Lead generation is the lifeblood of your business. Keeping a full pipeline is a goal we’re always chasing, but it’s easier said than done, right? You know phone prospecting can be a lucrative and valuable way to fill up your lead funnel, but without a set of tools help, it’s easy to be left feeling intimidated and frustrated by the process.
Is REDX the swiss army knife that will transform your phone prospecting from a fringe effort to a centerpiece of your marketing strategy? Find out in our REDX review.
REDX offers a powerful platform where multiple types of leads like Expired Listings, FSBOs, and PreForeclosures are delivered to you daily. The dashboard is organized with all the information you need to make good contacts, and the built in dialer takes your efficiency to the next level, allowing you to talk to more people per hour than you ever could on your own.
Read on to learn about REDX’s strengths and weaknesses to see if it’s worth adding to your lead generation toolbox.
First, What is REDX?
REDX is a software company in the business of creating lead prospecting tools for Realtors. Their web-based platform acts as an agent’s landing pad for all things phone prospecting. Realtors can use one or more of REDX’s six lead generation tools (priced a la carte) to acquire leads and start setting appointments.
How Much Does REDX Cost?
Because REDX has a variety of different lead generation tools, there are lots of different pricing options. This a la carte pricing model has choices as low as $39.99 per month, and any paid subscription includes their LMS – Vortex – for free. Get what you need, add on more as you phone prospecting game grows.
Even better, REDX is now offering The Close readers $149 off the setup price, automatically deducted when you click over to their site from this article.
Here’s a closer look at REDX’s a la carte pricing:
|App Name||Monthly Cost|
REDX Volume Discounts
There are some great discounts available too. If you subscribe to more than one paid app, an automatic discount of $9.99 per month is applied.
If you can pay in advance, paying quarterly nets you a 5% discount, semi-annually a 10% discount, and yearly a 15% discount. There’s also a $149.99 setup fee that gets reduced to $49.99 when you pay quarterly, and waived completely when you pay semi-annually or yearly.
What is Vortex?
The REDX experience centers on their LMS platform, Vortex. This dashboard is the first thing you see when logging on. It contains a list of all your current leads, their contact information, relevant information about them, as well as links to notes you’ve made about the conversations you’ve had with them.
As a Lead Management System, Vortex is not a CRM. Unlike most Customer Relationship Managers that strive to track every single interaction you’ve ever had with a client, Vortex has one focus: new listing leads.
The platform generates these new leads from the different sources you subscribe to within the REDX ecosystem, all listed on the left-hand side of the dashboard.
Clicking on one of these leads, you open up a dossier of sorts with all the information REDX has on this particular property and its owner. You get phone numbers, mailing addresses, property information, tax information, and even information about the listing of the property if it was recently on the market.
Lead Generation Options – What REDX Uses to Fill Up Vortex
REDX uses cutting edge aggregation techniques to scour the internet from top to bottom and pull together five different types of leads. Here’s a little bit about each of these lead types, plus a tool to help you turbocharge your interaction with them.
1. Expired Leads
More than 75% of home sellers who don’t have a successful sale the first time around will re-list with a new agent. When a property’s status turns to “expired,” REDX’s Expired Leads subscribers get the contact and listing information for each would-be seller the moment their home comes off the market, making it easy to keep track of the new listings that are up for grabs.
In the time that it takes your competition to locate a single set of contact information, you have the mailing addresses, phone numbers, and tax information of every single expired listing for that day.
Most people who attempt to sell their home without an agent are doing so because they think it saves them money. As you probably already know, according to the National Association of Realtors, on average, an agent-assisted home sells for a price more than 14% higher than the same home FSBO.
REDX gets their leads from hundreds of classified sites, newspapers, magazines, and of course the major consumer real estate sites like Zillow to compile the latest list of FSBO homes in your area.
With this app, a new list of FSBO properties appears in your Vortex feed every morning. This lead group wants to sell, all you need to do is call and convince them they should do it with you.
This time, the search algorithm is pointed at the same consumer sites as above, but searching for property advertised FOR RENT.
The owners of these vacant rentals are perfect potential listing clients. Their properties are income generating, and if owners are dealing with a vacancy, the bills that rent normally pays are being paid out of pocket, making a sale a potential solution to their problem. Also, owners of income property often own more than one property, so the opportunity to acquire a client for more than one transaction arises as well.
This lead source requires your best prospecting skills, but it has a huge upside. Imagine the benefit of personally talking to a dozen income property owners every week. Not only could you become their go-to listing agent, the next time a great income property hits the market, you could turn those contacts into BUYERS too.
There aren’t many dirty words in the real estate business, but “foreclosure” is one of them. Foreclosures aren’t good for homeowners or real estate industry professionals. Even though there may be some short-term opportunities created for homebuyers, these opportunities are far outweighed by the long term costs.
REDX turns its search focus towards public record of foreclosure proceedings and identifies properties in the pre-foreclosure state, delivering a list of properties and their owners to Vortex at the start of every business day.
In addition to the dossier data you receive with every lead, you also receive the foreclosure status of the property. This includes important dates, loan information, and more, giving REDX users a better insight into whether or not there might be some equity in the home.
We found that these leads were often very receptive to our empathetic prospecting message, in part because it was the start of a conversation that could wind up with presenting a solution to a very emotional problem.
Be prepared for some heartbreaking stories, but be prepared to also be on the receiving end of some very grateful conversations too.
This might be the most flexible lead source on the platform, and definitely our favorite. Instead of focusing the lead search for you (Expired, FSBO, etc), GeoLeads lets YOU focus your lead farming in a particular geographic area.
Using an intuitive mapping interface, users can search for contact information for a particular neighborhood or draw a custom boundary to return a dossier on every property owner within a specified area. You can even filter your results by how long a property owner has owned their home.
This REDX option is ideal for “just listed” or “just sold” prospecting, as well as working to develop a geographic lead farm. If you want to make a particular side of town your focus, this feature lets you see who lives there, if they own or rent, and their important contact information, again giving you a leg up on your competition.
6. Storm Dialer
Storm Dialer brings together all the tools that REDX offers and rocket powers them. Since this is a phone prospecting platform, it makes sense that there would be some sort of integration into the services that actually makes the calls for you, and Storm Dialer does just that.
Storm Dialer takes your REDX leads and calls for you! Using three lines at once, Storm Dialer attacks your call list. The moment someone picks up, you are instantly connected to them while the other calls drop off. Storm Dialer also allows you to pre-record a voicemail for each calling session, so there’s no need to leave a voicemail for every person that doesn’t pick up.
REDX estimates that Storm Dialer increases the number of conversations its users have per hour by more than 400%.
The efficiency of StormDialer is actually a little overwhelming at first, especially when you are used to the relatively casual pace of manual phone prospecting. But, from our experience with Storm Dialer, you get into “auto-dialer mode” very quickly, and it is near impossible to not get excited by how many calls you can knock out in a short period of time.
Additional Benefits of Using REDX
Vortex and the rest of the REDX platform have some other features worth mentioning.
The mail merge function allows users to easily take lead data and migrate it to a format that works well with external systems you might be using to set up a postcard or letter writing campaign.
If you don’t have your phone pitch dialed in just right, REDX has multiple scripts for each of their lead sources. The scripts are great starting points for someone looking to get better on the phone.
Training and Troubleshooting
The training and troubleshooting resources within Vortex are also very helpful. The library of written materials and pre-recorded videos helps answer most questions, and they have live chat and phone support during business hours.
Though there are a lot of positives to this platform, there’s definitely room for some improvement.
In order for this system to yield positive results, it requires TIME. Some marketing efforts include an element of “set-it-and-forget-it,” but not REDX. You are not making money if you are not working the phones.
As such, busy agents who spend most of their time out and about will have trouble adjusting to the need to be at a desk every day. While there’s no getting around the time commitment, every agent should carve out at least an hour every morning for this sort of cold prospecting anyway.
Very Limited Integration Options
Though this product does offer some third party compatibility, the list is short and that compatibility is limited. Transferring data from Vortex into another management system (say, a CRM your team uses for active business) is a slow and often manual process.
Analytics are Somewhat Limited
For those of you who thrive on data and analytics, REDX’s offerings are somewhat limited. Though there are some analytics available within the Storm Dialer app, they are noticeably without detail or application. However, most agents don’t need advanced data on their cold calling time, so while it would be nice, it isn’t something that most will miss.
Incorrect or Missing Information
Finally, we’d be remiss if we didn’t mention the reliability issues of the phone number data provided. Many of the phone numbers in a contact dossier are from older databases and can include abandoned landline phone numbers. In our experience, around 50% of the numbers are actually current and working.
It is important to point out that while this number seems low, it is par for the course on this sort of lead generation platform, so REDX isn’t underperforming compared to other options.
Is REDX Worth it for You?
Now that you’ve seen the costs, what sort of success would you have to see on this platform to have a positive ROI? Let’s do a little thought experiment.
Say the average sale price of a home in your area is $200,000 and the average commission percentage for that listing is 6%. Let’s also assume your conversion rate on your calls is very, very low; for every 400 calls you make, you get one listing; a conversion rate of about one quarter of one percent (.25%).
You make twenty calls a day; that’s 100 calls per week, roughly 400 calls per month, or 4,800 calls per year. If you get one listing for every 400 calls you make, that works out to an expected listing volume of 12 more properties per year. That is a bump in volume of $2.4M, or $72,000 in total GCI.
Would you be willing to set aside an hour of your work day for an extra $72,000 this year?
REDX Review Summary
REDX provides a ready-to-use platform for Realtors with easy-to-navigate tools that have almost no learning curve. This platform can be used by both new agents and seasoned veterans, and even though it’s relatively pricey, the threshold for a positive ROI is low and achievable for someone who can dedicate the time every week to making it work for them.
Which of the REDX tools are you going to start with first? Have you been looking for a new way to up your expired listing game, or are you going to use GeoLeads to make your farming more effective? Tell us in the comments below, and head over to REDX to see the platform for yourself.