Most people think real estate lead generation is their problem…
It isn’t.
Leads are NOT your problem.
:::: Quick Quiz ::::
If I had a seller referral for you, would you pay me a 20% referral fee for it?
Almost any registered real estate agent would take that deal! It’d be a nice paycheck. It’s basically a sealed deal. And it’d be an easy transaction.
You’re basically guaranteed to make money.
The problem with these types of transactions is that it’s hard to find enough of them to keep yourself in business.
So, Sean & I built you a free calculator that shows how we can take this “guaranteed” money for the price of 20% and turn it into a sustainable business model for you.
:::: Here’s The Free Tool We Made For You ::::
Click here to figure out how much you can spend per lead
Let’s talk about why lead generation isn’t the problem…
You basically have two ways of generating real estate leads.
You can either use your time or your money. Both of these methods have drawbacks and advantages. But literally every single marketing method takes one of these two things.
AND every agent would happily pay a 20% referral fee for a closed deal.
These three facts are what you need to consider when building your lead generation machine.
Let’s dive deeper:
It basically says that you can achieve predictable results from any repeated activity. That means:
- If you track your conversion to client, you’ll know how many leads equal how big of a commission check.
- And then you can figure how many leads you NEED to hit your income goals.
- And then you can figure out how many leads you need to use money to generate after subtracting the ones you’ll generate with your time.
These numbers (after you have a large enough sample size) can be averaged & are usually REALLY predictable.
And when you have predictable numbers you can be very confident about lead generation.
Do You Remember My Referral Question?
Almost every agent would take that deal because it’s guaranteed money.
But here’s the thing:
It is really hard to consistently find real estate referrals.
…And while paying 20% for a ‘closed deal’ sounds good on paper:
- You’re going to do a lot of waiting for that deal to come your way.
- You’ll be making your business 100% dependent on other people’s lead generation methods.
- There are very limited sources for leads like this.
- Other agents might be willing to pay 21% or 25% or 30% and will cut in on your margins.
This type of business is really unstable.
So, what’s the solution?
Now, Tom Ferry would tell you the solution is cold calling 10 hours a day until you generated enough leads to hit your goals…
…but I’m not Tom.
I’d use this free calculator Sean and I built to generate a chart like this:
Then, I’d write down a list of ways I can generate 1053 leads this year for under $33 per lead.
- Take my FREE Beat Zillow Course
- SEO Pages that target builder communities
- YouTube Ads
- Facebook Ads
- LinkedIn Marketing
- 53 other lead generation ideas
- …plus thousands more
Here’s why this works (and why you don’t have a lead generation problem):
Unless you’ve lied on your conversion numbers, leads that cost less that $33 per lead are going to be cheaper than running a business 100% off of referrals.
THINK ABOUT THAT.
If you know your numbers, you can pay for any type of lead from anywhere.
And as long as it’s under your cost per day, you’ll know it’s a better deal than accepting a referral.
In fact, you’d be better off working deals! You’ll be making more money than if you were to give away 20% to a referral source.
The best part:
There are literally thousands of ways to find leads that cost less than $33/lead. You can run ads everywhere! You can invest in SEO. You can focus on spending money to get more referrals from your sphere.
Spending this money and advertising up front is only scary when you don’t know your numbers.
And unless you’re lying about your lead conversion numbers, you can be INSANELY profitable if you build lead sources that capture leads for you under the cost per lead you need to hit!
My point is simple:
Go download the calculator today. And figure out how many leads you need to generate yourself.
Then, find ways to generate leads for less than the dollar amount per lead the spreadsheet gives you!