A question I hear often from our users is how to best use the lead conversion analytics we provide and is it really that important for them to analyze their lead spend vs. conversions? In my opinion, it’s a very important piece of running a smart real estate business. Understanding how much you’ve spent, how many deals you converted and how much you made per deal gives you really good insight into where to spend your money on leads going forward. For example, take a look at the report below:
All of these lead sources have been profitable but I can see that Zillow has consistently given me higher priced deals which has led to higher commissions. From a quick look at this report I can determine that I may want to up my spend with Zillow and begin to test whether the data continues to trend in the same direction with higher priced deals which in turn is earning me more commission dollars. I can also see that Adwords hasn’t been very profitable. It’s only brought me one deal that had a lower price point. I’ve spent almost 50% of what I’ve made so I need to be careful with this lead source that I don’t end up spending more than I am making. This is especially important if this report is run over a fairly long period of time such as 6 months. If the data hasn’t trended in a better direction you may want to re-consider this lead source and divert the money to be spent elsewhere.
I’ve heard from a lot of agents that as long as they are making some money from the lead sources they are happy, but as you can see, taking a closer look can help you make informed decisions that will help you earn more money.
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