How You Can Add Flavor to LPMAMA so Leads Stick with You

Imagine a slice of bread. Served plain, it doesn’t look tasty, does it? But top it with a few other ingredients and sandwich it with another slice of bread, you have a delicious meal suddenly. The same premise applies to LPMAMA in real estate. By itself, it provides agents a series of questions they can qualify leads with. However, there’s one drawback to LPMAMA’s questions. They’re very “agent-focused.” They’re designed to serve you, not necessarily the consumer – which puts them in a weird emotional state.

 

Used plainly, LPMAMA questions can feel like an interview (or worse … an interrogation). It doesn’t show the client why you’re valuable to them, and why they should stick with you over another agent.

 

So, I caught up with Doug Edrington, who runs a Berkshire Hathaway HomeServices brokerage, and asked him how his agents better use LPMAMA to set appointments at a higher conversion rate. We’ll cover each letter individually, so you can see the mechanics to each question and how to tweak them for more success.

 

“L” is for Location

Where are you looking to buy? — It starts off with a simple question, and you expect a simple answer, but sometimes people have a lot of “asterisks” floating next to their response.

 

Real estate lead: “I want to move to San Francisco.”

Agent: “Great! Where exactly in San Francisco are you looking?”

Real estate lead: “Umm, I’m not sure. Somewhere nice and affordable.”

 

A MLS market can be a big place to search through. For Edrington’s team, they use a simple concept to generate better responses: Pleasure vs Pain. Here’s the difference:

 

Real estate lead: “I’m looking to move to San Francisco.”

Agent: “Awesome! San Francisco is a big place with a lot of neighborhoods and nearby towns. Tell me, what kind of area are you looking for? A quiet suburb or a place with little traffic to popular workplaces?”

Real estate lead: “Umm, I’m not sure.”

Agent: “Okay, well let me ask this. Where do you NOT want to be?”

Real estate lead: “Definitely not a neighborhood with lots of traffic. I don’t want to be driving for 2 hours to work everyday.”

Agent: “I hear you! Traffic is a pain. You’re probably looking at homes in downtown, so let’s talk about price now, since those homes can get expensive.”

 

Notice when the lead doesn’t know what they want, the agent focuses on the negative. That way, he can rule out some options. And it makes it easy to transition to the next question: Price.

 

“P” is for Price

What’s the price point you’re searching at?

Knowing their budget makes an easy transition for asking about mortgage pre-approval (which is the second “M” in LPMAMA). But take a moment to offer an extra value around the pricing subject.

 

As an agent, tell the client this: “I see you’re searching between $250,000 and $300,000. Would it be okay if I tweaked this range to $249,000, since a lot of agents still love the number nine, and I don’t want you to miss out on a deal.”

 

This shows the client you have their interest in mind and that you’re an expert in the field, since you know how people list homes for sale. It may be minor, but details matter when distinguishing yourself from the competition.

 

Another added point you’ll want to make is this: “I know the top of your budget is $300,000, but if I spot the perfect home at $315,000, can I send that over to you? Again, I don’t want you to miss out on the right house, and that would probably only add a few bucks to your mortgage payment. What do you think?”

 

Add on a story to your conversation too! Give them examples of how you’ve helped others find the right home within (and a little outside) of their budget. It shows you’re looking out for them.

 

“M” is for Motivation

A lot of agents start off with “What’s motivating you to move and buy right now?” But Doug Edrington likes to dig deeper, so he can better match the right properties to his clients. We all know people will give you a surface answer and then decide something entirely different. This is an opportunity to grab at the subconscious and make sure the client’s actions line up with their thoughts.

 

Ask: “What will this move do for you and your family when we find the perfect home?” Having the client focus on the results rather than the reasons, gives you a better perspective for helping them. Because, at the end of the day, the house is the result you need to show them.

 

“A” is for Agent

There are two questions to ask here. First ask, “How have you been searching for homes?” Usually, a lead’s response will tell you if they’re using another agent.

 

If it’s the worst-case scenario, and another agent has already contacted them, then ask this second question: “Should I send any deals to that agent or directly to you?”

 

Nine times out of ten, the lead is going to say, “Send the deals to me.” This offers you an opportunity to show how you identify homes and match them clients, such as them. If you use BoomTown, it’s made extremely easy by using the Hot Sheet and Opportunity Wall within our real estate CRM.

 

You can also explain how not every home appears on the MLS market right away, and sometimes you’re privy to hot deals that you might want them see first. Again, this puts you as a valuable tool for the client, and the conversation is not about “you” but instead about you can help them.

 

“M” is for Mortgage

Just because LPMAMA is spelled with the corresponding letters, doesn’t mean you have to put this talking point near the end. It’s often a good time to talk about mortgages when you talk about price. And this is an opportunity to shine as an expert, and not just a “door opener” as many buyers think.

 

When referring a mortgage lender, brag about them like they’re a celebrity. Offer up stories and show how they can be a value add. This is also the time to dive into any mortgage questions, and explain the process a bit. Overwhelm them with your knowledge, and then listen. That last part is key. Listen to their concerns. To their questions. Make them feel comfortable and build their confidence. This leads to action, and action leads to trans-action.

 

“A” is for Appointment

Get them to commit by creating a sense of urgency. Don’t leave this open-ended for them. Let them know how the market is doing, what the competition is like for buying/selling a house. And tell them deals are available now, so it’s important to get started now.

 

This is often the moment where you’ll see a lot of objections. We have a guide on handling objections. You can view it here. They key is to listen, agree with their statement, offer a solution, and then give them a timeframe to meet and discuss.

 

“S” is for Source

This is an added letter to LPMAMA for Doug Edrington’s brokerage. For a business owner, and as an agent, you should always be tracking where leads are coming from, so you know where to invest.

 

In the initial conversation with leads, ask them how they found you. If they were referred, go the extra mile and find the person who referred the lead on social media. Then take time to thank them publicly. Show their network and the lead your gratitude, as it makes people feel better about their referral. More may come!

 

LPMAMA Amplified

I hope you got some handy tips and tricks from our blog post, and special credit to Doug Edrington. If you have any further questions on better winning real estate leads with the LPMAMA structure, give us a shoutout on Facebook or Instagram! Until then, happy prospecting!


Want to Learn More About BoomTown? Click Here


 

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Leveraging Insights to Drive Higher Lead Conversions

First things first, a real estate lead isn’t complicated. It’s simply the name and contact information for someone who is potentially a future client. A single email address can be a lead, a phone number, even someone who registers as Mickey Mouse (or something much more offensive).

 

Regardless of fake names, all leads that have a legitimate way to contact them are viable. Even the address-only ones. Even the bogus names. Even the ones that say “no.” In order to convert these fledgling prospects, you’ve got to have the right process in place to successfully nurture them, and within that process, you’ve got to know the right information to convert them into clients.

Capture Contact Info & Track Interactions

This is where your website comes in. Hopefully you already have a strong online real estate presence and CRM to help you manage the leads you generate. Top-of-the-funnel success means you’re leveraging digital marketing to get highly targeted traffic to your website, and capturing leads.

 

Once a lead has been driven to your website (or landing page, valuation tool, etc.) You must have a way to capture them. This means utilizing a tool to prompt a visitor to provide you with their contact information in exchange for something of value.

This could be something like:

  • the ability to view more pictures of homes on your website
  • a home valuation report for potential seller leads
  • a market update newsletter to keep them “in-the-know”

 
The right website and CRM will capture this information and automatically build a lead profile. This profile will be updated with any notes you add, tracked behavior and interactions with your website, logged calls and attempts, etc.
 

For example, BoomTown tracks every action a lead takes on your site. We also track each call, conversation, and interaction and add it to a lead’s profile. This way you’re empowered with insights you can act on.


Smart Prospecting can help you engage leads better. Learn the method here >>


Organize Your Database Into Groups

93% of all buyers report responsiveness as a very important factor in selecting an agent. When you have useful insight into buyer and seller interests and behavior, you can send the most relevant information and targeted alerts quickly and easily.

 

Your lead management system should provide ample information about each registrant. What have they searched for in the past? Have they just favorited a property, performed a mortgage calculation, or shared a listing with a friend? These behaviors will provide the background intel that is critical for tailoring your follow up and drip campaigns.

 

When you have the right information on your prospects, and the right tools available, you can bucket similar groups of leads for efficient nurturing campaigns. These can be segments like similar price ranges for a group of homebuyers, seller leads, you name it.

 

Of course, not every lead will be ready to buy a house right now, so have a process in place for the leads that aren’t ready. Use your CRM to set to-dos and reminders to follow up with leads on their timetable. Use categories for certain leads that may be on the fence or are waiting. Later on, you can take a look at the leads in that category and use tools like a phone dialer to renew your follow-up communication.

 

 

When you have the right information about your leads, and you are able to target specific groups with relevant communication, your prospects stay engaged and informed — ready to take action when their dream home comes on the market, or when it’s time to list their home, and you stay top of mind.

Use Real-Time Lead Behavior to Drive Action

Your targeted marketing campaigns and nurture drips will certainly pay off, but you also want to watch the behavior of your leads and contact them as soon as the time is ripe. For example, the BoomTown system will show when a lead is back on your website, so you know now would be a perfect time to give them a call.
 
Predictive insights like these will keep you productive. Don’t know the next step? Don’t worry, we do. The system will tell you exactly where to focus, who’s hot right now and when to reach out. Tag your prospects with custom categories, segment your database based on price point, category, you-name-it, and mass email or send individual texts right from the CRM. With the mobile app, you can receive alerts wherever you are and conduct business anywhere. All of these tools make it easy to target your prospects in smart ways- and get better results.


Want to Improve Your Lead Follow-Up? Check Out BoomTown’s CRM >>


Have More Conversations

The goal of marketing is to build enough trust to start conversations. If you are not thinking about how to structure and leverage your database for multi-channel marketing, and use the information at your fingertips, it will become steadily more difficult to compete in the future.
 
Using a smart system will help you take all the pieces of information and interactions into consideration, and builds a profile for each lead. By matching intents through the CRM, you become highly relevant to your audience, your prospects become confident in the insights you provide, and your conversions will skyrocket as leads grow to trust you enough to become clients.

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Exhaust to Fuel: How Keller Williams Is Transforming Data into a Competitive Edge

There is an almost unimaginable amount of data generated every second.

Stop for a minute and think about the number of online interactions you’ve had over the past 24 hours, for example. Did you go to the doctor? Information was exchanged electronically. Did you make a purchase on Amazon? Another exchange of information about your preferences and behaviors. Did your clients sign the contract? Congratulations are in order, and, you and your clients just participated in another exchange of information between multiple parties.

Why the Top Agents Leverage Success Metrics in a Shifting Market

There’s been a lot of buzz lately about the shifting market, and you’ve likely been hearing steps and strategies to help you be prepared for what may come in your local market. Whether it just shifts slightly to a more balanced, normalized market, or there’s a noticeable lull in home sales… the name of the game is being fully prepared at any time with a solid business model, that’s evergreen and “shockproof,” so that your profitability doesn’t suffer.

 

One tactic that will help solidify your profitability (no matter the market), is clearly tracking and measuring success metrics.

 

We’re still in Q1, the busy spring season is rapidly approaching so it’s the perfect time to take a step back and make sure you’re being diligent about some of the boring stuff (like these metrics and numbers), so you can ultimately enjoy the good stuff, like more closings and a higher transaction volume at the end of the year.

Response Time

Did you know that the industry average response time for a real estate lead is over 15 hours? Yikes.

 

We all know how to the consumer shopping experience happens these days: you’re on the web, you’re searching for a property and you’re focused on that task for 20, maybe 30 minutes tops. But what are you up to 10, 15 hours later? You’ve moved on! You’re not interested in chatting. Or, even worse, you’ve already heard from a competitor.

 

Speed-to-lead, that age-old adage that you’re sick of hearing? It exists for a reason.

 

So, ask yourself. Are you measuring your own response time and are you actively trying to improve it? These are the things that are going to set apart the top-tier agents during a market shift when the flow of leads to your pipeline might not be quite as healthy.

 

Take a look at your current process for engaging leads. Do you have a technology system in place, like a CRM, that notifies you the second a lead registers on your site? And if so, Is it mobile so that wherever you are you can take a minute to reach out? Maybe you have an ISA, an assistant or a virtual assistant that’s prospecting for you and engaging those new leads — well their response time is your response time! So make sure you have a system in place to track how quickly someone is getting in front of those leads.

 

So once you’ve got an idea of what your average response time is, work on improving it! Try to get it under 5 minutes, and if you’re having trouble doing that, you might need to consider hiring an assistant or an ISA that can help you prospect and stay on top of new leas. Or perhaps you’re generating too many leads and you don’t have the bandwidth to keep up with them. In that case, consider scaling back so you can work with a smaller pool that will actually covert and close a deal with you. Because a large pool of leads that don’t convert really just isn’t smart business.

Here are a few questions you can answer to determine how many leads you really need

  • How many leads do you need to get an appointment
  • How many appointments does it take for you to close a deal?
  • What is your conversion rate?
  • How big is your current database?
  • How much time are you willing to spend prospecting?

Follow-up & Lead Nurture

Obviously, response time is just one piece of the puzzle – and the real leg work comes with follow up and effective lead nurturing. Now, more than ever, this is super important Today’s real estate industry is all about the consumer experience. You hear the words “red-carpet,” or “white-glove experience” thrown around, and that’s because we live in a digital time now where everything is instant and readily available.
 

You can have Whole Foods groceries delivered to your house within 2 hours, at the click of a button!

 

So to keep up with consumer demand you have to be available and you have to be communicative. You also have to be one step ahead of them, anticipating their needs, not just reacting to what they’re asking for.

 

This is why you need to be smart and meticulous with follow-up & nurture plans.

 

1. Organize Your Database.

It’s impossible to measure if your follow-up needs work when you don’t have a clear process in place. If you’re not using a CRM, whatever strategy for you have for organizing your leads and pushing them through the funnel – stay on top of it. (Also, consider investing in technology to automate those tasks and allow yourself to be more proactive.)

For everyone else that is using a CRM, spend the time necessary to get your lead flow organized. Clean up your categories and tags so that your database is organized into straightforward segments like:

  • Want to buy or sell now
  • They’re looking, but not ready to act
  • Searching a few months out
  • Searching a few years out

All of these leads require different follow-up approaches and nurture plans, so it’s important that they’re clearly segmented!
 

2. Tailor Your Marketing Campaigns

First, focus on your follow-up plan for your hot leads. These are the critical, “act now” leads that are the most likely to engage. Maybe you use the 10-days-of-pain model. Whatever combination of texts, calls, emails you use, and however long your process is – make sure this is clearly defined within your business so that you can look through a call log and text record and say – “Did I follow this action plan step by step”? What went wrong, what went right?

 

The marketing campaigns and nurture plans come into play for the rest of your leads that need nurturing. That group that you’ve labeled “looking but not quite ready to act?” Those leads should be getting emails with fresh listings and they should be getting periodic touches to gauge where they are in the process and whether or not they’re ready to start setting up appointments.

 

Smart Prospecting

 

3. Track and Measure

This is easy in BoomTown. Calls, emails, transactions, team performance: everything is tracked and logged in the system for immediate reference and simple tracking. But no matter the system, everything should be tracked to measure success, and whether or not it is working for the specific category. Maybe a certain category would respond to texting over email, or video over straight text? You’ll never know unless you A/B test and track your progress.
 

 

Once all the main pieces of your marketing plan are in place, determine the goal behind your campaign. What actions do you want your audience to engage in? What type of influence or advocacy are you looking to draw back from them? For example, by sharing quality educational content, you showcase your authenticity and insights to build trust and loyalty with your audience. The CRM will track open rates, responses, and log each interaction automatically. This makes it easy to see what emails are working, and where you might want to improve.
 
If your data shows one specific email isn’t helping move leads through the funnel, or recipients are increasingly unsubscribing and/or reporting spam, it’s time to adjust your messaging schedule. Keep in mind that your prospects may be receiving emails from more than one agent, so keep content fresh and original. Look at ineffective emails as a test, not a failure. You’ll no longer be wasting time on a message that isn’t resonating with your prospects and you can focus on different subject matters that drive results. With time, you will discover what is successfully reaching different segments of your email lists.

 

Lead Conversion & Close Rates

Now it’s time for a little bit of math! (Don’t panic, we’ll keep it simple.)

First, make sure you have these numbers. (Monthly)

  • Marketing Expenses (i.e. advertising costs, etc.)
  • # of leads generated
  • # of leads who became a client-prospect

Take the (# of leads generated) and divide by the (# of client-prospects). So, if you generated 1000 leads in January and 50 of them became clients, here’s what the equation would look like:
 

50 ÷ 1000 = 0.05 (or 5%)

(# of clients) ÷ (# of leads generated)

 

From here you can use your conversion rate to calculate other useful numbers that will help you with your goal-setting and business plan.
 

Real Estate Conversion Rate

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The Pros and Cons of Building a Real Estate Team … Are You REALLY Ready?

By Rachel Adams Lee

I would bet that at some point in your career, you’ve questioned whether or not you should build a team. Maybe you’ve already embarked on your journey. Maybe you’re working three transactions too many and are thinking, “At what point do I get help? And is help really all I want, or could I grow this hustle into something bigger?”

Welcome to the conversation ambitious solo agents and team owners have in our heads. You’re one of us!

Tax Deductions: What Every Real Estate Agent Should Know

Updated for the 2018 tax year

Tax season is here! For busy real estate agents who manage their own finances, it can be hard to find time (and energy) to get expenses in order. If this is you, do not push these tasks to the bottom of your priority list. Setting aside time now can save you thousands of dollars in the near future. To help kick-start your preparations, we’ve outlined several tax deductions that you should not overlook. From commissions paid to home office expenses, there are several activities that could reduce the amount owed to the IRS.