If you are real estate agent or a lender, your main concern would be the generation of leads. You cannot make sales without leads and you cannot earn your commission without sales. If you aren’t generating enough leads, it is possible that your lead generation strategy isn’t working.
The aggressive lead generation approach
If you are a type A personality, you will definitely enjoy an aggressive approach towards lead generation. You will have no problems with door knocking, cold calling, or other interruption based marketing methods. You are brash and you won’t take ‘No’ for an answer. You are persistent and in the end, you will win some business.
The bitter reality is that you will need to make well over six thousand cold calls a year to close around 25 deals. If you are planning to adopt this marketing strategy, you should have no problem facing rejection after rejection. You will also need a crocodile skin.
Many real estate agents try this method mainly because the real estate training they received recommends this ‘hard sell’ strategy to generate leads. These strategies used to work in the past. They still work for some people. But for the vast majority of brokers, they don’t.
Why? Because this approach doesn’t go down well with your personality. And trying something that you don’t enjoy doing won’t help your case. It is demoralizing. It affects your confidence and it doesn’t work for you. But that is not the biggest problem here. After a while, you will begin to take your failures personally. You will start assuming that you are not suitable for this profession. But take heart.
There is yet another marketing tactic and it works like magic. Very few agents use this technique and those who do, are doing great business. Many of them are selling several hundred units per year.
Introducing permission marketing
Permission marketing is a highly effective strategy to promote your business. It allows you to keep in touch with your clients and generate quality leads that will close. Better still, it doesn’t involve any strategies that might affect your morale.
Permission marketing is a strategy popularized by best-selling author Seth Godin. The concept is quite simple. Permission marketing is all about delivering relevant, personalized newsletters to people who really want to receive them.
Consumers have the power and the right to ignore marketing. Permission marketing works because it does not encroach on their privacy. It works on the principle that treating potential customers with respect is the best possible way to attract their attention.
When you treat your clients and potential clients with the respect they deserve and seek their permission to keep in touch with them, you will earn their respect and appreciation. This will lead to better quality leads that close.
Let’s make a comparative analysis of the two methods.
Here is what happens when you cold call people.
Most people won’t even bother to answer. Those who do, aren’t happy with you and you will end up annoying them. The whole experience makes you feel awkward and demoralized.
The permission based marketing involves running a neighborhood contest. You partner with several other high integrity agents who will then promote your contest to their clients.
This approach works because your audience is more receptive. People will happily participate in your contest. This allows you to build your reputation and goodwill. Many people who participate in these contests will readily subscribe to your email newsletter. As your email list grows, you will get more leads. Your credibility also increases.