The Most Effective and Ineffective Methods for Generating Real Estate Leads

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The Top Strategies for Real Estate Lead Generation
Discover why cold calling is no longer effective and how social proof marketing for growing your real estate agency. Generating leads remains a top priority for businesses looking to expand, but the methods that work have evolved. If you're aiming to take your agency to the next level, here are the proven lead generation strategies—and one to avoid.

The Least Effective Lead Generation Method
Some real estate agents make the mistake of trying to generate instant business when they experience downtime or lack enough prospects. They resort to cold calling, an old-fashioned sales tactic that involves contacting strangers to sell them something (in this case, real estate services) via phone calls, unsolicited emails, texts, walk-ins, or door knocks.

Cold calling is seen as intrusive and can harm your reputation, portraying you as desperate for business. High-end clients, in particular, prefer word-of-mouth referrals, making cold calling ineffective for reaching them. You risk being perceived as a telemarketer, which is detrimental in the long run.

The Most Effective Lead Generation Methods
Now that you know cold calling is not the way to go, let's explore the best strategies for generating real estate leads. Generally, attracting clients to you is the most effective approach. When your ideal clients seek you out, you can scale your agency, avoid being overly salesy, and focus on building your brand and reputation instead of chasing leads. Here are some reliable methods:

1. Engage on Social Media
The majority of people looking for products or services research online and on social media. If someone is searching for a real estate agent to list their home or help them find a new one, they're likely to turn to platforms like Facebook and Instagram. Being active on social media is crucial, as inactive profiles can make potential clients perceive you as outdated or irrelevant in the industry.

Posting on Facebook and Instagram at least five times a week with helpful, educational, or informative content, rather than just listings or open houses, helps brand yourself and stay relevant. Encouraging past clients to comment or share your posts is also beneficial. Consider running targeted ads on social media to enhance your marketing efforts, as they offer precise targeting and useful tracking features to refine your campaigns.

2. Build and Market to Your Database
Your database of past, current, and prospective clients, as well as referral sources, is invaluable. Aim for a database of around 1000 contacts. Once you have a solid database, market to them through regular email newsletters, texts, or personal invitations to events or open houses. Follow the same guidelines as your social media marketing by providing informative content rather than sales pitches, keeping your contacts engaged with your brand even when they're not actively looking to buy or sell real estate.

3. Leverage Social Proof
Social proof theory suggests that people are likely to mimic the actions of their peers, experts, or trustworthy individuals. In real estate marketing, you can use social proof by featuring testimonials on your website and social media, soliciting online reviews from satisfied clients, and establishing yourself as an authority on the local real estate market with informative content. Harnessing social proof essentially turns others into advocates for your business, reducing the need to hustle for leads.

4. Develop Strategic Referral Partnerships
A well-connected real estate agent is a successful one. Building relationships with professionals who regularly interact with your target market can lead to valuable referrals. For example, a divorce attorney may have clients who need to sell their homes, a mortgage professional may have clients looking for new houses, and home service providers like roofers or contractors may work with homeowners preparing to list their properties. The more of these partnerships you develop, the more referrals you can expect.

If you're ready to grow your real estate business, effective lead generation is essential. Need assistance with leveraging social proof or developing a successful social media or database marketing strategy? Contact the experts at My Broker Brand. We're here to help you stay ahead of the competition.