Want success? Here’s how to drive leads for just a few dollars.
By Eric Schoeniger
Home sales have been increasing for a decade, with 5.78 million expected to turn over this year. But there are 2.4 million active real estate licenses. So roughly speaking, in 2018 there will be an average of 2.5 sales per license.
In other words, the real estate market is strong, but there’s a lot of competition. You need to generate leads that convert. Cold-calling and door-knocking can work, but they take time. Lead-generation services can help, but they cost money.
Fortunately, you have alternatives. Here are proven techniques that cost little, but can generate leads that pay off.
1. Connect to build leads.
Place yourself in situations where lead generation can occur naturally. To that end, join an activity-based club where you can spend time with like-minded people. It can be any activity you enjoy: golf, gardening, painting, bridge. Just be sure it attracts people of the right age and income to be good clients.
“I joined a hiking group, and I use that to generate leads,” says Michael Soon Lee, CRS, training manager at Realty ONE Group BMC Associates in San Ramon, California. Lee spent a few dollars to have his company logo embroidered on his hiking shirts, which helps the topic of real estate come up naturally.
2. Network with lawyers.
One great source of leads is professional referrals, especially from divorce and estate lawyers. “Two life events are almost guaranteed to result in the sale of real estate,” Lee says. “One is when a couple divorces and neither stays in the home. The other is when an aging parent passes away and the adult children sell.”
Attend networking events that attract lawyers. Ask them to refer clients to you in exchange for your own referrals. Seek out the best lawyers in town because they’re likely to have the most qualified clients.
3. Host an open house—even if it’s not a house you’re selling.
An open house can be a great source of both buyers and sellers. But the house doesn’t have to be one you’re selling. Offer to host open houses for other agents. You might find buyers for the other agents. You’ll almost certainly generate leads for yourself.
Sign up for Agentdesks
Agentdesks is a mobile real estate networking and customer relationship management (CRM) platform. The Residential Real Estate Council offers Agentdesks free of charge to all CRS Designees.
Agentdesks connects REALTORS® with other top agents in their markets. It also allows CRS Designees to join exclusive CRS referral groups to match their buyers with properties. The mobile tools act as a hub to organize customer phone, email and website interactions in one place, with always-on access to data and resources.
Consider holding open houses with another agent or with a lender. That way, prospects won’t be left unattended if several show up at one time. And you can split the cost of providing food that can entice prospects to extend their visit.
“Open houses are especially effective for new agents,” Lee says. “Every new agent should hold an open house once a week.”
4. Collect testimonials.
Virtually every agent has a smartphone with easy-to-use, high-quality video capabilities. Today’s clients are often happy to participate in a video testimonial.
“Record seller testimonials right after they’re handed a check, because they’ll never be happier,” Lee says. “Record buyer testimonials after they’ve had their furniture moved to their new home, and you can sit them down on their own sofa.”
5. Build your brand.
Nothing drives leads like name recognition. There are plenty of low-cost ways to build your brand, says Lana Kopsala, CRS, a sales associate with Coldwell Banker in Leominster, Massachusetts, including the following:
- Boost your Facebook posts—Does your real-estate business have a Facebook page? For as little as $1, you can “boost” your posts to reach a broader audience. Just click the Boost Post button, decide how much you want to spend, and fine-tune your audience by age, gender, location or interest.
- Erect a billboard—Look for high-visibility locations in your area to post a sign promoting your business. Kopsala got permission to place a small billboard on a busy traffic island. The sign has been there for five years free of charge. “Clients tell me, ‘I see your name everywhere,’ but it’s just because they drive past my billboard,” she says.
- Get yourself on TV—Kopsala used her smartphone to record a mini-commercial. Now, for $3 a day, she appears three times an hour on the closed-circuit television at her local gym.
6. Give back.
Get involved in a local nonprofit that’s important to you. Look for organizations that market themselves well. Promote your involvement on your website and through social media. And seek out activities that let you meet people. “Rather than just run a 5k, I’ll help organize the event or man a booth,” Lee says.
In addition, Lee sometimes tells clients he’ll contribute 10 percent of his net profit from the sale of their home to a nonprofit of their choice. “If they’re choosing between me and another agent, that offer will often make the decision for them,” Lee observes. “And it’s a win-win-win: for the client, for the nonprofit and for me.” 
Want help with the next step? Take our classroom course, Converting Leads Into Closings.
