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  • real estate lead generation statistics

2015 Real Estate Lead Generation Statistics

Welcome to my 2015  Real Estate Lead Generation statistic blog post!  This is the second year that I’m revealing the actual numbers from my business for you to revel in.

At any time, you can compare the 2015 data with the 2014 Lead Generation Statistics

I do this report so that you can get a realistic idea of what it takes to close deals, how much money you will spend, and how many sellers will cuss you out before one will sign your contract. You get the idea.

I was pretty excited to pull the reports this year and see how it compared to the 2014 lead generation statistics. Its very interesting to see how things change from one year to the next.

So here’s the hard cold facts from an entire year of business (2015) with facts about every dollar spent, every call received,and every action documented.  I have even more data to share with you this year.  Enjoy!

I spent an average of $1202.25 in marketing dollars to close every transaction. (compared to $571 in 2014). WOW this is the biggest shocker to me!  This means that the competition is much greater this year than it was in 2014, and we have to spend alot more money to get to the closing table.

We mailed out a total of 85,727 pieces of mail in 2015 and got an average response rate of 2.98%. 

It took 38 leads to get 1 seller under contract. ( compared to 52 in 2014).

My cost per lead was $17.61 (compared to $26.00 in 2014) 

My average profit on every closed transaction was $9,750.27 (compared to $5,833.55 in 2014)

The average purchase price with my seller was $52,743.06 compared to $44,727.00 in 2014

The average purchase price with my buyer was $64,059.72 compared to $53,600.71 in 2014

My best performing Marketing Campaign was from the VACANT HOUSE Mailing List and in Second Place was my WEBSITE. (same results in 2014)

On average, it took me 42 days to convert a seller lead into a contract/new transaction. (compared to 51 days in 2014).

Out of 36 Closed Transactions, only 1 of them was Owner Occupied.

The average PatLive live call cost me $3.00 (every time a seller calls in)

Every lead that called in was worth $137.90 – even if they hung up on me!  so Im ok to piss a bunch of sellers off.  Ever seller that calls and hangs up on me means that I’m one step closer to a yes!! WOO HOO

And there you have it.  The facts pulled directly out of my Godfather CRM account.  These numbers are very helpful in having an understanding about what’s going on in your business.

Just like I said last year, YOU should know what’s going on in your business, as well!

Be sure that you’re keeping track of your marketing dollars, your leads, your closings, days on the market, and all of the metrics that you see in this report.

If you need help organizing your real estate business, learning how to create devices to track the performance of your business, and how to run your business like a REAL business, then you should consider joining the MOB! 

We focus on learning and implementing ways to keep our business running consistently and at the highest level of efficiency. Check it out now 

28 Comments

  1. Dean Eng January 13, 2016 at 4:02 pm - Reply

    Thanks for sharing. Can you please elaborate on how your website was 2nd best? Did you use SEO or was the traffic coming from your printed material, Craigslist postings etc?

    You didn’t mentioned how many houses you flipped. I guess I can reverse the math to figure it out. And how much marketing $$ did you spend per month?

    And does your coaching course you have out talk about all this in detail?

    -Dean

    • Tracy Caywood January 13, 2016 at 5:48 pm - Reply

      My website is ranked organically, and we also have it on printed material. If we check the lead source and he website lead is also in a direct mail campaign, then we give credit to the direct mail campaign.

      My company flipped 36 properties in 2015. We started the first quarter our slow with only $1-$2 per month. Then we gradually started increasing the marketing budget each month until we ended the 4th quarter with $6k per month. 2016 we project to spend $95,000 in marketing dollars.

      The coaching course that was just released goes into detail about everything that has to do with beginning real estate wholesaling. The more advanced techniques are found in the premium membership site.

  2. Eddie January 13, 2016 at 4:33 pm - Reply

    Thanks Tracy, seeing these numbers is really enlightening. Also seeing the changes from last year is really interesting. Thanks a bunch 😀

    • Tracy Caywood February 3, 2016 at 9:40 am - Reply

      Thanks for reading!

      • Terry October 29, 2016 at 8:50 pm - Reply

        Wow, that’s a really clever way of thikinng about it!

        • mallory0331 October 31, 2016 at 9:25 pm - Reply

          glad you like it!

  3. Drew January 14, 2016 at 7:47 pm - Reply

    Are you differentiating between a call vs a. “Lead”? I track my numbers religiously. The impressive part is how fast your deals get to contract. We have to massage ours for a while most of the time.

    • Tracy Caywood February 3, 2016 at 9:40 am - Reply

      I wasn’t differentiating the difference between calls vs. Leads in this report. But in 2016, I’m now only reporting true LEADS. The numbers are staggering. 17,000 postcards will bring 120 or so leads.

  4. Tara Brown January 19, 2016 at 6:13 pm - Reply

    Great info!!
    Do you feel you should (or maybe could) have done more than 36 deals with the amount of marketing that was sent out? Also, were the 86,000 postcards in one market?

    • Tracy Caywood February 3, 2016 at 9:39 am - Reply

      Hi Tara! Yes, I do feel like I could’ve done more than 36 deals.I’ve been “cherry picking” deals for several years. in November, I added an acquisition manager and am training her to negotiate like me. She’s already converting leads at double the rate I was since she’s not cherry picking. She’s combing through them all. Best Move Ive made in a while.

      • Tara Brown February 12, 2016 at 11:25 pm - Reply

        When you say acquisition manager do you mean someone going on seller appointments or just interviewing over the phone?

        We are looking at hiring a sales person to go on seller appointments.

  5. Richard January 26, 2016 at 6:55 pm - Reply

    Thank you for sharing. I guess you don’t do any ppc? Do you have a buyer and seller representative?
    Can you elaborate a little more on how much you pay the reps? Are you sending postcards or letters?

    Thank you so much for sharing and I wish you continued success.

    • Tracy Caywood February 3, 2016 at 9:37 am - Reply

      No PPC right now. All direct mail. and yes, I do have an Acquisition Manager and a Sales Rep. I pay them each $1000 per deal right now.

  6. Richard February 1, 2016 at 7:37 pm - Reply

    How much is profit after your expenses?

    Thank you,

  7. Dean February 15, 2016 at 7:23 pm - Reply

    @Tracy

    Hi Tracy, you mentioned you sent out 17K postcards and received 120 calls that is less than 1%. So I guess the bottom line is not the % on return so much but if you’re doing deals. That gives me more confidence because I’m in a sizzling market and I’m getting less than 1% on my postcards too. So I think I should just keep sending out mail and focus on if I’m doing deals or not?

    My other questions is I heard that PPC or adwords fruitful in producing deals and wonder why you haven’t also included that in your campaigns or have you tried and perhaps didn’t see the desirable results?

    • Tracy Caywood February 22, 2016 at 1:25 pm - Reply

      The typical response rate on a direct mail campaign is .5% – 1% – so if you’re getting that, then focus on the type of leads that you’re getting.

    • Christina October 29, 2016 at 8:30 pm - Reply

      Wonderful public art, these remind me of the characters in russian fairy tales. and I agree with Pete. some atmospheric shots would be great. thanks for starting my day with fantasy and imoatnaiign.

  8. Patrick February 22, 2016 at 11:49 am - Reply

    Hi Tracy!

    Awesome data! Could you clarify if the “$1202.25 in marketing dollars to close every transaction” is seller marketing, buyer marketing, or both?

    “It took 38 leads to get 1 seller under contract. ( compared to 52 in 2014).

    My cost per lead was $17.61 (compared to $26.00 in 2014)”

    38 x $17.61 = $669.18 =/ $1202.25

    • Tracy Caywood February 25, 2016 at 3:22 pm - Reply

      The $1202.25 is for seller marketing only.

      • Dean February 25, 2016 at 3:43 pm - Reply

        HI Tracy, thanks again for sharing. Great information!

        What would you say is the number of postcards or letters you mail before they
        respond? We all know that the response is higher after the 5th time but I was wondering
        what your data is saying if you track that?

        And how many times do you mail your prospects until you stop mailing them? 7 times?

        Hope 2016 will be awesome for you!

        • Tracy Caywood March 10, 2016 at 11:00 am - Reply

          Some of them get 3 postcards..some get 6.It depends on the campaign. Smaller, more targeted lists get 6 postcards.

  9. Joy Peter January 9, 2017 at 10:35 am - Reply

    Super data. Thanks for sharing. I got much information about leads statistics in real estate industry.

  10. Real Estate Pipeline August 11, 2017 at 8:36 am - Reply

    Superb post! These statistics can always be helpful for lead generation.

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