As a real estate brokerage owner, you know that the lifeblood of your business is qualified real estate leads. Without them, you wouldn't be able to grow your business or help your clients find their dream homes.
But let's be honest, purchasing leads can be a frustrating and daunting task. Every lead provider claims to have the best quality leads, yet few actually deliver on that promise. We get it—you're tired of hearing the same old story, and you want to know how to tell if a lead source is legit.
You're in luck, because this article will help you distinguish quality lead sources from poor lead sources.
We at Landslo understand your pain and frustration, and we’re here to help you purchase better quality leads. So, let's dive into the world of qualified real estate leads and learn how to separate the gold from the garbage.
Step 1: Define “Qualified Real Estate Leads”
When it comes to real estate lead generation, the term "qualified lead" is often thrown around by lead providers, along with everyone else in the industry. We’re all guilty of it at times.
However, what one provider considers a qualified lead might not meet the standards of another. This can be a frustrating and costly experience for real estate brokerage owners who are looking to grow their business by investing in leads that will actually convert into transactions.
To avoid wasting time and money on low-quality leads, it's crucial to define what “qualified real estate leads” means for your brokerage. When defining a qualified lead, most people think of basic indicators such as:
Geographic location: Leads who live in areas where your brokerage operates are more likely to be interested in your services.
Credit score: A lead's credit score can give you an idea of their financial capacity to purchase a home.
Mortgage pre-approval status: Knowing whether a lead has been pre-approved for a mortgage can help you identify serious buyers.
However, there are more specific indicators that can help you determine quality, and this information should be present and meet criteria you set forth for a fully qualified lead:
Number of bedrooms/bathrooms and other property features: Leads who have specific property preferences can be more likely to convert.
Budget or desired sale price: You should know whether a lead has realistic expectations for their market, which could indicate their ability to go through with a transaction.
Listings they’re interested in: For buyer leads, knowing what they’re browsing for can help get you on the same page and let you know if this is the type of transaction you want to take on.
Already working with an agent/brokerage: Knowing if a lead is already working with another agent or brokerage can help you avoid wasting time.
Appointment preferences: Some leads may be ready to take the next step and schedule an appointment with an agent, while others may need more time to consider their options.
By defining what a qualified lead means to your brokerage and including these characteristics, you can set clear expectations for lead providers and identify high-quality leads that are more likely to convert. When discussing lead generation services with potential providers, ask them to provide specific details about how they identify and qualify leads, and compare their response to your definition of a qualified lead. This will help you determine if a lead provider can deliver the quality of leads you're looking for.
Step 2: Inquire Into Their Lead Generation Methods
Once you have defined what a qualified lead means for your brokerage, it's time to ask potential lead providers about their lead generation methods. It's important to remember that not all lead generation methods are created equal, and some methods produce higher quality leads than others.
A legitimate lead provider will be happy to openly disclose their processes throughout the entire lead journey, from first lead capture to final lead hand off to your brokerage.
Some common methods for generating leads include (but are not limited to):
Listing websites: These sites, such as Zillow and Realtor.com, allow users to search for properties and connect with agents. While these sites can generate a high volume of leads, the quality of these leads can vary widely.
Media buying: Media buying involves purchasing ad space on websites, social media platforms, or other online platforms to promote your brokerage. This method can generate high-quality leads, but it can also be more expensive than other methods.
Real estate AI: Real estate AI, such as predictive analytics and machine learning, can help identify potential leads by analyzing data on user behavior and demographics, as well as engaging with consumers directly and building relationships. This method can generate high-quality leads that are more likely to convert.
Read more: Real Estate AI—What It Is & How To Start Using It
When discussing lead generation methods with potential providers, ask them to be specific about their processes and the sources of their leads. Legitimate lead providers will be transparent about their methods and should be happy to share their success rates with you.
By asking the right questions, you can ensure that you are working with a provider that uses the most effective methods for generating qualified real estate leads.
Step 3: Request a Test Run
Now that you've defined what a qualified real estate lead means to your brokerage and inquired into potential lead providers' lead generation methods, it's time to request a test run. Asking for a small batch of leads to test can help you determine the quality of the leads being generated and whether the provider is a good fit for your brokerage.
A legitimate lead provider will be happy to provide such accommodations upon request, if they feel your brokerage is a good partner for them, as they will be confident in the quality of their product and want to earn your long-term business. A test run also allows you to gauge the provider's responsiveness and customer service, which are important factors to consider when selecting a lead provider.
However, some lead providers may be hesitant to offer a test run, as they may be concerned that their product does not meet your expectations. If a lead provider is not willing to offer a test run, this could be a red flag that they are not confident in their product and may not be the best fit for your brokerage.
When requesting a test run, be sure to negotiate a low-risk, low-commitment arrangement. Some providers may offer a discounted rate for a small batch of leads, while others may be willing to provide a certain number of leads at no cost. By requesting a test run, you can make an informed decision about the quality of the leads being generated.
But keep in mind that a test run might not mean free leads—just because a provider won't agree to work for free doesn’t mean they aren’t legitimate. Negotiating a test run is a two-way street—it should benefit both parties and give you both an opportunity to establish a working relationship before committing to longer term contracts.
Final Words of Advice When Selecting Lead Providers
In conclusion, finding qualified real estate leads can be a daunting task, but it's important for brokers to take the time to properly research and select a lead provider that meets their specific needs. By defining what a qualified lead means to your brokerage, inquiring into the lead generation methods of potential providers, and requesting a test run, you can determine the quality of the leads being generated and make an informed decision about which provider is the best fit for your brokerage.
It's important to be wary of relying solely on big names, reviews, or recommendations from other brokers. These sources may not always be trustworthy, as reviews can be fake or paid for, and brokers may be incentivized to promote a company regardless of quality. Instead, brokers should do their own research and seek out cutting-edge lead generation solutions like Landslo, which uses artificial intelligence and no human intervention to generate high-quality real estate lead appointments that meet all of the qualifications we mentioned in this article. If you’d like to discuss doing a test run with our leads, you can reach out to our team to request a demo.
In today's competitive market, having access to qualified real estate leads is critical to the success of your brokerage. By following these steps and selecting a reputable lead provider, you can generate high-quality leads that will help you grow your business and stay ahead of the competition.