid! And here is the kicker gang…I haven’t met a seller (or buyer) yet that wants to be a lead! They are not interested in becoming a number…they are interested in knowing you’re interested in them…and their real estate needs!
Take your commission out of the equation. You don’t get paid if you don’t get the listing! Turn that lead into an ally; generate a lead that gets you into a relationship. Make the appointment about them. Turn the meeting into a conversation about what they want and need from their experience.
In the end, I repeat this over and over again, “I don’t get paid when I take the listing…I get paid when I sell the listing.” So for me, it’s all about generating rapport, generating trust and ultimately generating those leads so I can generate some commissions!
Photo courtesy of sebas
Where to look for your next short sale listing
As the economy shifts, short sales in real estate continue to be a commonality, and many real estate agents are learning how to improve their skills in performing these types of listings.
2012 Is Still the Year of the Short Sale
Despite what the person in the office next to you might be saying, there are still plenty of opportunities to list a short sale. The Mortgage Forgiveness Act of 2007 is still set to expire at the end of the year; this means that those who want to take advantage of this program need to get their homes listed (and closed) as short sales as soon as possible. Additionally, there are still a number of great relocation assistance programs available through many of the major servicers. With these stars still in alignment, now is a great time to take a few short sale listings.
Here are a few places where you might be able to find your next short sale listing:
- The office. Listen to the other agents long for the days of yore when listings grew on trees and everyone was making more money than they could imagine. These same agents may not consider short sales their cup of tea. Why not approach those agents and let them know that you are willing to take those transactions off their hands and will gladly accept any referrals?
- Your accountant. Now, this will not work if you are using TurboTax. But, if you use an accountant or CPA to prepare your taxes, know that he (or she) comes in contact with lots of folks that may need the services of a short sale agent.
- Online. There are lots of different online platforms where you can obtain pre-foreclosure data. Three popular platforms are www.rebogateway.com, www.realtytrac.com and www.foreclosureradar.com. You can obtain data on all sorts of things, such as pre-foreclosure notices, and recent divorces. Use this data when sending out direct mail.
- Answer your phone and return all phone calls. I make it my policy to return all phone calls. I answer tons of questions from folks all around the United States about the trials and tribulations of short sales. My general good will has lead to countless short sale listings and referrals.
So the next time you are considering going out to market for more short sale listings, you do not have to go too far. Many of the tools that you need are all around you. The question is: Do is use ‘em?
Nurture your leads to turbo-charge your business growth
You get a new lead. Now what? Do you take down their contact details? Put them in your contact management system? Simply jot down their name and phone number in a notebook or on a sticky note?
To maximize the number of leads you convert into clients, you need to nurture your leads. This involves adding them to your contact management system (or CRM) and then subsequently assigning them to a lead nurture program (once some sort of initial contact has been made).
For hot leads, during your initial contact with them you’ll of course want to try to win their business right away. But sometimes people are not ready or don’t agree to use your services immediately and this is where lead nurture programs step into the forefront.
Avoid losing business opportunities
Failure to nurture leads will result in lost business opportunities. The fact of the matter is that there are many people who will contact you to inquire about your services or to learn more about what you have to offer. There’s a good probability that those who are interested but decide not to use your services right way will do business with you in the future. They’re just not ready right now or need more time to deliberate.
So this is where lead nurturing comes into play. It’s best defined as communicating with your leads over time in a way that they would find both valuable and relevant. By doing so, you’re staying “top of mind” until the lead is ready to become a client.
A good contact management system should allow you to create your own lead nurture program or utilize a lead nurture program that’s pre-designed for you. These programs usually consist of a series of emails and phone calls at various points in time. Each time a phone call is made or an email is sent, you’re providing relevant and valuable content to the lead so they’ll come to enjoy hearing from you. Your contact management system should enable you to automate the lead nurture emails you sent out and remind you when to make a phone call.
Lead nurturing is truly a must – effective lead nurturing results in more clients, a higher ROI for your marketing initiatives, and stronger relationships with your sphere. Make sure you don’t let your quality leads fall by the wayside.
Gear up for 2012 with short sale leads – tips and tricks
Are Short Sales Part of Your Business Plan?
With 2012 just around the corner, everyone and her (his) mother is talking about how to make more money than ever before. It’s time to start writing your business plan, putting deals together, and figuring out those new ways to be successful next year. It’s the same every single year. When December arrives, agents assess their closings for the current year, and then they jump for joy or wince uncomfortably.
That being said, 2012 will be another good year for the short sale transaction. And, if you have gotten no other message from all of my weekly columns, get this one: you owe it to yourself and to your past clients to add the short sale transaction to your bag of tricks.
You see… Kevin Bacon aside (that’s my tribute to Six Degrees of Separation), everyone knows someone who knows someone that is having trouble making ends meet right now. So, why not help that individual out of a jam, unload the property, do a good job? This might even result in more short sale leads.
Short sale leads are all around you.
Here are a few ways to get some short sale transactions into your pipeline:
- Market Regularly to your Sphere of Influence. It’s not rocket science. If your sphere knows that you can work short sales, they might call you or refer you to someone who needs your help today.
- Use Social Media to Connect. Again, I’m not reinventing the wheel here. Reach out to your online friends. Say ‘hi.’ Remind them that you exist and that you are still in the field of real estate. You might be surprised when you learn about how many did not realize that you are still in real estate.
- Leverage an Open House. Not sure where to begin your short sale lead campaign? Have an open house at one of your listings in a neighborhood ripe with short sale leads. Create invitations. Invite neighbors (in advance). You might be surprised. The conversation can turn to distressed properties at any given moment. Don’t have a listing? Borrow one!
Finding short sale leads is not as difficult as it may seem. The key is to get out and do something. Do it regularly and consistently, and the leads will come.
Photo: flickr creative commons by Orin Zebest
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