Sure. You could dump more money into your online ads and direct mail campaigns. You could spend more time setting up bandit signs, driving for dollars, cold calling, and door knocking.
Would that help your business grow?
But here’s what you have to think about first…
How many leads are you currently closing? Are you struggling to close just 25% of existing motivated seller leads? What about 15%? Or even 5%?
If you are, then the last thing your business needs is more leads.
Let me say that again: if you’re not closing the vast majority of motivated seller leads that your business generates, then you don’t need more leads…
…you need a better close rate.
After all, just a 25% increase in close rate of your current lead volume could mean tens of thousands of dollars per month in additional business revenue.
Plus, you don’t want to drive more leads to a sub-par closing funnel. You need to polish your close rate, then increase lead generation.
So here are 4 ways you can close more deals without generating more leads.
Closing Tactic #1: Follow Up at Least 5 Times
If I had a nickel for every time that a business didn’t follow up with an inbound lead within five days, more than half of the 433 businesses tested by Drift would be paying me nickels.
That’s right, less than half of businesses respond to form-submission leads within 5 days and only 7% respond within five minutes.
Unfortunately for those businesses and fortunately for you (if you choose to be different), a healthy close rate demands just the opposite.
Here’s how Michelle Moore, the author of Selling Simplified explains the importance of following up with prospects.
“Not following up with your prospects is the same as filling up your bathtub without first putting the stopper in the drain.”Michelle Moore
The vast majority of deal closure happens between the 5th to 12th contact with a prospect.
Want to increase your close rate?
Try contacting your leads more regularly and don’t assume they’re uninterested just because they said “no” once. In a week or so, they might not feel the same way.
Closing Tactic #2: Explain the Benefits of Working With You VS. a Real Estate Agent
It might sound like a dull note to your ears, but that’s because you’re so familiar with the benefits of working with a real estate investor instead of a real estate agent.
Remember, though, your prospect probably has no idea what those benefits are.
If they’re calling you, then their only understanding of the benefits of working with you is what they read on your direct mailer, your website, or your Facebook or AdWords ad.
But they will still need some help conceptualizing those benefits. So reiterate those benefits for them again and explain why you’re able to do each.
Here’s how one wholesaler over on BiggerPockets succinctly lists the benefits of working with an investor rather than an agent:
- “Close fast
- Pay cash
- Not a realtor so no commissions
- Buy as-is
- Pay closing costs”
Closing Tactic #3: Don’t Ever Let an Inbound Lead Go To Voicemail
Every time that a lead goes to voicemail, your chance of contacting that lead when you call them back drops 100 times. And the chance of qualifying them drops 21 times.
Depending, of course, on how quickly you call them back.
Unfortunately, anything over five minutes hurts your chances.
Because there’s plenty of competition in your market, which means plenty of other investors that your leads can contact if you don’t answer the phone when they’re ready to take action.
But look, I know you’re busy. Answering the phone when it rings is easier said than done. Which is exactly why we started Call Porter, a call center specifically for real estate investors with U.S. based reps who’re professionally trained to talk with motivated sellers, qualify those sellers, and then schedule a follow up call between the prospect and you (or your acquisitions manager).
Call Porter is saving hundreds of top-performing investors around the nation time, money, and sanity.
And with dedicated reps, Call Porter-managed leads almost never go to voicemail.
You can schedule a demo with us to try us out for yourself.
Closing Tactic #4: Tell a Compelling Case Study Story
When a prospect is trying to decide whether to work with you or not, they’re trying to figure out whether they can trust you, whether you’re the real deal, whether you really have their best interest in mind.
That’s the way of things, after all. What do you do before paying someone a lot of money?
You make sure that they’re the real deal.
That’s why 85% of consumers, for instance, read up to 10 reviews before feeling that they can trust a business.
And one of the best ways to build trust with a prospect over the phone is to have a story ready to tell. When they start saying things like…
- “Have you done this with anyone else before?
- “How do I know this isn’t a scam?”
- “I don’t know. It makes me nervous.”
- “It sounds too good to be true.”
- “What’s the catch?”
…it’s a good time to tell them a story about someone else who was nervous before working with you, and how they were so happy that they took the leap.
That’ll work wonders to build trust, squash objections, and increase how many leads you close.
While it’d be easier to just generate more leads to compensate for a struggling close rate, doing so will hurt your longterm ROI and ensure your business doesn’t reach its full earning potential.
Before you spend money and time on generating additional motivated seller leads, first make sure that your close rate is exceptional. In the world of real estate investing, even a slight percent-increase in leads closed can mean upwards of $5,000-$10,000 extra per month.
Use the above 4 tactics to polish your close rate. Then drive more leads.
And let me know in the comments of any interesting tactics you use to close more deals than your competitors.