Cold vs Warm Leads for Real Estate
Learn the difference between cold vs warm leads in Real Estate and what you need to do with the cold ones to make them warm!
Real Estate agents rely on a steady flow of leads to keep their business alive. However, not all the leads are the same. You may get somebody’s contact info and know they are somehow interested. Yet these leads can be very different regarding intention and seriousness. That is why you cannot treat all the leads the same and have the exact expectations from them. Just because one of the leads bought a home in less than a month does not mean the rest will do the same. In fact, according to some sources, 90% of your leads will not make a move in the next 6 to 12 months. This article will discuss cold vs. warm leads for Real Estate and what agents need to do with them!
Warm Leads
Well, these are everybody’s favorites. They are ready to move: Sell their home or buy one. They may not even need you to convince them. All agents are after these leads because they are zero or low effort. You do not have to persuade, teach, educate, etc. For some reason, they need to move soon, and they will.
On the other hand, these warm leads can be people you have known for a while, which means you have nurtured them a long way. In the beginning, they were cold. They had some interest but were not ready to buy or sell. We will describe them further in the next section.
Cold Leads
A cold lead is someone who is not ready. They are cold. They have some interest, but that is too low, and you cannot expect them to make any move soon. Cold leads comprise most of the people you contact, yet they are essential to your business. You need to make a considerable investment in them. Cold leads are what you get. You mess with them, and you will be out of business soon. Cold leads are your business.
Why Are These Leads Not Buying?
Well, we get this a lot. This question pops into some agents’ minds because they make the mistake we mentioned at the beginning of this article. They consider all the same to be the same. They expect everyone they get on their CRM to make a move. Well, they might, but not without a fight on your side. Watch the video below to learn why:
You get cold leads when you run social media ads like Facebook. These are people who are interested in your services. But they are in the unaware stage. They do not know and consequently trust you. That is why they do not make a move. In this case, agents think the leads are low-quality. You should be surprised if leads hire you to sell their home or buy one on the spot. It is possible, but the chances are next to none.
Why roomvu’s Smart Ads Service?
Smart Ads by roomvu are tailored to cater to the real estate industry. They’re designed to:
- Target a specific audience, ensuring higher quality engagement.
- Be highly relevant, resonating with your intended audience.
- Utilize visual content with a focus on engaging videos.
- Have a compelling call-to-action (CTA) to prompt immediate responses.
Activation Rate
Roomvu prides itself on an impressive 20% activation rate. This means that for every 100 leads generated, 20 are activated and show genuine interest in the services. The activation rate is a significant metric in digital marketing and real estate, indicating how potent the initial engagement with the lead is. roomvu’s strategies, from compelling ads to video landing pages, are specifically tailored to ensure that leads don’t just remain dormant but actively engage with the content, resulting in this commendable activation rate.
Cost Per Lead
At roomvu, we have honed our digital marketing strategies to a level where we can generate leads at a cost ranging between $7 to $20 per lead. Such a competitive cost-per-lead is advantageous for real estate agents, ensuring maximum return on their advertising investments. This is achievable due to the precision targeting offered by roomvu Smart Ads, ensuring that the advertisements reach the right audience, thus resulting in a higher probability of lead generation without exorbitant advertising costs.
Closing Rate
A closing rate of 2% speaks volumes about roomvu’s efficacy in generating leads and converting them into tangible business outcomes. In the real estate business, where stakes are high, a 2% closing rate means that for every 100 activated leads, 2 culminate in successful business transactions. This metric underscores the potency of roomvu Smart Ads in creating a streamlined funnel that moves a potential lead from the point of interest to successful deal closure. roomvu’s capabilities, like the multi-language support and the video landing pages linked to ads, play a significant role in nurturing leads to this final conversion point.
From Cold to Gold: Warming Up Leads
Now we are talking. Real Estate is one of the most significant financial transactions people go through in their lives. Do not get surprised when people consider everything and take their time to make their moves. Most of them have no experience and are considered first-time buyers. Others also may have little knowledge about the process. Given the dynamic nature of the market, they find it very easy to lose money in the process. And that is when they need you.
They will pick an agent they trust. Someone they are sure will help them get the best results. After all, they are not doing business with their money. They are trying to buy a home or sell one to buy another one. Your job here is to help them trust you, believe in you, and rest assured that you know what you are doing.
Follow Up
When looking at cases where agents warm up leads, we encounter the scenario where agents do nothing to follow up with their leads. They sit back and expect the leads to come to their senses and be ready to hire the agent. We ask agents who had no luck with their leads about what they have done to warm up their leads, and the answer is almost always nothing.
Your audience clicks on your ad for a reason. They submit their info. Now, the ball is on your ground. You have the next move. And what is the next move? Calling them and asking if they need to sell their home. NO. You must get them on your social media, newsletter list, etc. You need to boost the connection and empower the relationship you have created.
Let Them Know You
We hardly do business with people we do not know. Real Estate, in particular, can be more challenging due to its significant role in our lives. Social media was created to connect people and let them know what others are doing. Although you will be using social media to promote your business and nurture leads by educating them, you still need to live up to the expectations people have from social media, and that is getting to know you. See how Nick Libert, a Real Estate agent/coach, shares glimpses of his personal life on his Instagram account:
As a Real Estate agent, you have your own life. You have your friends and family and many hobbies and interests. Show your audience who you are and what you do. People will be more interested in your everyday life than your business, at least on a social media scale, in the beginning stages of your relationship. Let them know you, and once you have their attention, you can start sharing those bits of business info they might be interested in.
Keep Relevant
Your audience likes to get content they are interested in. It does not matter what you think of your content or how much you like it: When it does not appeal to your audience, it is spam. One of the reasons agents fail to win their audience’s trust is that they think of what they need rather than what their audience needs.
To warm up your leads, you must give them what they need or like. What they receive on social media or through emails should resonate with their interest. You might bombard them with stories of your achievements and success or some real estate content that does not mean anything about where they are now. Always think of your audience and their needs first.
Cold vs. Warm Leads for Real Estate
As we said, new and fresh leads are cold. They have no idea who you are and what you do. Your prior achievements can’t be any less significant to them. They will only hire or work with you once you have established some form of rapport and proved yourself to be trusted. Nurturing your leads by letting them know you and providing valuable and relevant data will only pay off in the long run. Remember: It is a marathon, not a sprint.
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