The Registration Debate – Forced or Not? 17
This is something that’s been really bugging me lately. Have you ever had an issue you were dealing with, where the pros and cons of both sides were pretty much equal? A “pick your poison” scenario?
This is how I feel with the debate between forcing registrations on a real estate website vs. not forcing registrations. It’s a constant debate with myself and other real estate agents who generate a substantial portion of their leads online.
Forcing Registrations
Over the long term, you’re likely to see a trend in the number of leads you receive, and the quality of those leads.
- High number of leads.
- Lower quality leads.
For the purposes of this article, a high quality lead is one that is qualified and read to purchase now. A low quality lead is one that is not ready to buy for at least a year, and is not qualified to buy nor is ready to begin the pre-qualification process.
There are a few popular ways to force registration that I’ve seen agents try out. I don’t have proof that any is better than the other, so the results may vary from market to market.
- Require registration to view search results.
- Allow user to view search results, but require registration to view property details.
- Allow user to view search results as well as a fixed number of property detail pages, then force registration after the user has exceeded their limit.
For the record, my site is currently using option number 2 with mixed results. I get quite a few visitors to my site a day, and I have a bit over a 9% visitor to registration conversion ratio. That’s not a bad number, given my target is set at 10%.
The issue I have with forcing registration is that I personally hate doing it. I hate having to register to view information that I can readily find elsewhere for free. In my mind, when a site offers information for free to me, they are building rapport and goodwill. The chances of me returning to that site are quite high; given I found the information I came looking for.
When you force registration, you are requiring that they fork over contact information so that you or someone on your team should be following up. From a real estate agent perspective, that’s not bad at all.
You can never have enough leads. – Gary Keller
Let’s put on our client hat for a moment. What if I’m not ready to buy a home for a couple of years? Do I really want a real estate agent contacting me for that long? I’d leave the site for sure; for the same reasons that I don’t frequent a car lot until I’m absolutely read to buy a car.
If you’re ready to buy right now, then an agent calling could be convenient, but not what you were expecting. We’re talking about a simple registration form that was filled out, not a request to view a home or a request for a pre-approval. In those cases, the user is undoubtedly expecting a return response almost immediately; definitely within the day.
No Registrations Required
Just like forcing registrations, keeping your site open will see a likely trend as well.
- Low number of leads.
- Higher quality leads.
This seems pretty logical; doesn’t it? If users are not forced to register when they are viewing properties, which is what 95% of them come there to do, then you’re likely to not get nearly as many leads than if you forced them to. The quality of the lead will also be higher, since a user that goes out of their way to contact you is probably going to be a high quality lead.
The problem with no registrations is that you’ve lost the opportunity to convert the lead 6 months ago. Chances are you didn’t even know that particular user was even there!
Think about this for a moment. John Doe is looking to buy a home in 6 months, and stumbled on your site. He views properties and is pretty ecstatic about finding homes in his desired area. 4 months go by, and by gosh, he’s ready to talk to an agent. At that moment, he realizes that Sue, his second-cousin, is a real estate agent.
You’ve just lost the lead. You didn’t even have a chance to talk to John. It’s for this reason alone I’ve opted to forgo the no registration strategy and force registrations when a user wants to view the details of a home. I want to have the opportunity to convert.
Many national real estate sites do not force registrations, and I think this is a trend we’ll start seeing more often. I feel consumers will eventually strive for an open, sharing community where they don’t have to check their baggage at the door. When you have some spare time, stop by Redfin, Zillow, and Trulia and be aware of the experience you have when browsing listings on those sites. Would you feel the same as if they forced you register?
It Relies Your Systems
At the end of the day, the only logical conclusion I can come to is one that is heavily reliant on the systems you’ve implemented in your business.
If you have a follow up system armed and ready to tackle any lead that walks through the door, regardless of the quality, then forcing registrations may be the way to go. If you still struggle to follow up with your leads, and notice that you lose track of those that aren’t ready within a few months, then no registrations may be your ticket.
What do you think? Do you force registrations or not? Why did you choose this strategy?
-SC-
i was just asking myself this question a few days ago to be honest .. nice article .. definitely going to remember some of those points.
What kind of system are you using now, Marc?
This is always a tough question. I am all for forced registration.
It is interesting that you classify a “high quality” lead as one that is ready to purchase NOW. I classify a “high quality” lead as one that has a valid email address. Once I have a valid email address, I can get them into my system and follow up accordingly until they are ready to purchase.
Another question to ask is “do i force phone number during registration”?. I do not force phone number, only email. When someone does leave a phone number with registration, 75% are valid phone numbers. My conversion rates increase dramatically and their time line to buy a home are typically near term as well. If I see a phone number with registration, it tells me right away that the lead is “higher quality”.
@Cary NC Real Estate – I think the key to what you’ve detailed is that you have systems in place to convert leads regardless of time frame. In that light, you can eliminate the timing category from determining if a lead is higher/lower quality, and focus solely on the validity of the information the lead provided. I think that’s fantastic and I bet you’re doing a great job converting them.
What about agents who do not have a system? What would you recommend for them to do next? Do you use any particular software or website to manage your follow up systems?
@Steve – The biggest suggestion I have for fellow agents is to find a system that is working for others and make it fit for you. Gary Keller stresses the idea of “Modeling”. Don’t re-invent the wheel, take the wheel that someone else has created and make it better. That is the way I approached my lead management. I could work at creating my own system from scratch but during that time I would be loosing a lot of leads or at least not converting them as well during that creation process.
I follow a system created by someone else and I would be happy to share it here with your permission. I just started following the system a few months ago, but I already see better results on my conversions.
@cary nc real estate – I don’t mind at all. Please feel free to share what has helped you experience a higher level of success in your business.
I’m sure the other readers (and myself) are curious.
I use Mitch Ribak’s Ehomes Realty Network system (http://www.ehomesrealtynetwork.com/). The system works very well in combination with my REW site and pages. Some of the things Mitch talks about are straight forward while other do a thorough deep dive. Mitch himself is also very responsive when I do have questions, which also helps.
@cary nc real estate – Regardless of the agents systems and years in the business, do you think forced registration should be the way to go from day one?
@steve – Yes, forced registration is the ideal site setup. Mine is setup to allowed the user to view search results, but forces registration to view details.
@ steve,
Sorry about the delayed response.
My systems might not relate as close as the rest, as I am in apartment rentals, so I do not get leads in the same manner you all do.
Nonetheless, I do opt for a forced registration, in agreeance with what was said by cary nc real estate, I also treat individuals who register as a high-quality lead.
My method of initial site registration is quick and easy. A simple email address and password, answer a CAPTCHA phrase, and you’re done. Now you get more benefits out of the site. Although, I do also cater to those who do not register. They can still view the rentals, they just cannot save them, etc.
I prefer method 3, because I find I need to show them the goods a little bit (2 times), then they might feel like registering. Why do I do this… because I offer more than the average Real Estate agent does on the details page. Things like Microsoft Birds eye view map, Google Street View map, Virtual Tour (if Listing Agent has it), also a link to Great Schools.net (if listing agent supplied the schools) and last but not least the “Walkscore” for the home/condo. The more I give them , the better chance of a sign-up. But first they need to see the “value-added”. I just checked my google analytics for yesterday and had 7 unique pageviews, while having 6 actual sign-ups. Not a bad conversion ratio.
@Keith: Those are some great numbers! Thanks for sharing your insight, and I’m sure your site visitors can see value in adding additional features like the Walkscore to your site.
I understand realtors are in the business of selling and that means they need new leads, but what about the seller that the realtor is working for and in the end collecting a commission from? If visitors don’t register for “more details” you are doing a disservice to the person you work for, the seller. Even if the searcher is not thinking about moving everybody knows someone who “that house would be perfect for” and you may be losing potetial showings or a even a sale. In my opinion asking for contact info to generate new business for yourself at the expense of the person that hired you to sell thier house is not right. If you were selling my house I would demand that you get as much info out about my property to as many people as possible. Find other ways to prospect but not on my commission cheque.
My belief is always to have forced registration. I have tested both and there really is no comparison. However, if you do not have a good to great lead conversion system it really doesn’t matter. The better your lead conversion system, the more success you will have. Our system is pretty easy to follow and has been responsible for growth every year even in this bad market. We are on track to have 350 transactions this year with over 90% of our sales coming from our Internet programs. Keep in mind, some of these are also referrals but came from Internet leads originally.
Find a system, follow a system, make your phone calls asap, and follow up, follow up, follow up! That’s the secret sauce!
I do agree to force registration. I am conducting my own research on forced registration sites, and it’s amazing that the only message I have received says, “if you need any help call me.” HAHA. In that scenario, just let people search without registration, because one email follow up with probably not convert a lead. Also, On over 15 sites so far, I have only received 2 telephone calls. HAHA. wow.
I agree with forced also. i wouldnt have it any other way
Steve,
Great article. This is one of the biggest debates going right now…even my business partner and I disagree!
We got sick of debating the issue so we are putting two like websites to the test:
http://www.barkerhedges.com/blog/the-forced-vs-unforced-registration-test.html
If you get a moment stop on by!