So, what’s the success rate of converting an uncultivated internet lead? And if and when one is converted, how long did it take to complete? And those that are finally converted, what is the average purchase price? Should you care what this math equates to on internet leads?
Short answer is, YES…this is business!
My guess is, if you are a new agent and chasing an internet lead, the lead was given to you by a team leader or some other more experienced agent that has decided this lead isn’t worth their time. That’s fine…they have earned the ability to pass on opportunities similar to experienced agents giving up “floor time” in the old days. Of course, in the remote event you are able to chase down this lead and actually close the low-priced sale, the team leader receives a share of the commission and you just netted minimum wage in the name of earning your stripes. Again, that’s fine…”earning while learning”, right?
My point is, you are in business, an independent contractor, a sole practitioner in real estate sales. You are paying a broker (or in some business models, a team leader) for their brokerage administration and structure, their consultation, advice and leadership. So, what should you expect with leads that will potentially produce a decent wage at the end?
I feel it is a responsibility of a real estate broker to have a formal leads program in place, that includes affinity and broker-to-broker referrals from other parts of the country, as well as the ability to cultivate internet leads before assigning to an agent. Why should you be expected to waste your time even on one phone call to an uncommitted inquiry? You are better off making personal contacts and spending time with your SOI. Let experienced relocation professionals cultivate internet leads and you be on the receiving end of a qualified lead where the chances of you earning a respectable commission increase substantially.
I have heard plenty from agents who have been promised leads by brokers and team leaders, but the results have primarily been significant windshield time, for low compensation. You are not a chauffeur service…you are helping people buy their most expensive asset. You are expected to conduct yourself as a professional, and provide a valuable service on behalf of your broker and company. In return, you should expect to receive qualified leads from your broker, regardless of their origination.
Third party listing portals promote the fact they send out tens of millions of leads to their paying subscribers, yet there are only 5-6 million home purchases each year in comparison. Make sure qualified leads are being directed your way. And as important, keep in mind you are in business from the first day you walk in the door, your time and expertise should have a fair price tied to both. The fact is, floor time went away because it was not profitable for the agent…the same holds true with internet leads.