Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on TwitterFollow AgentsOnline on Facebook

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Advertisements
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28591534
No new orders today 13151722
Stupid MLS comments. 3367254
What do you know about Froy Candelario, top agent in USA 1240906
Stupid QC comments and BPO requirements. 1110533
New HUD Listing Brokers---Any Update? 1064963
Is there religious content in Buffini class? 853994
Let's talk about our cars 705593
Most common items found at an REO 629953
Name that Flick. Great movie Lines. 629718
Pay it Forward - BPO/REO Tips & Tricks I & II 620744
REOTRANS 468693
EML 459235
Main Street 452108
asset val seminar in colorado 426944
assist 2 sell or 1 percent realty? 357696
HOMONYMS - There, Their, and They're 332973
Evalonline 300210
Land America 285053
Mainstreet 261860
Matched Content
Page 1 of 2 1 2 >
Topic Options
Rate This Topic
#391616 - 10/12/11 05:25 PM Direct mail/cold calls
Rich1 Offline
Junior Member

Registered: 10/12/11
Posts: 3
Loc: Pennsylvania
Hey guys and gals!

Just joined the forum and must point out that I am not yet an Agent. I will be completing the classes next month and expect to be licensed in December. I am currently trying to figure out my "game plan" for marketing and had a question about direct mail and cold calling. My background is in Direct sales and I also own a small Custom Home company. I am very familiar with both types of marketing but I needed to know what the average response rate to each of these programs was in this industry. In other words:

If I send out ____ amount of postcards how many calls shall I expect to receive? Of those received calls, how many should I on average be able to "sign" with?

Same thing with cold Calling:

If I make _____ amount of calls, how many should I on average be able to sign with?

Now I know there are "ability" variables, but lets just assume the average agent.

Seems to me that these numbers atleast in my current industry are pretty consistent regardless of region or demographic.

Thanks for the help, i did do a search for this info, but could not seem to find these specific answers. thanks again!

Top
Advertisements
#391617 - 10/12/11 05:37 PM Re: Direct mail/cold calls [Re: Rich1]
Tim1986 Offline
Junior Member

Registered: 06/19/11
Posts: 7
Loc: NJ
Hey Rich,

I'm not a new agent, but new to prospecting. I'll be starting tomorrow and keeping track of my #'s - so in a week or so you can use them as a small scale example. I've heard that for FSBO's and Expireds 50 contacts can equal one appointment, but it varies a lot depending on skill. From there better agents will probably list 1 out of 2 - I've been told to expect to get 1 out of 4 when first getting used to the scripts and dialogues. I hope this helps, I'll post my results tomorrow.

Top
#391633 - 10/12/11 09:45 PM Re: Direct mail/cold calls [Re: Tim1986]
Rich1 Offline
Junior Member

Registered: 10/12/11
Posts: 3
Loc: Pennsylvania
Thank you and yes, please keep me posted! I as I am sure you would also like to hear the results of others as well.

I find that in my current industry, that the response rate to both cold call and direct mail is 3%. From that, a newer or less skilled individual will sign about 1 out of 4.

I would imagine that in Real Estate that if marketing FSBO and expired's that your response would be very much the same or better.

I am very curious as to what these numbers are for true cold call and blind direct mailing. I think that 3% response would be quite exceptional.

Thanks again for your input. Hopefully we can get some input from the prospecting pro's here on the forum!

Top
#391643 - 10/13/11 03:39 AM Re: Direct mail/cold calls [Re: Rich1]
lindenmoe Offline
Veteran Member

Registered: 07/19/10
Posts: 817
Loc: jersey city
Originally Posted By: Rich1
Hey guys and gals!

Just joined the forum and must point out that I am not yet an Agent. I will be completing the classes next month and expect to be licensed in December. I am currently trying to figure out my "game plan" for marketing and had a question about direct mail and cold calling. My background is in Direct sales and I also own a small Custom Home company. I am very familiar with both types of marketing but I needed to know what the average response rate to each of these programs was in this industry. In other words:

If I send out ____ amount of postcards how many calls shall I expect to receive? Of those received calls, how many should I on average be able to "sign" with?

Same thing with cold Calling:

If I make _____ amount of calls, how many should I on average be able to sign with?

Now I know there are "ability" variables, but lets just assume the average agent.

Seems to me that these numbers atleast in my current industry are pretty consistent regardless of region or demographic.

Thanks for the help, i did do a search for this info, but could not seem to find these specific answers. thanks again!


first,

if you are thinking 3% you are highly mistaken..

in real estate 1% is a good response and thats mailing a targeted list and a direct response offer..
good marketing piece..

here is how i base my numbers..mail 1000-targeted..not some blind shotgun approach-
use solid offers that is beneficial to seller-not lame branding stuff

send 1000- cost $400
get 10-15 calls..
using a proven conversion script..
book 5 appointments..
using a proven listing presentation
take 3 listings..
1 sale- between $5,000= $10,000


on prospecting again calling targeted people..
book an appointment 1 in 50-100
250-500 calls calls
5 listing appointments
take 3 out of the 5
1 sale

these numbers assume..

1. you dont wing it
2. you are using a proven conversion script
3. you are using a proven listing presentation like a professional
4. you are not sending lamre name recognition branding stuff
5. you are pricing and marketing the home correctly
6. you are using direct response and making direct offers
7.you are using a call to action
8. you are going somewhat targeted either geographic, demographic or both

response rate to a wild untargeted list
just winging it

might bring you a zero percent response rate..

response rates on both have and continue to fall in real estate
because the economy is forcing more people to stay put..

Top
#391669 - 10/13/11 12:15 PM Re: Direct mail/cold calls [Re: lindenmoe]
Rich1 Offline
Junior Member

Registered: 10/12/11
Posts: 3
Loc: Pennsylvania
Thank you Lindenmoe! This is the exact info I was looking for! If there are others out there that have differing numbers or opinions, I would love to hear from you as well. Thanks again!

Top
#391691 - 10/13/11 02:52 PM Re: Direct mail/cold calls [Re: Rich1]
NOVA REO Guy Offline
Member

Registered: 03/14/09
Posts: 12
Loc: Northern Virginia
Having been in sales for over 30 years (last 10 in real estate) I agree that Lindenmoe's numbers are what you couls accomplish with the given of a script and listing presentation that has proven to be successful - good luck!

Top
#397340 - 12/22/11 04:38 PM Re: Direct mail/cold calls [Re: Rich1]
estatereal Offline
Major Contributor

Registered: 01/27/07
Posts: 3195
Loc: LAND OF THE FREE!
great topic...

i work expirds. they have different numbers.

for example, i know that 20% of the expired listings will relist within 10 days of exp or withdrawing, so you gotta be fast. my numbers for people talked ot is this. when i talk to an exp, i can set up 1 listing appt for every 10 people that i prospect. i prospect pretty hard.

the day that a property expirs, they get a market trend report taht is about 80 pages along with a cover letter adn a 20 or so page prelisting package. this is mailed in a 10x13 envelope with 12 forever stamps. They get it in the mail about 2 days after they expire. the day that is mailed out (same day they expire), they get a call from me telling them that im mailing the package and if it makes sense, call me. something liek that. if i get them, i try and schedule an appt. wehn the package gets there, i call to make sur ehtey got it, read it and work on getting an appt. if i dont get them i leave a message. the next week, they get a postcard, the next week they get a personal letter.

i know after the first call if i have a working number...so i know how exactly to proceed.

bottom line is that i get a better response than the typical 3% because they are scrubbed....they all wanted to sell...im not prospecting short sales or foreclosures.

if i marketed to a random 100 people, i would not expect to get teh same numbers.


imagine this....if you could prospect to 100 buyers who just filled out an online mtg app or 100 random people. what would your numbers look like in regards to conversion???its a no brainer

am i bothering people? i honestly dont believe in my heart that i am.....i truly feel i am helping them. imagine a patient going ot a doctor, but the doctor did not prescribe the correct medicine because it tasted bad....guess what, the cure sometimes doesnt go down easy, but it gets you where you want be!

if i were broke down on the highway and a towtruck driver stopped and asked if i needed help, i would say yes.

if i were in front of my house and a tow truck driver stopped and asked me if i wanted tow while i was out starting my car to warm it up on a cold day, i would not want to talk to him..

bottom line is that im selling something that people have raised their hand to get, they just have nto gotten it yet, for whatever reason.


know who you are marketing to and pick a niche or several and owrk them hard and master them and track your numbers.

new is relative...i love the agents who have been in the biz for 35 years and talk down to new agents and if you look them up adn the 35 year vet sells 3 homes a year and the "new agent" sells 30 homes a year and has done it for 2 years, who is the better agent???

new or old, your competency in the current market will show if it is there an "experience" is measured in experience, not years....

Top
#397364 - 12/22/11 10:01 PM Re: Direct mail/cold calls [Re: estatereal]
dmyre Offline
Member

Registered: 12/26/05
Posts: 14
Loc: Texas
Originally Posted By: estatereal
...if i were broke down on the highway and a towtruck driver stopped and asked if i needed help, i would say yes.

if i were in front of my house and a tow truck driver stopped and asked me if i wanted tow while i was out starting my car to warm it up on a cold day, i would not want to talk to him...


Great point.
Thanks for sharing.

Top
#399351 - 01/20/12 09:30 PM Re: Direct mail/cold calls [Re: Rich1]
BillW Offline
Member

Registered: 11/28/11
Posts: 56
Loc: Seattle, WA
I've recently started with cold calls and don't understand where people are acquiring the numbers. There's a guy near me that hired a telemarketer and this telemarketer calls 200 people a day. I am purchasing expired/cancelled but when you factor in the DNC, you only come up with about 10-15 leads per day. I don't understand where other brokers are getting hundreds of leads per day.
_________________________
VISUM Real Estate Group
Find Seattle real estate agents and luxury Seattle homes with VISUM.
We are local WA real estate agents who provide quality service and the best homes for sale in Seattle.

Top
#401019 - 02/11/12 11:02 PM Re: Direct mail/cold calls [Re: estatereal]
Bay Area Brian Offline
Veteran Member

Registered: 06/09/07
Posts: 613
Was surfing and saw this thread and was getting ready to respond when I hit estatereal's post. Right on target, the response rate depends on the specific targets your shooting at and what kind of ammo your using. You get a basic rate and try to improve your score.

I personally have never liked the do 100 of this and get 10 of that to get one of that. To much accounting, I do 78 of this and get one of that is close enough, but of course I may not score on the first 78 but score twice on the next 78, so all is well, and maybe I can think of something to let me hit that target every 70 times and that is even better.

Top
#401020 - 02/11/12 11:31 PM Re: Direct mail/cold calls [Re: Rich1]
Bay Area Brian Offline
Veteran Member

Registered: 06/09/07
Posts: 613
Bill W

Think survey instead of soliciting, surveys are allowed under the DNC which was poorly written. It was to kill off the telemarketers but an expired basically had a previous business relationship with us as far as I'm concerned when they used the MLS. And in most cases they still want to do what they set out to do when they listed, which means us and our activities.

The MLS could have a signed form saying not to contact them via phone if they expire which is referred to on the expired output sheet and allow a fine for agents that do. I don't need the Feds intruding into everything we do, they seem determined to create the 1984 in the book.

I believe California should give up statehood and become an independent Republic, a much better future for it's citizens considering the path the Feds are on, and a thought I would have never had many years ago.

Top
#401031 - 02/12/12 08:05 AM Re: Direct mail/cold calls [Re: Bay Area Brian]
Erik Webster Offline
Member

Registered: 05/04/08
Posts: 261
Loc: Broward County, FL
You have to be a survey company not selling a product to qualify for that.

However I just spoke to a former MFO one-on-one trainer this Wednesday for about a half hour. He flat out said that 99.99999999995% of the MFO agents dial DNC's on Expireds and FSBOS (but not on Just Listed/Sold cold). Many get started at 7am or 7:15-30am. I spoke to him to make sure what I was doing wasn't gonna set me on fire so to speak. He said "it is what it is" to get the numbers you need.



Edited by Erik Webster (02/12/12 08:09 AM)
_________________________
erik.j.webster@gmail.com

Top
#401786 - 02/21/12 03:24 PM Re: Direct mail/cold calls [Re: Rich1]
Scintillion Offline
Member

Registered: 01/26/12
Posts: 437
Loc: Colorado, USA
In general, the more persons you call or more direct mail you send out - the better your results. I have a friend in the industry now who has begun sending out direct mail to promote his website that picks up expired listings. Many agree that this is a fantastic marketing strategy.

Top
#401798 - 02/21/12 05:28 PM Re: Direct mail/cold calls [Re: Erik Webster]
Lucky Leonardo Offline
Major Contributor

Registered: 12/26/09
Posts: 2038
Loc: CA
Originally Posted By: Erik Webster
You have to be a survey company not selling a product to qualify for that.

However I just spoke to a former MFO one-on-one trainer this Wednesday for about a half hour. He flat out said that 99.99999999995% of the MFO agents dial DNC's on Expireds and FSBOS (but not on Just Listed/Sold cold). Many get started at 7am or 7:15-30am. I spoke to him to make sure what I was doing wasn't gonna set me on fire so to speak. He said "it is what it is" to get the numbers you need.



Numbers vary greatly from prospecting source to source and market to market. My coach sells real estate where there are 300 agents in his town. My MLS has 36,000 and growing by 4,000 each year. Also, turnover influences the ratios a lot on things like listed and solds. Expireds in my market get contacted before they expire. The day of, they are contacted by 50 plus agents promising the lowest commish.

To use general ratios for response rates from market to market is silly. You have to pick your poison and swallow it and get to work. Become the best at it. Then keep getting better every month. The ratios are good for measuring and keeping score against yourself.

For example in my low turnover town, I take roughly 1 listing per 1000 contacts. That one listing can make me 1.25 deals. These ratios will not apply in a higher turn over market or where the prices are declining, for example. Every market place is different.


Edited by lucky (02/21/12 05:30 PM)

Top
#403761 - 03/22/12 02:52 AM Re: Direct mail/cold calls [Re: estatereal]
RealEstate Mike Offline
Junior Member

Registered: 03/22/12
Posts: 7
Loc: North Carolina
All excellent points and GREAT ideas! Thanks, since I will be out there knocking on doors (literally and figuratively) soon, I need this kind of info to help me get started.

Top
#406887 - 05/16/12 08:22 PM Re: Direct mail/cold calls [Re: Rich1]
TheBPOExpert Offline
Member

Registered: 01/22/12
Posts: 114
Loc: Georgia
My experience is that most agents will do anything to avoid the number one way to get business. Talk to people. Cold calling is a fast way but also networking
_________________________
The BPO Expert
Free BPO Company List
“You will get all you want in life, if you help enough other people get what they want.” -Zig Ziglar




Top
#407730 - 05/31/12 07:16 AM Re: Direct mail/cold calls [Re: TheBPOExpert]
Natoli Offline
Member

Registered: 05/07/12
Posts: 24
Loc: Other
I'll have to disagree with you, the number one way to get clients is not cold calls, because when you do that you are not working for your clients. Think referrals, getting known in a neighborhood once you've sold a house there, statistically there will be someone selling their house in the neighborhood in 0 to 6 months and if they know you did a good job on that neighborhood, they will probably give you a call. but you have to spend the time to be known in the neighborhood, provide something of value (a report for example) and expect nothing in return right away. only then you'll be seen as a person of trust and not a salesman. just my opinion. I also don't agree that your number one job is to talk to people, in my opinion your number one job is to find the dream home of people that WANT your help. not force it.

Top
#407735 - 05/31/12 07:35 AM Re: Direct mail/cold calls [Re: Natoli]
Erik Webster Offline
Member

Registered: 05/04/08
Posts: 261
Loc: Broward County, FL
My license here in Florida says "Real Estate Salesperson" right on the card.
_________________________
erik.j.webster@gmail.com

Top
#407737 - 05/31/12 08:22 AM Re: Direct mail/cold calls [Re: Natoli]
Mike Burchyett Offline
Member

Registered: 05/21/12
Posts: 183
Loc: Nashville, TN
The most successful agents in the business spend 2-4 hours per day, 5 days a week, prospecting. Talking to 50-100 NEW people every day. This could include referrals, but also includes knocking doors or calling around new homes listed or sold, expired listings, and FSBOs. Karen Bernardi, who NETS $2 million + per year, still door knocks million dollar homes cold and calls homes around her new listings and sales. My goal is to make money in this business, not to have a warm fuzzy feeling and be broke, so I'm going to follow her example.

Top
#407738 - 05/31/12 08:28 AM Re: Direct mail/cold calls [Re: Mike Burchyett]
Kjmendy Offline
Veteran Member

Registered: 05/16/10
Posts: 935
Loc: London, Ontario
Originally Posted By: Mike Burchyett
The most successful agents in the business spend 2-4 hours per day, 5 days a week, prospecting. Talking to 50-100 NEW people every day.


I think that might be a great way to break into the business. But I don't think that it's possible to keep prospecting 2-4 / day when you've got a lot of active clients on the go.

If you've got a hole in your day then use it to prospect but don't expect to be able to maintain that pace when you busy.

Top
#407761 - 05/31/12 03:19 PM Re: Direct mail/cold calls [Re: Erik Webster]
Natoli Offline
Member

Registered: 05/07/12
Posts: 24
Loc: Other
I don't see a real estate agent as a salesperson. there needs to be trust, loyalty and a relationship between an agent and his client (if you want referrals and returning business that is to say). And that is not what a salesperson inspires. Sounds like we have a different conception of the real estate agent's role but I totally respect your view. As a Real estate investor in California I stay away from salespersons, but that's just my personality. I am following your blog by the way and I am eager to see your results and how long you can keep this up !
My mentor is Dean Jackson ("I love marketing" website and podcast).
Wishing you well,
Nathalie

Top
Page 1 of 2 1 2 >






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
karynmurphy, HBH, Dianne, Indexer, LITO
30243 Registered Users
Who's Online
0 registered (), 52 Guests and 6 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
dotcom_agents 16
T.T. 16
Trouble 14
Mr. Clean 11
estatereal 11
Vermont 9
gitmonee 8
VABroker 5
silex 5
Tim Bizz 5
RonnieEmz 5
mikeInSeattle 5
sualk54 4
Bob Squiers 4
Z06Fanatic 3
Facebook

How To Advertise Here


This site presented by RNC Internet Services