Leads. Leads. Leads.

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The past several years have been an interesting time with respect to technology and the application of technology tools to business processes. In the field of real estate marketing & advertising, innovations in technology have created a particularly fascinating atmosphere. As the internet advanced as the primary marketing tool for real estate firms, agencies' and individual realtor's marketing efforts have turned and become hyper-focused on lead generation and lead management. This year, hundreds of thousands of dollars (millions for that matter) are being spent on search engine optimization, website content, robust lead capture reporting tools, pay-per-click, and other forms of web advertising - each new tool trying to capture the most leads. I am reminded of the Brady Bunch's middle sister Jan, perpetually obsessed with her sister Marcia - "Leads. Leads. Leads." After listening to all the hype around these new technologies I have to ask - Is this fixation with the latest and greatest technology really paying dividends?

I for one am not convinced that the return in this area is equal to time, money, and energy being spent. It seems like yet another example of how our industry chases the latest technological trend in search of the best quick fix.

Don't get me wrong, internet leads definitely have a place in the marketing mix; however, a strict adherence to one form of marketing/ advertising will undoubtedly expose you to greater competition from firms who take a more balanced approach.

I am concerned when I hear firms touting that they are or should drop all of their newspaper ads and transfer those spends to the internet. Their rationale is that a large percentage of consumers are on the web looking for homes. But do we really know that they are looking to buy soon- now - or later? With a 3% average conversion rate on so-called web leads, it's clear to be that these consumers are home looking, not home shopping. Consider your own experience as an online shopper - In a medium where the information is right at your fingertips, why wouldn't you just take a look? I would suggest that a large percentage of consumers are merely scanning the web either dreaming of someday owning a home, looking at moving to a new area when the opportunity presents itself down the road, imagining themselves in a larger more updated home (one they probably can't afford at this time), looking to see what the other homes in their area are selling for to see if their home is appreciating in value, or perhaps they're just curious.

The pervasive interest our culture has in home ownership hasn't changed; it's just found a new place to be inspired. In my opinion, on-line home shopping is no different than the old days of drive-by viewings, yard sign searching or scanning the newspaper each weekend. When I was a child, my parents used to take us on a drive after church each Sunday to "look" at homes. Did we ever move? Well, yes. Once - in 10 years.

The big advantage with the internet of course, is that you can see who is looking around and make a list of "leads." You can then "scrub" the leads to qualify them and then "incubate" them until those less ready to buy become more ready to buy. I see web leads as an electronic form of farming. In traditional farming, you acquire a list of homeowners (typically at no cost), you mail direct response pieces to those consumers seeking out "leads"; you sort responses (scrub); and continue to mail (incubate) to those non-responders or those not yet ready to purchase. How is this any different?

The issue I have with this all or nothing obsession with web leads and web leads spend, is that most firms and/or agents are continuing to miss huge opportunities to develop lifelong relationships with their past or current consumers. The 2006 NAR consumer behavior study revealed that over 70% of all transactions are generated through some form of repeat or referral business activity. This would suggest that some dollars should be allocated for offline marketing and advertising so that the consumer remembers that firm and/or agent when it comes time to buy or sell real estate. Many consumers will go to the web to search for properties, but a large majority of them will turn to the agent that provided them or a friend great service in the past when it counts not some stranger who electronically reaches out to form an e-relationship.

A healthy mix of sphere marketing, web lead acquisition and follow up, farming, and online and offline advertising would likely yield greater results or at a minimum, a more steady flow of "leads" into a firm or agent. With a lot of companies focused on the latest shinny object like web leads, blogging, the use of video, texting, and other related forms of "new" communication, the firm or agent who focuses on getting back to basics will likely thrive in any type of market.

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