Q&A MEMBERS CALL: How Valuable Are Online Seller Leads?

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Transcript:

This is gonna be awesome. I'll try not to come down too hard on you.

The question is, "I receive 400 potential seller leads a week. Homeowners enter their address into the property valuation tool but don't sign-up. We get a lot of sign-ups too. Curious as to how you would handle potential seller leads that only receive the address someone researched."

Free Online Home Valuations

I think online seller lead gen hasn't been proven yet. I don't think that, I know that. Most of it is done on social media advertising.

So let's pull up Facebook, and let's see. So your ads gonna come up somewhere, and it'll say "Free Online Home Valuation." So you click onto it.

A Free Online Home Valuation has little or no bearing on their actual desire to sell their home. And people that land on your Home Eval site and don't fill it in are even more garbage than the leads that do fill it in.

People have likened it or want to liken it to buyer leads. Most teams, at best, get 2-3% conversion on buyer internet leads. It's a grind. You've got to stick with it, and you can get 3-5% if you totally master it. So people think seller online lead gen is going to be the same conversion rate.

There is no way that I would say someone searching on Facebook that just happens to want to know their home value is as motivated a buyer as someone seeking out a website to search for homes.

What Are the Conversion Rates?

I think your conversion rates are .2-.3% - so 2 to 3 out of 1,000 leads you generate would ever give you a commission check. To find those 2-3 out of 1,000, you'll have to have a full-time person doing lead scrubbing, calling, emailing, putting into email drips, even doing direct mail where I think the the returns are minimal for the investment of time and energy.

I'm always looking. I'm not closed-minded about it, but I just don't think they're leads. I think everyone that does it should wait until someone proves it out. I think most of you should drop it if you're doing it. Complete waste of time and money.

That being said, we've got a couple people that through their CINC platform do pretty well with the seller leads that are generated there. But overall, 9 out of 10 agents will not make that work. Probably 95 out of 100 won't make it work.