Generating leads is great but the name of the game is conversion. The more leads you can convert into actual deals the stronger your business will be. As a real estate investor not enough time is spent on this aspect of the business. Most investors feel that turning leads into deals is a numbers game and the brunt of their work is done with the initial contact. The reality is that there are several things you can do once you get the lead that will give you a distinct advantage in closing the deal. By closing just 10% more leads over the course of the year you will see a stark improvement to your bottom line. Here are five tips to help you turn more leads into actual deals.
- Target The Right Audience. One of the ways to increase your conversion rate is by targeting the right audience. You need to deal with individuals who are motivated to take action. You can provide a great service but if your audience doesn’t need it you are wasting your time. With any lead generation it is always better to spend a little more time or money on higher quality leads. If they are not fully interested they will drag the process along for weeks without committing to anything. On the flip side if they are motivated through foreclosure, divorce or probate they are much more likely to want to act quickly. A smaller handful of higher quality leads is always better than a larger amount of average ones. The first step in converting more leads to deals starts with the quality of leads you are working on.
- What’s In It For Them? There is a certain psychological aspect of selling. Instead of promoting yourself and your business make the other person the star of the show. The people you talk to to don’t care about all of the business you have done and deals you have closed. They want to know how you can help them or resolve a situation. This should be the highlight of any marketing material you send or any presentation you make. If you have the ability to close quickly so a homeowner can avoid foreclosure this should be prominently mentioned. If you will work with them on a closing date so their children can finish out the school year this must be driven home. Whatever the most positive benefits are should be brought to their attention. There will always be questions as to what is in it for you but you can negate those by bringing the focus quickly back to them. The better you are at highlighting the positives the more likely they will want to take action.
- Think Like A Salesperson. In the world of real estate there is much more selling involved than you may realize. Every day you try to sell someone on your services, a property or any other aspect of your business. The key is selling yourself without sounding like a salesperson. It is no secret that people don’t like to be sold. In general people would much rather be left alone when shopping than deal with a high pressure sales pitch. The same is the case with converting leads. You need to walk a fine line between sounding like a salesperson while still constantly pushing the deal forward. This means explaining and educating but setting firm dates to take action by. One of the most common sales expressions is “always be closing.” With everything you say and do you need to push to get your lead to take action. The longer you wait the less likely they will end up working with you. Even if you are not the quickest speaker you can still be a good salesperson. As long as you can put yourself in the other person’s shoes and convey your message without sounding like a robot you will see your lead conversion rate increase.
- Constant Contact. The first twenty four hours for any new lead are critical. The actions you take during this time set the stage for everything else that transpires with your contact. After your initial conversation you need to be in constant contact until you get an answer either way. You should have a definite time and date lined up for your next conversation. If that conversation doesn’t close the deal you need to schedule a follow up date. In between that time you should send quick emails or texts asking if they have any questions or resolving any issues they may have had. It is human nature for people to want to work with people they are comfortable with. You can improve your level of comfort by staying in contact all throughout the process.
- Data Retention. Without proper data retention you may be throwing away perfectly good leads. Every lead that comes in must be stored in a dedicated file or spreadsheet. You should keep as much information as you can put on this spreadsheet. If things don’t work out initially you should still maintain contact every week or so. When they are finally ready to act you need to be able to pick up right where you left off. If you don’t have any of their information they will lose confidence in you and probably work with someone else. You may be surprised at how many deals you can gain simply by retaining data and following up.
Closing more leads can turn a good investor into a great one. You can completely change your business simply by improving your lead conversion rate.
