Affordable Solutions to Rising Client Acquisition Costs
There are affordable solutions to the real estate agent’s greatest hurdle today: the rising CaC (Client Acquisition Costs).
Is it just me or has every lead gen source that agents once relied on gotten a whole lot more expensive – if it’s even available at all? Well… it’s not just me. Rising client acquisition costs (CaC) are a major issue facing a huge number of agents I’ve heard from.
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It’s important to keep in mind that it’s not your mission to get your client acquisition cost down to zero. There is nothing wrong with spending money on acquiring real estate clients. Your job is simply to ensure that it’s always profitable. Spending a little money to have clients coming in consistently is always better than waiting for a free lunch.
But with that said, it can never hurt to continue diversifying your cheaper lead sources to attract more business and lower your overall costs. Many of our coaching members who have experimented with the lead sources I’m about to mention have actually moved away from paid leads altogether and brought their client acquisition costs down to ZERO.
What are Client Acquisition Costs in real estate?
Client Acquisition Costs (CAC) in real estate refer to the expenses incurred by real estate agents or agencies to acquire a new client or customer. These costs can include marketing and advertising expenses, networking events, lead generation tools or services, website development, and other promotional activities aimed at attracting potential clients. Calculating the CAC helps real estate professionals understand the effectiveness of their marketing and sales efforts and can be used to evaluate the return on investment (ROI) for acquiring new clients. It's an important metric in assessing the efficiency and profitability of client acquisition strategies in the real estate industry.
Real Estate Lead Sources with Low Client Acquisition Cost
Low Client Acquisition Cost Lead Source No. 1: Social Media
This one is obvious, right? But if it’s so obvious then why haven’t you gone all-in on it yet? Maybe you think you’ve already been going all in, but I’d wager to say that it’s probably still not enough.
Real estate social media marketing is free and HIGHLY effective, but it’s not exactly “free-free.” It requires time, persistence, creativity, and love. If you don’t love the process of creating and engaging on social media, that’s okay – you just need to MAKE YOURSELF love it. I’m not joking. It’s possible and it’s worth it. Get out of your own head and just do it. Before you know it, it’ll be second nature.
Low Client Acquisition Cost Lead Source No. 2: A2A Referrals
Wouldn’t it be a perfect world if you had agents around the globe constantly sending you hot and ready referrals who already trust you before you meet them?
That’s what it’s like for a lot of our coaching members who take advantage of real estate coaching events and the ecosystem available to them. But if you’re not ready to take that next step into the coaching level, you can still make agent-to-agent referrals work for you.
Networking doesn’t have to be expensive. Attending an event, even if it’s out of town and you have to get a hotel for a few nights, isn’t going to break the bank. Not only will you learn new skills, have the necessary time to work ON your business, and have a lot of fun, but you’ll also be able to connect with agents who could become your referral partners for years to come. But…
You have to be intentional about it! Don’t go in expecting people to just come to you. You need to set objectives for how many people you want to connect with, what you plan on saying to them, and then stick to a follow-up strategy. Make a commitment to not eat any meal alone and always sit next to people you don’t know. For more help with event networking, check out these blogs I dedicated to meeting people and following up.
One of our Rockstar clients, Luz Abreu actually hosts her own party the day before Success Summit every year. Agents from all over the world attend, and when they go back to work, any time they have a client moving to Miami, they know exactly who to call.
Low Client Acquisition Cost Lead Source No. 3: Google Business Profile
This is non-negotiable. It doesn’t matter if you’re already fully happy with your lead gen playbook; if you’re not updating your Google Business Profile, you’re not maximizing your potential.
Your GBP is the center of your online presence. It’s the first thing that comes up when someone Googles you, and when yours is optimized correctly, it’s also what will come up when someone searches “Best real estate agent near me.” This is your ultimate, No. 1 free source for incoming business.
Now, it might not cost anything to use, but it’s well worth spending a small amount to learn how to use it correctly. It’s like investing a dollar to earn back thousands.
Low Client Acquisition Cost Lead Source No. 4: Old Fashioned Dialing
Another essential that must be paired with whatever else you’re doing. Yes, it can be uncomfortable if you’re not used to it or trained effectively, but phone calls are basically free money.
There are lots of tips, tricks, and scripts to offer, but the real key that I want to talk about here is this: When it feels like you’re not getting anywhere with your calls and are about to give up, keep going. That’s where the breakthrough usually happens.
Dialing is a numbers game. If your conversion rate on getting an appointment is 10% and you want to set 5 appointments a day, you need to make 50 phone calls. The first 20 of those might all blow you off, but if you give up after that, you’ll never experience the enormous win in the next 30 calls. Yes, you’re going to get rejected 45 times, but who cares? That’s the game.
Low Client Acquisition Cost Lead Source No. 5: A System for Client Referrals
This one plays right in with the others. Everyone knows that reviews and referrals are essential for any service or product. You want them and probably already ask for them, but do you have a system for obtaining them?
Start by making it clear from the outset how vital these two things are to your business. You want this to be a subject that comes up frequently throughout the transaction. Next, incentivize them to want to send you referrals and spread the word about your services.
Provide annual equity reviews that serve as a free wealth management consultation. Treat your clients like lifetime clients, and they’ll make you a part of their lives as well.
Lower Your CaC and Attract More Business
If client acquisition costs are a problem for you today, then odds are that they’ll be a nightmare for you tomorrow, because the world isn’t getting any cheaper. You need to make the changes happen now if you want to have any hope of being prepared for the future!
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