Top Producer asked Michael Hellickson to create a 6 part series of short videos on the most important aspects of real estate agent success! In Part 2 of 6, Coach Michael begins talking about LEAD FOLLOW-UPS and what you NEED to do to maximize your income.
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As you learned in Part 1, the three most important things every agent MUST master to maximize their income and freedom are Lead Generation, Lead Follow-Up, and Lead Conversion. If you don’t follow up with a lead, where do those leads go? They disappear for good!
Follow Ups are important in every industry, but in real estate, all it takes is a few calls to nail that lead and eventually convert them into a sale. Most beginning real estate agents underestimate the value a follow up call has on their business, and Michael Hellickson is here with a quick FAQ to provide insider information on how to successfully land your leads.
Q. How quickly should I be following up?
A. The answer to that is 5 MINUTES! The difference between following up within the first 5 minutes versus the first 10 minutes is a 900% INCREASE in contact rate. After the first 5 minutes, your chances of contact dramatically decrease, if not completely vanish. Be sure to get in touch with your lead ASAP!
In some markets (San Diego, for example), it is so competitive that prospects receive as many as 4-5 calls, and 5-6 text messages from agents within 5 minutes of submitting their information on popular websites like Realtor.com! In even busier markets, a 30 second follow up is necessary. If you’re in a less competitive market, you should mimic this behavior regardless.
Q. How long should I keep following up with a lead?
A. PERSISTENCE and CONSISTENCY are crucial in following up with your leads. Many agents make the mistake of limiting their lead follow-up calls in fear of being annoying or not making them AT ALL! 48% of agents don’t make a single follow-up call. 25% of agents make two follow-up calls before stopping, and only 12% of make three calls before they give up. Less than 10% of agents make four or more follow-up calls before quitting. If you get no response by then, make a fifth and final call before moving onto a new lead.
As a matter of fact, the number of follow-up calls you make have a direct correlation on your sales numbers! 2% of all sales happen on the first contact, 3% on the second contact, 5% on the third contact, and 10% of sales happen on the fourth contact. 80% of sales are made on the fifth or subsequent contact. Yes, 80%!
What’s worse is that these numbers reflect sales after CONTACT with the lead, and each contact might require numerous calls!
Remember, the fortune is in the follow-up!
Q. How do I simplify my follow-up?
A. One of the first things you want to do is make sure you have a solid Customer Relationship Management (CRM) program. Top Producer, as mentioned in Part 1, provides a great CRM, where you can funnel all of your leads into one place and manage contact information. When used with 5 Street, tracking real estate leads and lead follow-up efforts has never been easier!
With all of your leads organized and filed within the CRM, you now have an easy way to begin a marketing campaign reaching current and potential lead (more on that below).
Q. What is my goal when I am on my follow-up?
Your goal on the follow-up call is NOT to get a listing or make a sale. Your number one (and only) goal is to SCHEDULE an APPOINTMENT. As soon as you set up the appointment, hang up the phone.
In order to set that appointment, Michael Hellickson suggests the “Land, Air and Sea” campaign approach! As soon as a new client enters your CRM, you need to email, call, text, and Facebook Message the client. If you are going with the Facebook approach, be sure to record a video message as it provides a personal touch that resonates with the lead better.