For all of our newer members I would like to talk a little bit about Full Leads, Partial Leads and Conversion numbers.
Let’s talk numbers…
Partial Leads – a partial lead is when someone enters their address in Step #1 on your PSL site and when they get to Step #2 they decide to leave the site without entering any additional information. Let’s compare this type of “lead” to what occurs on a “regular” buyer themed website. It doesn’t matter if it’s a Boomtown, REW or any other type of buyer IDX type site, on average every 90-94 visitors out of 100 to a buyer type site will leave the site without registering. That means that only 6 – 10% of visitors to a buyer site per day will end up registering and leaving their lead information. How do I know these numbers are accurate? Because I run the Google Adwords campaigns for dozens and dozens of these buyer type sites. On these buyer IDX sites, there are not any type of “partial” leads – either you get someones lead information or you do not. There is nothing the matter with partial leads, they are simply another tool to use to try and turn a website visitor into a listing. Every agent has different ways of working them. Some agents choose not to work partials at all. Others send postcards, knock on the door, look up the lead information online, check tax records, etc. I know for a fact from talking to our clients that partial leads are being turned into listings on a consistent basis. We had a huge amount of feedback from our PSL clients requesting that we add the ability to turn a partial lead into a full lead, which we did. These requests weren’t being made because partial leads are worthless, trust me! 🙂
Full Leads – As stated above, the average buyer themed IDX type website (Boomtown, REW ,etc) will convert at somewhere between 6-10%. PSL sites convert full leads in the neighborhood of 15 – 35% on a daily basis (this does NOT include partial lead numbers as well). Yesterday the highest conversion ratio was 66%. So, on average, out of every 100 hits to a PSL site 15 of those should turn into full leads. That’s an excellent conversion ratio, even with the other 85 people leaving the site without becoming a lead. On the internet we can’t force people to give us their lead information, so we have to design our websites to ensure that the highest possible number of visitors possible will give us their lead information. Internet leads are a numbers game pure and simple. The more leads you get, the greater chance for success (listings or buyers) we have.
Fake Leads – Forget fake leads, they do not matter. That’s right, they do NOT matter. They are all part of the raw numbers that lead to your ultimate success. Let me explain. The average agent is going to convert 1% of their seller or buyer leads into either a listing or a sold home. That means that 99 out of every 100 leads that they get don’t do anything with them. Think about that – 99 out of every 100 leads don’t do anything with the average agent. Does it matter if those 99 leads have given a correct name, phone number and email address? Is there really any difference if some of those 99 leads gave fake information such as Mickey Mouse or a vulgarity as their name along with a fake phone and email address? Absolutely not – because the end result is still the same – the agent did not convert that person into a listing or a sold home. It makes no difference. Internet leads are a numbers game – the more leads that you generate, the greater chance for success that you have. By the way, there are plenty of agents out there that convert leads into listings / buyers at 3-5% or higher. It all comes down to the systems they have in place and their individual skill.
Conversion Numbers (Leads to Listings) – This is a common question we receive and one that is not easy to answer because every agent is different. For example, if I have 100 seller leads available in the Las Vegas area and I give those EXACT SAME 100 Leads to both Agent Jane and Agent John (no we don’t really do this your PSL leads are NOT shared with anyone else this is just an example) both Jane and John are going to get a different amount of listing appointments and listings from those same EXACT 100 leads. Why? Because Jane and John are both going to work those leads differently. One agent might call their leads immediately, while the other waits. Each agent has different follow up systems to keep in contact with the lead. One agent might have a much better listing presentation style than the other agent. My point is that the PSL system can show you how to generate the traffic to your site, which is 100% guaranteed because you are purchasing that traffic. The PSL system has then been designed to convert that traffic into full leads at a very high rate (15 – 35% on average). Once the leads are captured, how many of them ultimately are converted into listing appointments and actual listings will come down to the individual agents skills and systems that they have in place.
A perfect example of this is the email that I received last night from one of our PSL members:
“In less than one month our results so far are 5 listings Active AND Pending, one listing appointment as we speak, and a growing book of future listings. I have had 80+ “Full” leads, 160 “Partial” Leads. For my “Partial’s”, my Virtual Assistant in India and my Marketing Assistant have teamed up to get 100 CMA’s ready to hit print and mail out here.”
Conversion Number $$$ Potential – As I stated above, internet leads (seller or buyer) are a pure numbers game. The more leads that you get, the greater chance for success that you have. The numbers don’t lie. Let’s assume that the average agent will convert 1% of their leads into a listing – which is very reasonable. So out of every 100 leads, 1 of those leads should turn into a listing. The average cost per lead is extremely low, depending upon your market it averages anywhere from $1.50 to $6.00 per lead. For our numbers though, let’s estimate that you are paying a lot more than that per lead – let’s say $10 per lead. So if you generated 100 leads in a month at $10 per lead, those leads would have cost you $1000. If you converted those leads into listings at 1% – that means 1 out of those 100 leads turned into a listing. Let’s assume an average sales price of a home is $150,000 along with a 3% commission rate for your side of the transaction. This would be a total commission of $4500. If your spilts at your brokerage are 50%, that would leave you with a commission check for $2250.
Not bad! You would have spent $1000 to generate 100 leads, one of which would have turned into a listing and commission check for $2250. That’s a pretty good profit margin!
Now imagine if you are only paying $5 or less per lead, with a greater home sales price, with higher splits.. 🙂