Michael Hellickson was asked by Top Producer Systems to create a six-part series of the most important aspects of real estate. In Part 1 of 6, everything has to start with LEAD GENERATION!
LEAD GENERATION:
As a real estate agent, the only way to succeed is to find properties and homeowners who are looking for an agent to represent them. Business won’t come to you if you sit around and do nothing: you have to WORK for your success and establish yourself as the realtor capable of selling a client’s home.
There are three critical elements any great real estate agent MUST develop and maintain to succeed in the market: they are Lead Generation, Lead Follow-Ups, and Lead Conversion. Lead generation is huge in today’s real estate market (and EVERY market for that matter); the following formula, created by Michael Hellickson, illustrates just how essential lead generation is to your success:
Lead Generation + Lead Follow Up + Lead Conversion x (Systems x Talent) = Income & Freedom
As you can see, lead generation, lead follow up, and lead conversion are the core variables necessary to maximizing your total income and available free time. When generating leads, you must remember that there are two distinct types of lead generation: ACTIVE lead geneation and PASSIVE lead generation.
Most real estate agents begin their career with more time than money. In the beginning, you need to work on your leads and keep putting in the work until you start making returns. As your business matures, you will be able to lean on passive resources.
ACTIVE SOURCES: This is where you CHASE business and take initiative with your leads. Starting out as a fledgling agent, the vast mahority of your initial sales will come from active sources such as:
Doorknocking, REOs, Bankcruptcy Attorneys, Default Notices, Referrals
Passive Sources: These sources require less input and effort on your end, as you are ATTRACTING potential business through advertising rather than seeking out your clientele. As your business matures, you will utilize more passive lead sources. Examples of passive lead sources include:
Facebook Ads, TV, Billboards, Radio, Purchasing Leads*
As you get the ball rolling, referrals will start rolling in like a passive lead source. Before you know it, a cumulative growth effect begins to take over, and while it takes massive energy to get it started, it takes FAR less to keep it moving down the tracks once it builds up steam!
*Once you have the money to do so, websites such as LeadsLikeCandy.com allow you to score leads for a specified price. Once you are done building up your referrals and want to take the easy path, click on the link below or check out
www.clubwealth.com/31leadsources
to see 31 of Michael Hellickson’s favorite lead sources!
Referrals
There is an entire SYSTEM to referrals. Yes, a SYSTEM.
Large numbers of referrals don’t just happen, you have to make them happen. Sure, many real estate agents get referrals from friends and family without any formal lead generation efforts, but this is unpredictable at best. DO NOT leave your business success to chance!
Develop a deliberate, predictable monthly flow of referrals you can count on. Start with everyone you know, and everyone who knows you. You have your sphere of influence, your friends, family, past clients, even attorneys!
To get predictable referrals, you need to call, send notes, drop by with brand merchandise, host client appreciation events, mail out an engaging monthly newsletter, and foster consistent social media interaction.
Your business CAN and WILL grow through referrals, so long as you develop and follow the proper systems and strategies.
To master lead follow-up and lead conversion, you’ll need the right CRM (Client Relationship Management) and transaction management systems. Top Producer is a great transaction management system and CRM.
The most important thing about lead generation and lead follow-up is CONSISTENCY. Now that you understand the importance of generating leads, click on the following link to read Part 2!
