When you join a brokerage, one of the first things they will generally start you on is lead generating. Obviously, the only way to make money is to have clients, so you'll need to go get some.
There are only so many ways to get leads, though, and within each category, there are many actions and options. You just need to find the ways that are available to you and that work for you. Or, you've just got to knuckle down and work the methods.
Here is a list of general lead sources - activities that will generate potential clients - that will start you on your way to earning commissions:
- Referrals - Your TOP source for leads will be (should be) referrals. Ok, this should be obvious and something that comes later after you've generated a lot of business, but it is one of the primary sources of leads, and most experienced agents will attest to this. In fact, there are some agents who only take referrals at this point in their career. I also can atest to this. Many of my sellers come from referrals that started with one seller in one neighborhood. I've since done 20 sales a year in that neighborhood, just from that first sale.
- Introducing yourself - like politics, the best way to get known is to go out among the people and shake hands and kiss babies. OK, that doesn't work anywhere anymore, but honestly, meeting people, letting them know what you do, and offering to help them is a great way to get leads. I can tell you that the majority of agents hate this more than a tetanus shot, but it really works, though it can be really awkward. This is what your broker is going to tell you to do. Get out there and knock on doors and cold call. Go to events, and be seen. Talk to people. While you're at it, add them to your email list. You'll thank me later.
- Sphere of Influence - all the people you interact with are someday going to buy or sell a home and everyone they know is going to someday buy or sell a home. And as professional, you'll encounter people in all sorts of related businesses that also deal with home buyers and sellers. People like mortgage & loan brokers, attorneys, title companies, financial advisors, and contractors. Your job is to make sure everyone knows what you do and to refer people to you.
- Lead Buying - there are a lot of companies out there that sell leads. These are people who have somehow called or filled out a form online indicating they are in the market to buy or looking to sell. Each of course is in a different stage or urgency. Some may be ready now, some in a few months, and others in years. And many could be life long tire kickers. Some leads are specific - people thinking of selling their home on their own (FSBOs), or listings that have expired - both great sources for listings. Others have just indicated they are interested in a neighborhood or even a specific home that came up for sale. Either way, they are all leads for potential clients.
- Marketing - marketing is what we call trying to get people to call us. The majority of lead generating methods primarily require us to reach out to others. But marketing is a way to shine your "bat signal" into the sky and have people reach out to you. This involves advertising, postcard mailers, educating, and getting our name and brand out there so people know who to call when they are ready to buy or sell. Most people think of advertising as a one-time thing, but for it to be effective, it really needs to be consistently repetitive.
All of this lead generating can seem like busy work, or politicing. And in a way it is. Even CocaCola spends millions just putting their name on things. Yes they have videos of bubbling, refreshing looking glasses of soda to make you want to whet your whistel, but their goal is to remind you constantly that they are here, ready for you, when you're thirsty.
Advertising your real estate business is similar. The majority of people are going to buy and sell at sometime, no matter how the market fluctuates. Some of them have a friend or relative or past agent, but the maority do not. Who will they use when they are ready.
You will not be successful the vast majority of the time, but all sales is a numbers game. Some percent of people you talk to will never work with you. Some are ready NOW. Some are ready soon. Some need help understanding and are looking for someone they can learn from, lean on, and trust.
Your job is to meet as many people as possible so that you are building that pipeline - a dripping faucet of people who are interested today, tomorrow, next week/month/year. That way, you're always busy. And if you do a good job, a lot of those people will refer you - even if they haven't yet worked with you.
If you're lead generating using all these methods, first, you should never run out of prospects, and second, you should be getting referrals. Together, your real estate business will flourish.
Go talk to as many people as possible.
