How to Rank the Quality of Your Leads

Post Written by Rob Minton
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In previous articles, I've stressed
the importance of consistent lead generation. I've also shared that my goal was
to generate 400 new leads each month. In this article, we will focus on lead
quality.

This article is timely because many
agents seem to know focus exclusively on generating in-expensive leads. These
in-expensive leads tend to be lower quality.

Here is an interesting finding
from my business:

Lower quality leads are attractive
because you don't have to spend a lot on the "front side" to generate the leads.
However, you end up having to spend more on the "back side" trying to convert
these lower quality leads into clients. The "back side" is the marketing you
deliver to the leads once generated. This would include special reports, sales
letters, and more.

In my business, I rank the quality
of leads as follows: (Ranking is from Highest Quality to Lowest
Quality)

  1. Referral
  2. Joint Venture Endorsement
  3. Leads registering to attend a
    special class
  4. Leads responding to an advertorial
    advertisement
  5. Leads responding to a "solo" email
    or "pay-per-click"
  6. Leads responding to a classified
    or home buyer magazine advertisement
  7. Leads responding to a craigslist
    (or similar) advertisement

The problem is that most agents are
now focusing on craigslist or classified advertisements which attract the lowest
quality leads. They then struggle to convert these leads into appointments
and/or home sales.

To be successful, you're marketing
campaign must include leads from each source listed above. In fact, I might even
suggest that you invest more resources on the top 4 or 5 strategies for higher
quality leads. The amount invested to generate the lead will be higher,
but the amount invested to sign a new client or sell a home will ultimately be
lower. 

If you follow this advice, you'll
soon notice that you have less competition. This is because the majority of your
competitors will be focusing on in-expensive advertisements that attract lower
quality leads. How many agents in your area are consistently setting up joint
venture marketing campaigns? How many agents in your area are running
advertorial advertisements? I'll bet there aren't too many.

Why?

Because if an agent focuses on
lower quality leads, they won't sell very many homes. With limited home sales,
their funds will be tight and they won't be able to afford to run advertisements
that attract higher quality leads. You'll gain a long-term economic advantage
simply by focusing on attracting higher quality leads.

The bottom line is that a lead is
not a lead. There are different qualities in the leads you generate. You should
create a comprehensive marketing campaign that focuses on generating higher
quality leads and let your competitors fight over the lower quality leads.

Additional Marketing
Related Articles:

3
Ways to Compound Your Marketing

Killer
Lead Generation Strategy for Real Estate Agents

Is
It Possible to Buy a New Client

1 Comment

  • Teresita Shutler

    Reply Reply March 28, 2011

    I think this is among the most significant info for me. And i’m glad reading your article. But should remark on some general things, The website style is wonderful, the articles is really excellent : D. Good job, cheers

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