Why Tracking Your Leads Is so Important

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Today we'll be discussing the importance of tracking leads in your real estate business. Many agents don't keep track of all the leads that they get as well as they should, and that makes it hard to know what the return on investment is from your different lead sources.

To correct this problem, you've got to do two things. The first involves taking a look at all the closings you've had in the last 12 months and assign a lead category to each one of them. Whether the lead was from a past client, referral, or another agent, track the source and place them into different categories. You might be surprised where your leads originated from in the last year.

The second step you need to take is look at all of your expenses in the last 12 months, and group them around those lead sources. For example, did the expense come from a postcard campaign for expired listings, or internet leads that you paid for? If you haven't done this exercise before, I recommend it. It's quite telling to see where your leads come from and what the costs associated with them are. 

Agents tend to want to spend more money on more leads that have a lower return, whereas referrals from our sphere of influence tend to be the most cost-effective source of business. 

If you have any questions for us about lead management, or anything else regarding your real estate business, give us a call or send us an email. We can't wait to hear from you!