Lead Generation Strategies from Asheville's Top Real Estate Professionals

Are you looking to take your real estate business to the next level? Generating a consistent stream of high-quality leads is essential for success in this competitive industry. At a recent AVLmeetup event, a panel of Asheville's top real estate professionals shared their hard-won insights and proven strategies for successful lead generation.

Jordan Lockerbie, an investor and real estate agent, Chuck Johnson, who runs a high-performing real estate team, and Michael Fishman, who owns a diversified real estate investment company, discussed crucial topics like defining what constitutes a lead, selecting the most effective marketing channels, implementing systematic follow-up processes, and measuring return on investment (ROI) to optimize results.

Defining a Lead

To create an effective lead generation strategy, you first need to have clarity on what actually counts as a lead for your business. The panelists all agreed that a true lead is someone who expresses interest in buying, selling, or investing in real estate in the near future - typically within the next 1-2 months.

As Michael explained, "If someone does not have interest in selling or buying a property within the next two months, I consider them a prospect, not a lead." He advised focusing your time and energy on people who are ready to transact soon, rather than those in the early stages of considering a move.

Top Marketing Channels

The professionals each had their own preferred blend of marketing channels that have proven successful for their businesses:

Michael: His company allocates about 80% of their marketing budget to cold calling, supplemented by some search engine optimization (SEO) and proactive community networking.
Chuck: For his team, their sphere of influence and past clients drive a significant portion of business. They also utilize some calling and have invested in a strong web presence that generates high-quality leads.
Jordan: Early in her career, she found success with online lead generation, especially through BiggerPockets. But today, her business comes primarily through her sphere of influence.

While their exact mix differed, all the panelists agreed that your sphere of influence - the people you already know and the people they know - is an extremely valuable source of leads that should not be overlooked. "Most people want to work with people that they know, like and trust," Jordan noted. "So they see this face, they hear this voice. I'm interacting with my bubble primarily now, more than any other lead source."

To effectively leverage your sphere of influence for lead generation:

Consistently stay in touch through valuable content, helpful resources, and friendly check-ins. Try to communicate with important relationships through as many channels as possible — in-person, email, text, video, social media, etc.
Let your network know how you help people and the types of clients you serve. Have a clear and compelling value proposition.
When you do get a referral, be sure to thank the referrer and keep them updated on how you were able to help their connection. Most people won’t do this, which is why it is so effective.
Give generously to your sphere and look for ways to connect people and add value. Adopt an abundance mentality.

Follow-Up Processes

The panelists unanimously agreed that following up consistently is absolutely critical when it comes to converting leads into clients. They shared some key tips for effective follow-up:

Have a clearly defined system and process for lead nurture and stick to it religiously, whether you use automation tools or do manual outreach.
Reach out multiple times and across multiple channels - phone calls, text messages, email, video messages, voicemail, etc.
Ask open-ended questions to uncover the lead's true motivations. Get them talking about their situation and needs.
Don't give up too soon. It can often take many attempts over several months to get a response. Persistence pays off.

"I cannot tell you how many times that we have continued--they won't answer the phone, we leave a voicemail, we text, we email, and I swear it's a year later--'I've been getting all your texts. I've been really busy. We're ready to start looking now,'" Chuck shared. "So to [Michael's] point, they are getting it."

For more insights on follow-up, the panelists recommended checking out the book Never Split the Difference by Chris Voss, a former FBI hostage negotiator who shares tactics for high-stakes persuasion and becoming more influential in your communication.

Measuring ROI

To assess whether your lead generation efforts are truly paying off, it's important to diligently track key metrics like cost per lead acquired and ultimate return on investment from deals closed. The specific ROI target varies based on your average deal size and profit margins, but in general the panelists aim for at least a 4:1 return - $4 earned for every $1 spent on marketing.

Michael shared how he leverages artificial intelligence tools like chat GPT to efficiently create marketing content and has his virtual assistants analyze recorded sales calls to identify skills gaps and areas for improvement. Measuring results and continuously optimizing your processes is an integral part of successful lead generation.

To start measuring your own lead generation ROI:

Implement a system for tracking the source of each lead and the costs associated with generating it (marketing spend, labor, etc.).
Follow the lead through the sales pipeline and measure your conversion rate for each stage (lead to appointment, appointment to contract, contract to close).
Calculate your average customer acquisition cost by dividing total lead generation expenses by the number of new customers acquired in a given period.
Determine your average lifetime customer value - the typical amount of revenue/profit a client generates
Aim for a lifetime value-to-customer acquisition cost ratio of at least 4:1
Analyze which lead sources and marketing channels are producing the best ROI and double down on those while eliminating underperforming tactics

As famed management thinker Peter Drucker said, "If you can't measure it, you can't improve it." Consistently tracking these numbers will give you valuable insights for continuously fine-tuning your approach.

Key Takeaways

Focus your lead generation efforts on people who are ready to transact in the near future, typically 1-2 months out.
Proactively nurture your sphere of influence as a key source of high-quality referral leads.
Develop a systematic follow-up process and reach out persistently across multiple channels.
Measure key metrics like cost per lead and ROI, and use those insights to continually optimize your strategies and tactics.

By implementing these proven practices from Asheville's top producers, you can create a reliable pipeline of motivated leads to fuel your business growth. For more in-depth insights, be sure to watch the full recording of the panel discussion on the AVLmeetup YouTube channel listen to the podcast, and follow AVLmeetup on Instagram and Facebook to stay in the loop about future events.

Here's to your success in building a thriving real estate business!