Every agent knows that services like HomeGain and HouseValues are still licking their wounds after being crushed (in the form of a $900,000+ profit loss) in a recent lawsuit.
But many agents still rely on services like these to help them add to their existing business. And rightly so - because when done right, online referral efforts really DO pay off.
So what should an agent know before they choose a "lead generation" company?
1. Know that no service, not even referral generation, will be 100% perfect all of the time. Like other forms of business, real estate lead generation follows the 80/20 rule - in that 80% of the clients, no matter how well-scrubbed, verified and ready-to-act, will simply waste your time. It's an unfortunate fact that not everyone is ready to business right when you contact them. BUT, 20% of them will be what increases your business and your commissions. Knowing this will save you so much frustration, time and effort in the end.
2. Know that not all homeowners are going to buy or sell immediately. Every person is at a different step in the buying or selling process. Some are just getting started and doing research on "what's out there". They really don't need or want to work with an agent yet. Some are just curious to find out how much their home is worth and aren't ready to sell -- yet. For these prospects, just being there to answer their questions will help put you at the forefront of their minds when they are ready to take action
3. Know what you're really getting - and getting into. Ask yourself these questions:
- Are you paying a fee every month but not receiving leads?
- Are you paying a commission split (sometimes 30% or more!) with each successful closing?
- Are you being charged for multiple areas you service?
- Are you locked into a long-term contract or have to pay a cancellation fee if you terminate early?
- Are you getting "junk" leads with names like John Doe and numbers like 555-1212?
- Are you finding that you're spending more than you're getting out of lead generation services?
- Is there a money back guarantee if you're not satisfied with what you're getting?
If so - DON'T SIGN UP . These services drain your time, money and effort and give you little - if anything - to show for it.
Fortunately, you don't have to give up on lead generation - you just have to refocus how you look at it. Instead, consider referral prospecting, which is a service wherein referrals try out free real estate services (like a CMA or get home listings via their local MLS each week). When this happens, they are directed to ONE and only one - select agent who owns that territory.
That means the prospect isn't getting bombarded with calls from real estate agents, and you're not forced to compete with a dozen different other agents to get the prospect's business.
A referral prospecting service like Real Estate Client Referrals helps put you in touch with qualified, personally verified prospects - with no "referral recycling" or sharing of leads - ever. In addition, Real Estate Client Referrals actually GUARANTEES you'll make money, in the form of 1-4 guaranteed closings within a year. No "lead generation" company can guarantee that.
There are also no monthly or annual fees, no commission splits, and no other hidden fees - you pay only when you get referrals. Plus, you can grab as many territories as you feel you can reasonably handle - at no extra charge. The more areas you lock in, the more referrals you could get!
These are referrals with real names, real numbers and a real interest in working with a real estate agent. Go give Real Estate Client Referrals a try today. There's a full 30-day money back guarantee if you're unsatisfied for any reason.