Fishing upstream – the answer to your lead generation woes

Whether you’re a principal, a salesperson, a leverage agent, a business development manager or work in the property management sector, you have to be skilled at lead generation. And right now, lead generation is a national challenge given today’s tough economic climate. If there’s ever a time to work together as one industry to galvanise our collective future, this is it. Without a consistent flow of leads into a business, every principal and owner’s livelihood as well as the livelihood of their employees is in jeopardy. Furthermore, as leads dry up, so does the relationship between agent and principal. Once a business is in financial distress due to limited leads, agent loyalty goes out the window and the principal risks their best people moving on to greener pastures, further exacerbating the problem.

I recently spoke with Mr Mark Kentwell on the subject of lead generation after the amazing response we had to his insights into buyer management. Mark is the author of Friendly Auctions, Managing Director of Presence Real Estate in New South Wales and Chief Vision Officer of Nexr.hub, [PP1] a business that helps real estate businesses grow sustainably, most notably through strategic lead generation.

Mark referred to one of his business values: HABU (Highest And Best Use) as a good place to start if you’re struggling with lead generation. He suggests asking yourself, ‘How can I stay in my highest and best use?’ The answer, when it comes to lead generation, is consistency.

98% of all real estate transactions result from listings made between the agent and a consumer they have worked with before.

Effective and consistent lead generation is a nurturing process. And the greatest lead source generating listing stream we have in this country comes from the purchasing community. In fact, 98% of all real estate transactions result from listings made between the agent and a consumer they have worked with before. The buyer is the seller, the seller is the buyer. Most people who enquire about a property early in their moving journey also have a property to sell.

Here's why nurturing the database long-term is such a critical part of lead generation. Imagine if you’ve stayed connected with 2,000 people in your database who were thinking about selling at one point but didn’t end up proceeding at the time for whatever reason. Would you feel comfortable picking up the phone and chatting with any one of those warm leads? Of course, you would. Mark has a great analogy for this, which he calls ‘fishing upstream’.

He explains, ‘Imagine a stream teeming with salmon that are making their way downstream to breed. There are gentle rockpools all the way down before the body of water turns into rapids. Now, the part at the bottom of the stream represents the 3% of the market that everyone is fishing for. So, down the bottom, the water's fast and flowing. Everyone’s got a line in. There are also bears and other creatures vying to get the fish. It's busy there, and that's where a lot of agents are spending their time, marketing to and conversing with just 3% of the market. Now, further upstream, there are people that are on their journey, and their journey will end at any point. It could be tomorrow; it could be in five years. They will be ready when they find the property they want and the right agent to represent them.’

In lead generation, people often say no to an agent’s approach, not to the agent themselves. When you come on too strong, it’s very easy to ring 100 people and speak to no-one. To nurture a prospect takes time, consistency and care.

When it comes to a listing pipeline – be it in sales or property management – some are ready to go now, some are warm, and others are in the future. To use the fishing analogy again, consider the following three core strategies:

1.     The pond you’re fishing in (the list of contacts you’re calling),

2.     The bait you’re using (the reason for your call), and

3.     The technique you’re adopting (the skill of the caller).

‘Consider the first strategy,’ says Mark. ‘Are the fish you want to catch hanging out in in the pond you’re fishing in? For example, if you are looking for middle to upmarket buyers, at least 50% of them are probably going to be selling something or managing something as a result of their desire to purchase a property of that value. To have that kind of buying capacity, they probably own other real estate. So, if that's a pond you are in and those people are in there, you're onto a winner. But you need to know how to find out if you're in that pond or not, and quickly, because the astute angler will move on to another pond if they're not getting bites.’

In terms of the second and third strategies, Mark says, ‘Ask yourself if the people you’re calling feel helped and supported. Or do they feel like they’re being pushed into something? If it’s the latter, their guard will invariably go up. When chatting with the buying community, the aim is to move them from thinking they can do it all alone to being willing to be helped by you, so that when they’re ready to make a move, it's a natural progression and a journey they feel confident to embark on together with you.’

Who do you think they will choose when they are ready? The company that suddenly throws in a line once they’ve moved upstream, or the company that cast a line periodically in the quiet pond and adopted a softly, softly service-based approach?

Imagine there's a pond of potential sellers but no one bothers to throw a line in because that pond is not where all the action is. Even though they’re not ready to sell and buy right now, they’re thinking about it. They might be interested in your Preparing Your Home for Sale checklist. A few months later, they might respond to your video clip showcasing your team-based approach to selling. It might be two years before they’re ready to make their move. But who do you think they will choose when they are ready? The company that suddenly throws in a line once they’ve moved upstream, or the company that cast a line periodically in the quiet pond and adopted a softly, softly service-based approach? Not only will they be more likely to choose the latter, but they will also be less likely to quibble over their fees. Ultimately, if you’re not fishing for future listing opportunities and casting your line into the right ponds, you are setting yourself up to fail.