As a Realtor, Lead Generation is an integral component to their success. When it comes to cold lead generation, almost all real estate brokers and agents spend a lot of money on platforms like Zillow, Trulia, and Realtor.com. It seems like a no-brainer considering most real estate transactions pass through at least one of these platforms throughout the listing to the closing process. But many realtors aren’t satisfied with the ROI and cite high costs for low conversion rates as the top problem. As a result, brokers and agents must pivot away from this outdated and costly strategy and invest in their own digital and social marketing campaigns.
Many Realtors have come to Ignite2Lead for help with Lead Generation. Here are some key points to think about.
In 2019, the National Association of Realtors (NAR) reported that it had 1,403,128 Realtor members. That number grew by 4% to 1,458,661 by the end of 2020 and is predicted to grow in 2021. Not all agents become members of the NAR. If you include the non-members, there are well over 2M agents in the US today. The housing market has been on fire since June of 2020, as people flock from the concrete jungle to greener pastures. This migration has brought in a new wave of realtors looking to capitalize on the housing boom.
The competition is quickly growing, and more realtors fight for the same local leads offered by Zillow, Trulia, and Realtor.com. The highest bidder will likely get the best cold leads. An agent can spend $200 to $1,000+ per month on lead generation. But at the end of the day, there is no guarantee that the leads convert to sales.
Zillow For Lead Generation Isn’t Enough
After speaking with Realtors about Lead Generation, they report a 2-5% conversion rate from Zillow leads. That range probably won’t change much as more agents join in on the action with less inventory to go around. Many variables determine conversion rates, which we will cover in another post. But at 2-5%, it probably makes sense to re-allocate some of your investment into marketing your brand on Google Ads, Facebook, or Instagram. One of the benefits here is that you’ll be able to measure performance in real-time and see what type of engagement and leads you’re generating from your ad messaging. You have more control and insight into your marketing efforts.
The Importance of a Website and SEO
Another focus should be investing in Search Engine Optimization for your website. According to the NAR, 51% of realtors in 2020 had websites of their own. So if you don’t have a website, it’s something you may want to explore in 2021.
Final Thoughts on Lead Generation
It’s worth noting that platforms like Zillow have real estate business initiatives of their own, like buying and selling homes directly through their services instead of going through the middlemen, the brokerage firms. So it might be in their best interest to save the most promising leads for themselves.
Start focusing on digital marketing strategies for your Real Estate business instead of depending heavily on Zillow, Trulia, Realtors.com, and others for leads. For the record, we are not downplaying the importance of these platforms in the Real Estate market. But it’s a good idea to diversify your marketing strategy to stay ahead of the competition.