The new real estate sales model

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For any developer, the most important part of the real estate business is the return on investment, which always goes hand in hand with a target sales time.

For a long time, the real estate market tried to get the best returns on investment from its marketing campaigns by trying to squeeze every last penny into better metrics, to get more and more prospects, but this did not work. The failure of this methodology is based on two elements: limit of optimizations, and lack of monitoring.

There is a limit to which it is possible to optimize the campaign for a particular product, and getting to this point takes weeks, if not months of hard work of experimentation and data analysis, time that many developers are not willing to invest. .

On the other hand, the lack of correct follow-up of prospects is something we encounter every day. This is not only due to the lack of tools and methodology to follow up, but also to the large number of prospects who must be followed up on a daily basis.

Today, a new real estate sales methodology is quickly becoming the most popular among experienced developers, and is quickly permeating all levels of the industry. This methodology breaks with old schemes and addresses each of the problems in a different way.

Investments controlling sales volume
To increase the number of prospects in your development you can take one of three different approaches: exhaustive optimization of marketing campaigns, increased investment in digital campaigns, or a combination of the above. In the blopost Control the speed of your real estate sales we already talked a little about this topic.

The problem is that not all development companies have an internal marketing department that creates, monitors and analyzes campaigns, creating improvement patterns and best practices, and by delegating these tasks to a traditional marketing agency, which does not have The vision of the market and the product in detail cannot give the expected results.

Structured lead tracking
For the vast majority of real estate developers, the biggest obstacle to closing sales is the lack of closure, and this problem is made up of two parts, the number of prospects, and the lack of methodology and tools.

If the sales team has more prospects than they can really handle adequately, they won't be able to make the recommended 6 calls to each of them, so the close rate can plummet. If, in addition to this, there is no adequate tool or procedure to follow up, neither the sales executive nor his supervisor will be able to control the status of each of the prospects, so the chaos will cause the percentage of closures become very low.

Taking back control of sales

To solve each of these problems, the new methodology that we talked about at the beginning is made up of two large parts, which lead to a third, that of accelerating the writing of our product.

The first of the changes has to do with the volume of results obtained through the campaigns, but not through optimizations that, in addition to a great effort, require a very considerable time, and it is not always possible to achieve the results we would like. On the contrary, what we must do is increase the media investment monthly, until we can reach the limit of our campaign.


In red, investment, in blue, generated prospects.
In this graph, we can see how this developer began to increase the monthly investment of his campaign, until reaching the point where a greater number of leads are no longer generated, but the CPL (cost per lead) does increase. This is because more is being invested but the market is already saturated, so the cost per prospect is higher.

In red, investment, in blue, generated prospects.
When detecting this behavior, we have one of two options. Stop investing more, or grow our market, but this decision must be made by analyzing the performance of the sales team. This gives rise to the following question: Why do I want more prospects, if I can't keep up with the ones I have at the moment, and I can't give them adequate follow-up? and it is at this moment where the other part of the new methodology comes in.

There is a wide spectrum of people who approach us as prospects, and in order to manage them correctly, we need to accommodate them in two axes, the prospect's interest in acquiring our property, and the ability for them to buy it. A person extremely interested, but without possibilities, is someone on whom we should not waste time, and on the contrary, someone who can buy it, but is not interested, is not going to lead us to close a sale.

To know which prospects are closest to buying in a given Telegram Number Data development, with its specific characteristics, location and prices, we need to correctly profile each and every one of the prospects.

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3. Costs increase slightly but steadily, and at the same time have a measurable periodic trend
We can observe that costs are increasing all the time, since there is greater competition, but at the same time the Cost per Print presents a very characteristic curve, rising in May-June and again in November-December.



Using continuous optimizations, it is possible to generate more Leads than the industry average
Using our ongoing measurement and tracking processes, the 2019 graph (in Orange) shows us that continued average growth in LTR is possible.

The investment is proportional to the LTR generated
The growth of LTR against investment presents a small curve in which, with greater investment, the percentage of LTR grows a little beyond what is linearly expected. For example, if $50 generates one lead, $500 could generate more than 10.

Using response analysis tools, digital behaviors, actions and many other aspects, and assigning values ​​to each of the possibilities, we will be able to assign absolute values ​​to each of the prospects, and we will be able to focus on those who are close to acquiring a property. in our development. This qualification is called Lead Scoring, and is generated based on a large number of elements.