Lead Expectations & Best Practices

What conversion rate should I expect from my leads?

On average, investors close about 1 deal for every 10-15 leads. Where you land in that range depends on your buy box and follow up process: a stricter buy box (specific criteria on price, condition, location, etc.) tends to run closer to 1 deal per 15 leads, while a more flexible buy box tends to run closer to 1 deal per 10.

Here's what that actually looks like in practice, using the 1 in 10 average: out of 10 leads, expect about 6 leads won't fit your criteria or won't be someone you can realistically work with (for example, a retail-priced seller who's outside your buy box). That leaves about 4 workable leads- and your 1 deal typically comes from those 4 leads. Having a chunk of leads not convert isn't a red flag on lead quality; it's just the normal shape of the funnel.

What can I do to convert more of my leads? 

A few things make a real difference:

• Have somewhere to send the leads that don't fit. Some percentage of leads will always be retail sellers or outside your buy box- that's inevitable. Having a connection to list those leads yourself, novate, custom financing, or a trusted agent/partner to refer them to, turns a "dead" lead into ongoing relationship value instead of a wasted contact.
• Speed to lead is one of the biggest factors in conversion. The faster you reach out after a lead comes in, the better your odds- sellers often move on to the next buyer who calls first. Aim to make contact and book an appointment the same day the lead arrives.
• Follow-up matters as much as the first call. Most leads don't convert on the first touch. A consistent follow-up cadence- calls, texts, emails over several days, even weeks- catches the sellers who didn't answer right away but are still motivated. 
• Use a CRM with automation. Manually remembering to follow up on every lead doesn't scale. A CRM that automates reminders and follow-up sequences (many investors use tools like REsimpli or GoHighLevel) makes sure leads don't slip through the cracks.

**Ask our Customer Support team how we can help you get set up with a CRM and automation! We know the biggest part of not having a CRM is not knowing how to set it up or set up the automations- we can help with this!

*** Not quite sure what a lead experiences when they go through your follow up process? We have a system that tracks your follow up for 7-10 days so you can review exactly what a seller lead sees from their end! Reach out to our Customer Support team to learn more!

For more best practices on working our leads, here is some great information provided by Motivated Leads' owner- Bryan Driscoll, an investor himself!