Wondering what the best lead sources are? Here is the data driven evidence from the National Association of Realtors that will guide you to a winning marketing strategy.
At the root of any successful real estate agent are the personal relationships they have garnered. Leads are predicated on the relationships and network that one has. The best lead sources are often times found in one’s community, inner circle or contact list. With the advent of modern technology and search portals, agents are further accumulating leads through the web and forgoing outdated methods such as direct mail marketing.
The Best Lead Sources: By the Numbers
According to a National Association of Realtor’s 2011 study, 57% percent of buyers find their agents through contacts and referrals, and nearly 68% percent of sellers find agents through the same avenue. For both listing and buying, 11% of consumers turn to the Internet to find an agent. Direct mail marketing amassed less than 2 percent of total leads in both cases; rendering it almost useless in today’s market.
These numbers remained rigid for a number of years, but starting in 2016 there was a startling change in these statistics. According to the 2016 NAR report, nearly 95% of buyers use the web to find a home. This number encompasses searching for homes and looking for agents in general and is not a reflection on the 2011 numbers. What these numbers show is that buyers have almost exclusively gone digital in their home buying experience.
Building a Strong Sales Pipeline
With that being said, the best lead sources for agents still remains building and maintaining strong relationships. Most buyers and sellers turn to word of mouth to find their respective agent, and often times these clients are repeat customers. Real estate agents who want to maximize their sales pipeline need to focus on three elements:
- Build and maintain strong personal relationships.
- Establish a solid online presence
- Market through search portals and other digital mediums
These three key points should be at the pillar of any successful real estate agent’s strategy. Agents need not search high and low for clients when their best lead sources are in their own networks.