BEST ways for Seller Real Estate Lead Generation

Best Seller Lead Sources

Working with seller’s has generally always been sexier than buyers, but with this new lawsuit… The attractiveness of working with sellers has gone up ten fold! I personally have done a 100% pivot in my new client lead generation to seller leads. But keep in mind that I have a 30,000 person database and am very strong with buyer SEO rankings. 

In other words, I am not suggesting for others to necessarily go 100% all in. 

So what are the best seller lead generation sources? I am also going to talk about a must do in order to get a positive Return on Investment with these lead sources towards the end.

By the way, seller’s are tricky. They aren’t like buyers who are a lot more up front with their intention of making a move. For the most part, seller’s like lurking in the shadows. They like staying uncommitted and will tell you that they have no intention of moving to only have their house on the market three weeks later. 

Real quick, hey it’s Jeff Chubb. I am a recovering RE/MAX, then eXp Agent that now is partnered with REAL. If you have any questions about my experiences, then know I am an open book and ready to help… All confidentially of course. And if you like the content, then I appreciate you slamming that like button right down there and considering subscribing!

Okay, so let’s talk about lead sources. 

The BEST seller lead sources are not surprisingly, the ones that cost the most. 

I have found that the best seller lead generation sources are Radio and Television. If you have a big enough budget that is. It was like an ATM when I did radio. I put $1 in the machine and got $5 back. It was phenomenal. It was predictable. And they were lay down listing leads. In other words, you walked in, barely interviewed for the job and walked out with a listing agreement. 

Expired are probably a close number two when it comes to the best seller lead generation source. The issue is that it is EXTREMELY competitive. And it can be grueling. You most likely will need a data provider and a mass dialer. Some of the biggest and what people would say are the best data providers out there are REDX, Vulcan 7 and Expresso Agent. You may even want to add in mailers in order to garner a higher Return on Investment,  

The next best seller lead generation source are seller leads that come from Farming. This takes a sizable budget, lots of consistency and time. Generally, the longer you work a farm, then the better the return. Again, consistency and time is key for this lead source to work. 

Referrals are another amazing lead generation source. There are many referral companies that are out there. Think Homelight, Referral Exchange or Upnest. These are some really great lead opportunities. The issue is that they are expensive at a 33% to 40% referral fee. Issue number two is that you can’t scale these referral sources either. 

Then there are the scaleable seller lead generation sources. These scaleable lead generation sources are generally done through Pay Per Click or Facebook Ads. Now you can go directly to those sources with your built out ads or there are a magnitude of companies out there that will help you do this. 

Companies like Grizzly Leads and Market Leader. But most likely your CRM has programs where they can help you get these seller leads as well. Companies like Sierra Interactive, Zurple, Commission inc., or Brivity. They are all doing the same thing, but are selling the lead differently. 

All of these companies get the lead by running Pay Per Click ads. They will ultimately use different hooks like Get Your House Value or Get a Cash Offer on your home. How this generated lead is charged to us agents depends on the platform. 

A company like Commissions Inc or Sierra Interactive are just managing your ad account so therefore the lead is immediately dropped to your inbox. A company like Grizzly or Market Leader is generating the lead, scrubbing the lead and then sending it to us agents while charging the agent on a per lead basis.  

I have always personally believed to go direct and have someone manage your adwords account whether it be a company like Sierra or a PPC expert. Grizzly and Market Leader are just middle men asking for a big markup in my opinion. 

If you are looking to scale a seller pipeline online, then this is the way to do it. Generate leads through Facebook and Pay Per Click. Generally speaking the conversion timeline will be longer, but that is the importance of follow up which we will talk about momentarily. 

You also have companies like SmartZip and Offrs which mine data. They pull property records and then layer other data about the owner to come up with their move score. This data could include their age, how long they have lived in the house to what their equity position is. There are many other data layers that they buy… But that’s what they say is their proprietary information and what makes them better than their competition. 

Speaking of buying data. Some other seller lead sources are Probate, Divorce and Foreclosure leads. This is all data that you can buy. The most successful blend is doing calling and mailing. I personally didn’t have thick enough skin for probates. I got quite a few of hate calls telling me how awful a person I am. So be prepared!

The cost per lead is going to be a lot less for online lead systems. Generally speaking, it will take more leads in order to find the ready, willing and able property seller.  BUT keep in mind that cost per lead isn’t what matters. It’s the cost per deal. That is the only metric that matters. 

You will spend a lot of money on these lead sources. Some will transact quicker than others. But either way, you are spending big bucks so you better be sure that you have the systems to nurture these leads. 

The system starts with a CRM. You need a place to put all of these leads. 

You need a system that allows you to and reminds you to follow up. 

But my belief is that if you want to really increase your conversion rate and thereby your return on investment, then you need to invest a little more than just the lead purchase. 

You need to continue to send the prospective seller’s things of value. The most costly and highest return is creating a physical mailing farm from the leads that you have acquired. 

Another option is sending updated home value updates by email. Now there are many ways that you can do this. Sites like Sierra Interactive have built in features where you can send sold comps to sellers. No cost. It is just part of their platform. But I personally haven’t found that was too effective. 

You could get a system like Homebot. Homebot is great because it is very inexpensive. It’s a great in-depth report that gets sent out monthly. However the system lacks data analytics that helps you identify the leads that should be followed up. 

I use Homebot, but I also use Fello. Like Homebot, Fello sends property valuations to homeowners each month. They have a lot more value add than that tho! They will continue to mail your database in order to find home sellers that are already in your database. The goal is to get a lead that is already in our database to raise their hand and tell us about the house they already own. 

This is huge because we are not spending any additional money on acquiring more leads. We are spending money on increasing our return on investment.

Another great feature of Fello is that you are able to organize the data in order to try to find the needles in the haystack. I guess the best way to say it is that you can optimize the data in order to find the haystack with many needles in it! 

You can see which sellers in your database had a listing that recently expired, which leads have the highest amount of equity and which leads recently viewed the report. They also have what they call a “Propensity Score” which is using layered data to come up with a likeness that a lead is going to move. 

Look at it this way. Buying the lead is like buying a car. A system like Homebot or Fello is like buying insurance on that car. It just makes sense. 

We could go on and on with other seller lead generation companies. The amount of companies are endless. Be careful with companies that require a setup fee. Be wary of companies that force you to sign a 1 year or more contract. Go deep and really review the fine print of the companies that offer a guarantee. Is it a money back guarantee? 

There are a lot of companies out there that are looking to take advantage of us sucker real estate agents. So PLEASE be cautious.

Again, it’s Jeff Chubb. I’ve been around the block a time or two, so reach out if you have a question or need some advice. 

And if you are considering changing brokerages and want to learn more about REAL Broker, then I would love to be the one to show you the advantages and opportunities that await you when you teaming up with this amazing company. 

 

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