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You got them to the website, now get them in the car.
Filed Under (Real Estate Website Conversion Strategies) by Lou Lynch on 28-04-2009
Tagged Under : lead coordinator, web leads
When it comes to converting internet leads, phone calls, drip email and auto-responders are a good start but long-term follow up gets the job done. Even if your salesperson is responding to the lead in record time, the majority of leads just aren’t ready to talk. The best way to convert the highest number of internet web leads is to hire a lead coordinator.
Salespeople Can’t Shouldn’t be Lead Coordinators
From studies I have seen and experience within my own office, most leads take 60-90 days after they register to be ready to communicate actively with a salesperson. Despite their best efforts, the majority of salespeople will make one or two attempts at follow up. Good salespeople will give it three or four tries but it is very rare that traditional sales people will continue following up after one or two weeks . . . and why should they? Commission based sales people can’t afford to spend their time following up on leads for extended amounts of time. Let’s face it, real estate agents do their best work in the car with ready buyers (not at a computer) and as a manager or owner, being out in the field is where you want them to be. The bad news is that if the salesperson is giving up after the first two weeks, and the majority of leads won’t communicate until week 8, we as real estate companies are leaving a good amount of business on the table. (See my post on When are Web Leads Ready?). The solution is to hire an Internet Lead Coordinator.
So what is a Lead Coordinator?
A lead coordinator that focuses solely on lead conversion can develop a system where leads are contacted using a follow-up plan that is designed to be both immediate and long-term. It is important to remember that even though most leads (7 out of 10) convert in at the beginning of month 3, there are some leads that are ready immediately. It would be the lead coordinator’s job to analyze and determine exactly how ready they are and to assign them out accordingly. In addition to these tasks, the lead coordinator is often charged with following up with salespeople after assignment to determine if a once ready lead has slipped back into the non-ready position and needs to be put back into the normal long-term follow-up plan.
Some Lead Coordinators Duties
- Monitor incoming leads both mail and phone (sometimes it helps to use a separate number on the website)
- Manage the lead database, taking notes at every interaction with leads and salespeople.
- Analyze user history e.g. saved searches, favorites, etc.
- Do initial follow-up (do not rely on automated replies) remember to both call and email ALL leads.
- Do an overall lead evaluation (how ready is the lead) based on user history and initial follow up.
- Assign lead to an agent or long-term follow up system depending on readiness.
- Systematically follow up with leads and salespeople regarding lead statuses.
Lastly
The type of follow-up, phone scripts and actual processes will depend mostly on the companies local market and policies.
Man Lou, that is some great info. I have already sent your link to all my Realtors
Thanks Mike. Doing my best to keep the posts coming. Companies (and teams) that are willing to take the plunge and hire a lead coordinator will see a dramatic increase in the number of home tour appointments and sales. The hard part is that the increase in sales comes 60-90+ days down the road and the company or team must carry the payroll until they see the ROI. Well worth the risk IMO.
Thanks for stopping by.
Lou,
I have always felt like most agents do not have the attention span to convert online leads but you make a good point about it not really being their job to do so. After reading this I would say that it makes alot of sense that agents shouldn’t have their time used up doing long term follow up as it doesn’t provide the best ROI for their time. I will have to spread this post around as it makes a great deal of sense. Do you think that a team lead is the best to fill this void until someone can be found or would it be best to have individual agents do so.
James in Houston’s last blog post..$165,000 :: 8835 Aberdeen Park, Houston TX, 77095
@James – Depending on the skill set of of your team lead/company manager, I think it is a great idea to use him or her in the lead coordinator position until the role is completely developed. As I mentioned before, the role of lead coordinator will have to be adapted to the market area and the company policy as the position takes hold. No better one to “create” the position of lead coordinator than a team leader or manager. Once the position is standardized, it is time for the team leader or manager to hire the lead coordinator knowing full well what is to be expected from the position.
Thanks for the comment!
Very good post and it is spot on. There are a few things that agents have a hard time with. Following up with the leads after no answer on the first phone call and figuring out which leads are ready to buy or sell now. Putting too much time and effort into the tire kickers and not focusing on the ready and willing leads will result in failure.
Great post Lou and I look forward to reading more!
Lou, this is really useful insight. I can’t wait until I can implement the information on your website. I’m still in phase one; that is, I’m by myself.
Steve in Tempe’s last blog post..Don’t bank with your mortgage lender if…
HI,
Thanks for the information.
I will Spread this to all of my friends in this field.
@ Shane – That is my point exactly. Agents shouldn’t be spending time with tire kickers, they (and you the broker)will be more happy when they are working with ready buyers and making money. The fact remains however, that those “tire kickers” represent your pipeline and 70% of your business down the road. They must be handled despite the fact that they may not be ready now. A lead coordinator does just that!
@ Steve – As I mentioned above in response to James (comment 4), the best way to create the position of lead coordinator is to first do the job yourself. The position requirements will vary form market to market and it takes an owner or manager to nail down those requirements. Once that is done, an entry level person can be hired to simply follow the system you created. Good luck, I know you will be there soon!
Hi Lou,
Do you guys actually have a lead coordinator? If so, did you end up with an agent that decided to work ‘in house’ or was it a new hire? Also, any insight you can share regarding compensation to them would be great.
I like the idea however I’d be curious to find out how this has worked out ‘in real life’. Thanks!
@marin – The answer is yes, we did have a lead coordinator. I started by doing it myself so I could create the system that worked best. I tweaked it for about 8 months then documented the system thoroughly. Using the documents as a training guide, I trained a licensed support person on how to manage, follow up and qualify the leads before assigning them to agents. The key was to systemize it to the point where almost anyone can do it so the new lead coordinator is basically following a recipe (step by step). Although we used an in-house support person a new hire would almost work better. If the person you hire has a full expectation as to his/her responsibilities (and no bad habits), the learning curve will take less time.
We have 15 agents right now and growing. So as we have everything set up i will have to hire a lead cordinator
Hi Lou,
Great post! Somwthing we really need to do as leads are getting lost in space!
Any suggestions on how a lead coordinator should be paid? Salary and bonus on each lead closed or a percentage of the commission earned, etc? I think they need to have some sort of incentive program.
Do you have input from any agents who use a lead coordinator as to what really works as far as compensation?
@ OCTeam (Drew I assume) – Performance based pay is an essential part of making this whole thing work. The good news is that if you have your follow up/assignment system in place, it is very easy to pass this off to an entry level agent that is looking to learn the ropes. You could absolutely get away with a very small base salary and a bonus on closed transactions. Whether you want to calculate the bonus based on commission or go flat fee is up to you and the type of real estate your company does. Give me a call if you want to chat.
Great information. Too many agents call a lead once or twice and then throw it in the trash can. You are absolutely right follow through is critical.
Jill’s last blog post..Home Sales increase from February, but down from March 2008
Hey Lou, finally took the plunge and have a lead coordinator coming on board. You have some great info on here. Would like to touch base if you have some time.
Carolyn G-Tu’s last blog post..A Ferrari mental break
So true! How many times do we have systems in place for getting leads, then DRiP email systems in place for the short term, but when it comes to the long term commitment to nurture the leads, we simply cross our fingers and hope they are still interested.
Great post Lou.
Stephen Winters’s last blog post..Healthy Demand for Housing in St. John’s
@ Carolyn – I was wondering when you would stop by:) I may have some time later this afternoon or on Monday. Let me know your schedule.
@Stephen – Thanks for the comment. Finger crossing is an important part of any lead conversion system
My next post is on email follow up. I have found drip to be less successful than it once was. Our consumer base is growing immune to spam-like emails and are skipping over them more frequently than ever. I have a few tips that will save you time when sending unique follow-up emails.
Hey Lou, glad I found my way here…great info and detail on the job of a lead coordinator…totally makes sense. Selling real estate the traditional ‘old school’ way..doing everything yourself just isn’t working smart. Leads will fall thru the crack cause you just have so many hours in the day. A good salesperson should spend their time doing just that…selling.
@Lou – would you mind sharing your lead coordinator job description, expectations, and system with me (you should have my e-mail)?
How did the agents that were getting the leads react when the daily prospect numbers dropped?
How long before the agents became convinced that it was a good move?
@Carolyn, I would be interested in your job description, compensation, tasks, and systems – also how you plan to work the leadmanager. I can see the new Calendar module with action plans being crucial to the leadmanager.
What about weekends, Holidays, etc. – what is the model?
How many leads can a lead coordinator handle? In other words, the number progression at 20 registrations a day leaves quite a number of calls to be made 6 months out and will continue to build. Essentially, what nmber of registrations would necessitate a second person?
Lou,
Try out the Subscribe2 plugin – http://wordpress.org/extend/plugins/subscribe2/
That way I will never miss any more of your great posts. It will inform subscribers every time there is something new.
I have it on http://www.mygulfcoastbeachteam.com
Cal Carter’s last blog post..Lagoon Tower Condo in Gulf Shores, Alabama
@ Cal – I can’t send you the actual documents I used when I was with Nutshell as they are their property. If you have some questions, fire away.
Agent Reaction – We announced the move at a company-wide meeting and most of the agents were receptive when they found out they weren’t going to be bothered with what they thought to be “dead end leads”.
Convincing the agents it was a good move – We found that after the initial 30-90 days cycle was complete, the incubated leads began to become ready and the stream of leads being assigned increased. Ready leads + ready agents makes everyone happy.
We are working to this now, We have 3 ladies that will work for a certain number of agents. They will be on full commission.
Great post. I agree that there has to be separation of sales people and lead coordinators in order to run the most efficient business.
Lou this is a very interesting post. I’ve read in some sales journal in the past stating that passing off leads from one to another lowers the effectiveness as the lead builds a bond with the lead generator (lead coordinator in this case) and not the salesperson. Have you found this to be true and that by having a lead coordinator increases the number of contacts reached but the % of leads that get closed becomes lower?
well,Is there anything you search for and have hard time finding? I am building a real estate website for Tampa Bay area, and my goal is to have the most informative and useful real estate site.
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I am looking to hire a lead coordinator. I had a full-time assistant but found that I had to much on one persons plate. I am in the process of dividing up the important tasks and hiring different specialits to work virtually. I would appreciate seeing a job description if you have one. Also, what is the best source to find the right type of person to fit this role.
Following up on leads is a job within itself for sure.You will be more effective as a real estate professional if you hire a lead coordinator so you can focus on the task of selling homes. Great information Lou!
.-= Dan @ Tampa Real Estate´s last blog ..DR Horton Schooner Cove =-.
Lead coordinator and a lead tracking system go hand in hand. Still working on the process, always seem to think we can do better.
This is a really interesting post. I agree that having a leads coordinator will help convert leads into conversions.
Some stats on touches to convert:
The National Sales Executive Association recently reported the following:
2% of sales are made on the 1st contact
3% of sales are made on the 2nd contact
5% of sales are made on the 3rd contact
10% of sales are made on the 4th contact
80% of sales are made on the 5th – 12th contact
Can you provide a link to exactly where these stats are published? Very interesting.
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