To lead or not to lead, is that even a question?

Posted on June 3, 2011

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So I’m driving through Virginia, which by the way, is one of the most beautiful places on earth.  The Blue Ridge Mountains of Virginia are simply spectacular.  I understand they are equally beautiful in Pennsylvania, Maryland, South and North Carolina and Georgia as well, but I happened to be driving through Virginia.  Here’s a photo if you don’t believe me.  This particular photo also reminds me that I need to come back here in the convertible and drive the entire Blue Ridge Parkway with the top down as fast as is safe through the curves.

I digress.  As I was driving thinking about the next stop on my trek, I recalled a conversation I had with a friend who works for a, we’ll call it, real estate lead provider.

I was recalling the conversation when a few thoughts went through my mind.  First, have you noticed how negative the word lead has become on the real estate and social media speaking circuit?  I mean really.  Seems that every speaker I hear lately goes out of his/her way to first insist that people are not “leads” and that no one should ever “pay” for a “lead”.  It’s far better to simply become friends with everyone who of course will inevitably become customers.  The darn capitalists are singing Kumbaya.

If someone you know, or even don’t know, calls you up and says, “Hey, I know this guy who is looking for a house, would it be alright if I gave you his number?”  What would you call that?  Your good friend giving you a gift? Divine intervention? Kismet? No!  It’s a LEAD, dammit.

Here’s a definition from dictionary.com: Lead; a suggestion or piece of information that helps to direct or guide; tip; clue: I got a lead on a new job.

Or perhaps one could infer “I got a great sales lead from a friend today”  Hmmm?  Maybe?  Could be?  I think yes.  And it’s not a bad thing.

Does every customer/client have to be your friend first?  This is what Facebook would like you to believe and I think too many of the really bright people who are teaching real estate salespeople new ways to prospect for business. Can’t we just call it what it is?  Yes, we can.

Ok, so now it’s alright to accept leads again.  Whew, I feel better now.

Next thought was “Should I be paying for leads?”

I have mixed emotions on this one.  If you can get leads for free, I suggest you do that.  All day long, everyday, until you can’t do it anymore.   I do want you to remember one thing, however.  Nothing is free.

“Oh, but wait”,  you say.  ”I use social media to find friends, er, I mean, leads and it doesn’t cost me anything.  Isn’t that cool?”

It is cool.  As long as you are getting as much or more business as you would get spending an equal amount of time on another prospecting activity or spending an equivalent amount of money on a legitimate lead source.

You know, time is money.  At least that’s what I heard.

I also have a problem with folks complaining every time somebody asks “what’s the ROI on social media?”.  If someone has a problem with that question it’s because they don’t know the answer.  Don’t let people fool you into thinking you shouldn’t even be asking that question.  You should and you should be able to answer it too.  Is this your  business or your hobby?  Because I have no idea what the return is on my convertible except it makes me feel good.  The time spent on my job?  It pays X which more than covers my obligations and lets me drive around and feel good.

So I say, get out there and “lead” and make some friends while you do it.