Congratulations, you have your real estate licence, and you can now help people buy and sell houses!
...Now only if you had people to do that for!
Building a business in real estate has a lot of similarities to any other business but unlike say a hardware store, you don’t have an inventory on day one when you open the doors for the consumer to buy and from which you generate income. Apart from close friends and your immediate family, there are not going to be a lot of people that know about your new career.
So, how do you go about changing that? Where do you find the people that you need to work with you which allows you to build a book of business that will create a successful real estate career?
Lead Generation as a New REALTOR®
Leads: one simple word distills everything down into the simple truth behind all successful real estate agents. Without them there are no buyers or sellers from which to generate income; commissions, referrals, whatever.
The process of getting leads is called lead generation or prospecting. In the coming weeks, we will introduce some key concepts around lead generation and provide some insight from which you can take some informed next steps on making some planning decisions as you build your real estate business.
In truth, any process you put in place to catch the attention of people to contact you about real estate is a lead generation tool – we can’t talk about each and every method or idea, so here is a quick tip: If you have an idea, try it!
Before you go out and begin prospecting, first, ask yourself these three important questions:
Is it legal? Does it meet RECA rules and/or my brokerage’s policies?
-
Regulatory Compliance: Ensure your lead generation strategies comply with the Real Estate Council of Alberta (RECA) rules and your brokerage’s policies. This includes understanding regulations related to advertising, privacy, and consumer protection.
-
Avoiding Legal Pitfalls: Familiarize yourself with the laws regarding calling, door knocking, and online marketing to prevent any unintentional violations that could harm your business or brokerage's reputation or your career.
Can I systemize it so I can keep track of the results and filter the contacts?
- Tracking and Analysis: Develop a system to monitor your lead generation efforts. Use a Customer Relationship Management (CRM) tool to organize contacts, track interactions, and measure the effectiveness of each method.
- Filtering Contacts: Create categories within your system (e.g., hot leads, warm leads, cold leads) to prioritize follow-ups and tailor your approach based on their readiness to buy or sell.
Can I afford it? An idea must fit within the financial budget of your
business – turning dollars into pennies is not a sound business plan!
- Budgeting: Assess the financial implications of your lead generation strategies. Figure out a budget that leaves room for experimentation without jeopardizing your real estate business' overall financial health.
- Return on Investment (ROI): Focus on methods that yield a positive ROI. For instance, online advertising might require upfront costs but can lead to substantial commissions if executed effectively.
If you can answer all three questions with a resounding, “Yes!” then proceed.
Extra tip: Communicate with Your Broker
Don’t forget to talk to your broker! They can provide valuable insights and support as you navigate lead generation strategies. Your broker's experience can guide you in selecting effective methods tailored to your market.
Starting a real estate career can feel overwhelming, but by focusing on effective lead generation strategies and asking the right questions, you can build a solid foundation for success. Experiment with different methods, analyze results, and adapt your approach to create a thriving business. Stay tuned for our upcoming series on lead generation for new REALTORS®.
Remember, every successful REALTOR® started with a single lead—yours could be just around the corner!
