An article entitled Your Real Estate Lifeblood: Lead Generation by Rich Levin published on the Exit Realty web site in April, 2007 revealed some interesting statistics about the sources of leads for Realtors that should impact where a Realtor spends their time and money.
According to Levin “We have done extensive research on this every year in several markets across North America to discover the most lucrative sources of leads. The following 2005 results of that research reveal your highest priority, highest return methods for generating leads. “
- The Agent’s Spheres of Influence and Past Clients: 50% to 75%
- Floor or Opportunity Time (In offices that have it) 6% – 20%
- Ad Calls, Sign Calls: 8% to 15%
- Internet Leads: 5% – 15%
- Farming: 5% – 10%
- Open Houses: 4% to 7%
- Relocation: 2%
- Expired: 2%
- Direct Mail: 2%
- Agent Referrals: 2%
- Cold Calling: 2%
- For Sale By Owners: 1%
He also added” These are the ranges and averages from many markets. Please understand that I do not favor one over another except for common sense that tells me to favor the ones that provide the highest return on your time and money invested.”
RE/MAX International founder and chairman David Liniger confirms a sphere of influence as the top referrer in an article published in July, 2006. “The best sources of leads are from repeat customers, followed by referrals, he said, adding that the Internet has surpassed newspapers in its strength as a lead generator. But, he added, “The Internet leads are colder, take longer to incubate.”
Statistically the secret to success therefore is marketing to your sphere of influence, but I think it is more important to balance your marketing so you maximize the return from your database and supplement growth with new clients.
Posted by Mike Blaney 
Posted by Mike Blaney 
Posted by Mike Blaney 
If you are interested in discussing any of these ideas please call me at 604-618-5512 in Vancouver or anywhere in North America at 800-568-8338 or email me at marketingguy@shaw.ca.
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