How Many Leads Should I Have?
Real estate is a highly competitive industry. To thrive as a real estate agent, you should not only have a long list of properties but also a steady stream of leads in your database. However, you may be wondering; “How many leads should I have?”
Fortunately, there’s a formula to determine the right number of leads and the frequency at which you should contact them. Read on to learn more about the database turnover formula and how it can help your real estate business succeed.
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Working Database vs Nurturing Database
Databases can consist of thousands of leads that are difficult to get through within a limited period. Hence, you should divide your database into two categories — working and nurturing.
A working database only includes prospective buyers and sellers that you’ll be contacting consistently. The people on this database should demonstrate sufficient interest and capability to acquire or dispose of real property.
Meanwhile, the nurturing database will house leads that are not showing signs of buying or selling or who have already bought a property. These are the leads that you don’t contact regularly. However, you should still monitor them occasionally or even move them to your working database should their circumstances change.
The Challenge of Contacting All Your Leads
Most databases contain an extensive list of leads that continues to get longer yearly. Try dividing the total number of people you currently have in your database by the number of leads you can contact within 30 days.
If you have 1,000 people in your database and can contact 100 of them in a month, you’ll get a quotient of 10. This number represents the number of months it would take for you to talk to your 1,000 total leads. Thus, following this formula is both impractical and time-consuming.
Moreover, by the time you get through your entire database, the majority of your leads will have already moved on or found another real estate agent to cater to their needs.
What Is the Database Turnover Formula and Why Is It Better?
The database turnover formula provides a better way to determine the leads you need in your working database. First, ask yourself how many people you can commit to contacting every day. Let’s assume that the answer to this is 10. Then, multiply that number by five, which is the number of days you’ll be calling them every week. This will give you a product of 50.
Further multiply this amount by four, which corresponds to the number of weeks in a month, and you’ll get 200. Lastly, multiply this product by three, since you’ll need to contact the leads every three months. This will give you a final amount of 600.
Thus, your working database should consist of only 600 leads. Talk to these people every 90 days and you’ll achieve conversion rates higher than what you’ll get from sporadically and randomly calling people from your full database. After all, the issue lies not in lead quality but in call frequency.
Alternative Rule for Buyer Leads
Buyer leads are pre-qualified individuals who demonstrate a high degree of willingness and ability to purchase property. When it comes to these leads, there’s an alternative approach. Instead of contacting them every 90 days, you can call and message them every 30 days. This is because buyers are likely to purchase property in less than three months.
Furthermore, buyer leads are more inclined to sign up for real estate websites. There’s a high chance that they’ll be bombarded with listing alerts from different real estate agents daily. Thus, to avoid interception and losing potential buyers, you should call these leads more frequently.
Now that you know the database turnover formula, you can confidently answer the question “How many leads should I have?” For more information about the real estate industry, visit our website.
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