In an industry full of fly by night companies here’s a guide to help you stay in business.
- Make sure your sales are as strong as possible. Call the top dogs to see how they pitch. Use successful sales scripts.
- Purchase at least (500-1,000) leads to properly gauge performance.
- Bear in mind that most deals often close weeks later.
- Take as many leads as you can handle. The more you process the more money you’ll make.
- The industry runs 24/7, and so should you. Statistics show the best leads come thru in the evenings and on weekends. It’s simple… there’s less brokers competing for them during those hours. Furthermore the average target customer works 9-5 M-F, so it makes sense to contact them when they are off work.
How to Fail
The odds are already stacked against you. So don’t make it worse. Companies exhibiting the following practices are often forced to close their doors within 3 months.
- Burn customers. In no time you’ll rack up bad reviews which will surely hurt your business. A Google search of your company’s name with results full of bad reviews is a tell-tale sign you’re going out of business if you haven’t already. Lose your Merchant Account… GAME OVER!
- Burn truckers. Great way to earn bad ratings on Central, or worse, earn a claim against your bond. Lose your bond, and you’ll get kicked off of Central. GAME OVER!
- Burn lead providers. There’s only a handful of lead providers, and word spreads quickly. You’ll be breathing through a straw when no one will sell leads to you. GAME OVER!
- Purchase 250 cheap leads or less, then complain about the quality of “cheap leads” right away without allowing ample time for deals to close. Short term rookie mistake right there. You’ll get squashed like the cockroach you are by the competition. Closing deals often happens in waves. 250 leads or less doesn’t give you the chance to catch that wave of success.
- Wait until snowbird season to buy leads or advertise This is the most competitive time of year. Lead providers will be sold out so secure your lead spots before September and plan on holding them thru April.
- Advertise with no advertising experience Even experienced advertisers have a hard time staying above their bottom line. Advertising is very expensive, unforgiving and can be extremely risky. It’s easy to overspend on leads with Pay-per-click. Typical example. 10 clicks at $10/ea resulting in 1 lead is a likely scenario. That means the lead costed $100. Yep. $100. Then you have to close that lead. Say you’re amazing and you close 33% of your leads. You just spent $300 to make 1 sale. Congratulations on nothing! The harsh reality is most good brokers close around 5% anyway whether the leads are exclusive or not.
- Use CRM’s other than jTracker. jTracker’s expensive but the numbers don’t lie. Statistics show that brokers who use other CRMs or custom CRMs don’t last very long. With jTracker, activating your lead providers is instant. Other CRMs require manual setup by the CRM provider which can take a WEEK or longer to get leads coming in properly. Can you afford the downtime? Furthermore, the majority of other CRMs are secretly owned and operated by other brokers. How comfortable are you with your books, data, and customer information in the hands of your competition?
Most lead providers don’t accept credit cards. This is due to the high risk of credit card fraud/abuse within the industry.
Sure, there’s a handful of lead providers foolish enough to accept credit cards from brokers. Feel free to charge back on each and every charge with them regardless if the cheap leads you purchased were good or bad. Why be held accountable for your lack of sales skills, or any of the countless other variables on your end, right? Wrong. Lead providers will quickly let other lead providers know, and then no one will sell you leads.
What to Look Out For
- Any lead provider that badmouths another lead provider. This is a huge red flag.
- Beware of lead providers that own and operate brokerages, and resell you their used leads.