Terry Miller is the owner of an independent brokerage, Miller Homes Group, in Texas. MHG has doubled in size every year since its inception six years ago. Mr. Miller accredits 50% of his business to leads and referrals. We proposed the question: what is the real difference between the two?
“A lead is generally a prospect derived from one of many avenues available to a brokerage. There are no bad leads; there are only leads that may take time and effort to develop. On a lead, patience and persistence is always the driving force to make them a client and not just a prospect. A referral on the other hand, has established they are ready to purchase under the right circumstances and is in the right mindset to complete the transaction.”
When your brokerage receives a lead, what steps do you follow in order to achieve success in converting that lead to a closing?
“A lead is contacted immediately in an attempt to establish a solid relationship. In today's world of electronic media it is important to touch every form of contact and then establish the best way to communicate effectively with the lead. With this being said, “NOTHING” replaces phone or face-to-face contact. It is important for the lead and the agent to “HEAR” the enthusiasm that the relationship will have throughout the transaction. Constant communication is a must, but in a way that makes the lead comfortable and confident you have their best interests at heart.”
How does your process differ when you receive a referral?
“All referrals have the highest priority. The referring entity has a huge stake in a referral deal and to trust our brokerage is an honor that is not taken lightly. Time is of the essence and all parties should be kept up to speed during the transaction.”
Is there a noticeable difference in conversion time when working with a referral vs. a lead?
"Referrals offer a faster conversion than a lead does. A referral is usually ready to buy and prepared to do business. A lead is generally considered a step or two being a referral in the buying process.”
Opcity specializes in broker to broker referrals. We take online “leads” and convert them into “referrals” through a screening process and using a warm connection between the homebuyer and the agent. We also take this process a step further by ensuring that the customer is being connected with an agent that is best suited to close the deal.
Because of this matching algorithm, our live connections, and our referral manager system that works very similar to a CRM, Opcity has a conversion rate that is 3-5 times higher than the industry average. Click here to request more information!