Why Are Internet Leads “Bad Leads”?



As the President of a company who specializes in helping agents capture customers online, one of the things that troubles me is hearing agents say, “Internet leads are ‘bad leads’.”  In fact, it bothered me so much that we commissioned our customer service department to actually conduct a survey.  Here’s how it went.

First we looked at the statistical buying cycle for the real estate customer.  The average search time is 8 weeks.  In other words, 50% search longer than 56 days and 50% search 56 days or less.  Now based on a “normal” distribution, that means that 99.9% of all real estate customers search less than 170 days.  So why does that matter?  Here’s why.

Our company helps our agents capture roughly 30,000 leads every month so we thought we would take a large sample of those leads that were 6 months old (in other words, old enough to be statistically finished searching) and we would call them back to find out whether they had ultimately purchased a home.  The results are going to amaze you.

Here is what we learned from our survey:

  • 18.4% of all the leads produced were either bogus or duplicate.
    • 9.1% gave fictitious information like Mickey Mouse, mickey@disneyland.com, 555-555-5555 (bogus leads).
    • 9.4% had registered previously on our website (duplicate leads).
  • 74% of all the leads had closed on or were pending closing on their new homes!

We were astounded!  The problem wasn’t the leads.  It was the agents.  So why the huge disconnect between perception and reality?  Here is what we ultimately determined.

Internet leads typically come across our radar screens during Phase 1 of the buying cycle, where traditional marketing brings customers to us much later in the cycle, during Phase 2.  So it’s crucial for an agent to understand that the techniques used in Phase 1 are vastly different than those you would use during Phase 2.

Think of golfing.  You wouldn’t even consider using the same club to putt with that you used to drive the fairway.  In the same way, the techniques you use in working with your Internet clients had better be vastly different than those you use working customers coming through traditional marketing.

Over the last four years I’ve written extensively on the subject so check out my blog and read some of those articles if you’d like to dig a little deeper.

Working Internet Leads
Working Internet Leads: Revisited
Turning Leads into Deals (Audio Interview)

But for now, when you find yourself having difficulty working with customers that come from your website, don’t think for an instant that the problem is the lead quality.  It’s not.  Our coaching staff has found that it is almost always the approach the agent is taking.

Here is the good news:  It’s pretty easy to learn how to work this new type of lead.  So take the time to master a new skill and you will have a huge advantage over most of the other “old-school” agents in your market.  Internet leads are NOT bad leads!  And that’s my quick answer.

Series Navigation<< Quick Answer Series: What Do You Think of “Sphere of Influence” Marketing?Quick Answer Series: What About Ads in Home Magazines? >>
Share this :
Matt

I give away about 99% of all my technology and digital training content, completely free of charge, because I want to see other agents have the same kind of success that I've had. But one thing I charge for is my Ultimate Website technology. This is the web technology I created for myself that turned my real estate practice around overnight, and now I license it agents everywhere. But right now it's too popular and is currently waitlisted. Click here to get on the website as soon as possible and I'll notify you as soon as new invitations become available.

Comments 6

  1. author Mark Oden posted March 8th 2011. 10:43 am Reply

    Better get a house boat. Just in case!

  2. author Matt Jones posted March 8th 2011. 3:35 pm Reply

    Great idea, Mark. Maybe what I need for the beach is a house and a boat and not a house boat. I’ve got the boat… now for a house!

  3. author Guerilla Marketing for Real Estate « Blog, Matt. Blog! posted April 18th 2011. 10:58 am Reply

    […] on about 10% being in Phase 2 of the buying cycle.  (If this is a new concept to you, please read my articles on the real estate buying […]

  4. author Guerrilla Marketing for Real Estate – Real Estate in Tampa – Tampa Bay Properties – New MLS Listings Available in Tampa posted April 19th 2011. 1:55 am Reply

    […] on about 10% being in Phase 2 of the buying cycle.  (If this is a new concept to you, please read my articles on the real estate buying […]

  5. author Guerrilla Marketing for Real Estate | Property Investing Blog posted April 19th 2011. 5:01 am Reply

    […] on about 10% being in Phase 2 of the buying cycle.  (If this is a new concept to you, please read my articles on the real estate buying […]

  6. author Guerrilla Marketing for Real Estate | Real Estate Blog & Blogging posted April 27th 2011. 3:31 pm Reply

    […] on about 10% being in Phase 2 of the buying cycle.  (If this is a new concept to you, please read my articles on the real estate buying […]

Leave a Comment!

Your email address will not be published. Required fields are marked *