Does Facebook Lead Generation Work?
Over the course of 12 months 5000 online leads were tracked from generation to closing with the goal of measuring the conversion rate and ROI. 3500 were Buyer leads and 1500 were Seller leads.
The results of the study was stunning.
The actual name of the brokerage that did the study is changed for privacy reasons. If you need more information on this study feel free to message me personally.
A real estate broker, and friend of mine, did what other brokers would not – he bought leads for his agents.
He has over 200 agents so to truly offer this as an incentive he needed to buy a lot of leads. However, when he started distributing the leads, his ROI seemed low. His concern was that the leads he was generating were “junk”. The amount that closed a deal appeared to be so low that it seamed that online leads were ineffective.
Instead of stopping he dug deeper.
He setup a system to track the names of every lead against his conveyancing office. He was looking for a connection between the lead and a closed transaction in his office.
And guess what, of the 5000 leads he generated, he found that 678 of them closed as transactions in his office. Huge ROI.
But here is the kicker. Only 4% of the closings were with the agent that he originally sent the leads to. That’s correct, only 4%
If it wasn’t for the fact his office is so large he would have missed out on 96% of the business.
Why is this so fascinating and what can be learned?
1. Lead follow-up is more important than most of his agents realized. It is easy to conclude that an online lead is “not serious” and discount them as junk. However, when an agent understands the Online Lead Dilemma, they learn that a lead goes through a journey of Peaks and Valley’s of interest prior to reaching the point when they are ready to take action. The reason only 4% of the leads were working with the first agent they were put in touch with is because the agents were not following up with them.
2. According to Realtor.org after interviewing thousands of home sellers and buyers it was revealed that leads generated from marketing account for 40% of real estate business. This is outside referrals and repeat business. Online leads are proven to be the fastest way to grow repeat business. This is why some agents can start lead generation systems online and within 24 months be one of the largest players in their city.
Of the 5000 leads generated online 678 turned into transactions at that brokerage within 12 months. That is 13.56% of all leads.
Online leads provide a big opportunity for any Realtor serious about growing their business.
Think of it this way, find out how many ends are done each year in your city. According to Realtor.org 40% of those deals are up for grabs each year… this may change your opinion on online leads. It is the very reason the successful agents find the right marketing partners like StreetText to make sure those leads find them.
I hope you find this study as fascinating and confirming as I have. It is congruent with the results our Top Producers are getting with our program.
StreetText specializes in Real Estate Lead Generation, to learn more visit Lead Magnet
Feel free to use and reference this study, all we ask is you please provide a link back here. Thank you.