Brokers - What % of your deals are inbound vs outbound
Just curious to see if there’s any difference across different product lines.
I know many large brokerages provide their brokers with leads that come in.
Based on the most helpful WSO content, brokers often have to balance their time and effort between managing inbound and outbound deals. While the context doesn't provide specific percentages, it does mention that brokers may receive off-market leads and then selectively call up a handful of their closest and trusted clients about these opportunities. This suggests that there is a mix of inbound leads provided by the brokerage and outbound efforts where brokers leverage their relationships and market knowledge to source deals.
To elaborate on point '1', which refers to the initial sourcing of deals via email, it's noted that brokers only have so much bandwidth and might only call up 5-10 of their closest and trust clients about a good off-market lead. This indicates that while inbound leads are part of the deal flow, brokers also need to actively engage in outbound activities to maintain a robust pipeline. The exact balance between inbound and outbound deals can vary depending on the brokerage firm, the individual broker's network, and the market conditions.
Sources: Last time you didn't source a deal via email, Getting Started as a Broker, Average Number of Deals Per Year, Besides relationships, what are the the main differences in an m&a process at EBvsBB, How many deals do you underwrite / do a year?
If you are thinking of inbound leads the way that some other sales roles (tech sales or SaaS for instance) talk about inbound leads. The answer would be absolutely zero.
The distinction id make is that the big brokerage firms (CBRE, JLL, C&W, Newmark, Colliers, etc) have large and robust teams and with that comes more activity in general. Example would be a broker in Dallas, has a client that owns property in Miami and will therefore bring in a broker at the local Miami office to help them execute on that business. Or perhaps there will be some very senior brokers that have expansive books of business, but still get approached to sell a $5mm multifamily property. That’s the kind of thing they’d maybe hand off to a more junior broker and ask them to execute on it. In all cases, nothing is for free, and whoever is bringing these things to you will still be keeping a huge portion of the fees.
When I was at a CB/JLL/CW my team also got a far amount of "inbound leads" from big owners that like to evenly distribute sales assignments to keep a good relationship with everybody. They'd literally call us and be like "we are selling 3 deals in the market this year so giving one to each of the big 3 brokerages in the market, any preference to which one you want?". We'd also get a decent amount of inbound listings from owners that we sold the deal to originally and were coming back to give us the sale again on exit.
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