Creating leads versus converting leads
NEW YORK – Aug. 14, 2012 – While many agents believe their focus should be on creating leads in order to generate revenue, some experts say lead generation is the easy part. There are thousands of strategies for creating leads, from farming and cold calling to referrals and open houses. And each has its own ratio of success.
However, experts say that generating more leads isn’t the solution to a lack of transactions unless they’re cultivated and converted, which is more difficult.
Most agents don’t track the number of leads they generate or their conversion rates, but they need both calculations to gauge the success of their marketing campaigns.
Agents pay for every lead generated, whether in time or money. When calculating costs, they need to consider the tasks they complete to manage, track, call and market to these leads in order to convert them into clients. By analyzing that data, an agent can discover his or her strengths and weaknesses.
For example, an agent may realize that he or she closes more than 50 percent of their conversions, and that they usually convert a lead into a client after a one-on-one meeting. If so, a focus on personal meetings with leads might be more effective than an investment in generating more new leads.