Top Producer asked Michael Hellickson to create a six-part series of short videos on the most important aspects of real estate agent success! In Part 2 of 6, Coach Michael talks 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 it 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 five minutes versus the first 10 minutes is a 900% INCREASE in contact rate. After the first five 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 five minutes of submitting their information on popular websites like Realtor.com! In even busier markets, a 30-second follow up is necessary. If you are 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. Many agents make the mistake of limiting their lead follow-up calls (or don’t make them at all!) in fear of being annoying! 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 has 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% on the fourth contact. 80% of sales are made on the fifth or subsequent contact. Yes, 80%!
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 to do is ensure 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 in the CRM, you now have an easy way to begin a marketing campaign reaching current and potential leads (more on that below).
Q. What is my goal when I am on a follow-up call?
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” 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 better with the lead.
Q. How often should I call my lead?
A. You need to call three times a day for the first three days, three times a week for the next three weeks, and finally three times a month for the next three months. No matter what, you need to call the lead at least 12-20 times with no response before giving up. Remember, having consistent follow-ups over a long period of time will earn you money.
Once you get a hold of the lead, the follow-up times should be adjusted. When you get in contact with the lead, the number one thing you should say is “I just want to make sure I am not dropping the ball on my end.” This is a polite and disarming way of beginning the conversation, minimizing the “salesy” feel of following up.
With Lead Production and Lead Follow-Up strategies under your belt, click the following link to read Top Producer Series part 3 of 6 on Lead Conversion to learn exactly how Club Wealth® clients turn calls into appointments, appointments into listings and closings! (https://clubwealth.com/top-producer-success-series-part-3-of-6-lead-conversion/)
***UPDATE*** We are now seeing such fierce competition that follow up in 30 seconds is necessary in most major markets…!