I've Changed My Mind... Some Agents SHOULD Buy Leads

I have seen a number of posts on ActiveRain about buying leads.  Each time it comes up as a topic and a conversation begins there is a divided opinion about whether this is a good practice or not.

I have to admit, I had never given it much serious thought until recently.  My gut reaction always said that, based on my conversations with agent who had purchased leads, many services selling them fail to deliver.  I also hate the idea of a cash outlay with no guarantee of a return on that investment.

Then, a couple of weeks ago, a colleague mentioned that he was thinking of buying pre-qualified buyer leads.  He has had a difficult number of months struggling to capture new business and was even considering leaving real estate all together.

We discussed his business plan in great detail and I questioned him about his willingness to pay a percentage of his income for leads that he has managed to generate for himself in the past.  He confided in me that despite several years in real estate, prospecting for new business was just not something he was ever terribly good at.  His believes that his several successful years in real estate were as much attributable to luck as they were to any lead generation talent he might possess.

My colleague put it all in perspective for me when he said "Steve, in this business it's important for each of us to know our strengths and our weaknesses, because when we know both and are truthful with ourselves about them we can create a business plan which emphasizes those strengths and compensates for the weaknesses." As he saw it, paying for leads (he found a company that came recommended to him by another agent he knows) was compensating for what he considers to be a weakness.

That put things in an entirely different perspective.  Suddenly it wasn't all about cash outlay or doing something an agent can do for themselves.  It was about self realization and smart business strategizing.  I know agents who hire assistants to help manage their offices and transactions.  I have a buyers representative who works with my buyers so that I can focus on my strengths including lead generation and working with sellers on short sales. 

So, I've had a change of heart... for an agent, whose strength is not lead generation, buying prequalified leads may just be a very smart business decision.  When we focus on our strengths it usually leads to even greater successes!