Go Back To Article List

Do Online Referral Leads Work?

Posted Tuesday, May 7, 2019

As today's real estate business becomes more competitive, it is crucial agents and investors use every possible method available to stay ahead of the game. For many, having a strong online presence and a network that focuses on referral leads can make all the difference. Because of this, there is always much emphasis on whether these online leads are as effective as many believe. If you've been wondering about this as well, recent statistics bear out just how effective these leads are to agents and investors.

In a survey of 1,200 agents across the United States, the National Association of Realtors determined that 29% of the agents surveyed said that almost one-third of the referrals they receive online lead to closed transactions. Along with this, as housing prices continue to rise across the country, most agents believe online leads will become even more important, since prospective buyers and sellers will need to be matched together more efficiently to ensure a larger number of transactions can be completed.

In addition to these statistics, many agents and investors reported the best way they have found to get themselves known by those looking to buy and sell properties is by having a profile on LinkedIn. With well over 400 million active users, agents and investors often find this a useful tool for establishing a diverse database of industry contacts, which usually results in increased numbers of online leads. By taking advantage of this online forum, it becomes much easier to establish a brand and identity, which can result in leads from across the country and even the world.

When it comes to referral leads, the NAR survey found experienced agents rely much more on referrals than do less-experienced agents and investors. According to the survey, the agent or investor who benefits most from these types of leads has an average of 14 years experience in the industry, and has been involved in at least 20 real estate transactions within the past year.

With these types of leads having increased by 14% from 2017-2018, most industry experts look at 2019 as an explosive year of growth in this area. As more buyers and sellers enter the housing market, it will become much more important for them to be matched with agents and investors who know the local market and can give them the level of customer service and support they have come to expect.  

By establishing a strong network foundation, most real estate agents and investors can expect to have success when it comes to converting their leads into profitable transactions. With a little effort on LinkedIn and other online sites, along with a willingness to never settle for being second-best, success should follow.