In the Red Pill Sales System, I outline a systematic approach for Realtors® and Investors to perform lead follow-up. Lead follow-up is an essential portion of the sales process. Since approximately 70% of your appointments will come from lead follow-up, therefore it is important to maintain a high degree of accuracy, as well as professionalism with these leads and prospects.
However, to begin any discussion on lead follow-up, it is crucial first to determine what is the lead? In your mind, what is the lead? In my mind, a lead is defined as a person who is willing to sign a contract within the next seven days. A prospect however; is someone who has simply “Raised their hand” and identified themselves as someone who is willing to buy or sell. The job of the salesperson, or investor, is to determine this prospect’s placement in the sales process.
If the prospect has plenty of time to sell, then they are not a lead. If the prospect however is saying to you that they need to sell, and are going to, or are willing to sign a contract in the next seven days, then potentially they could be a lead. Remember! A person’s motivation can change at any time! Be aware of your prospects motivation as well as their timeline. Be alert to the subtle clues that your prospects will leave stating their new intensity to sell! Many times, I have taken listings, or sales, or bath homes with prospects who had quickly change their mind and my competition was not quick enough to catch it.
So now that we are clear that the lead is defined as a person who will sign a contract and seven days. Now we are free to pursue these people aggressively! What do I mean by aggressively? Not offensive way, as some may do, but aggressively meaning motivated! A motivated seller loves a motivated agent or investor! The more motivated you are, the more they respect it! People dislike people who they cannot count on. So when doing lead follow-up be the person they know they can count on, if for nothing else then being the one person they know will continue to call!
Now there are two types of lead follow-up. The first type is the type of lead follow-up you do prior to the appointment. The second type of lead follow-up you do is after the appointment has been held and you have walked away without a signed contract. Both types of lead follow-up are essential, however their purpose and method are distinctly different. Let’s examine them both quickly.
Prior to the appointment, if the homeowner has failed to set an appointment with you, then your language should be based on the need for the two of you to meet quickly. A motivated seller will recognize this, and using the scripts that you find in the Red Pill investor Script Book, you will be able to set most of your appointments. However, for the one or two that you will not be able to set an appointment with and the necessity of lead follow-up has come, then you should emphasize the need for the two of you to meet quickly so that you can look at the home, determine the price, and make a valid offer. Most of the time, when you were unable to set an appointment, it is because you have failed to demonstrate value, disclosed what price you would offer, or have mishandled this stage of the selling process. To quickly regain control, ask more questions in subsequent calls! Your questions should be more “Property specific.” Questions like “How old is the roof?“, or “Are there any large dogs nearby?”
After the appointment is set, if the homeowner has refused to sign your sales contract, then your language patterns are different. Now your conversations are focused on the date of closing. Remember where you are by that point! You have prospected, prequalified for their motivation, determine their price, showed up at their home, presented your service, and they have said no. Now, your mission is to determine how you can, or if you can work with that customer. Sometimes that is through subsequent conversations. As sometimes people need to go to the sales process, and are reluctant to sign any paper with a Realtor® or Investor the first time, be aware that this is natural and don’t lose heart!
The types of questions that should be asked during this time, should be more “Situation specific.“By using these skill of confrontation, the practitioner can be able to ask questions based upon the aggregate information gained throughout the presentation (again using all of the scripts in our script book) to determine the homeowners actual motivation. Through using the situation specific questions and confronting the sellers belief system, it is often times possible to reopen the discussion about the home. Practitioners using The Red Pill Sales System report that they have been able to obtain contracts through this lead follow-up long after the deal was considered dead.
On a practical level, how does one follow up with these leads and prospects? While there are literally hundreds of products available in the marketplace today for contact management, affordability and simplicity are the rule of the day for the Wholesaler and the Realtor®. since our hottest leads are going to sign a contract in seven days or less, then we do not need to protect them in expensive computer systems. While it is important to maintain a record of our customers and clients, on a practical note while prospecting and doing our lead follow up, it becomes burdensome to “look it up.”
In this 24/7 world, our customers and clients are on the move consistently. And so are we. Gone are the days where we would stand in front of our laptops and look at our customers on the database. Mobile phones, iPads, and cloud networking have replaced but we traditionally have thought. While it is true the CRM’s of today, are more technologically advanced than those of the past, our greatest efficiency lives in simplicity.
Since it is doubtful, that you will have at any one time a huge number of motivated “ready to sell in seven days” Sellers, I typically put my “leads” on a 3 x 5 card. Of course my prospects and my leaves names while they were prospects are in a computerized database, that I can reach when convenient, my hottest leads on a 3 x 5 card in my pocket where I can reach them instantaneously. I would recommend that you do the same! My system is very simple. Take a 3 x 5 card, write down the name the address of the property the person’s phone number or any contact information on the front face of the card. On the back or on the lines left, right down the situation as to why they are selling and what happens if it doesn’t sell. On the upper right-hand corner right down the date that you obtained the lead. That is the date that they crossed into the “lead status” you have seven days from that point to convert them to a contract or throw them away. I learned this technique in the Mike Ferry coaching program, while it is effective for Realtors®, it is doubly effective for Investors! With the simple addition of the “what happens if it doesn’t sell” motivation on the lead card, you will know exactly what to focus on while talking to this customer.
An additional fought, when it comes to lead follow-up, is the appreciation that “you can’t want it more than they do.” so when doing your lead follow-up, always be prospecting to ensure a full quote pipeline of leads” for your lead follow-up system to ensure that you do not become addicted to any one lead. Through effective follow-up, you will be able to discern between the truly motivated, and the “tire kicker.” Effective lead follow-up saves you time on appointments, ensures that you do not “leave any money on the table” and provides you good quality appointments!