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Would Agents rather pay up front for advertising? Or referral fees on business that has closed.

The world of advertising is changing, where display advertising once ruled, cost per click has taken over. Lately there has been more and more move towards a CPA model - Cost Per Acquisition. This is not new for real estate agents who have for years paid as a whole 25% for a referral from another agent.

I'd love to know what you prefer... paying to advertise or paying referrals for actual business completed ... it's very in line with what's going on between cost per click (CPC) vs. cost per acquisition (CPA).

Posted by Riel Roussopoulos - SEO & Web Strategy Expert on 05/03/2009 03:46 PM

Comments (9)

Referrals in the Online Marketing Channel

referrals, advertising, marketing

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9 Comments on Would Agents rather pay up front for advertising? Or referral fees on business that has closed.

MAY

That's an interesting concept. I do pay for leads upfront via website costs. I also pay for leads/referrals that close.

If a lead referral company calls me. I tell them I would be glad pay for any lead that closes and they go away. I have tried several different lead selling companies and they were all junk leads.

I filled out your survey Riel. Can you post the results in your blog? I won't pay for a lead service anymore. Like Mark, I tell a lead referral company that I would pay after any lead closes, not before. Most of my leads now come from Blogging and referrals.

I worked with one service that we paid upon completed results and like that the best . I would do it again if it were available

I don't pay for "leads", however, I gladly pay a referral fee upon successful closing.

I am still amazed at the number of companies that contact me offering to sell me leads for only $29.95 per month (for the rest of my life[my words]). I always offer to pay them a generous referal fee for leads that close. None of them has ever taken me up on my offer. Could it be that they do not believe their own program?

MAY

I will not pay for leads. I will be glad to pay areferral fee for a qualified lead that closes.

MAY

Riel,

Really like the question fields in this post. It would be very nice to post how to do that.

Pretty cool. I did post a survey once in my website using Constant Contact. Maybe Google Docs is similar.

Thanks,

Richard

MAY

I would much rather pay for a deal that much closed rather than throwing good money after bad for a lead that may not close or even qualify in todays markey

MAY

Hi Richard,

Your wish is my command sir :)

I did a post to show you how I do the forms using Google Docs, it's pretty easy.

I did a video so you could follow along.

http://activerain.com/blogsview/1069158/how-to-post-a-form-on-your-website-using-google-docs

Thanks to the rest of you for taking the time to answer, I'm still getting more answers but it seems pretty clear that most of you would rather pay a commission on a lead, rather than pay for leads up front.

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