Lead Generation Survey Results: What Are Top Agents Doing in 2023?
Real estate agents know that the foundation of a successful business is built through lead generation. But where agents choose to spend their time, money, and effort generating leads varies. Prospecting and marketing strategies vary from agent to agent as each tries to touch their database through personalized methods tailored to their own skills and client interests. Lead generation also varies with time as market conditions shift, …, and the latest technology changes the game.
We know our readers like to stay ahead of the game so, in July, KellerINK and the Keller Williams Research Team surveyed hundreds of top agents to identify current industry trends in lead generation.
In addition to information about the efficacy and popularity of common lead generation methods, our survey revealed another lead generation practice among agents: focusing on three main sources. In the past when we have surveyed agents, we identified what we call the Rule of 4, where agents chose to focus on four main lead generation sources. However, when reviewing the most recent survey results, we found that the fourth-place answers for each question were a significantly lower percentage than the top three. This suggests that agents have narrowed their focus down to just three primary lead generation methods in recent years.
For each question, we’ve separated the response into solo agent and team categories. Read below to find out what, on average, your fellow agents are doing when building their businesses and servicing clients.
What Is Your Largest Source of Business?
For both teams and solo agents, the top three answers are the same (1. Past client referrals, 2. Repeat clients, and 3. Database referrals). For solo agents, on average, past client referrals make up more than half (51.97 percent) of their business sources. Team members get about the same amount of business from past client referrals and repeat clients—33.33 percent and 32.84 percent, respectively.
What Activities Generate the Majority of Your Referrals?
The top three answers for both teams and solo agents are the same, with the number one answer being working with their database. It’s obvious that the database plays a big role in lead generation for both team agents and solo agents, as it shows up in the third answer—calling members of the database to ask for referrals—as well.
What Is the Primary Way You Generate Leads from Listings?
Once again, the top three answers for both groups match, and topping the list is open houses.
What Tactics Generate the Largest Portion of Your Non-Referred Clients?
This is where the two groups start to split off. While solo agents’ number one tactic is keeping up with their sphere (at 28.7 percent), for team agents the top answer is paid lead services (at 23.81 percent). For solo agents, paid leads only make up 7.45 percent of their business tactics. And farming, which is number two on the list for solo agents (at 12.77 percent), only accounts for 4.76 percent of the team agent answers.
What Percent of Your Closed Business Came from Each Lead Generation Activity (New Clients, Non-Referral)?
While keeping up with agents’ Sphere of Influence tops both lists, the percentages vary greatly. Plus, the second and third answers from each group didn’t make its counterpart’s top three at all.
How Do You Feel about the Quality of Leads Coming in over the Last 12 Months?
Finally, we asked how agents feel about the quality of leads they’ve generated using their preferred method over the last twelve months. We wondered if they’d gotten better, stayed the same, or gotten worse. While most team agents feel the lead quality has gotten worse, over 50 percent of solo agents feel the quality of leads stayed the same.
Although changes in the market may have made lead conversion more difficult in the past year, the fact remains that you can still set appointments and ultimately make sales if you put in the work. One solo agent stated that their results were highly related to their actions, writing that they’ve been “staying active in community organizations, taking leadership positions in my activities, staying visible with my sphere and network. It’s a relationship business, which means showing up face-to-face, voice-to-voice.”
Other solo agents wrote that their “sphere is extremely loyal and referrals are up,” and “social media posts are more effective.” Still, others thought the quality was worse off than last year, citing “lack of inventory and prices,” and “mortgage qualification down and affordability issues.”
For team members, some felt optimistic about lead quality, saying they’ve had a “huge uptick in leads and quality of leads generated off of Google Reviews,” and that “the leads are further down the funnel (they are ready to do something.)” While others felt the pressure of the market effecting their lead gen activities: “Decreased lead count, longer timeline, decreased motivation, issues qualifying,” and “drop in volume.”
While an agent’s lead generation strategy should reflect the ever-evolving market of the moment, one thing that shouldn’t change is making lead generation center of their business.
How has your lead generation strategy changed over the last year? What about the quality of your leads? Let us know on the KellerINK Facebook page. And don’t forget to check our blog for more articles and information.