Purchasing Leads - WHY

Each time they call I tell them to remove me from their list and that my number is on the DO NOt call LIST.  I usually get, well we found you on your website.  Having a website doesn't give them the right to bug me..  I tell them unless they are interested in buying or selling real estate that they are NOT to call again.

Vincent-

Before I became a Realtor, I worked with some agents in Fallbrook, CA. They purchased internet leads. They were basically wasting their money... none of those leads worked out in the 8 months I worked with them. I will not incorporate any of those lead services into my business plan - it's a complete waste of time and money. The best leads I receive are from my clients and SOI. Referrals are the way to go - and they're who I can provide the best service to. (So, please let me know if you know anyone with any real estate needs in San Diego. I'm happy to follow up and take great care of them!)

~Emily

The San Diego Real Estate Expert

The scourge of our industry. To raise out reputation with the public we need to raise our level of professionalism, both in terms of service as well as in our marketing. If I pay up front for leads, I am basically giving up, admitting that I can not market myself.

One mans opinion. 

It's an unfortunate sign of the times.  I lived my first three years in the buisness off of these lead aggregators.  With 87% of buyers going to the internet to start their search, these companies such as HomeGain, Housevalues and others are spending TONS of money to get found on the search engines.  They then take those leads and sell 'em back to us.  About two years ago I stopped pouring money into these lead generators and found that my income was the same or better.  Why?  I wasn't spending money into the ongoing (excessive) fees and the referral fees.  I've been spending more time on the organic rankings in the searches.  Loyalty is a big issue with the leads that are "given" to you.  I find that networking and interaction was a better marketing venue.  Aggregators generally give you "right now" clients, as opposed to doing it the "hard way", but the hard way builds relationships and the relationships generate furture referrals.  It's a better buisness practice - but don't under estimate those agents who have learned how to really make a living off the aggregator sites.  A lot of them will swear by it.  I think there is a cheaper and better way.

 Sorry for the long comment...

The lead aggregators are stealing the leads from us and selling them back to us.

If no one used these guys, they'd go away and we'd get them thru organic searches.

Yea, they're out there for home inspectors too!

Bummer.

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I call them aggravators. THe agent in the office next to me got the call today for the deal of a lifetime. He refused. I told him thanks cause they'll call me next..yep my phone rang and I too had the opportunity of a lifetime. I asked him how would he like an $11,000 reminder of just what DO NOT CALL means.

 

Why don't they get it?

 

Great perspectives, I would love to hear from some people who actually use these lead system. How are they working for you?

Vincent- 

Purchasing leads does work.  the quality and delivery method employed by the the vendor you choose is vital, your organizations business model must also be structured to capitalize on the type of lead and delivery method you utilize.  I do not purchase many leads, quality leads delivered with the highest possible conversion opportunity metrics are expensive.  I do agree with you about being harassed constantly by a boat load of advertising aggregating firms trying to sell leads.  I get at least 12 solicitations per day.  Aggravating.  Excellent point Vincent.

Century 21's International Realtor of the Year Amanda King makes about $5million in sales annually by buying leads from me.  Not a bad return on a $4000 investment.  I have other agents making over a 700% ROI on thier investments.  But, I have to be clear...I am not a "lead generation" company.  I am a full-scale referral procurement company.  There is a huge difference. 

some good information

thanksjudith

AAARRRGGHHHH!!!

I just got another call this morning form someone telling me "GOOD NEWS, WHITESIDE COUNTY HAS OPENED FOR LEADS"

I asked him if his company checks the do not call list and his reply was "well we are on active rain" I asked him if his was the owner of active rain. He didn't know.

I politly told him to remove my name from his list and to never call them again. I guess the next one that calls me will be reported to the DNC police!

Stop the insanity!

 

 

Brian,

I'm glad you were polite.  I am not...  I HATE telephone solicitations.  Being a member of activerain (in my non-attorney opine) does not establish an "existing buisness relationship" as required for exclusion of the DNC registry.  I did not join Activerain to be solicitated by services I do not want, nor need.  It's an invasion of my time and usually these knuckle-heads call my cellphone.  A call that I have to pay for!

I also have to disagree with "Real Estate Client Referrals" who doesn't actullay give his or her name.  If you're capturing leads and getting a fee to give them to the agent, than I don't see how there could be a "huge" difference.  The quality of the leads isn't relevant.  You're still a service provider and I do not want to be solicited in my e-mail or by phone.

If I want the service, I'll go find it.  I do think the services work for those who's niche is on-line lead conversion.  It did for me for a long time... but, I've matured in my buisness and I am not paying a third party for leads any longer.  I don't want the e-mails, I don't want the calls and I don't want the harrasment.

These guys are quite a pain.  I tell them that if I put my money into all these places that call me I would be the most successful agent on the planet or the poorest.

Where is the Do Not Call registry when realtors need them, I am an independent contractor not a company so why do I get calls. I totally agree with you I got a "buy our leads" call the day my license posted, they knew before I did. They were not the last calls I have gotten but I wish the tidal wave would stop.

These companies are such a waste of money.  I tried one when I first got in the business and then, again, I had a brain lapse and signed on with another one.  I wasted thousands of dollars and energy working leads that were worthless.  Generate your own!  Spend the money on marketing yourself!

These guys know how to make money. They generate leads using information about OUR listings. No matter how they receive this information, we initially pay for it! Some agents pay for placement of listings on these sites, some sites offer - what a miracle - "FREE" input but try to charge agents for a better exposure. If they get info through MLS feeds - we pay for MLS access AND we provide the most accurate and reliable information about our listings. These guys then sell leads to us. And - behind our backs - they fight against us and our MLSs via DOJ's Anti-trust department because we do not offer them FREE information from MLS. What a shame! I think we should think twice before supporting these guys by paying them for lead generation. My opinion: if you have no enough skills and ability to generate your own leads on-line, it's better to invest in a good consultant or in your own education rather than invest into those who try to ruin our business.

Vincent,

I have made the "mistake" of buying leads from Homegain and Buyers USA. I finally decided enough was enough when I almost bought a lead I was already working with. Now, I have a lot of presence on the internet and generate my own leads. These lead companies appeal to new agents who do not have websites or know how to generate their own leads.

Maybe I'm not very bright (ask around, you'll get confirmation), but if someone had a system for generating lots of good leads, wouldn't they then devise a way to keep the larger profit of converting those leads into transactions? Therefore the odds (costs)  of converting these "leads" into transactions must outwiegh the profit to be gained from them by the person who does do the work of turning them into a transaction.  Therefore, not a good investment.  Any time someone wants to "help" you with a "simple" system for success, grab your wallet and move on.  YMMV.

I don't buy leads period. However, when someone calls to sell them to me I tell them that I want the first 6 months free then I'll decide whether to buy into their program or not. So far, no takers.