Purpose: Not all business require contracts but in our business it’s extremely important that we sell six month contracts. Leads are clients receive take time to nurture and convert into tangible results. The real estate purchase cycle is such that the leads we generate for our clients can be interested in buying a home 3, 6 even 12 months before they actually decide to take action. In order for our clients to realize the returns on their investment we need a level of commitment.

 

Although it can be shorter, the general consensus is that when you’re selling leads or a service that generates leads, such as marketing – you absolutely want clients for a least 180 days so that they have proper time to receive, nurture and close the the opportunities you generate them and their business.

 

A lot of potential clients will be resistant and turned off by this notion. They’ll make claims that a contract shouldn’t be necessary if the service and product are good. They’ll claim they’ve been burned by another company that sold them a product they had to sign a contract for.

 

All these stories may be true, but they don’t change the reality of what we’re selling and which clients we want to sell too. Yes you can empathize with clients and realize you as a consumer may have resistance and concerns around contracts having personal experience, but then you want to shift to the importance of what why and what we’re selling.

 

The more expensive the lead’s purchase, generally the longer the sales cycle. As an example buying real estate takes longer than cars which take longer than televisions which take longer than a new wallet.

 

Asking for a commitment also breeds loyalty from the client. By qualifying them as someone who is willing to make a commitment you’re starting the relationship right off the bat as a partnership of working together rather than a “dabbling” “trial” where they are going to “try you out.”

 

Why Does Crushvertise Ask for Contracts:

  1. Facebook optimization time: The nature of Facebook’s ad delivery algorithm is optimization. By its very definition it needs to show the ads to consumers over a period of time to optimize.

  2. Team optimization and build time: We invest a lot of resources early on in setting up build, testing, and optimizing the campaigns. Based on how the ads optimize and how we’re performing the process often takes several weeks to a month or two to optimize.

  3. Consumer shopping behavior: Real estate consumers shop for 3-6 months before taking a purchase action. Their marketing needs to stay in front of the consumers while they’re shopping, often months at a time, so when they are ready to take action the agent will be and have been the person to contact.

  4. Stable partnerships: We value stability in our business. We’re looking for the type of partner who values consistent long term partnerships.

  5. Marketing timeframe: Real estate marketing takes months, and your message needs to be consistent and repeated to work. We know the majority of the leads cannot and will not turn within the first 30-60 days, that this marketing is not a quick fix, that it requires work and a partnership of calculated team effort to work.

 

Common objections stem from your own fear of asking for the commitment. Most reasonable clients will be fine with a 6 month commitment it’s a very common industry standard to give a descent test (although one year is better) for a product. Granted you’re producing real leads (which we have many steps and optimizations and in place to confirm) you shouldn’t have a major issue with this. The industry standard is to convert 1-3% of the leads, with a higher percentage coming more incubated higher cost leads from platforms like Zillow and Trulia.

 

Think about it, if you’re running a business you have a lot of decisions to make. Making a commitment rather than being constantly in a state of uncertainty about a decision is valuable.

 

All their objections are likely to stem from not fully understanding one of the five main points above. And if they are truly “understanding” of the point and if you feel they still have an objection then they are trying to fall outside of one of these main points.

 

For example if a potential prospect suggests “within a month, once I start to see the results I’ll be able to then totally understand it” you simply need to remind then of the marketing timeframe, consumer behavior and optimization.”

 

A single month will almost never give them a fair shot of valid testing on the product. In addition they’re at risk of prematurely terminating what could be an extremely successful campaign that simply took 45-60 days to properly optimize or have the prospective, quality leads reach them.

 

We price our product lean and aggressively marketing them in order to keep our product highly competitive and delivering results.

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