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"Our Clients Are On Sale Today...Would You Like to Buy Some?"

It's one of those mornings when I'm rushing around trying to get too many things done before I head out the door. Yet, my eye catches the flash of my phone which I've turned OFF precisely to avoid this type of distraction. I can't help myself. I pick up the call.

The voice on the other line is friendly...and unfamiliar. I instantly regret my mistake in picking up the phone. He launches into a sales pitch. This guy is good! He starts out by telling me that he's got referrals that he has to get placed today. Folks are coming in to Kentwood, Michigan and he needs to find an agent to help them. Could he interest me?

Cheap Love by glindsay65.

I cut to the chase. "So...how much is this gonna cost?" Without hesitation, he answers..."only $99 per placement. And if they don't work out, we'll replace them with a guaranteed fit. In fact, we're so confident about our product, that I want you to know about a special deal. Our clients are FOR SALE today! We'll give you 10 of them for only $990! WOW!

It's the phrase 'clients for sale' which stuns me momentarily. I have never thought of the people I serve as products which I can trade or sell for profit. He takes my silence as interest and continues. "In fact, we're so confident about our service, we'll guarantee you ONE sale out of the 10. All for $990!

I wonder WHO these clients are? Did they consent to be used for chattel? Are they aware that their names and the hopes and dreams they expressed when they filled in the innocent looking boxes for assistance with their home search would result in their information being sold and traded on the real estate referral market place?

And then I think about the agents who are going to buy these names today. Sinking hard earned dollars for the hope of landing perhaps one real estate deal. And I guess one could do the arithmetic and figure that you'd be ahead if you spent $990 and got a deal that netted several thousand in commission perhaps...

But what's lost in the frenzy of boiler rooms filled with fast talking sales persons looking for the next sucker willing to part with some money, is the fact that real estate referrals are NOT really about selling people's names and data. It's about creating human relationships which begin through a need for service. People refer people whom they know, like and respect to others whom they know. Genuine Referrals are personal. And that's why things become a little dicey when we take the referral relationship out of the personal context.

It's also why social media and sites like Active Rain are so incredibly powerful. Through blogging, engaging with people on the network through comments, building relationships on sites like Facebook, Twitter and LinkedIn, answering questions as a local expert on Trulia, Zillow or Localism, we put into place the powerful personal building blocks which create authentic communication.

Over the next couple of days, a small group of individuals will be taking the time to understand how to do this effectively. Relationship skills are not a hit or miss proposition. Anyone who has enjoyed vibrant relationships in their personal or professional lives knows that it takes work. This applies to the online virtual world too.

And NO...there is no such thing as a CLIENT SALE. Yes, you can be sold a name, and address and a list of criteria...but that is an entirely different thing than being connected with a genuine Referral.

If you're in Grand Rapids, MI and want to stop in, check us out here...(April 16th & 17th @ the Country Inn & Suites ~ East, 3251 Deposit Drive, Grand Rapids, Mi) wwww.auduhomes.com (Click Education tab to download registration info)

Picture courtesy of glindsays65 on Flickr with Creative Commons license.

Lola Audu, CRS, GRI e-Pro ~ Audu Real Estate

Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. We've had the privilege of helping hundreds of clients succeed in their goals of purchasing and selling property including demonstrated success in the negotiation of Short Sale Transactions. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511.

Posted by Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate on 04/16/2009 05:16 AM

Comments (83)

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83 Comments on "Our Clients Are On Sale Today...Would You Like to Buy Some?"

APR

Lola - I had to laugh because that is the question I ask upfront; so how much is it gong to cost? yes it is all about building relationships and social media does give us the opportunity to do so.

Jennifer...my curiosity got the better of me. :)

Hi Lola...I wish more REALTORS® would say no. Then perhaps some of these companies would go away.

Kate

Lola - What a thoughtful post of the lead generation biz. One has to wonder how many of these "leads" are handed out to other folks as well. And what their site says about privacy, sharing emails, etc. You can help but think what innocent buyers might think about how they are perceived on the open market, and what their value is? I don't even bother asking about price anymore. I am just not interested.

Jeff

APR

Lola- That is a wonderfully worded post about this topic of selling leads. It is all about the relationship and no amount of money is really going to buy a client's loyalty or relationship. It must be built over time. That time sometimes takes a few minutes and others need more cultivation.

Don't you love the way they "bait" us with the "I have a buyer coming to your market area" and then switch to "buyers will only cost you $99 each".

They get your attention by trying to sound like they have an agent referral. They are the bottom of the barrel of the cold calling "agents are suckers" Interent vendors.

I got a similar call like this...I wasn't tooo nice. i just said No, thank you and hung up once I found out the selling pitch. The class, NEW! Social Media & Blogging Ethics Class Combo, sounds great and will be probably be well attended.

I wonder how many hands would be up in the air if you asked the question "how many of you got this kind of call?" I'm raising my both hands:)

Kate...It's not easy to say No if you're new to the business or looking for a quick fix. Thanks for stopping to read and comment.

Jeff...hmmmm, there is no way to check on how many times these 'clients' names are re-used and re-sold. Nor is there a disincentive for a company to practise doing so. Each agent is led to believe that the lead is theirs alone.

Katerina...Totally true!

Lenn, he did sound like an agent referral. And since I have received referrals from across the nation, I initially thought this was the case.

Thanks Rebecca

Joanna...I think we'd all be surprised by the numbers!

Very well written, thank you for your opinion on the matter of internet lead generation. I will be sure not to get caught up in it.

I stopped paying for Internet leads a long time ago. Too many ways to get leads for free!!

Lola, Very well written. I hate that "Oh no" feeling you get when you realize who it is on the other end of the phone and then the ensuing effort to try to be polite. I've never paid for leads and not sure if I ever would.

Lola - There's no substitute for genuine referrals. In the past, when we've bought leads... they tend to be a good match for what I like to call "Cold Transactions." I prefer Warm Relationships.

Lola - Well written and timely blog! There's hardly a day when Bruce or I don't get a call about a 'client sale'! Sometimes the person calling doesn't even know where we work and when I correct them about the location of our business, they just keep talking without a breath! Thanks!

Mary

I got this call and fell for it my first year in the business. The guy, who is an AR member, baited me by saying he was with Keller Williams - I thought that he was referring me on his own. Then, after many questions, I found out that the referral was through a lead service for $99 a lead - you don't get your money back if the person isn't a qualified buyer, you just get another blind lead. There is no established relationship when the 'refer,' they are simply capturing names and numbers and selling them - just like you said!

My staff & I have been receiving these calls 1-3 times a week. Do they really think we are going to fall for this pitch? I understand everyone has to make a living, but really.

In the early days of internet marketing, and before do not call, you were either inundated by calls to your mobile with the promise of riches, or emails that ask you for a yearly or monthly "donation" to their exclusive referral network. Then companies like Homegain worked to legitimize the selling of real estate leads, which was ironic becasue they were at one time part of realtor.com. Give me your money so we can sell your leads back to you! Now that the market has had an upheaval companies are again rushing to promise panicked Realtors the same old pitch dressed in different clothes. The wonderful thing about web 2.0 is that viral spreads of listings are common place, self directed SEO like blogs are free, and permission based marketing has morphed from passive please use me, to Realtors with a voice saying come on in, the waters warm. Good for you, and I hope Michigan has a recovery this year. FYI, an Oklahoma City firm is trying to buy Saturn from GM.

I get calls like this weekly and just tell them NO

I guess I always respond to these calls the same way...if it's a referral I will take 100% of the leads you have to offer. When I speak of referral, I mean: 1. Have you had direct contact with the home seller/buyer? 2. Have you explained the referral process to the potential seller/buyer and 3. Is the compensation based on a referral model...ie the person/company making the referral gets paid a percentage when the transaction closes.

Most of the time I never even get past question 1.

Well written, factual, should be read by all new real estate agents (and experienced as well)...nothing more to say!

Great post - I too wish more people would just hang up on these people - maybe they would go away. I'm sure that most buyers don't realize that they are being "sold" to an agent who, for whatever reason, wants to supplement their lead generation this way. Many people choosing to do so (notice I didn't say all) are trying to take the easy way out or are desperate for a deal, 2 types of agents I don't want to work with. I will continue to encourage people in my office to reject these types of leads and develop relationships that will bring them better leads.

Have you noticed how when they say "no thanks" they just...hang up! So polite.. Ha!

Patricia Aulson/Portsmouth NH Real Estate

Good for you, straight to the chase, how much? Must admit, I bait them on sometimes to hear the whole story. And that's what it is, a story. Good Luck!

Very well written post and enjoyable to read. I couldn't agree more with you.

Lola...

I would have not have been able to resist asking the dude if he'd like to trade his so called leads for my phone book :)

Chattel...I hate dislike that word. The Pastor that married BB and I used that word and I came sooooooo close to interrupting my own wedding ceremony. After the ceremony I walked up to this, so called Pastor, and asked him if I looked like a cow to him :)

TLW...ROAR!

More and more of these calls are coming in every week! I hate to be rude to them, but the callers are so persistent and I'm NOT BUYING clients.

Lola--I can't agree with you more. These 'internet brokers' prey on agents who are desparate for business. A few of my former agents used to get 'hooked' every once in awhile until the word spred throughout the office (with my help). I like Brian Turner's comment: too many free ways to get leads today, why pay?

Congrats on earning Gold Star.
Mary

Lola, if I had a penny for every call I get like this I would be rich.

Good way to put it. I'm even getting emails now on my web-site trying to entice me to by Page 1 of Google.

How the heck did they find me.

What a great post, Lola. I can't tell you how many emails similar to that call I receive. You are so right that it's about the relationships. I hope the guy who called you sees this.

Wonderful post. I have received those calls and emails and always hungup or deleted. Thank you.

Lola, this was a very well written post and kudos to you for having the right attitude!! This business is about getting the best deal possible with the least amount of hassle for real people at one of the most vulnerable and emotional times in their lives. It is not a commodity business where customers are "on sale" like trading cattle or corn.

Posts like yours remind everyone to "keep it real!"

Hi Lola,

Thanks for voicing what I have long wanted to say but did not know how. You have given expression in your inimitable way to my frustrations about these men and women who chose to waste my time, minutes, and energy by often telling me they found me on Active Rain. I hope they will find us again by reading your post and our comments. I hope they back off.

Thanks!

(Does anyone else have difficulty posting comments? My graphic is often very uncooperative.)

Hey TLW... maybe the pastor said you "CHAT WELL". That had to have been it girl.

I'm with the rest of you on pay for leads. I'ld rather attract them with my awesome personality and incredible knowledge. ;)

There is good telemarketing and bad telemarketing. I'm going to put this in the "bad" category.

Lola, you hit the nail on the head and your post serves as a good reminder to cultivate the relationships we have with past clients. The BEST referrals are those that come from a previous satisfied client. We have instant credibility with the referred client!

Also- I think your cheap love picture is hilarious!

Lola, a wonderful post. I asked this question "who these clients are " several times my-self and asked all the other agents as well, but no matter what the asnwer is, It is so true, Yes, you can be sold a name, and address and a list of criteria...but that is an entirely different thing than being connected with a genuine Referral.

Nicely written!

I have had more companies contact me and "qualifying" me as to whether I could handle about 20 buyers at a time....Oh sure! I know many agents that tried these "leads", they do not work!

www.thecampteam.net

Hi Lola, about 9 years ago, when I first got into real estate, I got suckered into paying for this type of service. Oh my gosh, what a huge mistake and waste of money. They sent me people with disconnected phone lines, who said they never signed up to get contacted by a Realtor, who were genuinely uninterested in my phone calls, etc...

Another lesson learned for a hefty fee.

The photo was PERFECT!! Too true, and sad. Great post, and I'm glad it was a feature!! I'm like you, cut to the chase -- how much is this gonna cost me! Have a wonderful weekend!

Lola: I get those calls all the time, I just love what you asked the guy! You cut him off at the pass.

Nicely done Lola.
Also ask them how many other agents they sell this to.
I ones too a few "free" testers from one of these services (Hey, nothing wrong with free - right?) - result:

Ahem, how come you are realtor 5 to call me in the past 2 hours? Oh, and btw, we just got our house a month ago and REALLY don't want ot buy another one... So, why are you people calling me anyway???

Lesson learned... I don't think them there clients were all that aware of their "client" status.

Terkel, What an interesting comment. Thank goodness, you discovered the truth for FREE.

Sandy, There was no need to waste precious time. :)

Carla, Thanks for your comment. The photo had it's own peculiar irony. :)

Chris...many of us have fallen for this. But once is more than enough...lessons learned. :)

Tamera...one wonders where they get these multitude of leads. If they were so wonderful, you'd think they'd start their own real estate companies wouldn't you?

Suma, It's tempting to buy leads because it seems easier than going out and creating your own contacts. While this may be true in the short run, it's infinitely more expensive and will never give the return that building a personal referral network will.

Leslie...Thank you. :)

Paul...Yep! Although I must say, I'd have to give this guy some credit for the sheer audacity of his sales pitch! :)

Sally...I'll say Amen to that!

Eloise...nice to have you stop by. I had trouble uploading my graphic too...must be a glitch. Finally did a cut a paste and it worked. I wonder if the commenting is part of the same issue.

Peggy...that would be interesting. I wonder if he'd recognize himself in the story. :)

Thanks Lynn

Missy...LOL, that is so funny! I've actually shared a sentiment along those lines to someone. There was no comeback. :)

Mary...a lack of knowledge can be awfully expensive. Now, more than ever...

Lola the math just does not work for me. He is going to give you going to give you a placement for $99, and if that does not work, then he will "replace them with a guaranteed fit" what ever that means, I guess it must mean sale. So why would any one consider paying $990 for one guarantee sale, when you can just pay $99 for one placement and have them just keep on replacing it unit you had a sale, or am I missing something here.

If there leads are so good then why don't they get a Real Estate licence and sell the houses themselves?

TLW...I burst out laughing when I read your comment. I would have given anything to see that guys face. :)

Erica, sometimes politeness is sort of like tough love...one has to express the truth in a blunt fashion.

Christianne...Thank you.

Frank & Jodi...Obviously the script works well enough for them to continue to use it...

Patricia...nor do most of them ask if it's a good time to talk...

Jason, remember the days when a cold call was something you hated doing but had too? What's frightening about these recent developments is now agents are paying someone to recreate the harrowing experience for them...Really too bad. I'm with you on the Warm Call...

Manolis...appreciate your comment.

Brian...so true. You should write a post with that title!

Barb...if you've survived through this economic crisis and done so without paying for a lead, there should be very little incentive to do so when things are back to normal. Kudos to you for investing in yourself and your profession.

Very cool comment Joe Pryor...appreciate how you lay out the historical perspective.

Joe Jackson...if more of said NO, there'd be fewer calls.

George Suoto...my sentiments exactly with regards to getting their own license to sell real estate instead of passing on these fantastic opportunities. I didn't have the time to explore the issues you raised with him...in truth, I didn't want to spend the time. But you're right in your observation. Somehow, I don't think their system works that way. :)

Becky, you make some good points. Like you said, this may be a part of a strategic marketing effort for some agents, but it seems that there are more effective ways to do this especially with the tools that agents now have at their disposal if they will take the time to invest in themselves and their professional education.

Gary...Thank you!

Ron...great comebacks. :)

Web Site = captured lead = prospect. Sell $99.00. Well maybe we can all start something similar! One days these things will go away, social networking will eradicate them.

I just typed out a missive that seems to have disappeared into Internet oblivion. I'll try again.

Thanks for a great, simple explanation of these vultures who prey on agents promising miracles!! For experienced agents I don't feel sooooooo bad if they succumb but I do feel bad for the newer agents who aren't being given some good direction in creating their own, much more worthwhile leads.

I always gave them a polite moment or two and than would state I was not interested now, or, anytime in the future!! If they didn't cease and desist I simply hung up the phone -- and didn't even feel guilty for being rude for 1 second!

Sue

We've occasionally agreed to a free lead (or trial, if we don't have to give them a credit card). The leads turned out to be people who had no idea they were being "referred" and may not even want to buy or sell. Most were angry that we called. It's been a LONG time since we even tried one.

These bait and switch companies seem to be coming out of the woodwork these days. Whenever I see an out of area code on my cell, I let it go to voice mail. I can google the #, and if it's a potential client, I will call them right back. Vultures they are.

Lola......I've always been hesitant about these kind of leads. Just seemed weird to me. And how you've written it puts my thoughts into focus perfectly. I'd hate to be thought of as chattel. I heard another salesperson (outside of real esate) say that he 'bagged' another client that day. That sounded so........ugh. I thought how would that client now that she'd been bagged.....instead of served at the highest level.

Thankyou. Your posts are always so well written and thoughtful.

Lola - thanks a lot for excellently written post. I wish I could attend your seminar if it were in Cleveland. That's a perfect distinction between the leads and the referrals. "Clients for sale" is a phrase which hit me.

Have a great seminar! Educated Real Estate agents can seriously compete on the Internet with these sharks whose business is to catch the leads and sell them back to the agents.

Makes you realize how hard everyone has been affected by this market - It seems like these calls are coming three times more than just a year ago.

Hi Corinne...social media is an extremely powerful tool. Unfortunately, a huge number of agents don't know how to use it effectively yet. Hopefully, this will be changing soon...

Sue...sorry about loosing a comment. Glad you re-posted your thoughts again though. I wonder what percentage of the sales is for new agents? Don't know...but they are more vulnerable in some ways.

Sharon...And I'm left thinking about how incredibly rude it is for these companies to give out people's names AND sell them under false pretenses. Isn't there a law against that? If there isn't, there should be!

Chris...judging from the response to this post, my experience is not unique at all...

Anna...Thank you for stopping here to read and for your compliment.

Svetlana...Thank you!

Lisa...yes, it's a sad sign of the times. But on the other hand, we have tools in our hands to combat this situation which can be incredibly effective if we take the time to learn about them AND use them!

I get more than $99 for my pre-approved appointment ready leads. I get 40% from my buyer's agents ;)

They pretend to be surprised when I say I won't pay. Working on real referrals is much more rewarding.

Cute Story but true. I guess we don't slow down long enough sometimes to think about what going on and write such a good blog.

This whole notion of clients for sale never gets any money from us ---- not from these "canned" guys.

And they get so annoyed with me when I tell them "no thanks" and hang up. I have actually had some call back...

I couldn't agree more. Over the last year, I get at least one call a week with a similar pitch -- sometimes 3 or 4 calls. Obnoxious. I'm sure the buyers have no idea what is happening.

Lola: You gotta love these guys and oh.. the ones who call and say.. You may know me indirectly.. I'm the one who sells the ink pens... Grrrrr If I wanted a ink pen.. I'd call them.

the sad thing about the referral lead services is they want paid up front for these unqualified leads that come from our own listings... These lead generator companies build sites, pay huge money for SEO placement and capture leads from out listings and sell back... Hmmmmm.

I think I was contacted by the same company, selling the leads in bundles.

I also get companies offering to put me on page one of Google for a "small fee". Do they bother to check and see that I'm already there?

APR

LOL...

I had him shaking in his holy shoes :)

TLW...ROAR!

Anytime someone wants to sell me leads like that I just asked to be put on the "never call me back because this is assredly some sort of rip off" list.

Lola:

Got the same call - wild they make it sound sooooo good. Glad you didn't bite - me either..

When you are selling "potential clients" it is a tough sell- this guy obviously was trained well!

Lola, that's a true story TLW told you about. When it was over I convinced her to drink a bottle of Dom and leave it alone. For awhile there I thought she was going to make him perform the ceremony again :)

Hey Renee...that comment will blog! :) Way to say it!

Terry, I'm glad that the referrals are working for your without paying...

Celeste...that's right. :) Thanks for your comment.

Bob & Carolin...Good for you!

Lane...now your call back conversation would be really interesting to listen to, I'm sure. My guess is you probably hang up on them again as they didn't get the message the first time. :) Amazing isn't it?

Kerry...Probably not.

TLW...what's scarier is how many people may think that way but don't express it openly anymore. It strikes me that once you think of people as 'things', entitites which have this or that value for your selfish aims, you can transfer that type of labelling around pretty easily...man, woman, child, customer, client, home buyer...

Felix...didn't think of that. More of us should

Kathy, thanks for your comment.

Bridget...I will give him that.

Bryant...LOL...I can only imagine. :)

Lola, essentially you are saying who needs these fast talking salesmen when you can do this yourself. When they say you will have an exclusive area, that's usually when they hear from me, "click."

Before they get a complete sentence out of their mouth, I tell them I have more business than I could possibly handle and there is absolutely nothing they can do for me so go call somebody else. Oh, and btw, my name is on the do not call list and they just violated it.

Gary...'exclusive' as in for this moment while I'm on the phone with you and before I sign up someone else perhaps...

Elizabeth...What's the reaction to the 'I'm on the do not call list question'?

APR

Oh Lola, I am so tired of these types of calls and we are getting so many these days. Your insight is so wonderful. I have never "bought" lead or clients. What I love about blogging is that we can establish a relationship before we even meet!

APR

Hi Lola, What a GREAT post....and what you wrote is so true! Congrats on the little gold star because this certainly is well worth it!

APR

I finally got here whew...I wonder what some of these clowns think sometimes....clients for sale. And to think.... what planet do they come from?

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