How Long Does It Take to Convert Online Real Estate Leads?

Feeling frustrated that your online real estate leads aren't converting? Or does it seem like they're taking forever?

Here's the truth: online real estate leads take longer to convert than other sources and may convert at a lower rate than other sources like referrals, call-ins, etc.

The average incubation rate for online real estate leads is anywhere from six to 24 months.

The national average conversion rate for online real estate leads is usually reported to be between 2-3%. However, The National Association of Realtors® disclosed that the rate is actually closer to 0.4% – 1.2%.

So, that means for every 100 leads you generate and work, you may convert two or three, and it may take a while to see it happen.

I know what you're thinking—but don't be discouraged! With a seamless system in place designed to work and convert those leads, online leads can still be a lucrative part of your business.

The name of the game is to leverage automation tools and technology services that allow you to work these leads without investing too much of your own valuable time.

Build a Seamless Online Lead System

First, make sure you have all of the necessary elements in place to turn those leads into closed deals. We recommend focusing on these three things:

Speed to Lead

It's critical to reach out within five to 15 minutes of the lead registering on your site. This is your best opportunity to make an impression!

However, this is where many agents drop the ball. At BoomTown, we conducted a study of 40k+ agents and found that the average response time for an online lead was nearly 90 minutes. Yikes! That's enough time to lose an opportunity.

It's impossible to stay glued to your desk all day. It's simply not the best use of your time! Plus, some leads might register on your site during the middle of the night or while you're on vacation. So this is a good area to rely on technology or a new hire in order to give focused attention to reaching out to leads.

With BoomTown's Lead Concierge Service, Success Assurance, we generate and qualify your leads on your behalf (24/7 in as little as 90 seconds) and nurture them for up to one year. This way, no lead gets left behind.

Qualification

Have a plan for qualifying your leads and tagging/categorizing them appropriately within your CRM. The goal is to get as much useful information as you can as soon as possible. Like, LPMAMA: Location, Price Range, Motivation, Agent (are they working with one?), Mortgage (are they pre-approved?), and Appointment. (Note: If you're leveraging a Lead Concierge Service or an ISA, this should be a part of what they handle for you!)

Pro Tip! Leverage your technology partner to embed qualifying questions within your IDX website. For example, when they're sharing their contact information with you, including the questions, "Are you pre-approved?" and "Do you have a house to sell?" 

Follow-Up and Long Term Nurture

Plug your leads into the right nurture plan to continue delivering timely soft touches with helpful information. You should be able to automate this within your CRM!

Trust the Process

If those three strategies are in place, the next thing you should do—be patient and trust the process. Yes, yes, I know it's not the sexy answer but it's the right answer.

Online leads are "top-of-funnel," which means many of them are just beginning their search. They may be months away from being ready to transact. In fact, the average is six to 24 months. So you need to understand the lead funnel and the process of slowly moving leads through it, nurturing them so that when they are ready—you are their go-to agent!

Remember: Your database is a powerful tool. Keep fueling it, keep working your pipeline. Stay on top of your systems and trust the process.

To view the original article, visit the BoomTown blog.