Tom Ferry and Revaluate Case Study: $2.5B In Lost Listings Found in Real Estate Lead Gen Database
The real estate lead gen database is not being leveraged effectively and costing agents billions according to the case study and report released by Tom Ferry last week.
The Tom Ferry organization has been crushing it in the coaching world of late. They are “the number one coach in real estate”. The significance of this claim was apparent as their network was on full display last week in Dallas, at the Tom Ferry Success Summit. More than 5k people (my estimate) packed the Dallas convention center ball room and exceeded capacity at all the local bars.
This was the perfect event to reveal the most recent Revaluate Case Study and Report, “The Real Estate Lead Gen Database” and Tom Delivered the data from stage in a clear and meaningful, funny and painful manor.
The real estate lead gen database is used to record past sales, new leads and farm information. So what Tom Ferry shared was really remarkable. Tom said “All of you are going to throw up when you see this” and then pointed to the vast amount of money that is left on the table in the results: $2.57 Billion in lost opportunities in a 12 month period. The study found more than 5,000 listings that listed with OTHER real estate agents. The 5,000 transactions were in their databases and yet the study participants, didn’t close them.
However, we could only uncover 50% of the transactions, because 50% of the contacts in the 8 agent databases lacked a physical address. (physical address is required to find mls listings). So the reality is that $2.5B is really more like $5B in lost sales.
When you have the data in front of you, you cant help but realize the massive failure. Real Estate agents sell real estate, yet they lacked physical addresses (the real estate) of contacts 50% of the time. The data is so fragmented there is no way to consistently market to their contacts. Dirty data kills sales opportunities. Clean data improves the results of marketing campaigns.
This result is large – but crazy when you consider that the 8 participants ranged from single agents to a mega team all across the US. The case study was written by Real Estate industry veteran Heather Elias of Artisan Consulting with data from Revaluate. I you’d like additional insight, it is available for PDF download below.
