Let’s talk about online leads.

I hear a lot of people say, “Online leads suck. They just don’t work.”

We’ve been working on online leads since 2006. We started with simple search engine optimization (SEO), Google ads, and Craigslist. We also tried buying leads from Zillow and Realtor.com, and then eventually moved on to Google PPC (pay per click), Facebook lead ads, and even Redfin.

Over the past 16 years, our team has spent millions of dollars generating leads online. Why? Because it does work. It is our second greatest source of closed transactions, next to referrals by past clients, spheres, and portals.

So, how do we make it work? I’ll walk you through our process briefly.

Understanding Your Leads

At the top of the lead funnel is Facebook Leads. When you go on Facebook, you scroll through your feed, react to or like some posts by people you know and follow, maybe leave a comment or two, and every now and then, you’ll see a link or an ad that catches your eye, and you click on it.

That’s how our Facebook leads usually enter our funnel. They see our post, and maybe because they are interested in the property, or it looks nice, or they plan to buy a home someday and want to check out options early on, they click on it. They answer a few questions and their data goes into our CRM.

There is interest, but the intent is minimal.

In the middle of the funnel are Google PPC leads. They have more intent than Facebook leads, because these people are usually the ones who go to Google and type something like “homes by the beach in Malibu, 2 bedroom,...etc.” It is a more intentional search than just happening to pass by one of our posts.

They answer similar questionnaires and get into our CRM as well.

At the bottom of the funnel are leads we got from portals, referral websites, and review websites. These people are more than just interested and intentional, often they are ready to buy (or sell), so they go to the more niche websites to look for agents to help them.

The first thing you need to understand is this: not all online leads are equal. Leads from Facebook and Google, for example, might be potential buyers, but they are most probably still far from being ready to transact.

They are still at the point of “looking around” in their home buying journey.

So, why do online leads not work for you?

It’s simple. Your mindset in approaching your online leads was wrong from the start.

A lot of agents get impatient. They go in, make a call to their leads, and often want to go straight into closing a transaction.

If they are leads from the bottom of your funnel (like leads from Zillow and Realtor.com), that might work. But for top and middle of the funnel leads, that is the wrong mindset to have.

Let’s start with getting the right mindset: Real estate is a people business. It is built on relationships and trust. No matter where your lead is in their home buying journey, your primary focus shouldn’t be to close a deal, but to connect. To build trust and establish a relationship with that person.

Online leads don’t work for you because your approach doesn't work on them.

In any market, no matter how many times it shifts, relationships are the key to thriving.

How to work with online leads?

This is the typical flow of working online leads: Your target audience goes through your CRM after answering a questionnaire online, then once in your CRM, they go through (hopefully) an automated program for retargeting through RE (real estate) ads online. Then, you call those leads (whether as a single agent or if you have a team or outsourced an ISA).

Try to call your online leads within three minutes of entering your CRM, while their interest and intent are still fresh. If you can get through, great! If they don’t pick up, leverage an automated process of following up on those leads.

When you get them on the phone, it is your dialogue that matters. Your mindset affects everything about your approach: from tonality to choice of words.

If you want to go directly to the end, it shows in your dialogue, and you are missing multiple steps along the way—steps that are necessary to establish trust and create a relationship.

Remember: Most Facebook and Google leads aren’t going to buy right away. They might be months, or even years, away from being serious about buying/selling/moving houses. Don’t drop the ball on them just because they aren’t ready to transact yet. Focus on nurturing those leads instead.

This is your golden opportunity to establish a connection with them this early in their journey because more often than not, they haven’t talked to any other agents yet. You are the first person they are talking to about potentially buying a home.

Aside from rapport, word choice, and tonality, sincerity is key to working with your online leads. You need three things: build trust, offer value, and think about the long-term nurturing of relationships.

Use your first contact to get to know what they are looking for in a home. That way, you know what they want and can send them things that they are looking for. When you give them what they want and need and gain their trust, they are more likely to do business with you. Why?

Real estate is a big purchase. Moving, buying/selling a home; these are major life decisions, and people feel most comfortable working with people they already know, like, and trust.

Nurturing leads long-term takes up a lot of time, and I know we are all busy. Automating your nurture process is a leverage point. We have our own drips for these follow-ups, and we always focus on relationships and giving value, even if we automate the process.

People are sick of hearing the same outdated scripts from way back in the 70s—those don’t work anymore. They want real connections with real people who authentically care about them and their needs.

Some Q&A

Question: What if the lead says, “I am already working with an agent"?

Some people say that as a buffer because they don’t want to be bothered. It’s similar to when you go to a mall and enter a store. A salesperson approaches you and you say, “I’m just looking around.” You know you might need help. You just need specific help, and at a time when you are ready to get it.

It might be worth it to dig a little deeper. Have they signed a brokerage agreement? If they have, you can let it go, but for the most part, you can offer them something of value, like off-market properties. Or other properties that “their agents” might not have shown them.

Make sure they know that, at the end of the day, you just want to ensure that they get help from someone, and that someone’s there for them in the long run. If it’s you, great! If it’s a different agent, that’s also awesome. It comes from a place of service. Compete with your trustworthiness and value offering.

Question: What do you do to lead someone who 'ghosts’ you?

Retarget them through Facebook and Google ads. Keep nurturing them. Focus on the relationship-building part and offer value.

In our experience, 19% of the time, people who have been in our CRM for a year yet never responded would reply to a text like: “I have a list of open houses this week. Would you like me to text them or mail the list to you?”

Sometimes they reply "Yes." Other times it is along the lines of “No,” “Who are you?” or “Go to hell.” But, that is a response. And we know how to act if they respond.

The key is to open opportunities to connect by bringing value.

Question: How do I reach out to “neglected” leads?

Sometimes, we see leads on our system that have been there for a year, but we aren’t sure if we’ve touched those leads or not.

Just be vulnerable. Say “Sorry that we missed you,” and be straightforward that you aren’t sure if someone has gotten to them from your team, and ask if they are still looking for a home, have found one already, or have their criteria for homes changed.

It’s all about being able to connect to somebody because they like you.

Question: How do you follow up on a lead that doesn’t have a working number?

If you have their email and you’re using an iPhone, put that email on your messaging app. One out of every two phones in the US is an iPhone, so this works pretty frequently. If your iMessage turns blue, you win.

Some final thoughts…

As the market shifts, we’re seeing a lot of fear among agents. We want to help you out in transitioning into this market because people can succeed in all markets. We are just showing you how.

Reach out to us if you have any questions. We also do one-on-one and group coaching sessions on the side, but we have a free 30-minute session every week on Tuesdays. Let’s all work together to thrive in this market shift. 

Thank you for reading A Brilliant Tribe.