Almost one in five online sales valuations generated by The ValPal Network over a two-year period resulted in a completion with HM Land Registry.
The ValPal Network now represents over 800 agency brands with over 4,000 branches, and says its analysis of activity in the full calendar years of 2016 and 2017 show that of 551,620 online valuation leads, no fewer than 97,228 went on to complete with HM Land Registry.
The Network - a product of Angels Media, publisher of Estate Agent Today and Letting Agent Today - has used the Land Registry’s average sale price of £248,611 and a typical agency fee of 1.5 per cent to calculate that its members had the opportunity to earn some £363m in potential commission from the leads generated over the two year period.
This is equivalent to £15m each month.
During the period under analysis, 2,750,588 properties were registered as sold by HM Land Registry, meaning that around 3.5 per cent of them originated through the ValPal online valuation tool.
The Network reports that its average agent member generates 33 online sales valuation leads each month, earning them an average of around £22,000 in monthly commission.
"The number of online valuation leads which converted into completions is extremely impressive and reinforces why agents need traffic conversion tools to capture the contact information of people visiting their websites" says Craig Vile, director of The ValPal Network.
"Our members who utilise the instant online valuation tool correctly are seeing great results, with more leads, higher stock levels and ultimately increased commission earnings."
The Network also calculates that if an agency invests £500 per month in marketing its ValPal tool over a six-month period - what The Network considers to be an appropriate spend to optimise income - it could be generating over £30,000 in sales commission by month six.
It claims this is “far superior” to the return on investment from portal subscriptions.
"Due to current market conditions, it should be all about stock for agents. There is no point eating up a large portion of your marketing spend targeting buyers and tenants," adds Vile.
"However, we always remind our agents they must call online valuation leads as soon as they come in so that they can strike while a potential sale or let is still 'hot' in the user's mind.
"What's more, it's important to avoid getting into a conversation about the automated valuation figure. The key is to explain to the prospect why a human needs to visit them to provide a full market appraisal" he says.
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We tested ValPal pre launch and it became clear it was the ‘Holy Grail’ of lead generation. These figures confirm that conclusion. In the past two years or so we have learned how to optimise it’s power, both in terms of how many leads we generate, the cost per lead and how to get the most out of them. Craig is 100% right about calling them while they are hot but there is a second bite of the cherry to be had by implementing an effective nurture program for the slow burners. In conclusion, every estate agent has to have this weapon and know how to use it.
'typical agency fee of 1.5 per cent', really?
'typical agency fee of 1.5 per cent'....typical online/proptech spin to manipulate their figures. Would also be useful to know how many of these completions were through agents using valpal, or is it just a count up from LR figures?
100% of valuation that I do sell!
Hi Andrew, I guess you could use any figure here, 1% or less, either way its a lot of commission generated!
All of the leads (Almost 100k) completed at LR originated using ValPal.
Valpal converts traffic from an agents site to leads. Almost 1 in 5 go on to complete.
The days of 1.5% are long gone!
I’m sure if you met a gift horse you’d look it straight in the mouth
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