Marketing and Advertising your Real Estate Business is a non-negotiable, and the better you get at it the more business you’ll be able to bring in. We all know real estate is a numbers game, but figuring out where you’re going to get your numbers from is important not on with regard to your budget, but also your skillset. In this video, Alexander Fazelani breaks down the differences between Inbound Prospecting and Outbound Prospecting – including which one(s) might be the best option for you and your current situation.

Inbound Prospecting

Inbound prospecting focuses on attracting leads to you through various methods. Here are some advantages of inbound prospecting:

Passive Leads: With inbound methods like mailers, Facebook ads, or programs like Zillow Premier or realtor.com, leads come to you. You create passive channels that generate inquiries, allowing you to connect with interested prospects without extensive groundwork.

Potential Profitability: If you have sufficient capital or a solid nest egg, inbound prospecting can be highly profitable. While some methods can be expensive, such as Facebook ads or Zillow Premier, they can yield significant returns by bringing leads directly to you.

However, inbound prospecting also has a few downsides

Costly Investments: Some inbound methods, like online advertising, can be pricey. Costs for Facebook ads have increased, and platforms like Zillow Premier have raised their prices significantly. These methods may require substantial investments for effective lead generation.

Slow Turnaround: Certain inbound methods, such as mailers or billboards, can have a slower turnaround in terms of lead generation. While they contribute to branding and create impressions, the conversion rate may be slower compared to active outbound prospecting.

Finding the Right Mix

When deciding between outbound and inbound prospecting, consider the phase of your business and your personal preferences. Here's a suggested approach:

1. Newer Phase: If you're in the early stages of your business and have limited capital, focusing on outbound prospecting can be a cost-effective way to build your book of business. It allows you to network, connect, and learn crucial sales skills.

2. Transitioning Phase: As your business grows, gradually invest in inbound prospecting methods to supplement your outbound efforts. This combination can provide a balanced approach, with active and passive lead generation channels working together.

3. Personal Preference: Choose prospecting methods that align with your strengths and preferences. If you enjoy door knocking, open houses, and community events, emphasize those activities. If you're comfortable with online advertising or passive lead generation, explore options like Facebook ads or Zillow Premier.