Today, I’ll be addressing the question of whether or not leads from Zillow and Realtor.com are worth the money we spend to try to generate business.
It’s important to remember that tracking is critical. We have a lot of data accumulated over the last few years about all sorts of internet business and what the return on investment is like.
What we’ve learned is that Realtor.com and Zillow business is market-specific. The price per inquiry here at South Central Pennsylvania is going to be vastly different than the price per inquiry in another market.
Also, due to the way Zillow is set up, the price per inquiry in one ZIP code may be dramatically higher than another simply due to temporary demand depending on how many brokers are investing in that ZIP code. They can push the price per inquiry way up. Zillow is contract-free, so you are able to keep an eye on the price per inquiry and move your investment elsewhere if necessary.
So, is it ultimately worth it?
It depends. We’ve gone through seasons where we’ve lost money and haven’t gotten a good ROI, and we’ve also had more positive seasons as well.
Here was the difference: If you Google “MIT lead response study,” you’ll get a PDF file of a robust study that shows that whether we convert internet business leads depends highly on a few things:
1. How quickly we respond. According to the study, it’s critically important that we respond within five minutes of when the inquiry happens. Every minute that goes by after the initial five exponentially decreases the odds that you’ll convert that business into a relationship.
2. What methods used to respond. People prefer different methods of communication. It’s important to not only call that business within five minutes of the inquiry, but also shoot them a text and an email.
3. How often we follow up.If you don’t make a connection quickly, it’s important to not give up. No salesperson calls only once. Studies show that a minimum of 10 times is required in order to capitalize on the highest probability to convert that business. Those follow-ups should be made within 12 to 15 days.
Hopefully you’ve found this information to be helpful. If you have anything to add, share, or ask about this topic, I’d love to hear from you. Feel free to reach out to me anytime.