AI for lead generation...

[Joe Homs]

I have been inundated by companies offering the next best solution for lead generation.  AI sounds great, but I don't see a track record of success and every time I google the company the reviews are not great.  I want to know your thoughts and have you found any that are working?

[Jerryll Noorden]

Quote from @Max Yuan:

@Joe Homs @Chris Seveney @Matthew Morrow, I'm the founder of GoliathData, a platform that uses AI for lead generation so I feel uniquely qualified to give my $0.02. - The benefit of AI comes down to the ability to automate proven processes.

For example, everyone is targeting the same probate / preforeclosure leads, so how do you get an advantage? You can have a tool that monitors the same data sources as you do today, but use the newest techniques in engineering to automatically extract names, addresses and cross reference that information with county databases before streaming that information to your CRM. Likely finishing the process before anyone else has the chance to even see the original data source, giving your the first mover advantage.

There is a lot of hype around AI and I have seen my fair share of BS. But AI powered tools is a mega-trend and those who use it to their advantage and knows its limitations will have a huge leg up on everyone else. End of the day, RE is a relationship game, the tools are just there to help you focus on building relationships more efficiently.

Dude I HATE to do this but...  I am a former NASA robotics scientist, so I too am uniquely qualified to answer any topic on technology, and data. Sorry, my dude, I have to oppose you (strongly). I will say upfront, that I am not your enemy. I too offer products so I know you must be passionate about yours, but this is something that has to be said.

There is an inherent flaw in this way of thinking no one seems to understand.

Why does everyone simply ignore the fact that you can not target motivated sellers? This is not an opinion, this is not arguable, and this is just DATA. This is a fact.  So, start from this fact, and then let's analyze why AI can't help you with lead generation, at least it can't help you improve the currently low efficiency of lead gen.

If you can't target them, it truly doesn't matter what advanced methods you use to try to target them right?

Imagine you have a fish in the ocean that doesn't eat. It doesn't even have a mouth.

So the entire world is using worms to try to bait it. But worms are so difficult to put on a hook, so here comes a clever dude who invents a machine that easily grabs a worm and hooks it within 1 tenth of a second.

That is great, BUT you CAN'T catch this fish with worms. So this machine for that purpose is useless no matter how cool or advanced.

Now this is exactly what is happening here.

YOU CAN NOT TAEGET MOTIVATED SELLERS no matter what gadget you use.

Now look at your data. Look at data period.

How many probate people do you need to reach out to to find one motivated seller in the mix? THOUSANDS. Isn't this data? Isn't this proof that people in probate, foreclosures, etc. etc are absolutely not motivated?

So here you explain that everyone is using lists, probate, and foreclosures (that aren't motivated sellers) and talk about how to differentiate yourself because everyone is using these lists. Isn't this the exact same thing as the fish example I just listed? You have a new way to reach these (non-motivated) people, but the fact is they remain not motivated people, no matter how much better your way is to contact these (non-motivated) people.

So you talk about data here. So let's talk about data.

3000 mailers to these lists to get one deal (if lucky). That is a 0.033% success rate. That means that 99.96% of the people you are targeting through lists, AI, however, are not motivated. So again,  the concept inherently doesn't work. It doesn't matter what you do to target the WRONG people. They are STILL the wrong people.

I just seriously do not understand why everyone just keeps ignoring this fact.

Why is it so hard to grasp? Seriously I just don't get it.

I will repeat. The people your AI is targeting are the wrong people. Not motivated sellers, so no AI will ever work. Again, if it did, everything else would be out of business by now, right?

But I am not putting just AI under the bus here.  This fact goes FAR beyond AI. NOTHING can target motivated sellers.

PROPSTREAM:

also a data app.

Why do you STILL have to send 3000 mailers calls or texts to prospects Propstream is giving you, to get ONE deal?

Yup. There is absolutely no difference between using Propstream and your standard list. Why are you all paying for a Propstream subscription when you have the exact same results without it, when it comes to finding motivated sellers?!

But people ignore this and see what they want to see. They WANT to believe propstream works because it would make success easier.  It is absolutely stupid retarded moronic.

People, wake up, and smell the data!

No software, no AI, no Propstream, no Batchleads, no NOTHING can target motivated sellers. NOTHING CAN.

The ONLY way to consistently get in touch with motivated sellers is for you to make it extremely easy for them to find you.

Why?

Because only THEY know they are motivated. Only motivated sellers know they are motivated. And per definition, when someone becomes motivated they will take it upon themselves to find a solution to their problem, which is the entire premise behind motivation. Eagerness to solve their problem. "MOTIVATED to solve their issues".

FACEBOOK:

Now, take Facebook.  Facebook has ALL the data. If there is ANY platform that would know who is motivated and who is not, it would be Facebook. Facebook knows anyone better than they know themselves. Facebook knows what you had for lunch in 2011 on the third Monday of June. Do you? No, but Facebook does. Facebook knows your troubles, your favorite food, and music, your crush, who your friends are, who you hang out with, and who you will hang out with. Facebook knows everything.

YET not even Facebook can predict who is motivated.  That is why you still have to pay a lot of money on Facebook ads because even Facebook which is a platform that knows everyone better than they know themselves, can find them!

Honestly, I wish it would, but it can't. I know this is not what you want to hear Sorry.... 

Now what AI CAN do however is automate this horribly poor inefficient method for lead generation. Your conversion rate will still be 0.033% but at least it is automated. But then again all this means is you have an automated way to lose money faster with a chance to get lucky and make some money.

But like Chris Seveny said.  It is a business. People will exploit and monetize new shiny objects to make money. People take advantage of all the hype behind AI and because AI does look INCREDIBLY impressive and no one understands what AI truly is, people think more about it than what it really is and everyone is obsessing over it, and thus there is an opportunity to make money by selling AI products. 

AI is great for many things but NOT lead generation.