Why cold calling is out and social proof marketing is in.
Do you want to grow your real estate agency in 2021? Generating leads is always one of the top priorities of those actively trying to grow their businesses. However, there is a right and a wrong way to do that—and the trends have changed in the past few years. If you’re ready to take your agency to the next level, here are the lead generation ideas that work—and one that doesn’t.
The Worst Way to Generate Leads
To drum up new business, real estate agents sometimes make the mistake of trying to make it happen instantly. If they are experiencing downtime or feel they don’t have enough prospects in their funnel, an agent may resort to the age-old salesman tactic of cold calling. Cold calling, which involves contacting those you don’t know in order to sell them something (in the case of a real estate agent, you are selling your services), can literally take the form of a phone call. It can also take the form of an unsolicited email or text or, less commonly in real estate, a walk-in to a business or a door knock.
When you cold call, you interrupt others and are seen as intrusive. You also get the reputation of chasing business, which can be interpreted as desperate. If high-end clientele are your ideal market, you won’t get very far with cold-calling as those in this target market tend to rely on word-of-mouth or referrals from those they trust to choose the agents they work with. The last thing you want to be seen as is a telemarketer, which is the image you will eventually project if you continue to cold call.
The Best Ways to Generate Leads
So now that you see that cold calling is a no-no, you need to know what the best ways are to generate leads as a real estate agent. Generally speaking, the best way to get new clients is to have them come to you. When your ideal clients start seeking you out to do business with you, you can easily scale your agency, avoid being salesy, and focus your time on building your brand and reputation rather than chasing business. Here are some reliable methods to generate these types of real estate leads.
Get and Stay Active on Social Media
The majority of those looking for products or new people to do business with research options online and on social media. If they are looking for a real estate agent to list their home or help them find new houses for sale, they will likely search Facebook and Instagram. If you are not active on social media, potential clients will assume you aren’t up-to-date or relevant in the industry and look elsewhere.
Posting on Facebook and Instagram a minimum of five times a week and posting or sharing information that is helpful, educational, or informative rather than just posting listings or open houses is the best way to brand yourself and stay relevant on social media. Having those you’ve done business with comment or share your posts is also helpful. If you want to enhance your social media marketing, consider running ads that reach your ideal client. Social media ads not only can be extremely targeted, but they also have useful tracking features that help you refine your campaigns to be as effective as possible.
Build and Market to Your Database
As a realtor, your database is your best friend. This is your list of past, current, and prospective clients as well as referral sources who can help grow your business. A basic rule of thumb is that an effective database consists of around 1000 names and contact information. Once you’ve built a solid database, you can market to your contacts through regular email newsletters, texts, or personal invitations to events or open houses. The marketing you do to your database should follow the same guidelines as your social media marketing: keep content informational and helpful rather than salesy. This keeps your contacts engaged with your brand and ensures they will continue to pay attention to what you have to say even when they are not actively looking to buy or sell real estate.
Harness the Power of Social Proof
The theory of social proof states that people are likely to conform and copy the actions of those in their peer group or those they view as experts or who are trustworthy. When it comes to real estate marketing, you can take advantage of social proof by featuring testimonials on your site and social media, soliciting online reviews from those you’ve done business with, and by establishing yourself as an authority on the local real estate market with helpful, informative content. When you harness the power of social proof, you essentially have others selling for you and no longer have to hustle or chase leads.
Develop Strategic Referral Partnerships
A successful real estate agent is a well-connected one. One of the best ways to generate leads is to develop relationships with those who are constantly introduced to those in your target market. For example, a divorce attorney will likely have clients who need to sell a home and buy one or two new ones. A mortgage professional will have a wide network of those who are getting pre-approved for a loan so they can begin looking for new houses. A home service provider such as a roofer or contractor will work with those who are fixing up their homes in order to list them. The more of these professionals you can develop relationships with, the more referrals you will receive for those who need your services.
If you’re ready to grow your business in 2021, you need to have an effective way to generate leads. Need help harnessing the power of social proof or creating an effective social media or database marketing strategy? Reach out to the pros at Luxury Presence. We’d love to help you get ahead of your competition.