Lead Generation Strategy for Solo Agents … part 2.
Yesterday we talked about the #1 STRATEGY for solo agent lead gen:
Pick ONE lead generation method … and master it.
Ignore all others … and you will be rewarded with abnormal profits.
Today we are going to dive DEEP into that strategy … and open it up.
After speaking with 4 super solo agents
… who sell 69, 78, 80, 96 homes per year
… I am seeing a pattern.
What is the #1 lead gen source for super solo agents?
Drum roll please.
Repeat & Referrals from family, friends, and past clients.
R&R is accounting for the majority of their business
… 55% to 95%.
So let’s conclude that you need to pursue R&R.
On the other side of the coin
… 5% to 45% of their business is coming from
… new lead sources.
So here is the BIG PICTURE.
Your marketing plan needs TWO lead sources
… a two prong approach.
1. Repeat & Referral (people you know).
2. Future Growth (people you do not know)
The key is to narrow this down to just TWO methods
… and become an expert in each category.
I’d start with R&R. It is the easiest, fastest, and most profitable.
And you can create a moat around it … to keep your competitors out.
These people already “Know, Like, and Trust” you. Very powerful.
Instead of chasing random leads (like cold calling or internet leads)
… that result in 1 sale in 100 leads.
Focus your efforts (and spend your marketing dollars) “loving on” people
… who already know you
… and result in 10 sales in 100 leads.
You read that right.
You are 10 Times more likely to do business with your R&R group.
So why do agents spend 10 times the money and effort on “new leads”?
But we do it all the time.
Well, super solo agents do NOT. They focus on the R&R group.
Then after they master this approach
… they ADD more people to the R&R group
… by prospecting for new leads.
So if it works for them … it can work for you (model of success).
Seven years ago I spoke with Daniel Del Real.
He said something profound to me.
“Mike, one day I woke up and realized that I was wasting money on people who do not care about me … and ignoring the people who do. Do I stopped all advertising (thousands per month) and invested that money into people who I like. Instead of buying an internet ad, I purchased gift cards and mailed them to my friends, family, and past clients. I showed my gratitude in advance. Result, my repeat and referrals took off.”
And it did.
Daniel had a database of 800 people … who sent him 160 closings that year.
That is 20% … one in 5.
“But, Mike, I don’t know 800 people.”
However, studies show that most people know 200 people.
With the right approach, if you got 20% repeat & referral closings, that would be 40 closings per year.
For a solo agent in most markets, that is an excellent income.
In conclusion, the solo agent lead gen strategy should be:
1. Maximize R&R first
2. Then add to database with ONE new lead source
Tomorrow, I will dive deeper into the TACTICS super solo agents are using to develop more R&R.
Lesson three, done.
Keep moving forward.
Master Mind Agent LLC
P.S. But Mike …
I thought you said to master ONE lead gen method.
Yes. I did.
First you master R&R.
Then you master ONE new lead source … to ADD to the R&R group.
That is it.
Simple … and powerful.
The key is to NOT over complicate step 2 … with 5 different lead gen sources … and not being very good at any of them.
Maybe you pick FSBOs.
Master FSBOs … and add to your database.
But continue to spend 80% of your time on what matters … your R&R.
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Hope this helps.