Fueling the Funnel

“The brutal fact is the number one reason for failure in sales is an empty pipe, and the root cause of an empty pipeline is the failure to prospect.”

—Jeb Blount, Fanatical Prospecting

Almost all homebuyers start their search online, yet many agents still lack systems to automatically capture and convert these leads. In this chapter, I explain how to build and manage an effective lead-generation and incubation sales pipeline. First, I cover how to use your website and paid sources to generate new leads, and how social media can support that effort. Then, I show you how to organize and track prospects in your database for lead incubation and follow-up. You will also learn how to use social media and recommendations as a key catalyst for lead conversion. Finally, I will teach you how to build your credibility with client testimonials and grow your referrals through outreach across multiple communication channels. After learning these lessons, you’ll know how to turn your online presence and database into a steady stream of new clients and referrals.

Your Own Website

Creating your own website can attract new leads, build authority, and help you stand out. Your first step is to register a domain name. This is the web address people type to access your website. Choose a name that is easy to say and type, reducing the chance of typos or misspellings. Most agents use a combination of their name or the city they work in (e.g., SallySellsSarasota.com). While the .com top-level domain is the most common, you can also choose other top-level domains. One option specifically for real estate agents is .realtor¹. For example, your website address could be SallySellsSarasota.realtor.

There are three main advantages to owning a dedicated site like SallySellsSarasota.com. First, once you register your domain name, you can start using it for email. The easiest way is with Google Workspace². This lets you enjoy Gmail’s strong spam filters while using your own domain. Think of it like a vanity license plate for your email. For example, you might use the email address info@SallySellsSarasota.realtor.

The second benefit of owning your own website is that it boosts your credibility with clients and prospects. Using a professional email address and having a custom website help you project an image of stability and success. Just as wearing professional clothes shows professionalism in person, having a website demonstrates professionalism online.

The third key advantage of having your own website is the ability to create custom landing pages. A landing page is a single, targeted webpage designed to collect a visitor’s contact information. These pages offer specific incentives, such as a free CMA for sellers or a guide for first-time homebuyers, in exchange for their details.

If your prospect must enter their contact information before accessing the incentive (e.g., a PDF guide), this type of landing page is called a squeeze page. A squeeze page is meant to “squeeze” contact information from visitors by offering a high-value piece of content in return.

A special type of landing page is a single-property website—an online flyer for a single listing. By creating a web page like this, you can use it alongside your targeted advertising to promote that listing. You can also link a printed flyer to your electronic flyer using a QR code. When someone scans your QR code, they will be directed to that single-property website. This allows you to provide additional information, such as video walkthroughs, floor plans, and, if applicable, the home price—details not included in the printed flyer.

You could also use a single-property website as part of your call capture system for that listing. When someone calls your automated hotline, they receive a text message with a link to the single-property website page, allowing them to view your listing details. When they call your call capture phone number, their phone number and caller ID are recorded, and a prospect record is automatically created in your CRM.

You can also use any of these landing pages as part of an advertising campaign on Facebook or Google. Usually, you would target a specific geographic area where your prospects are located, ideally near your listing. For Google, you might focus on intent-based keywords, such as searches for “house for sale.” On Facebook, instead of targeting intent, you would focus on interests and the pages people visit. You could target pages related to living in a specific city, relocating to that city, and similar topics.

In each of these cases, the contact-me forms on your website collect a name, phone number, and, in many cases, an email address. That information is then sent via email to your CRM. All contact forms would automatically create new prospect records in your CRM email feed, a process known as lead parsing. When a prospect submits their details, your website sends them to your CRM via email. Your CRM then parses those emails, creates a prospect record, and notifies you to follow up. You are also notified by email and text message so you can respond immediately.

The Speed-to-Lead Secret: Respond to all internet needs as quickly as possible, preferably within 5 minutes. Each lead you get is probably also reaching out to other agents as well. Take advantage of the features in your CRM to minimize your response times such as email feed, call capture, click-to-dial, and smart phone synchronization.

Your CRM would track which landing page, contact-me page, and single-property website generated each prospect record. That way, you can identify which landing pages are producing results and which are not. One of the biggest challenges in creating a website is the wide variety of options available, some of which can be quite costly. By attributing your lead sources to your leads, you can use your CRM to determine your return on investment for specific marketing campaigns.

Some CRM vendors provide an all-in-one solution that includes an integrated website. This setup offers the convenience of managing both your database and online presence on a single platform. Leads are captured directly without setting up an email feed, and technical support is handled by a single vendor.

However, this convenience comes with a major trade-off called “vendor lock-in,” meaning it’s difficult to switch to a competitor without high cost or hassle. If you decide to change CRMs or website providers later, you’ll lose your website (or CRM) and have to rebuild everything from the ground up.

These integrated sites also tend to offer less design flexibility than standalone platforms. Keeping your CRM separate from your website is strongly advisable for these two reasons.

Freedom First Secret: If you choose a CRM that also includes a website, it becomes harder to leave if you’re unhappy, since you’d have to leave both. To maintain freedom of choice, use two vendors—one for your CRM and one for your website.

A good starter website can be built on a simple platform like Squarespace, Wix, or WordPress. These tools are affordable, easy to update, and let you quickly create prototypes and test what works. While you could handle registering your domain name, setting up Gmail, and building a website yourself, it’s often best to leave these tasks to experts. The best approach is to start small by hiring someone on a fixed-fee basis to handle these tasks for you. You’re bound to make mistakes and learn a lot. Once you’ve gained experience, you can consider elevating your web presence by working with a company on a monthly basis and building a more advanced website.

The advantage of hiring someone for a fixed fee is that you will own your domain name and have the flexibility to hire a new vendor to take your efforts to the next level. When you engage with a company for a monthly fee, you need to determine who owns your website should you decide not to continue with that company. Most companies that charge a monthly fee consider any content they create, including anything on your website, to be their property and would not allow you to transfer it to a new firm. You might not even own your domain name, and it might be considered the property of the firm you engaged with should you decide to stop paying your monthly fee. For this reason, your first step should be to secure clear ownership of your domain name and website.

Your initial website should include biographical information about you and your team, details on any areas of specialization, and a contact form. Filling out the contact-me form will send your CRM the contact information via an email feed.

You should also consider creating a series of web pages for each neighborhood you serve, especially any geographic farm neighborhoods you are targeting. A geographic farm is a neighborhood you intend to focus on to gain market share there. The best content includes the neighborhood’s history—when it was first established and what was there before the development—and details about the community, including Homeowners Association (HOA) information. If you can provide a neighborhood map and photos of unique locations, it would be more compelling. If someone is interested in buying a home in that neighborhood, there’s a good chance your landing page will appear in their Google search results if the neighborhood is small enough and the information you provide is detailed enough.

Most agents will stop there. However, if you are a highly successful agent with a team, the next step is to upgrade your website to include IDX support. This means your website pulls local listings from your MLS and displays them. This technology has a monthly fee, so you need to determine whether your website receives sufficient traffic to justify this additional cost. For most, the decision will likely be to skip adding IDX support.

It is relatively easy for your website to appear when someone searches for you by name, but it is much harder to appear in Google search results when someone searches for real estate agents in your city. The reason is that you are likely the only real estate agent in your city with your name, so Google can easily recognize that your website is the primary source for a search like “Sally Smith real estate agent Charlotte.”

For more general searches like “real estate agent in Charlotte,” you are competing with all the other real estate agents in Charlotte who have websites — possibly hundreds or even thousands. The process of getting your website to appear at the top of that list is called Search Engine Optimization (SEO). There are books that explain how to format your website to improve search engine visibility and attract attention. I won’t go into much detail here, except to say that you should either hire someone to do this or spend some time reading a book on the subject. Unfortunately, it can get complicated.

One specific suggestion is to publish helpful, hyperlocal content on your website, such as information about local infrastructure projects, events, shops, and restaurants. This type of content is often shared on social media platforms such as TikTok, Facebook, and YouTube. If you’re already doing that, consider also making it available on your website to help promote yourself there as well.

Ideally, you want your website to be mentioned and linked to by other sites. By creating hyperlocal content, you can then reach out to local vendors you’ve mentioned and ask them to link to your review of their business. This increases awareness of your site among search engines and users. You can also register your website on Facebook using a business page, and there are similar options on LinkedIn. You can also set up a business profile with Google.

These strategies should be sufficient to help people find your website. For instance, if they search for “Sally Smith Real Estate,” they will likely find your site once you have done some basic work. At this point, you have gained online credibility because people can find you when they search for you by name.

Getting your website to appear in organic search results takes time. Organic search results are the results that Google and other search engines generate based on the phrases that someone uses. Google search experts say that significant quality improvements may take several months to show in results, and larger gains could take even longer. Search Engine Optimization (SEO) is a consistent effort that builds gradually over time.

Some successful agents take the next step: getting their website to appear in organic search results when someone searches for real estate in their local area. The search might be something like “Real estate agent in Charleston.” This is much harder to rank for. By ranking, I mean where your website appears in search results. Ideally, you want to be in the top 10. If you are the 2,000th listing for that search, it probably won’t generate much traffic. Competition is fierce for these types of search results. There are likely other real estate agents who have already created websites and established themselves so they will outrank you. This means you have to work hard to stand out among some pretty tough competition.

For immediate traffic, consider Pay-Per-Click (PPC) advertising on platforms like Google and Meta to drive visitors to your landing pages. PPC is a form of online marketing in which you, the advertiser, pay a fee each time someone clicks your ad. Instead of paying for the ad to be seen, you bid on specific keywords (such as ‘Sarasota homes for sale’) to have your ad appear at the top of Google’s search results. You pay only when a user clicks the ad, helping you outrank organic search results.

In summary, start with your broker’s website, but as your business grows, consider establishing your own domain for both email and your website. At first, hire someone for a fixed fee to help build your website so you can make mistakes and learn. Feed your website’s contact forms directly into your CRM via an email feed.

From there, you can decide whether to pursue additional opportunities, such as advertising and improving your organic rankings. Because these efforts are complex, you’ll likely need to hire someone if you decide to take this next step. For a high-end website, your monthly budget could be substantial, but you shouldn’t feel pressured to choose a more expensive option right away. Begin with limited effort and expand in ways that attract more visitors. Track which leads come from specific landing pages on your website so you can use your CRM to monitor your return on investment.

Regardless of which options you choose, always keep your CRM separate from your website. That way, you can switch vendors without causing too much disruption.

Paid Lead Sources

There are two kinds of paid lead sources you can use. The first are live lead sources, such as Zillow, Trulia, and Realtor.com. The second type of lead source is data-aggregation lead sources. They are not gathered in real time; instead, they are pulled from databases. Examples of these types of leads include expired listings, FSBOs, and probate leads.

The advantage of paid lead sources is that, if you have the budget, they can generate leads instantly. If you’ve built a system to convert a specific type of lead, paid sources can help you feed your engine and achieve results that might otherwise be out of reach. Your CRM is the key to this effort because it allows you to systematize the lead incubation and conversion process.

One disadvantage of paid lead sources is that other agents are also working the same leads. Paid lead sources are usually not exclusive. For some leads, such as Zillow leads, the prospect may expect your call. But for others, like expired listings, the prospect doesn’t expect it and may not appreciate your call.

Generally, you should expect paid lead sources to be weaker than other types of leads. This means you’ll need to be persistent and patient. You might have to contact someone several times before they become a client or before you decide to give up. If you treat paid leads like other kinds of leads, you’ll find they don’t convert easily. Persistence is what makes these leads work, and the best way to manage them is to call first and then include them in a touch cycle so you keep reaching out to them repeatedly.

You’ll also encounter fake leads—people who enter false contact information. Be sure to mark any disconnected phone numbers as (BAD) in your CRM. Invalid email addresses will automatically be flagged as HardBounce when you attempt to send an email. I also suggest watching out for obviously fake contact information, such as DonaldDuck@Disney.com. It’s best not to try emailing an obviously fake address. You will also want to add a “Cold” category to any fake prospect records or to those for which the prospect asks you to get lost.

Some leads are live, meaning you receive their contact details seconds after your prospect enters them. These are, by far, the best and most expensive leads. Zillow, Trulia, and Realtor.com are examples of these lead sources. These leads are loaded into your real estate CRM in real time via an email feed, also known as lead parsing. Your CRM will accept lead emails from these sources and automatically convert them into prospect records. It will automatically check for duplicates and verify that there’s enough contact information to reach the prospect. You will then be instantly notified of the new lead via email and text message.

Other leads might not even realize they are leads. They could be a group of For Sale By Owners (FSBOs) simply trying to sell their house. They didn’t ask for a real estate agent to contact them. These leads would be loaded into your real estate CRM using valet import. This process efficiently transfers data from a paid lead source, such as RedX, into your CRM with just one click. Agents usually import this data weekly. These leads are less urgent than live leads. My first book, Real Estate CRM Secrets, offers a thorough discussion of prospecting systems for FSBOs and Expired Listings, including scripts and multi-touch follow-up plans.

For new agents, paid lead sources are often a poor investment. New agents often lack the skills and persistence to achieve results. Instead, I recommend that new agents focus on alternative lead sources that better suit their needs.

Another way lead aggregation companies gather data is by crawling the internet. For instance, automated bots scan Craigslist’s For Sale By Owner (FSBO) listings and Facebook Marketplace ads. The data is then cross-checked against property tax records. As you can imagine, the quality of this information isn’t always perfect. Sometimes, you’ll get a phone number that isn’t connected to the prospect or an email address that’s outdated or no longer in use.

Skip-tracing software is a specialized tool that finds an owner’s contact information from a property address alone. It helps identify off-market properties, vacant homes, or estate heirs. These services analyze data from private and public sources to link phone numbers, emails, and relatives to a specific address. The best services can also navigate complex ownership structures, such as trusts or LLCs, to reveal the individuals behind them.

A key feature of any reputable skip-tracing service is its ability to identify phone numbers on the Do Not Call (DNC) registry, ensuring your outreach remains legally compliant. The lists generated by these services can be imported into your CRM to manage the multi-touch follow-up campaigns needed to turn these weak leads into clients.

Pay for Profit Secret: Once you have perfected your incubation sales funnel, paid leads can provide you a steady stream of prospects to feed your pipeline.

You can reach out to your real estate CRM vendor to get a list of paid lead sources they have partnered with in the past. Don’t feel limited by this list, since your CRM vendor can import data from any paid lead source.

Working with paid lead sources is a numbers game. Only about 5% of leads typically result in a closed transaction. Gary Keller, co-author of The Millionaire Real Estate Agent, estimates the lead-to-close rate can be as low as 2%. These leads also tend to have longer incubation periods and require multiple touches to see results. Managing such leads is most effective with a real estate CRM, which lets you set up automated drip sequences via print, email, or postcards. You should also reach out to each prospect by phone or text, as email alone rarely converts these kinds of leads³. On average, expect to contact each prospect 7 times before converting them into a client.

I suggest using a mix of communication channels when reaching out to your leads. An email is most effective after you’ve made initial contact. Emails from strangers often end up in the spam folder. However, if you call or text someone and mention that you’ll be sending an email, they are more likely to expect it. If your email ends up in their spam folder, they can easily find and retrieve it.

Always focus on the value you offer each prospect. Emphasize what you can do for them. Every prospect has a motivation, and when you pitch your services, be as specific as possible. For example, if it’s an expired listing, explain why the property didn’t sell and that you have a detailed plan to sell it quickly and for the best price. If the lead inquired about buying a particular home, research that home and neighborhood, and offer to show either that property or one in the same area. Your ability to directly address your prospect’s interests will help build trust in your ability to provide valuable services.

Treat people in your prospects database as valuable only for a limited time. Organize your prospects by their initial entry date in your real estate CRM. If you sort your database from oldest to newest, you can decide which to call and which to categorize as “Cold”.

When you contact a lead, remember that a cold call is always more complex than a warm one. This is why you should never delay calling a prospect in your database when they are first added. If you decide a lead isn’t worthy of an initial phone call, it’s probably too weak to be in your database.

The most effective way to make initial contact is to immediately explain why you’re reaching out. If they submitted a Zillow information request, mention that. If you contacted them because their listing recently expired, be sure to clarify that as the reason for your outreach. When you reach out to your prospect, update the last contact date and include notes. These notes should cover whether you’ve called them and the outcome. Your real estate CRM allows you to mark phone numbers as disconnected, and you should add notes if you leave a voicemail.

Social Media

According to the 2024 NAR Member Profile, the typical real estate agent receives only 2% of their business directly from social media. Social media’s primary role is to act as a catalyst, boosting your reputation and credibility, while its secondary role is as a direct source of leads. After a prospect meets you, they will search online to read reviews and verify how you market your listings. So, even if the lead wasn’t generated online, your strong digital presence reassures them and influences their decision to work with you. Therefore, your social media activities provide validation and reassurance, helping prospects decide to choose you over other agents.

Facebook is an essential platform for building and validating your reputation with potential clients. Your Business Page serves as your public resume. When a prospect looks you up, they will see a history of client success stories, local market updates, and community event involvement. This shows you’re an active, connected local expert. Participating in local Facebook Groups to answer questions further reinforces this expert status without overt selling.

While Facebook targets consumers, LinkedIn is the leading platform for Business-to-Business (B2B) networking. Use it to build referral relationships with mortgage lenders, attorneys, financial planners, and corporate relocation managers. In contrast, X (formerly Twitter) is your platform for real-time engagement with local news, businesses, and journalists. TikTok, Instagram, and YouTube serve as your visual portfolio, showcasing your current listings through walkthroughs. You can provide market reports on local conditions and video reviews of local establishments.

When a potential client visits your YouTube channel, they see the professional content you have created. A well-produced, comprehensive property tour on YouTube underscores your professionalism and builds trust in your ability to represent a seller’s most valuable asset. These high-touch marketing strategies not only sell that listing but also demonstrate the quality the seller can expect from you and your team.

Reliable Realtor Secret: Do not rely on social media to generate new leads. Industry data shows that only about 2% of business comes directly from these platforms. The real purpose of social media is validation. It serves as a professional background check for referrals and prospects, demonstrating that you are active, credible, and trusted before you ever speak with them.

A well-executed social media strategy shifts your role from a salesperson to a trusted, publicly vetted community resource. Its primary goal is to provide strong social proof, a psychological principle in which people look to others’ actions and approval (such as reviews and testimonials) to validate their own decisions. Prospects who find you through other channels will use your social media to validate their decisions. A professional profile, supported by client testimonials and community involvement, signals that you are a credible and trusted expert. Therefore, the true value of social media isn’t in the leads it produces but in the trust it builds and the prospects it helps convert from other channels.

The key to social media is engagement. You should review which of your posts and videos generate the most feedback. Most agents post information about their listings and sales. While this provides social confirmation that you deliver results, these posts are unlikely to generate much engagement. You should also create posts that encourage engagement, such as an online poll or a post about a neighborhood event people should be aware of. Perhaps there is a local gardening event or a Street of Dreams event you want people to know about.

Gathering Testimonials

Public third-party review platforms have largely replaced private reference letters. These sites provide social proof and help prospective clients choose an agent with the most and best reviews. To stay competitive, solicit reviews and ensure they are publicly available online. The key elements of this strategy include timing your review requests, asking the right clients, and making the process as easy as possible.

The best time to ask for a testimonial is immediately after a successful closing, when your client’s positive feelings are at their peak. Send a simple email with a direct link to one or two preferred review sites. By requesting reviews only from your most satisfied clients, you can shape the feedback that appears publicly. Following up with a handwritten thank-you note or a quick phone call shows appreciation for their time and effort, strengthening your relationship.

It’s essential to build your reputation authentically. Never pay for testimonials or post fake reviews. You should also avoid offering gift cards or other monetary incentives as direct compensation, as this violates most platforms’ terms and can undermine the trust you’ve worked hard to establish.

With many review platforms available, it is important to focus your efforts. I recommend selecting two primary locations for your reviews to establish a strong, easy-to-find presence in online searches. This creates a good impression on prospects and provides a backup if an issue arises on one platform. Your platform choices should align with your business goals and fall into three main categories.

First are the major real estate portals, such as Zillow, Trulia, and Realtor.com. If you rely on these sites for paid leads, building a substantial review collection is essential to boosting your credibility and conversion rate. Even if you don’t actively request reviews on these platforms, maintaining a complete profile with your biography and photo enhances your visibility and helps with search engine rankings. However, be cautious about concentrating reviews on a single paid portal, as it can be risky if you later decide to shift your business away from that lead source.

Commitment and Consistency Principle: When a client writes a testimonial for you, they become more likely to seek out your services again. Psychology shows that when people make a public, positive statement, they feel compelled to stay consistent with it. By giving you a positive review, your client reinforces their positive view of you and is more likely to refer you to others.

The second category includes local business platforms, which are essential for establishing your presence in the community. A Google Business Page is free, highly recommended, and offers significant benefits. It prominently displays your business information, location on Google Maps, and star rating in search results, providing unmatched visibility and trust. These reviews also influence your website’s search ranking. While most effective for agents with physical offices or brokerages, it remains a key tool for local marketing.

Similarly, Yelp provides a platform for building a profile, though it tends to give brokerages more visibility than individual agents. Although Yelp ads receive priority placement, it’s best to focus initially on the organic reviews people leave.

For established teams and brokerages, membership in the Better Business Bureau (BBB) offers the highest level of credibility. The BBB assigns a letter grade based on criteria such as your length of time in business and how effectively you handle complaints. It can also mediate disputes to ensure fair resolutions, and its trusted review system is carefully vetted, reflecting a strong commitment to ethical practices. Displaying a BBB badge on your website can enhance both consumer trust and your site’s search rankings.

The third category is social and professional networks, such as Facebook and LinkedIn, which emphasize community and personal branding. A Facebook Business Page is one of the easiest platforms for an individual agent to manage. I recommend creating a complete profile and enabling the reviews feature. Because Facebook is community-driven, you might receive unsolicited feedback from people who know you, making it a more interactive space for building your reputation. You can also leverage this platform by posting photos of smiling, satisfied clients in front of their new homes, holding your sold sign. There is no better visual proof of your success and ability to deliver results.

Managing public feedback involves addressing both negative and fake posts. Negative reviews are unavoidable, and a profile with only 5-star ratings may seem inauthentic. When you receive negative feedback, respond publicly, professionally, and positively. Acknowledge their comment without sharing specific transaction details, and let them know you’ll reach out privately to resolve any specific issue. This demonstrates accountability to potential clients.

It’s also important to watch for fake reviews from spammers, which can harm your credibility. Report these to the platform’s moderator for removal. To protect your reputation’s integrity, avoid review sites that allow you to copy and paste testimonials from other sources. Such practices diminish a platform’s credibility, can be flagged by search engines as duplicate content, and create confusion about the legitimacy of your reviews.

The Reputation Ripple Secret: Write a detailed positive review for a local business you admire once a week. The local businesses you review can range from a favorite coffee shop to your go-to home inspector. If you know the owner, let them know you left a review. This will start a network of reciprocal relationships in your local area.

Your reputation management strategy should be a two-way street. Use the same review sites to evaluate the tradespeople, local shops, restaurants, and vendors you recommend. Before adding a painter or inspector to your preferred list in your CRM, check their online reputation. To establish yourself as a trusted, impartial advisor, keep a list of at least three vetted professionals for each trade. Recommending someone with negative reviews can damage your credibility. Additionally, you can build goodwill by actively posting positive reviews for local businesses you frequent, from the coffee shop where you meet clients to the restaurant where you celebrate closings. As a recognized regional expert, your endorsement carries weight. Telling a business owner that you’ve left them a glowing review is an effective way to strengthen relationships and encourage reciprocal referrals. Building mutually beneficial connections with other local professionals is a powerful yet often overlooked part of a referral-based business.

To ensure you never miss the optimal window to request a review, integrate the ask directly into your CRM’s closing task plan. This systematic automation ensures your request is timely, consistent, and tracked, turning every positive closing into a guaranteed opportunity to build social proof.

Ultimately, gathering testimonials is about more than marketing; it is how you build a trusted, credible brand⁴. Real estate agents help clients through what is likely the most significant financial transaction of their lives. A substantial collection of public and third-party reviews provides credible, word-of-mouth evidence of your integrity and ability to deliver results⁵. This social proof not only attracts new business but also builds loyalty among past clients, creating a sustainable cycle of referrals and repeat business that will support your career for years to come.

Converting Prospects into Clients

If everyone you met were ready to buy or sell immediately, life would be much simpler. But that is rarely how things work. People take time to make up their minds. They may not even know the price of the house they can afford when you first meet them. Organizing your lead follow-up is the primary benefit of using a real estate CRM. Sometimes, lead incubation can take days, weeks, months, or even years.

Your real estate CRM can help you schedule follow-up calls and track what you discussed during your last call. While this is possible without a real estate CRM, it is nearly impossible when you meet hundreds of people each year. Your CRM lets you build a daily call list of who needs follow-up. It also allows you to document the pre-sales process and capture all details for each lead. In addition to notes, you can kick off automatic time-release follow-up emails and send printed letters and postcards.

The process of reaching out to a prospect and scheduling a follow-up is often called a touch cycle. Industry studies consistently show that persistence pays off. For example, real estate coach Tom Ferry has noted that the contact rate for a new online lead can reach 90% by the sixth call attempt⁶. Another report from Invesp research shows that 48% of agents give up after the first call⁷. I have found that most agents give up too early due to a lack of an organized follow-up system. An organized and persistent follow-up strategy, managed through your CRM, is what separates top producers from others and greatly increases the chances of turning a lead into a closing.

When making your initial calls, stay fresh, rested, and prepared. Turn off the TV and ensure the dog won’t bark. Review what you know about the prospect and their needs. Spend a minute or two doing research—if someone asks about a property, pull it up on the MLS. Visualize your immediate goal for the call and identify the steps to achieve it. Are you aiming to set an appointment for a listing presentation? Be clear with yourself about the steps needed to make it happen. Then, make your call.

I recommend creating a few standard scripts for these calls to streamline your prep before each call. If possible, avoid making prospecting calls from your car. Instead, make your touch cycle calls when you’re in front of your computer and prepared.

For most prospects, it’s best to schedule the next follow-up right after hanging up. If your call goes to voicemail, consider texting your prospect. More people respond to texts than listen to voicemail messages. Save voicemails for older individuals who don’t use texting. Phone calls are effective when you reach the person you’re calling. However, the main limitation of phone calls is that the person must be available, willing, and have time to talk. In today’s world, that’s often unlikely. People have jobs, dinner to prepare, and kids to look after. The advantage of sending a text message is that people are more likely to read it within a few minutes and respond quickly.

Your real estate CRM includes a text messaging feature that works just like sending an SMS from your mobile phone. For prospecting, there are many advantages to using text messaging through your CRM. You can quickly review the text conversation, your notes, and any other information you’ve collected about your prospect, all in one place in your CRM. You can type your message using your computer’s keyboard. If you’ve identified a particularly compelling text message, save it for reuse so you can paste it into the chat to save time. Your CRM allows you to send 10 text messages in just a few minutes.

The Single Step Secret: After each interaction with a prospect, schedule only the next follow-up. Avoid the urge to create a complicated follow-up plan. A simple touch cycle is almost always the right approach; it lets you adapt based on your prospect’s feedback.

The touch cycle works best when you regularly block time on your calendar and schedule several follow-up calls in a row during that period. Once you find your rhythm, you can make many follow-up calls quickly, especially if you use the click-to-dial features in your real estate CRM.

The highest chance of reaching someone by phone is when they call you, and you answer. When you call someone after a week, the chance they will answer is about 20 percent, but if they call you and you pick up, it’s 100%. This means you need to make 5 times as many outgoing calls to achieve the same result as simply answering when someone calls. If someone leaves a voicemail, texts you, or emails you, respond promptly. The odds of reaching someone are highest within a few minutes and decrease over time. This is because when someone is trying to reach you, they need something. After a few minutes, your prospect will likely have moved on to something else.

The most costly mistake agents make is poor follow-up. Imagine you have 10 leads this week. Seven aren’t quite ready to move, but two are. Naturally, you focus on those two hottest leads. The mistake happens when you overlook the other seven. The following week, the same pattern continues. Would it surprise you to learn that you could double your income by scheduling follow-up calls with people who aren’t quite ready to buy or sell? It doesn’t take much of your time. Most agents start strong with new leads—calling and leaving voicemails, expecting a callback. After a few days, they forget about unresponsive leads. Your CRM can help you maintain persistence in ways that you could never sustain on your own. It is only natural for agents to focus on the most lively prospects. But when you do that, you leave money on the table.

It’s tempting to create a complex follow-up plan for each prospect. These plans might include scheduling calls, emails, letters, and other communications with precision. However, I’ve found that such plans often break down almost immediately. Instead, I recommend making initial contact and then scheduling a single follow-up task right afterward. Be flexible in your follow-up approach based on what you’ve learned from the last interaction. If your calls go to voicemail, try texting. If your emails aren’t being opened, consider visiting the prospect at their home address. By keeping your follow-up simple, you can adapt to what you learn from your last contact attempt.

Most leads will start with incomplete contact details. When you reach someone, try to gather more information about their needs and additional contact details. For example, if you discover that the prospect is looking to downsize due to retirement, you can offer to send a timed email drip sequence tailored to that need. While email is helpful, having a phone number is better. Also, if you have to leave a voicemail, try a different follow-up approach next time, such as calling at a different time or sending a text message. Don’t overlook the value of a home address. The problem with complex plans is that they lack flexibility and are too rigid to work well. For best results, give yourself the option to decide what kind of follow-up makes the most sense when you are actually doing it, not beforehand.

Qualifying a prospect helps you determine whether they have the motivation and means to buy or sell a home. Avoid showing homes to buyers who cannot qualify for a loan on the property. Identify the home price range your buyer can afford. If your prospect has not yet met with a mortgage professional, recommend a trusted loan officer. You can also use the mortgage calculators in your real estate CRM to build a shared understanding of what is possible. For example, the maximum loan calculator determines the best-case scenario based on income and available down payment. The payments calculator explores alternative scenarios based on different loan terms, such as interest rate and mortgage duration.

Gathering this information can be subtle, woven into a natural conversation. Some people may feel uneasy about sharing income details when asked directly. However, you can quickly gather basic information about the employer, job title, and office location. This allows you to start the discussion about the best neighborhoods within a short commute of their employer and at a price point they can afford.

For a seller, you can research the subject property by obtaining an estimate of its value. You can also ask about the outstanding mortgage balance and any additional home equity loans the seller may have. Then, use the seller net real estate calculator built into your real estate CRM to estimate how much cash the seller can expect from the sale. One issue to watch for is a lack of equity in the house. A seller with no equity has limited price flexibility, which can make your job more challenging.

Part of the pre-qualification process includes understanding your prospect’s motivations. Why are they looking to buy or sell? What is their timeframe? Do they need to sell before they can buy? Do they have realistic expectations for the sale or purchase price of a home in the neighborhoods they’re interested in? This information will help you determine the best way to convert this prospect into a client and increase the likelihood of a successful sale.

It makes sense to develop a relationship with at least one mortgage broker or banker. If a buyer approaches you before being pre-qualified for a loan, you can refer this lead to a trusted mortgage professional with whom you have a good rapport. It’s also likely that your mortgage professional friend will encounter buyers who aren’t yet working with a real estate agent. Both a real estate agent and a mortgage professional are typically needed to close a deal, making this a mutually beneficial relationship. There are positive incentives for both of you to collaborate and share information, such as the pre-qualified mortgage amount and the buyer’s motivation level.

Lead With the Lender Secret: Before touring houses with a new buyer, have them meet with your trusted lender. Your lender can help them get pre-qualified for a loan, which shows what they can afford. This saves you from chasing an unobtainable home in the wrong price range.

I suggest that you give a stack of your business cards to at least one mortgage professional you trust. You should also ask that mortgage professional to give you a stack of their business cards. This way, you can share their contact info with clients who need a recommendation. There are other ways to turn this into a more complete partnership. For example, invite your mortgage professional friend to co-host open houses and seminars. The flyers you hand out could have the home details on one side and bank loan information on the back, including an estimated mortgage payment.

You can also co-market specific neighborhoods using postcards and door-knocking. In addition to flyers, consider sharing the cost of postcard mailing campaigns in your farming area⁸. Each of you will save half the cost while providing even more valuable information. The same cost-sharing approach applies to advertisements in local school, church, and community newsletters, local HOA newsletters, and newspapers. You can also share expenses for other types of advertising, such as sending out a co-branded calendar or sports schedule magnet to a geographic farm. Additionally, you can partner to sponsor local youth sports teams.

Qualifying your real estate prospects involves gathering information and determining the best approach to achieve optimal results. If you have a highly qualified, motivated buyer, you’ll prioritize them over a prospect with poor credit or someone who plans to decide several months from now. Your real estate CRM will be especially useful when working with prospects who aren’t ready to buy or sell immediately. They may need time to decide or face external barriers, such as needing to improve their credit score or save for a down payment. You can monitor these prospects’ progress and schedule follow-up calls over time. Without a real estate CRM, those who aren’t looking to buy or sell right now are likely to miss out on effective follow-up.

Repeat Business & Referrals

For an experienced agent, a large share of income comes from referrals and repeat business. According to the National Association of Realtors (NAR), agents with 16 or more years of experience generate a median of 68% of their business from repeat clients and referrals⁹. A referral or past client requires significantly less effort to cultivate and close than working with a stranger.

Acquiring a new client takes more effort than working with someone you’ve already helped. If you’re working with a friend who already knows and trusts you, you don’t need to spend as much time building trust. You’re also less likely to face competition from other agents. Your friends already recognize how great an agent you are. They’ve already decided that when they’re ready to buy or sell, they’ll call you. So, your job is mostly done. All you need to do is maintain your friendship. When your friend is ready, they’ll let you know. Your chances of closing a deal with a friend are much higher than with a stranger. Another advantage of working with friends is that they might refer you to someone else they know who is also looking for a real estate agent. When you do a good job, people notice, and your ability to get new clients grows.

Your ability to serve your past clients’ needs will depend on maintaining relationships with them long after the transaction closes. A great way to do this is to record the anniversary of their closing, along with their birthday and their spouse’s birthdate, in their contact record. For birthdays and anniversaries, you could give them a call, send a text message, send an eCard, or even send a physical card. Your CRM will automatically remind you when it’s time to make contact using repeating tasks.

You should also add them to your Christmas card list by placing them in the “Christmas” category. You already have their mailing address from the closing, and you can easily print mailing labels through your real estate CRM.

That’s four touches each year with almost no effort at all. There are several reasons you might decide that someone in your contacts database needs more frequent contact. If so, you can place them on a touch cycle to reach out more often. For example, they may have recently experienced a life-changing event, such as getting married, having children, getting divorced, or losing a loved one. You might also want to contact someone more frequently if they are an investor or if you helped them buy a vacation home. In those cases, they might need your services sooner than they otherwise would.

Another great way to stay connected is to host client appreciation events. These are organized activities designed to show your gratitude to past clients and others. The benefit of organizing these activities is that they allow you to regularly communicate with people in your sphere of influence, not only at the event itself but also when you call to inform them about it. You can use your CRM to organize your mailing list and send notifications via email and printed invitations. These events often generate additional referrals, as they give your friends a chance to think of you again and consider whether they know someone who might benefit from your real estate services. More details about these activities are provided in the client appreciation section later in this book.

Some of your friendships will be with people who can be great sources for referrals. Building and nurturing relationships with influencers can boost your ability to earn referral income. For example, a divorce lawyer can recommend a good real estate agent to divorced couples selling their property as part of a divorce settlement.

The Bridge Builder Secret: Develop relationships with people who can connect you to many clients over time. Working with divorce attorneys, mortgage brokers, investors, and HR managers will generate a steady flow of quality referrals.

I suggest creating a “Top100” category in your Contacts database. These are people likely to recommend your services. They could include investors, loan officers, attorneys, coaches, and influential social figures. A good way to build this list is to review your friends and identify those who have previously recommended your services.

I also recommend building relationships with influencers by reaching out to people you believe could benefit from endorsing your services. These relationships can be mutually advantageous. Make sure to connect with everyone on your “Top100” list at least once every 90 days. Attend social events with them, call them, and send them a Christmas card. In addition to this regular contact, host smaller, exclusive appreciation events for this group. If they recommend your services, call to thank them. When a deal they helped you close is completed, drop by with a small gift, such as a box of chocolates or a gift card to a local restaurant.

The simplest way to begin is to filter your Contacts list to show only your “Top100” contacts. Then sort your database by last contact date so the person you last spoke with appears at the top and the person you spoke with longest ago appears at the bottom. Start by calling people from the top of the list. When speaking with them, take notes and update the last contact date. Before ending the call, set up a recurring touch task every 90 days. Since you’ve just spoken with them, you’ll reconnect in 3 months.

The transaction management feature of your real estate CRM helps automate tasks during and immediately after closing, boosting your chances of referrals from past clients. Your CRM automatically updates the contact’s address after closing and adds a closing anniversary to the contact record. Your post-closing follow-up plan should include sending a housewarming gift, requesting a positive online review, and following up a few weeks after closing. This demonstrates you care. Staying in touch ensures the buyer remains satisfied with the transaction.

The closing anniversary date is a particularly useful annual occasion because it provides a perfect excuse to drop by, say “Hi,” notice the new trees in the back yard, and compliment your buyer on the tremendous improvements they’ve made to their new home. With patience and relationship-building, you’ll increase your chances of helping your past client sell when they’re ready to move again. After all, you know their home better than anyone else. You appreciate the many changes over the years and know just the right family who would enjoy owning such a wonderful home when it’s time to sell.

The Adoption Angle Secret: When you sell a home, add the buyer to your CRM. Their agent will probably forget them, allowing you to adopt a new client for their next move.

When you assist someone with one transaction, ask whether you can help with another. If their real estate needs are in a different city, offer to connect them with a trusted local real estate agent. Then reach out to an agent in that city who will pay you a referral fee in exchange for your client’s contact information. Use your real estate CRM to track the referral fee and set reminders to stay in touch with the other agent throughout the sales process.

Another source of referrals includes tradespeople, closing companies, insurance agents, and loan officers. These individuals regularly interact with potential buyers and sellers. When asked whether they recommend a real estate agent, you want them to mention your name. The simplest way to start is to show your value by referring business to them. Hand them a few of your business cards and ask them to recommend you. If they send someone your way, be sure to thank them, preferably with a small gift to show your appreciation.

Relocation companies can also be a reliable source of steady referrals. You can also contact the personnel departments of major employers in the area. Some will work with a relocation company, while others will manage relocations internally. In either case, employers are always seeking ways to make it easier for their employees to transfer between job locations.

Do you have a distinctive, high-end listing near a major employer? If so, contact the employer’s personnel department. Luxury homes within walking distance of a workplace are rare. Finding the ideal home for a CEO of a large company in your area could lead to a quick sale and, more importantly, connect you with that organization and generate additional referrals.

Gift-giving is a traditional way to express appreciation. For a buyer, a housewarming gift from the agent is common. For a referral from someone who is not an agent, giving a gift after closing to express gratitude is also typical. Rules govern the types of gifts and the conditions under which they may be given. These rules are set by the Real Estate Settlement Procedures Act (RESPA). When a referral comes from someone who is not a licensed real estate agent, agents may give a small, unconditional appreciation gift—such as a modest basket or a branded item—as long as it is not promised in advance, not tied to future referrals, and not excessive in value. The key point is that the gift must be a sincere thank-you, not a payment for services. To remain in compliance, agents should ensure that such gifts are modest, non-cash, and given only after the business is completed, in accordance with all applicable state licensing laws and their brokerage’s policies.

When it comes to referrals from other real estate agents, cash payments are legal and common practice. A more formal referral fee is typically negotiated, often as a percentage of the commission the referring agent earns at closing.

You can use your real estate CRM to keep track of the gifts you’ve given and when. You can also track any referral fee due to the referring agent in your commission calculator. While agents always appreciate a referral payment, it’s also helpful to use your CRM to track follow-up with the referring agent. You want to make sure the agent who referred you is well-informed about the deal’s progress. They might even be able to help you keep a deal on track, particularly if they have a close personal relationship with your client.

Some listing agents are too busy to handle buyer leads, and in exchange for staffing their open houses, they will let you prospect buyers who visit the home. For new agents, I recommend finding one or two successful agents in your office who focus mainly on listings and are less interested in buyers. You can offer to manage their buyers in exchange for a referral fee. Use the commission calculator in your real estate CRM to track the exact fee you agree to.

If your brokerage is part of a larger franchise or has multiple branches, check whether it has an internal referral system. Such a system allows agents to refer clients to agents in other locations and often provide additional financial incentives to keep referrals in-house.

Whenever a friend or influencer refers you a lead, immediately add their name to the “Referred By” field in your new prospect’s CRM record. This process is already automated for all leads added to your CRM via open house registration, call capture, email feed, and valet import. However, you will need to add this information manually if you enter the contact details from your smartphone or computer.

When you create a new listing or closing, make sure to include the referral party in your transaction. That way, your CRM will remind you to stay in regular contact with the person who referred you. For real estate agent referrals, your CRM will track the agreed-upon referral fee and even calculate your net commission based on these figures, while also tracking when your referring agent has been paid. Your real estate CRM will also remind you to provide a thank-you gift and thank the person who gave the referral.

At the end of the year, you can use the goals-tracking feature in your real estate CRM to see which referral sources generated the most closings. It is a good idea to send an additional thank-you around the holidays to people who have provided more than one referral that year. You can also update your “Top100” category to always include the people who are giving you the most referrals.

As you gain experience, word will spread about the excellent service you provide. This is an area where the longer you’re in business, the greater the benefits you’ll receive.

Tracking Vendors

Your contacts database should include a curated list of tradespeople and vendors you recommend for maintenance and home improvements. You can organize these contacts by category. For example, a plumber could be listed under the “Plumber” category. It’s helpful to have at least three vendors in each category. That way, if someone asks for a house painter, you can provide a list of three options so your client can contact each and get three bids.

You should also add the “Vendor” category to all those contacts. While vendors are people you know, they are part of your professional network, not your personal marketing list. As a professional courtesy, I recommend that you not market to these contacts, send them eCards, or send them your newsletter. When communicating with them, you want immediate responses. Sending unnecessary emails increases the risk that your important messages will end up in their spam folder or be ignored.

The obvious candidates for your vendor list are the main trades—plumbing, electrical, house painting, drywall, trim work, and HVAC. Don’t forget to include other vendors who can handle smaller tasks, such as lawn mowing, handyman services, installing a fence, and even a babysitter. All real estate transactions are local, and your knowledge of local vendors within a few miles of the property helps build your reputation within the local economy.

As a real estate professional, you need a dependable list of vendors you can trust to keep your real estate transactions running smoothly. Maintain a list of recommended experts for financing, appraisals, insurance, home inspections, and specialized trades, including pest control, well services, and septic systems. By maintaining a trusted partner list, you leverage the powerful principle of reciprocity. When you generously recommend a preferred home inspector or mortgage broker, they will likely return the favor by recommending your services to their clients, creating a self-sustaining referral loop.

You should also consider identifying accountants and attorneys. These professionals are also likely to recommend your services. An accountant might recommend real estate investments to help a client lower their effective tax rate. An attorney who specializes in probate or divorce will have clients with real estate assets. These assets often require valuation and sale as part of the legal process. Offering your services to these vendors can benefit both parties.

Build a relationship with a local title company. This will help you recommend trusted options to your buyers. You’ll also need to work with the title company to resolve any issues that arise. The last thing you want is a deal delayed or canceled because of a title search issue or slow processing of paperwork.

You might also consider adding a few financial planners to your vendor list. Did you know that many financial planners recommend homeownership? Homeownership offers significant tax benefits and can be a solid investment while also providing housing. Therefore, a financial planner might advise someone who doesn’t yet own a home to buy one. Additionally, there are many tax advantages to owning additional investment properties, especially for high-net-worth individuals. People who work with a financial planner are also more likely to engage in multiple real estate transactions.

Fire and flood insurance is often a last-minute concern that can be tricky to arrange for specific homes. When your clients are buying a home, it’s wise to build relationships with several insurance agents. You should get to know at least one independent agent who can provide coverage from multiple companies, as well as agents from major insurers. Insurance rates vary by provider, underwriting history, location, and property type. For instance, if a provider has had many claims after a recent tornado, they might charge higher premiums in that area. Therefore, it’s important for buyers to shop around and gather multiple bids. Understanding local market conditions can also be helpful.

You might run into situations where a house is an imperfect fit for the buyer. But with a little work, it might be perfect. Your ability to recommend a general contractor who can review the property on short notice and provide a quick bid for remodeling might turn an otherwise unsellable property into a hidden gem. This is the power your vendor list can provide.

When someone buys a house, think about what upgrades the new buyer might be considering–like finishing the basement, remodeling the kitchen, or bathrooms. These are great opportunities to have more conversations after they move in, perhaps when you visit on the first anniversary of their closing.

You should check public review sites like Yelp and Google, as well as Facebook, LinkedIn, and the Better Business Bureau (BBB), to confirm a vendor’s online reputation is excellent. Recommending a vendor with poor reviews could damage your own reputation. Additionally, you should leave positive reviews when you have a good experience with a vendor. In today’s environment, finding a reliable vendor with strong reviews is difficult, and even a few negative reviews can harm a business.

The Warranty Wall Secret: Older homes often struggle to compete with new construction. To level the playing field, consider having your seller offer a home warranty. A home warranty is a contract that covers repairs or replacements of major systems and appliances if they fail. These costly repairs can be a major concern for buyers when buying an older home. Providing a warranty against these unexpected expenses makes older homes more competitive when compared with new construction.

While some real estate transactions go smoothly, that is rarely the norm. Expect some setbacks during the sales process. For example, the home inspector might identify electrical wiring issues, and the deal might be put on hold until they are fixed. Having friendly vendors who are willing to come out and take a quick look can greatly streamline the process. Because of this, I recommend taking the time to build strong relationships with your preferred vendors. If you ask them for a favor, such as a quick turnaround on a project, be sure to thank them with a kind note and maybe a small gift. Also, if they send business your way, show your appreciation.

You can use the deal management features of your real estate CRM to track which vendors are involved in a transaction. This information is typically added to the parties section of your closing or listing record, allowing you to quickly view a list of participants and their contact details.

If a vendor recommends your services, you can track it by entering the vendor’s name in the ‘referred by’ field for the prospect record. Your CRM can support three stages of the referral process. First, send a thank-you message when you learn a vendor has recommended you. Second, send a thank-you gift to that vendor after closing to show appreciation. Lastly, conduct an annual review of your lead sources to identify patterns and top referral sources. It is not unusual for a few key vendors to generate most of your recommendations. You can then decide how to strengthen these relationships, perhaps by sending a Christmas gift card and a thank-you note to celebrate a successful year.

You should add the category “Top100” to people who consistently refer others to you. These might include vendors, past clients, friends, or local influencers. Do you know someone who always seems to be in the know, with the latest gossip about neighbors, divorces, pregnancies, and more? If so, that’s a person worth spending time with. I recommend reaching out to people on your “Top100” list at least once every 90 days. They might mention someone who is looking to buy or sell, often without realizing it. If someone is going through a divorce, there’s a good chance their house will eventually be sold.

Your database of recommended vendors is a valuable resource. You might find that a past client calls you for your recommendations when they are ready to start a home improvement project. You can establish yourself as a trusted local expert, and your advice will be highly valued and sought after. By providing these vendor recommendations, you are building social capital. People will reciprocate by providing you with leads and referrals for buyers and sellers¹⁰.

Endnotes

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