In a perfect world, lead generation would simply take care of itself. All of our satisfied clients would rave to their friends and family about “that amazing real estate agent,” and new leads would flood our inboxes.
But we don’t live in a perfect world. We live in the real world. And that means that we have to have a backup plan for getting our own leads.
If you spend any amount of time working with real estate investors, they will almost certainly tell you about the success they have found by “driving for dollars” or even just knocking on random doors. This is a powerful and profitable strategy for real estate investors, but local agents often consider it a waste of time.
That is a huge mistake!
It’s All About Starting the Conversation
As a real estate agent, most people in your community will not require your services most of the time. However, when they do, you want to be the one and only agent that comes to mind. One of the easiest ways to do that is to have already established a relationship with them prior to that need existing.
One of the easiest ways to establish that relationship is to knock on their door and start a conversation.Introducing yourself to a potential client in a face-to-face setting allows for a more powerful connection than you could ever hope to have if you were able to reach them over the phone. That’s why getting out and walking around neighborhoods introducing yourself is actually one of the best investments you can make in your real estate career.
Play the Numbers Game
Of course, we have to remember that door knocking is going to have a similar success rate to cold calling. You might only land one appointment for every 50 houses you approach, but that one appointment could end up adding a massive commission to your bottom line for the year.
If you are willing to approach door knocking as an investment in your real estate career, the best way to get started is to set minimums for both time and number of houses you are going to approach in a given session of knocking. A common rule of thumb for door knocking is that you are committing to stay out for at least one hour and knock on at least 10 doors.
Door knocking is a numbers game. Everything boils down to how many doors you knock on and how many of those you convert into appointments. Controlling the number of doors you knock on is easy, but improving your conversion rate takes a little more effort.
Improve Your Percentages By Adding Value
The best way to increase the number of appointments you convert from your door knocking efforts is to increase the amount of value that you are able to provide in the few minutes that you speak with a potential client. If getting that face time is the first step, then using that face time well is the next level.
The best ways to add value during your door knocking face time is to demonstrate your expertise about the local market and inform the resident about things that are happening in their neighborhood.
This could include letting them know about houses on their street that have just been listed or recently sold. It could also be letting them know about potential buyers looking for homes in the neighborhood or upcoming open houses.
The Rejections are Just Numbers
While you might find some of your best clients through door knocking, you are also going to meet a substantial amount of rejection. If one out of every 50 houses schedules a follow-up appointment with you, then 49 out of those 50 are going to reject you. This is a difficult thing to prepare yourself for.
Getting rejected by one homeowner after another can be very demoralizing. However, if you keep reminding yourself that you are simply playing a numbers game that requires you to keep knocking to eventually hit your conversion rate, you will at least be able to take some of the personal sting out of those rejections.
It can also be helpful to remember that anyone who rejects you on the first attempt might still have a need for your services down the road, so always remain polite and professional.
Door knocking is definitely not going to be a get-rich-quick scheme. It takes a lot of time and energy, and the times when you randomly choose to knock on a door that ends up becoming a listing and then a commission is going to be few and far between.
But by viewing door knocking as a way to start a long-term relationship, you can find tremendous value by doing the work that few of your fellow agents are willing to do.