The goal of any business is converting leads into sales. Most real estate investors understand the importance of lead generation. As important as lead generation is the real prize is in the conversion. This is the case whether you are working with distressed homeowners or landlords simply looking to get out of the property. Increasing your lead conversion rate by just a few percentage points you will see a definite impact on your bottom line. Converting leads is more about how you present yourself than what you offer. Most investors offer similar benefits but it is the manner in which they are presented that makes all the difference. Here are the five ways to help increase your lead conversion rate.
- Don’t Ask Every Question At Once. The first step in lead generation is acquiring as much information as possible. There is no debating that this is an essential part of lead conversion. However, how you go about acquiring this information can often end the process before it really begins. It is important that you make a positive first impression all the while collecting data to help you decide whether to move forward or not. As you talk to your lead you need to keep the conversation light and avoid asking too many questions at once. You never want your lead to feel as if they are answering questions at the police station. You can have a pattern to your questions but you can’t rattle them off one after another. By doing so you give the impression that they are just a number and not a real person. Most homeowners, regardless of the situation, will not sell to someone who they don’t personally like or trust. Collect as much data as you need but don’t try to get everyone at once.
- Do Your Homework. Lead conversion is about knowing your lead and doing your homework. You want to make them feel as comfortable as possible in working with you. Prior to meeting at a homeowner’s house you should find out as much about the property as you can find. At some point in the conversation you will end up using this information. There is no such thing as an average lead. Of course some deals will be more lucrative than others but all are important. You never know what relationship you can develop or who your lead knows that can enhance your business. If you are unprepared with your lead and don’t know everything about the deal you don’t give yourself the chance to find out. On the flip side if you take the time to go to town hall to find out about a lien or a property issue you will find yourself converting more leads to deals.
- Schedule Follow Up. Prior to leaving the meeting or phone call you need to schedule a time to follow up. Where most leads are lost is not in the initial conversation but rather in the follow up. You always want to strike while the iron is hot. If you wait too long to follow up your lead may speak with someone else and move forward with them. They may also feel like you don’t really care enough about them and won’t be as interested in working with you the next time you reach out to them. By making a set follow up time you give them a chance to think things over without waiting too long. The best follow up times are typically right around 24-36 hours after initial contact. In addition to the time you should also establish which manner you intend to communicate. The more follow up information you have the easier it will be for your lead to make their decision.
- Store All Data. However you gather your information it is important that you store it in a place that is easily retrievable. You can bet that at some point in your follow up you will revert to this. Not only do you need this to communicate in the days immediately following but you will use it in the proceeding weeks and months. Regardless of how things went you need to keep all leads on a constant follow up program. Your lead may not be ready to commit right now but you never know how they will feel in a couple of weeks. If you don’t spend the time to email or call you will lose any chance you have of your lead working with you. It is not uncommon for a lead to act months and even years after you originally contacted them. Give yourself every chance and file as much data as possible.
- Ask For The Deal. You never know what you can get unless you ask. At some point when talking to any lead you need to find out what will get them to act. You can’t be afraid to flat out ask them what they thought if you offered them a certain amount. This should be the starting point of your negotiation. If they balk you know you have some work to do and may need to circle back in a few weeks. If you aren’t too far off with the numbers you know you are close to a deal. Either way unless you ask for what you want you will never know where you stand.
The real estate business is a numbers game. Getting multiple leads to work on gives you an advantage but only if you can convert them. Use these five tips and see your closing rate skyrocket.
