When it comes to Facebook generated leads, 90% of real estate agents are very skeptical. From our experience, the main objective they have is that those leads are cold (far in the beginning of the funnel).
I agree is this statement, however, this does not make leads total “garbage”. Why? Let’s discuss the main realtor’s objection in regards to Facebook leads.
Facebook generated leads are cold
There is no doubt that real estate Facebook leads will likely be cold. However, they a little warmer. They raised a hand and provided an agent with their personal contact information. But there is no relationship and loyalty yet.
Think about this. If any bank is trying to sell a credit card to a client and they have 2 options: contact a potential client, who saw the ad and submitted the form or a cold call to a random person trying to convince him to apply for a credit card. Which type of client will most likely to convert?
Leads are too far out
I cannot agree more. Most of the Facebook generated leads are 3-6 months out before making any sort of decision. Some even take a year or more.
From our experience, the conversion rate from Facebook ads is 1-1.5%. For every 100 leads generated monthly real estate agent gets roughly 1-1.5 transactions.
Do not forget that realtor gets 100 leads/month and the pipeline (database) is growing every month, therefore increasing amount of transactions monthly after a 3 month period
It requires too much effort to convert them
Converting Facebook generated leads takes a lot of effort and require a consistent nurturing for several months. Most leads can take up to 5-7 calls to connect and multiply touchpoints to convert.
This is where email and text sequences come to help real estate agents. This literally removes 90% of the realtor’s headache of following up with a potential client for the next 6 months.
For our real estate clients we set-up a 180-day buyer campaign or/and 60-day seller campaign, that educates prospects for the next months and keeps our clients on the top of their minds.
Value and benefits of Facebook Ads
- Facebook offers one of the most cost-effective lead generation channels currently available. The average cost per lead varies $5-$10 depending on how competitive the market is
- Allows to consistently grow the pipeline with new client opportunities with little effort
- Replaces traditional methods of prospecting such as door-knocking or cold calling. Instead of making 100 calls a day, make 10 while sitting at home and having a pipeline to populate almost on autopilot
- Capture people that are “pre-market”. With the Facebook behaviour algorithm, you can get those leads who are just started researching home and yet not on Zillow or Realtor.com
Summing up a Facebook lead generation
With Facebook lead generation ads real estate agents can complement if not completely remove their traditional advertisement and save tons of money and time.
It is crucial to start advertising on Facebook with the right expectations. There will be most likely no conversions in the first 3 months. Even though these leads are a little warmer because they provided their contact information, there is no loyalty and trust between a realtor and a potential client.
Always focus on good leads and exclude bad leads. Email and text sequences will help you filter your constantly growing pipeline.
Even with email automation, real estate agents need to have a proper system in place and are properly trained to follow-up with internet generated leads.
- It takes 5-7 dials to connect to the potential prospect via phone calls
- it is critical to book an appointment as quickly as possible to build that relationship with a client
- Faster you connect and book an appointment less likely that client will find another realtor