Best way to get real estate leads - pay at closing.
My real estate agent clients rely on me to generate referrals with effective advertising. I rely on my clients to pay my 25% referral advertising fee at closing.
We are very effective at achieving success in the 25 states that we promote. For instance, if you do a search in Google for (1) “Georgia real estate leads” , (2) “exclusive real estate leads in Alabama” , or (3) “how do real estate agents generate leads in Tennessee ” we generally are on the first page of the results. This is an indication of the success we might have for your website and your referrals.
My cost to set up the initial infrastructure required to begin sending a client referrals averages several thousand dollars per client. This set up includes installation of Switzerland-based servers, hosting, domains, mobile-responsive website, social media campaigns, search engine research optimization, advertising promotions, as well as many ongoing operations.
It makes no difference if my client already has a website because I design a mobile-friendly website for each client that will be effective for generating referrals for the client specifically in the client’s city.
On average it takes my team 2-3 months of set up work before the referrals begin for a client.
We typically use Google, Yahoo, Bing, Facebook, Youtube, Instagram, and dozens of other social medial platforms. These tools are no secrets, but they require a lot of work, time, expertise, and expense to develop, maintain, and monitor efficiently on a daily basis.
Usually we work with only one real estate agent client per city and only one city per real estate agent, although larger cities may warrant more than one client. The client must have an office or physical home mailing address in that city although the address does not need to appear on the website if the client wants us to omit it for privacy reasons.
My referrals are exclusive, high quality, motivated real estate leads.
Referrals call my clients directly through my advertising efforts. Referrals do not contact me first.
In general, the size of the city needs to be at least 50,000 population.
My team will first complete a thorough evaluation of the competition in your city before committing to work on referrals for you. We want to make reasonably sure that we can be successful generating referrals in your city. My initial cost to create the referral infrastructure for a client is several thousand dollars. Therefore we charge an initial $500 website fee, but only after a complete evaluation of the competition shows promise. The website fee covers the building of a mobile-friendly website and a video for the client per our specifications. There are no other fees besides the 25% referral fee to be paid at closing.
This evaluation takes a few days. We need the following information in order to complete the evaluation: your city of interest, your name, physical mailing address, sponsoring broker, phone number, number of homes currently on the market in your city, and average number of days homes have been on the market in your city. It is best to send this by email to make sure we have accurate information.
The number of referrals that I can generate for a real estate agent depends on two main factors in the city:
(1) the total number of current listings and
(2) the average number of days that houses have been on the market.
According to a survey done by the NAR® in 2016, 64% of sellers list with an agent whom they already know or was recommended by a friend. Of the remaining 36%, 72% of them list with the first agent they contact. That means 36% x 72% = 26% of sellers are searching the internet for a real estate agent to help them sell their houses. My goal is to refer 20% of that 26% group to you.
To calculate the annual size of that 26% group, the formula would look like this:
(total number of listings currently) x (365 days in a year) / (average number of days on the market) x 26% = annual number of sellers searching the internet for a real estate agent to help them sell their houses.
So, in the case of a typical city of 200,000 population, with 1,000 homes currently listed, with an average of 90 days on the market, the formula would be:
1,000 (current listings) x 365 (days per year) / 90 (average days on market) x 26% x 20% / 52 (weeks per year) = 4 exclusive, high quality, motivated, real estate referrals per week who are calling you for one specific reason: they want the best real estate agent they can find in their city. I would never presume to ask for a referral fee for anything except the side I was referring. If I refer the seller, then I would expect a referral fee of the selling side of the transaction only.
As an example, assume I refer the seller. If the sales price of a home is $100,000 and the commission for the selling sponsoring broker is 3%, then the selling sponsoring broker would gross $3,000. My sponsoring broker would earn a referral fee of 25% x $3,000 = $750 at closing (which we would split per the agreement between me and my sponsoring broker). The selling sponsoring broker would then split the remaining $2,250 per the agreement between the selling sponsoring broker and the agent.
My goal is to find real estate agents who provide professional customer service to their clients, and answer the phone on the first ring.