For those who aren’t agents let me explain how many of the larger brokerages (eg., in this area – Windermere, John L. Scott, Coldwell Banker Bain, etc) operate. As an agent you are an independent sub-contractor usually paying a monthly desk fee to associate with a particular company, plus variations of splitting your commissions with the broker. For that you get office space, administrative support, access to training etc.
What you do NOT get is client leads from the company. (except for Relo clients if you last long enough). For that you do your own marketing and/or sink to using the sourcing companies like house values, home gain and others of those ilk whose business model Ardell summed up so well long ago.
So here’s the part that I just don’t get. As an agent, there is no way I can come up with the marketing dollars to compete against House Values online. But my brokerage (Coldwell Banker Bain) spends millions in advertising, development of their website and overall branding. Yet for all of that they have no pro-active lead capture system or method of distributing leads to field agents. Certainly any of the larger brokers could compete better for the internet business and yet they don’t. Plus, if there are agents willing to pay for lead sources why not capture that revenue back into their own company.
It seems to me that the logical thing to do would be develop a virtual brokerage office.
- Create a staff of salaried agents for an inside sales team
- Implement a product like LivePerson to monitor web traffice and engage potentinal clients online
- Capture those leads and turn them to field agents in the local office for a percentage of the commission (you have to pay for that inside sales team somehow)
- Quit making your agents rely on 3rd parties for additional lead source generation
I’m going to propose this idea to my company but thought I’d run this by everyone for some feedback.
Robert, I’ve never worked for “Bain”, but as a Coldwell Banker agent for many years on the East Coast, I certainly had plenty of leads from my Company. And that was before the internet. Seems pretty odd with all of the corporate contracts CB controls that they have lost leads somehow. Aren’t they “THE” company for Microsoft that gets ALL of the ingoing and outgoing Microsoft employees? I’m sure they have plenty of contracts with other Companies as well. How could they have no leads? Makes no sense.
So then what’s “My Home Planner?”
http://coldwellbankerbain.com/homeplanner.aspx
I think the leads are coming in to CBBain and being distributed in some fashion.
Theoretically, this is Century 21’s answer to what you are describing (I think) but I have yet to see “Lead Router” in action. It seems that large-scale implementations of innovative technologies often are about a 1/2 step behind the curve.
Do the agents generally rely upon the brokerages to generate leads? I know floor time is still (archaic) going on in some places, but I don’t know if that is more productive than other things an agent could do.
Robert, I think your ideas are good, but the m.o. of agents is that they are fiercely independant and entreprenurial people–my guess is that most do their own thing anyway. From my perspective the more productive agents treat their practice as a bonafide business, not a hobby.
Maybe you should start your own brokerage with a team of others that share your aspirations. There are a good handful of people I know through our business that are doing their own thing soon including several loan officers.
There are a couple agents we work with on a semi-frequent basis who are shifting gears and are trolling the county websites for potential short-sale and notice of default customers.
Tim
Do the agents generally rely upon the brokerages to generate leads? I know floor time is still (archaic) going on in some places, but I don’t know if that is more productive than other things an agent could do.
Robert, I think your ideas are good, but the m.o. of agents is that they are fiercely independant and entreprenurial people–my guess is that most do their own thing anyway. From my perspective the more productive agents treat their practice as a bonafide business, not a hobby.
Maybe you should start your own brokerage with a team of others that share your aspirations. There are a good handful of people I know through our business that are doing their own thing soon including several loan officers.
There are a couple agents we work with on a semi-frequent basis who are shifting gears and are trolling the county websites for potential short-sale and notice of default customers.
Tim
Chief Errand Boy, Companies that let you go for desk fee only, generally do not give you leads. Those that are major lead generators take a whole lot more of the pie. That’s the tradeoff.
Lead Generating Traditional Company + Zip Realty
Robert,
You need to talk to your Broker. All internet leads are processed through CBBA Corporate to the Brokers in the individual offices. Perhaps you are so successful or busy your Broker doesn’t think you need or want any of the leads, so passes them on to other agents. They are distributed geographically, except for inquiries about agents listings and they are directed specifically to that listing agent.
Anecdotally, I believe 90% of most “leads” are actually just questions and inquiries, not actual real-time buyers, and that could be why you’re not getting many. The leads come in and I think most are “qualified” first at the corporate level, either with a return email or a phone call. By that time, 10 leads get whittled down to just 1, as the other 9 people are just lookers, browsers, already working with an agent or unqualified.
Robert,
You need to talk to your Broker. All internet leads are processed through CBBA Corporate to the Brokers in the individual offices. Perhaps you are so successful or busy your Broker doesn’t think you need or want any of the leads, so passes them on to other agents. They are distributed geographically, except for inquiries about agents listings and they are directed specifically to that listing agent.
Anecdotally, I believe 90% of most “leads” are actually just questions and inquiries, not actual real-time buyers, and that could be why you’re not getting many. The leads come in and I think most are “qualified” first at the corporate level, either with a return email or a phone call. By that time, 10 leads get whittled down to just 1, as the other 9 people are just lookers, browsers, already working with an agent or unqualified.
Marlow,
Perhaps it has more to do with where Robert lives. Most relocating buyers seriously interested in buying a home will say Seattle, Bellevue, Redmond, even if they end up buying on Lake Sammamish. A relocating buyer would not ask for Sammamish Plateau if they are relocating here from Michigan. They are then assigned to an agent in the area they requested regardless of where they end up buying a house.
Marlow,
Perhaps it has more to do with where Robert lives. Most relocating buyers seriously interested in buying a home will say Seattle, Bellevue, Redmond, even if they end up buying on Lake Sammamish. A relocating buyer would not ask for Sammamish Plateau if they are relocating here from Michigan. They are then assigned to an agent in the area they requested regardless of where they end up buying a house.
Marlow/Ardell – yes, CB Bain is the one that gets all the Cendant leads for Microsoft and other corporate-relo clients. However, you have to have been with the company for 2 years to qualify to recieve those leads and then they are distributed at the office brokers discretion. I’ve only been there one year so don’t qualify. The flip side of that is I see quite a few agents whose whole business depends on those leads. “Dependency” isn’t one of my strong suites, so while it would be great to get some of my business from that I’d hate to have my whole practice based on it.
The My Home Planner I think actually is a nice system for passive lead generation from the internet. The crux of the problem is how many people pass through CB Bain’s (or any other major broker’s) site per day and don’t register? Last month I had 872 visitors to one of my sites with 16% as returning visitors yet less than 2% actually registered to contact me. I can’t imagine what the ratio is for a site like CB Bain.
That’s were I love the technology like LivePerson — it presents the possibility to engage those visitors proactively. If you see they are browsing Medina homes than jump in and engage them about that area. It’s the difference of walking into Nordstorms and being asked if they can help you with anything vs going to Target and not being acknowledged until you are ready to make a purchase.
Chief Errand Boy – I agree, anyone coming into this business relying on the broker to generate all thier leads is in trouble. What I have issues with is the brokerages passively letting the HomeValues of the world become the leaders of grabbing those internet sourced customers. Starting my own team to do this is certainly on my list of possibilities I’m considering. š
Marlow/Ardell – yes, CB Bain is the one that gets all the Cendant leads for Microsoft and other corporate-relo clients. However, you have to have been with the company for 2 years to qualify to recieve those leads and then they are distributed at the office brokers discretion. I’ve only been there one year so don’t qualify. The flip side of that is I see quite a few agents whose whole business depends on those leads. “Dependency” isn’t one of my strong suites, so while it would be great to get some of my business from that I’d hate to have my whole practice based on it.
The My Home Planner I think actually is a nice system for passive lead generation from the internet. The crux of the problem is how many people pass through CB Bain’s (or any other major broker’s) site per day and don’t register? Last month I had 872 visitors to one of my sites with 16% as returning visitors yet less than 2% actually registered to contact me. I can’t imagine what the ratio is for a site like CB Bain.
That’s were I love the technology like LivePerson — it presents the possibility to engage those visitors proactively. If you see they are browsing Medina homes than jump in and engage them about that area. It’s the difference of walking into Nordstorms and being asked if they can help you with anything vs going to Target and not being acknowledged until you are ready to make a purchase.
Chief Errand Boy – I agree, anyone coming into this business relying on the broker to generate all thier leads is in trouble. What I have issues with is the brokerages passively letting the HomeValues of the world become the leaders of grabbing those internet sourced customers. Starting my own team to do this is certainly on my list of possibilities I’m considering. š
Take a peek at MostHome.com. They have apparently struck a deal with Windermere to provide lead capture and management.
As I understand, MostHome has a call center in Vancouver BC that acts as if they were employed by the broker when they speak with prospects. I believe they manage the web inquiry until it actually becomes a “lead” and then it gets passed off to Windermere.
Maybe someone at Windermere can better explain the program and how individual agents are involved.
-Russ
Take a peek at MostHome.com. They have apparently struck a deal with Windermere to provide lead capture and management.
As I understand, MostHome has a call center in Vancouver BC that acts as if they were employed by the broker when they speak with prospects. I believe they manage the web inquiry until it actually becomes a “lead” and then it gets passed off to Windermere.
Maybe someone at Windermere can better explain the program and how individual agents are involved.
-Russ
Robert,
With regard to “dependency” on company generated “leads”, remember that if you do a bang up job of representing these people well, they refer other people to you and come back to you when they move. You build up good past client relationships and the referral fee is only on the initial transaction. If you have 12 referrals from the Company, that should turn into at least 12 additional sales from referrals from those 12 people.
My CB days were during the time when relocating people going out of state had “buyouts” subject to the “Cinderella Clause”, and I was the magic fairy who showed up at the stroke of midnight. I was the CCPS ( Certified Corporate Property Specialist) now shortened to CPS, who listed the vacant inventory homes. Even though I paid a 50% referral fee, I was able to get two to three new clients from every company referral.
It is the desk fee system that is killing the Company’s incentive to generate leads for the agents. Once you pay your cap, they have no vested interest in whether or not you are successful.
I too am going to spin off as my own Broker with a team. Maybe we could compare notes.
Ardell says, “remember that if you do a bang up job of representing these people well, they refer other people to you and come back to you when they move. You build up good past client relationships and the referral fee is only on the initial transaction.”
This whole thread can be summed up by that statement. Housevalues, & other lead generators then become the ones “marginalized.”
That is what I wanted to say, but feared tomatoes coming at me at a high rate of speed—what does an escrow chief errand boy have to offer.
Stay in touch with your clients. It prevents wierd situations like having escrow close a sale with clients that purchased only two years earlier with a selling agent except that the listing agent stayed in touch with the buyers of their home and listed the house, again. How many business cards do we have that say “your Realtor or loan officer for life.”–some make it true, most don’t.
Lead generators, among other companies/persons, make a mint off of Realtors by betting that they don’t have a strong long-term relationship with their clients–so far it looks like they are prevailing.
Tim
Hi Robert,
Have you seen RE/MAX’s new site? It’s sending leads directly to the agents. It’s up and running in the San Francisco Bay area. I’m receiving leads. I think RE/MAX is a great company, the offices are individually owned and operated. The owner of my office is outstanding, that make a big difference.
I’m a broker so I make the choice to work for a company rather than have to work for a broker.
Check out RE/MAX in your area.
Hi Robert,
Have you seen RE/MAX’s new site? It’s sending leads directly to the agents. It’s up and running in the San Francisco Bay area. I’m receiving leads. I think RE/MAX is a great company, the offices are individually owned and operated. The owner of my office is outstanding, that make a big difference.
I’m a broker so I make the choice to work for a company rather than have to work for a broker.
Check out RE/MAX in your area.
LOL Chief Errand Boy, throw the tomatoes, I’ll make pasta sauce out of ’em!
I have clients who will not make a move in real estate without calling me first, but that is not because I “keep in touch with them”. It is more about how well you represent them in the transaction at hand, than how many newsletters, birthday cards and post cards you send them in the interim between their need for representation in a real estate transaction.
If they forget you unless you send them postcards every month, you must not have made much of an impression while representing them in the transaction.
I’ve been telling agents for years to “Look In The MIRROR” if you have to keep depending on lead generators and none of your past clients consider you in their next real estate transaction. How many agents get ticked off at the consumer for not “coming back” to them without considering changing the way they do business? That is the crime and shame of it.
I have one of those renegade offices that generates leads to my agents for “free”. I worked on my company website for over 1 year, learning how to generate leads and now I’m getting about 10/day.
Don’t forget CBB, Windermere, JLScott will give you leads but they cost 35-45%!. Never seemed worth it to me. When I first started in real estate I knew no one in this area and I did alot of floortime and new construction and built up a referral base and over the last 5 years, I’ve been lucky enough to sell and list to my loyal client base.
But that takes years and 80% of the agents quit due to lack of leads and the expense of being in business and it takes about 50 people in a data base to be able to live off just that. They just get discouraged once they’ve worked through their family and friends.
That’s why I decided to open my office on the system much that Robert Gray Smith suggests, though I’ve found you can’t just have an inside sales team.Here, at LTD each agent gets 10-20 leads a month, while they need them, no desk fee, generous split and profit sharing and great systems to develope a referral base new construction opportunities and other marketing pograms, so if you know of any agents looking for leads, here is my shameless ad for new agents! (ps. I’m also a training satellite office for Rockwell!)
I have one of those renegade offices that generates leads to my agents for “free”. I worked on my company website for over 1 year, learning how to generate leads and now I’m getting about 10/day.
Don’t forget CBB, Windermere, JLScott will give you leads but they cost 35-45%!. Never seemed worth it to me. When I first started in real estate I knew no one in this area and I did alot of floortime and new construction and built up a referral base and over the last 5 years, I’ve been lucky enough to sell and list to my loyal client base.
But that takes years and 80% of the agents quit due to lack of leads and the expense of being in business and it takes about 50 people in a data base to be able to live off just that. They just get discouraged once they’ve worked through their family and friends.
That’s why I decided to open my office on the system much that Robert Gray Smith suggests, though I’ve found you can’t just have an inside sales team.Here, at LTD each agent gets 10-20 leads a month, while they need them, no desk fee, generous split and profit sharing and great systems to develope a referral base new construction opportunities and other marketing pograms, so if you know of any agents looking for leads, here is my shameless ad for new agents! (ps. I’m also a training satellite office for Rockwell!)
Hi all… Wow, this was an interesting read. I used to be in the business almost 10 years ago here in the Portland area and am just now getting back in the business after marriage and raising kids to almost Kindergarten age (!).
I’m trying to decide on a broker and haven’t made up my mind. I was with John L. Scott for less than a year (8 years ago) and before that Better Homes and Gardens. I like Re/Max because it has very high name recognition (and it’s a short word that can be put on any clothing!), they have a convenient office for me (although i’m not crazy about it), I enjoy talking with the broker, he’s both respectful and quick to answer my questions, because Remax has free legal support, because of the high possibility of getting many referrals and referral fees because Remax is so huge, international in fact (I speak German and would love to get clients from Germany and Europe), and lastly because their symbal of the ho air balloon is so cheerful!
But people are telling me to lookat Keller Williams… Is the support and lack of competition such a good thing there? Is there structure with two different principal brokers good? I am also looking a bit at Windermere…. I’ve just met nice people there…
What are the criteria i should be looking for?
Thanks,
Diane
Hi all… Wow, this was an interesting read. I used to be in the business almost 10 years ago here in the Portland area and am just now getting back in the business after marriage and raising kids to almost Kindergarten age (!).
I’m trying to decide on a broker and haven’t made up my mind. I was with John L. Scott for less than a year (8 years ago) and before that Better Homes and Gardens. I like Re/Max because it has very high name recognition (and it’s a short word that can be put on any clothing!), they have a convenient office for me (although i’m not crazy about it), I enjoy talking with the broker, he’s both respectful and quick to answer my questions, because Remax has free legal support, because of the high possibility of getting many referrals and referral fees because Remax is so huge, international in fact (I speak German and would love to get clients from Germany and Europe), and lastly because their symbal of the ho air balloon is so cheerful!
But people are telling me to lookat Keller Williams… Is the support and lack of competition such a good thing there? Is there structure with two different principal brokers good? I am also looking a bit at Windermere…. I’ve just met nice people there…
What are the criteria i should be looking for?
Thanks,
Diane
Anna wrote an article on some things to look for in a broker a while back that is probably still relevant!