A Sales Strategy That Few Agents Know.
Paradoxically, the real estate sales funnel was not invented by a real estate agent. It was invented by someone in the United states, (where else?), Who, perceiving the potential of online sales, dedicated himself to affiliate marketing or the sale of digital and physical products through the internet.
These new online sales techniques were applied by some awake types who worked in the real estate sector. When we discovered it, we were left with our mouths open when we recognized the treasure we had found. Actually, the real estate sales funnel is based on the 6 principles of influence of Cialdini.
In affiliate marketing the Sales Funnel is the Holy Grail. With this funnel you make so much money that it can give you vertigo. The funnel is the tool or process that is used to sell, sell and sell one day and another day, 365 days a year.
Analyzing this sales funnel, some real estate professionals realized that, adapting it slightly like Sky Marketing, it could be applied to the acquisition of customers and online properties, in an elegant and highly effective way.
But first we had to try this technique of customer decaptation. Therefore, we got down to work and … boom !, surprise exploded in our faces: we got so many customers interested in knowing more about our properties, like stopping a train.
Ah ha! With what do we have? Well, milking the cow until he has a drop of milk. And so the Real Estate Sales Funnel emerged . A recruitment process, which is not for all real estate agents who are accustomed to capture a property and rely on real estate portals to be called by someone interested.
NOTE: This is a long article. I think the longest I’ve written. It was necessary to write a long article on this subject. Therefore, take it easy. You can always come back here to read it.
| How to Apply the Real Estate Sales Funnel.
To apply it effectively, real estate agents need a paradigm shift, a change in the concept of real estate sales. They must understand how people tend to look for information on a property online, and what their “buying” process tends to be.
Today, you have to gain trust and give credibility before someone contacts you. How does this get a real estate agent? The most profitable way is using a real estate sales funnel. Putting it into operation brings with it the sleeves and work .
And it will also help a lot to know the 6 Principles of Influence of Cialdini that are used to help shoppers say, “Yes I want.”
The real estate sales funnel consists in publicizing your real estate service (not your real estate), in a professional way, to generate credibility and interest . The primary objective of this technique is to demonstrate your knowledge and experience, and thus develop a relationship with your potential clients.
With the real estate sales funnel, you will get to be called only by qualified customers, who want to buy here and now; and so you end up selling one of your properties. Saving energy, time and budget in the process. Thus increasing the possibilities of sale.
It is a technique that allows us to get rid, little by little, of potential customers who are merely curious , or who do not have clear ideas, to be left alone with those interested in buying.
It is a filter that separates those interested in buying now and with economic capacity ; of those who want to buy later and who do not have the money to acquire property they would like.
That is, the real estate sales funnel gets you qualified clients, who want to buy a property in your area and have the money to do so.
“The real estate sales funnel what it does, above all, is to save time by not having to answer calls and emails that don’t take you anywhere. The funnel helps you maintain a monthly sales rate that motivates you.”
Another aspect that will also help a lot is to master the 6 Principles of Influence of Cialdini, which are used to help buyers say: “Yes, I want to” , and thus increase your property sales drastically. We will talk about this topic later.
| The Real Estate Sales Funnel. How to create it
How do you create a real estate sales funnel ? It is not difficult. At first it is laborious, because we must create the funnel , the method. But once implemented, that work that took us weeks (and a lot of coffee), will bear fruit for months that will result in thousands of dollars
And if not, ask several of my students that at least 1 sale is guaranteed every month thanks to this real estate sales funnel . This means having the “chickpeas” insured every month; and any sale of more, will depend on how well they have prepared the real estate sales funnel and how they have fed that funnel the previous months.
During the real estate sales funnel, we must implement the 6 principles of influence of Cialdini : Reciprocity, Shortage, Authority, Commitment / Coherence, Social Proof and Sympathy.
Let’s see what the 5 phases of a real estate sales funnel consist of , and then explain in detail how each of them is carried out.
Phases of the Real Estate Sales Funnel .
- We create a quality informational product.
- We promote this informative product.
- We keep in touch with who is interested in our product.
- We adequately respond to requests for information that come to us.
- Sooner or later we close the sale.
Let us explain below how each phase is carried out to sell any type of residential, commercial or industrial property with a sales funnel:
| The Real Estate Sales Funnel. The Information Guide.
1.- We create a quality informational product.
If you have experience as a real estate agent, you know that, to sell a property, you must first sell credibility and personal confidence.
The purchase of a property is an important purchase in the life of any person or company; therefore it is essential to build trust, (real trust).
It is not the same that potential clients know you through a flyer or brochure in a mailbox, that they know you because you have written an interesting book. For example, on how to buy a Luxury House in Park View City; or you have recorded several videos on the subject, let’s give an example.
Writing an Information Guide on a topic that resolves doubts or problems, which a person faces when buying a property; It is the best way to build trust and be perceived, (without having seen your face yet), as a professional real estate consultant. And also separates you from all those hustlers, intermediaries, smoke sellers and half pirates who call themselves real estate agents.
Creating an Information Guide is easy and will only take a couple of weeks if you take it seriously and spend a couple of hours a day. You don’t need special skills, just know how to write fairly well and know how to find information online quickly and “cure it”.
By “cure it” I mean knowing how to copy and paste pieces of information from different sources, put them in the same context, and create an ebook or informative guide. Finally you add to the text some experience and personal knowledge about the real estate sector in your area and you already have a quality Information Guide with a personal touch.
¿ What subject to choose for your Information Guide? Which is the most appropriate? There are hundreds of themes to choose from; from the additional expenses of sale, to themes of decoration or how to revalue a property.
The important thing is to find a topic that is interesting, not for you, but for those looking to buy a property in your area. The chosen topic MUST solve some kind of problem with a buyer of a property in your area. Not at national level or in general. Your area should be reflected in that guide. A guide that should be full of recommendations and truthful and updated information.
Always ask yourself how you could help a person buy a property in your area; and you will know what kind of problem or problems you must solve. It is best to present the problem first and then present the solution in your Information Guide. Do it and you will become the King or Queen of the Mambo for the buyer.
In this part of the real estate sales funnel, you must cover 4 steps: 1.- choose an interesting topic; 2.- seek information on that subject; 3.- write the ebook focused on your area; and 4.- present the ebook, (usually in PDF), with an attractive design without too much creativity. Including the cover of your ebook.
Some of my students have been slow to prepare an informative guide for up to 4 weeks ; since it was the first time they wrote an ebook type guide. About 4 weeks well spent that then paid off. And what fruits!
Under this line you can also create videos, small reports and even articles on your blog, such as quality information products.
However, these options are a bit more complex when it comes to promoting them; Therefore, it is better to direct your efforts in the ebook Information Guide, for the first phase of the real estate sales funnel.
Well, we already have the ebook PDF Information Guide. Let’s move on to the second phase of the real estate sales funnel.
| The Real Estate Sales Funnel. The promotion.
2.- We promote this informative product.
Promoting does not mean investing $ 50 dollars and praying to the virgin to reach hundreds of people who are your target audience. To promote means to invest at least $ 300 with INTELLIGENCE, in online advertising and also take advantage of all those means that are free to promote your Information Guide.
Some of my students have learned this with pain, so it prevents it from happening to you. You have to promote your ebook, your work of art, your credibility tool, even under the stones and do it continuously.
Once you verify that your Information Guide is attracting potential customers and generating sales, you will have no problem re-investing another $ 300 dollars. And even more, if you are a real estate agency that needs to generate applications for all your commercials.
I have indicated $ 300 dollars as an estimate for an independent real estate agent . With this amount you can generate very well 200 downloads of your informative guide.
In this second phase of the real estate sales funnel there are several steps that you must follow:
A.- Sign up for a replying car to collect emails from all those interested in downloading your information guide. You offer your informative guide to be downloaded for free, in exchange for an email. You give him the Guide and in return you receive his contact. Is that how it works. “Love with love is paid.”
B.- Create a sequence of emails , (usually 12 emails), to be sent in sequence with 2 days difference, (this is the best option and is already tested), to the person who downloads the guide. The content of each of these 12 emails are THE KEY to your success in the real estate sales funnel .
The content or text of these emails should be informative , with advice or recommendation or valuable information in each email, and different from what you include in your information guide. In addition, you should not sell your real estate or real estate service directly. With a brief note at the end indicating how to contact you, it is more than enough.
Let’s not fool ourselves. Composing these 12 emails is a hard and important creative activity , but it is the one that will generate thousands of dollars in sales in the following months. The entire real estate sales funnel revolves around these 12 emails. Redgraph them well and you will get more customers than you can attend.
NOTE. If you want me to advise you and write these emails, please contact us. We are much cheaper than professional copywriters, and we also know very well what works.
C.- Create several pages . First you must create a Capture Page, to which you are going to direct people interested in downloading your informative guide. You can create it within your own website, or create a page with a different URL. The second option is the ideal one, but the first one works very well and is the one used by 80% of my students.
This page only contains the 3D image of your informative guide, a short text explaining why this guide will be useful to those who download it and a download button. Nothing else.
Once the interested party clicks on this download button; Go to a Thank you page , with a short text that tells you that you should go to your email account, verify your email, (so we avoid using fake emails) and in the link sent to this email you can download The ebook
Once the interested party clicks on the email link again to download your guide, the link sends you to a Download Page. This page only contains a short text and the image of your 3D ebook. This whole process is configured in the auto responder and is only done once.
To check how this system works , we have prepared a Report on “The Real Estate Sales Funnel”. Here you will find the process that your potential clients must follow to download this guide. Enter here: ” How to create a Real Estate Sales Funnel”.
From the moment the person sees your guide online until it is downloaded, it takes less than 60 seconds. Create these 3 pages: a Capture page, a Thank you page and a Download page; It takes a short time and once you design them, you have them for “a lifetime”. Well, over time, you will make some improvements here and there.
Once the interested person downloads the guide, the auto responder will start sending an email every 2 days, until the sequence of 12 emails is used up. A funnel that lasts about 24 days reminding potential clients that you are there to help you buy your property.
This method ensures that at least 5% of the people who have downloaded your guide contact you by email or telephone in a period of 1 month. Sometimes they take little, for example when receiving the 2nd email. Other times later, when they receive the last email. Most of those who answer do so between the 5th and 7th email.
| The Real Estate Sales Funnel. Only 5% will contact you.
Quiet. That 5 people out of 100 contact you is good news. Don’t wait any longer at the beginning. Some of my students get up to 10%; and on some occasions they have achieved 18% of contacts in a single month.
Keep in mind that these 5 people are highly qualified, and if you know how to manage them well, (next phase of the real estate sales funnel ), you will have at least 1 insured sale the following month.
This is the real estate sales funnel method that generates such excellent results in affiliate marketing. All large companies in any sector use this funnel to sell their products online and build customer loyalty.
Once we have the sequence of emails, we have designed the pages and are subscribed to the auto responder, it is time to start the promotion.
We can promote your free ebook in various media. We start with the free ones; like Facebook, (in groups and on your page), on Twitter, on Google Plus … and if you record a video through YouTube and Vimeo. Also, you can publish your guide for free in the classifieds. (a medium that is undervalued); through a database that you can extract online and of course, through your real estate blog.
But promoting it for free is not enough. You have to promote it especially on Facebook, (the best medium for this kind of promotions), on Google Display, (here you can get many downloads and the cost is not high) , in Bing; and through the information requests you get from real estate portals.
Let’s explain the latter. When you publish a property on a portal and receive a call, try to get the “email” of the person calling you, and send an email with a link to your Capture Page.
In 90% of cases, this kind of interested party ends up downloading your informative guide by registering in the auto responder; with which they will receive a sequence of emails the next 24 days. This method is the best you can use to make your investment profitable, in real estate portals.
Perfect! You have already started promoting your informative guide and you start getting downloads. You will know where they come from, because this data is provided by the auto responder. Now you must know what to expect, and how to manage the requests that come to you.
| The Real Estate Sales Funnel. The Sequence of Emails.
3.- We keep in touch with who is interested in our product.
This phase of the real estate sales funnel coincides with the time it takes for the email sequence. If we send 12 emails, (you can send more if you wish and it would not be bad to do so), your potential client will receive email for 24 days. Enough time for some of them to decide to contact you and not the competition.
It will be 24 days where you will differentiate yourself from the competition in your area, such as the day of the night. You will be continuously in the mind of someone, who is looking in your area to buy a property similar to one of those that you market.
If you do it well and you work it, with $ 300 dollars a month to promote this guide, (ok, let’s say $ 200 dollars for those who are thinking of pesos, soles, bolivars, balboas, colones or lempiras), free of charge and payment, (both, do not try to reinvent the wheel!), you can get very well about 300 downloads in 30 days.
According to our experience; approximately 60% of the target audience will download your free guide; and will only contact you, 3-10% of those who have received this file. The number of contacts will increase, depending on how good your email sequence is.
Which is not bad when we do the accounts: 5% of 300 = 15 people contact you; 10% of 300 = 30 people contact you in a period of 3 to 40 days.
“Keep in mind that if you make a continuous campaign, month after month, you will be feeding the real estate sales funnel daily and you will start receiving requests by email and by phone every week. Sometimes, every day of the week. This creates a lot of confidence and it keeps you motivated. The more motivation, the more energy, the more enthusiasm, and the better approach to close the sale. “
Or maybe, that better approach to close sales, is not entirely true. You will close much less sales than you expect, if you don’t know how to handle the generated information requests. And as a consequence, the real estate sales funnel will be of little use to you and will be expensive.
| The Real Estate Sales Funnel. Attending requests.
4.- We attend to the information requests that come to us .
Did you know that approximately 60% of the requests for information received are lost in the first contact you have with the client? The main cause of this loss is the lack of preparation that the real estate agent has in managing the incoming call, or in not knowing how to answer the first email requesting information.
I have students, who have paid dearly for this lack of preparation. To a real estate agency in Buenos Aires it cost about 22,700 pesos, ( between preparing the real estate sales funnel and the promotion of your informative guide), realizing that you were losing customers , because the phone and emails were answered incorrectly. Yes, they sold, but they did not sell as much as we had planned in the strategy.
A person who contacts due to a sequence of emails has already read your information guide or at least scanned it. If he calls you it is because you have generated trust and believes that you can help him.
In 90% of cases; who calls you in this situation, what he wants is to hear your voice, and know who is behind that guide and those emails. You need to make sure you are contacting the right person or agency. If the first contact who answers the phone or email, is not at the expected height, the disappointment appears and “if I saw you I do not remember.” In short, a lost customer.
How should these requests for information be answered? Easy with planning. You have to have a script to answer incoming calls and a template to answer emails.
In calls you always have to be alert , (know how to listen), and always have the objective of getting the person who contacts you to give you your email willingly. Do not try to sell one of your properties or your real estate service by phone or email. Your goal is clear: get an email or face-to-face contact.
Those real estate agents who talk a lot on the phone, who give many explanations on the phone, are the ones who sell little. Generally these are the same agents who waste much of their time on visits to real estate that do not lead to anything.
What should you say in that script? What should you write in that email? I don’t want to give an example of both. It has happened to me on other occasions; that the example is taken as a written standard on stone, and not as an example.
This has brought me problems related to misinterpretations , and multiple questions that are generated. All this because they have gone through the lining of the jacket, the phrase “this is just an example”.
Both the script and the email, should be focused on getting, only and exclusively, or an email, if you still do not have ses clietne calling, or a visit. Who is really interested, will accept to meet you in person if you use “the right tone” on the phone or by email.
Remember that you will receive information requests every week and if you lower your guard and do not prepare, you will leave a lot of money on the table.
Suppose that the person who contacts you agrees with you a personal meeting, to discuss the issue of buying a property, (which may be one of those that you sell or not) , in more detail.
Now we enter the last phase of the real estate sales funnel, because not all potential customers that you will meet face to face will buy you. If you do not prepare well it is very likely that none will buy you, and this is frustrating.
| The Real Estate Sales Funnel. Close the sale.
5.- We close the sale.
Do not think for a moment that you are going to sell a property to anyone you know face to face, thanks to your real estate sales funnel. You have many possibilities, but you don’t have them all. During this phase you have to avoid falling into 3 errors .
The first mistake is to commit to looking for a property that you do not have for the client, without sufficient guarantees that this client will end up buying his property through you. It is very easy to ask an agent to “find me a property with these characteristics” , without knowing exactly what you want.
Many clients do not consider that searching takes time, effort and sometimes money (gasoline, sharing commission, …), and what they want is for you to show them 20 properties, and then they decide.
Before committing to search, you have to make things clear to the potential client, and make sure that you are looking seriously, that you are flexible in your search, that you want to buy now, that you have a budget and that you want this area and this one and not Any area of the city.
Searching for a client who does not understand your work, and is not consistent with how the market is, is a great waste of time. It rarely ends up for sale and if it ends, it has cost you “a kidney.”
The second mistake you should avoid is dealing with customers who want to buy a mansion for $ 20,000 dollars, and always want to haggle everything. Any price you present will seem expensive. It is one thing to negotiate, and another to bargain. Generally, these types of clients do not have enough credit to buy the property they want, and they believe that haggling is part of the purchase.
I bet if these haggers were the owners they sell, they would see the situation very differently. If you enter this game, it will be very difficult for you to close a sale; and it will also take you a long time to realize that you will not close it.
And the third mistake is to think that the sale is almost done, because the customer has agreed to see you in person. Here comes into play not to be on time for the appointment, answer the mobile while you are with the client, do not do what you have promised to do, … and other ways to show the client that you do not care much. That you are more interested in your commission than in giving service.
This attitude appears more than is believed, because some real estate agents are complacent and knowing that they will get more requests for information that week or the next, they do not pay due attention to the customer they have in front. Something that happens frequently in real estate agencies.
| The Real Estate Sales Funnel. Let’s make numbers.
And as a summary, let’s make the numbers to see if the real estate sales funnel is profitable. Let’s see the costs to consider:
- Auto responder: $ 20 per month subscription
- Design of the 3 pages: $ 120 dollars that we pay to a webmaster.
- Writing the sequence of emails: $ 240 dollars that we pay to a professional copywriter.
- Online promotion: social networks and other media: $ 300 dollars per month for 2 months
TOTAL $ 980 dollars. Investment that decreases in the following months by 50%.
AVERAGE RESULTS. The first 90 days
Here we are going to be conservative, to put your feet on the ground for a lot ready with unreal expectations . Click on the advertising on the Information Guide 1,000 people , with a budget of $ 300 dollars, paying $ 0.30 cents per click, (something reasonable and real).
About 600 people download the information guide and 5% of these 600; that is 30 people contact you in the next 90 days. Of those 30 people you get that only 15 of them want to meet you face to face and of these 15 people you get that only 5 buy a property through you in the next 90 days.
Now suppose that as an independent real estate agent you invoice a fee of only $ 2,000 on average, per sale.
If you sell 5 properties x $ 2,000 on average, you will have billed $ 10,000 in 1 month and a half; let’s say 2 months. Suppose this is your sales rate every 90 days or say every 2 months; So in 12 months you will have invoiced $ 60,000 dollars selling about 30 properties.
Let’s take a pessimistic result now. Consider that putting this funnel of real estate sale into practice , you sell 15 properties at an average of $ 3,000 commission per sale in 1 year . This gives a total of $ 45,000 dollars . Not bad for the first year, but it could be better. It all depends on the quality of your funnel.
I only have 2 real case studies of 2 students, (one in Montevideo, Uruguay and another in Mexico City) , which I have monitored for about 7-9 months. In both cases, its billing every 2 months exceeds $ 10,000 thanks to having put into practice , more or less well the real estate sales funnel with the 5 phases that I have described here.
Why does the real estate sales funnel work too? Because it is based on Cialdini’s Principles of influence. Because this sales funnel is the consequence of using content marketing and email marketing effectively. These are the tools currently used by the best companies and professionals in any sector, to sell products and services.
And all thanks to the fact that some wasps with vision and desire to make money with affiliate programs, such as Clickbank or JVZoo, invented it several years ago. They are the ones who have coined the phrase: “the money is in the list” or “the money is in the list”. Or if you want it clearer, having emails from potential customers is like having ground gold. Now you just need to melt it and you will have an ingot.
There is no better time than now, for you to start implementing your own real estate sales funnel. Those of us who use it know that mastering the real estate sales funnel is not easy; but without a doubt it is worth the effort.
Can you imagine receiving at least 1 request for qualified information every day , 365 days a year? It’s like having discovered the Holy Grail online.
Please, give us your opinion about this article. Do you think that the real estate sales funnel is very complicated to implement it with total effectiveness? Your opinion interests us. Thank you.
Another article in this blog that may interest you: “The 3 Tips for Effective Online Collection”