The leads are weak!

“Coffee is for closers only.” - from the 1992 film, Glengarry Glen Ross

The other memorable lines from that movie:

"A-B-C. A-Always, B-Be, C-Closing"

“Second prize is a set of steak knives. Third prize is you're fired.”

And...

“The leads are weak.”

Ah...leads...

Over the last few weeks, there has been a lot of real estate news, but I am referring specifically to Zillow. Zillow came to prominence (mostly) by taking realtors’ listings and then selling the leads back to them. 

On a coaching call this past week, the topic of buying leads came up. My comment was, “Leads are for losers. Clients are for closers.”

I am not saying that you can’t make money buying leads! My point is that chasing leads is a losing strategy in the long run. Building a database of clients is where the real money is at. I assert that it’s easier - and more profitable - to maintain a list of clients than to build and close lists of leads, specifically where those leads do not know you. Working with strangers takes much more time and effort than working with people you already have relationships with.

So, what is involved in buying leads?

I don’t know! I don’t buy leads, so I have no idea. But let’s dig into what a lead is: “A lead is a potential customer who has expressed some level of interest in a company's products or services. They are at the beginning of the sales funnel and haven't necessarily been fully qualified or are ready to make a purchase.”

Maybe leads aren’t all that bad? What if the potential customer expressing some level of interest in our services is someone we already know? Well then, that’s probably okay!

The problem is that most agents don’t spend time building and nurturing trust with people they already know, they spend money and time with strangers. They think it will be faster and more profitable working with these purchased leads, and these people are typically strangers. 

Stranger danger! In the worst cases, selling to strangers can take up to 14 times longer than working with people you already know and trust. 

Stop looking for ‘leads’ with strangers! 

Instead, get to know more people! When you take a sincere interest in others, you are building trust and connection. Human beings are wired for connection. Connect more, chase less. It’s cheaper, it’s more effective, and you will feel better.