Today I’m going to reveal our personal home sales data for the first half of 2019. You will find out where our leads came from and how much we spent on marketing.
Where Are Closings Coming From?
This is the most important question you must be able to answer if you want to create a predictable business.
For your business to be predictable you need to understand the exact lead sources that result in closings and how much money you have to invest in marketing to earn your desired income.
Lead Sources for Closings since the Start of the Year
This pie chart shows the lead sources for all 31 transactions Susanne closed in the first 6 months of 2019. 32% of her leads came from previous clients, 19% were referrals.
Geographic farming is huge for our business. We generated 23% of all transactions from farming, both sellers and buyers.
The blue segments in the chart represent online lead sources, such as Zillow, Trulia, and Facebook.
Chime is an online lead service we use for buyer leads. They advertise on Google and generate around 60 leads a month.
What’s an Original Lead Source?
Most leads don’t convert right away. Many of our clients came from marketing we did 12 or even 24 months ago.
Often a referral can be traced back to a previous client who came to us through an online lead 2 years ago. That’s the original lead source.
As you can see below, farming and online marketing are major foundations of our real estate business. They yield immediate clients as well as future referrals and repeat customers.
Tracing our Original Lead Sources
This chart shows the original lead sources for 2019 closings:
- 1/3 of our business can be traced back to farming (red)
- 1/3 of all sales come from online lead sources (blue), and
- 1/3 are referrals or previous clients (green).
What does this mean?
If we would not have invested in online marketing and geographic farming, our business would only be a third of its current size.
That’s Why You Must Invest in Marketing
Our results confirm that you can’t exclusively rely on your sphere. You have to invest in marketing if you want to grow your business.
How much do we spend on marketing?
Currently, we spend 8% of our gross commission income. That’s low. You will probably have to invest more if you are getting started and want to grow your business.
Why Your Broker Won’t Reveal These Numbers
Your broker probably does not have these stats, because most brokers are more/less employees who don’t sell.
Do owners have these numbers and should they share?
The owners of many brokerages are also the leaders of the largest teams. They don’t want to share their marketing secrets with you – not even if you are on their team – because they are afraid, you’ll compete against them or split off from the team.
We are different. We believe we can help agents build a successful business if they copy what we use, because it works.
Are you with a brokerage where the owners compete against you?
Fortunately, you have options. Question is … are you ready to take advantage of them or keep suffering in your current situation.
Click here to schedule a confidential strategy session and find out if RE/MAX 24/7 would be a better fit for you!