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”?
Seems dumb.
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).
Quick story.
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.”
Not yet.
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.
-Mike Cerrone
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.
Fine.
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.