Lead Generation Services - Not For Me

I noticed In the last month or so, I have again seen an increase in activity from these companies.  Daily I get calls on my cell phone and many e-mails from these services.

To keep it simple I have a policy of not paying any of these companies for leads.  I have an open offer to pay a 25% referral fee at closing to anyone licensed to sell real estate.  That is how I choose to do business.

Instead of paying companies to jump in line ahead of me and grab leads to sell them back to me, I choose to use the resources to generate my own leads and market my own business instead of theirs.

The ones who are becoming the most obnoxious are the ones who will not take no for an answer.

 Here are a few lines I have been given:

  1. I have a pre-approved buyer looking to purchase a $750,000 home in Kailua.  I am looking for an agent who can help them.
  2. I have an exclusive territory available, but it will be gone today.
  3. Are you interested in growing your business?
  4. These are guaranteed leads.
  5. If I can show you how you can double your business, wouldn't a few thousand dollars seem cheap?
  6. You will be guaranteed no less than so many leads a month.
  7. I see you are a top agent in your market.  We are looking for someone like you to service our clients.

I had one salesperson, who just keeps calling back.  He is persistent, but will never sell me anything.  At least if they are wasting their time with me, they are not ripping off someone else.

I have a few responses I like to use.

  • I do not believe you will do what you say.
  • I do not buy anything over the phone.  Send me more information. (They never do).
  • Many times I start with "what are you selling?"  If they say nothing (many do), I respond, "I only speak to salespeople" and hang up. (A variation of a Jerry Seinfeld joke)

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As a result of this blog post I received a couple of e-mails a salesman looking to solicit business from me.  I will not post his name or contact information.  Hie e-mail address makes it obvious which company he is with.  Maybe I should post his information, since I tried his company's transaction and contact management software and was quite unhappy with their products and service.

Message #1

I like your handle.  Nobody will ever forget where you're from.  Back when I worked for IBM, many years ago, my handle was Typwriter Bruce.  The reason for my short note today is because you were talking about lead generation on Active Rain when you threw down this challenge!  :)  

"I do not believe you will do what you say."  

It sounds like you've been burned in the past.  That's understandable.  About 90% of my clients have been burned at least once.  I'm an internet marketing consultant.  We generate hundreds of leads every month for one of the top Century 21 brokerages in the world.  We absolutely do what we say.  If you have an open mind about a unique way to build your business, my clients will verify that fact for you.  I will give you names and numbers of agents like yourself that you can speak with.  I can help you in several ways.  

Here's the catch.  I would be happy to show you exactly what we do, but only if you promise that you won't talk about us on Active Rain.  That's the same agreement I have with several other Active Rain posters.  For our clients, we are their secret weapon behind the scenes.  

Respectfully,   XXXXXXXXX

Message #2

That's very good.  I hope to find enough time to take those classes this year.  Some of my top producers are also e-PROs.  After following their success for several years, I've reached the conclusion that e-PRO training gives you a solid competitive advantage over the majority of other agents who are just not effective on the internet.  

Have a great weekend!

 

 
Post is included in group: Realtors®
Post is included in group: Century 21 Network
Post is included in group: Rainmaking - Internet Marketing Strategies
Post is included in group: Online Marketing - Tips, Advice, Wisdom
Post is included in group: Almost Anything Goes

47 Comments on Lead Generation Services - Not For Me

Kismet. I just received a call from some Denver company. The caller was "calling on behalf of ______, a Managing Director." As if the Grand Pupah hook is going to work. I have seen a similar spike in these nuisance calls, as well.

And my referral policy is the same as yours!

05/09/2008 04:31 PM by Andrew J. Lenza (ABR*GRI*MBA) Monmouth County NJ Real Estate Broker (Andrew J. Lenza Realty)


i get these calls and emails all the time.  i used to respond when i was unaware of the game, but now, i just ignore them.  i refuse to pay for leads when i can work hard enough to get them myself.  good post.  anyone that's stating that you can make a lot of money want a lot from you.  you shoildn't have to spend a lot of money to make money and you know the leads are not guaranteed.  the leads that we generate on our own aren't guaranteed, so why pay for it?

05/09/2008 04:36 PM by Leslie Wallace (Exit 1-2-3 Realty, LLC)


The shifting market is shaking everyone out...the agents who WERE buying a lot of these leads may not be continuing to buy these leads.  I get calls all the time, but since I did 2years with HouseValues and JustListed, I just don't do it anymore.  If you succeed, it's "LOOK HOW GOOD OUR LEADS ARE" and if you fail it's "YOU ARE JUST NOT WORKING THE SYSTEM PROPERLY LIKE WE TEACH YOU".  UGGH!

 

05/09/2008 04:44 PM by Ron Tarvin's Katy Agent Team-- Katy Texas Real Estate (Keller Williams Realty Katy@Cinco Ranch)


Randy, I say I never buy anything on the first phone call till I investigate them. Who are these people anyway calling me out of the blue?

05/09/2008 05:40 PM by Gary Woltal - REALTOR® Dallas Ft. Worth (Keller Williams Realty)


Times are tough...tough times keep two groups employed - lead sellers and bill collectors!

05/09/2008 06:01 PM by Gary Waters - Real Estate Agent Viera Suntree (Century 21 Baytree Realty www.moving2brevard.com)


Hey Brotha Randy,

Yeah and they tell me they will get me to the first page on Google. And I tell them ..I am the first page on Google:)...no points for this comment.

05/09/2008 06:27 PM by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (RE/MAX Premier Associates)


I think I have gotten all of these come ons also. I Like your last  retort "I only speak to salespeople".  think I will have to use that one! Thanks!

05/09/2008 06:40 PM by James Lockard - Realtor, Allendale, NJ (RE/MAX Properties - Saddle River)


Randy I do not get as many calls as you, but the ones I do get are annoying.  If we could generate as much business as they say by purchasing their leads, then why do they not use them, them selves and make all that money?????

05/09/2008 08:37 PM by George Souto (McCue Mortgage Co.)


Hey Randy,

They're getting sneakier and sneakier in the voicemails that they leave me too! Things like, "hey I'm interesting in buying a house and need to get qualified" only to hear them say, "we have a lot of great leads for you in your area and we're looking for an exclusive lender"

I wane them out by letting them go to voicemail. And like you when I tell them to send me more information, of course they don't!

Anyway, here's to a happy Friday and generating your own business!

05/09/2008 08:53 PM by Ricardo Bueno - Mortgage Planner (World Wide Credit Corporation)


Randy did they mention how much they are willing to sell you the lead for?  Maybe they forgot that.

05/09/2008 09:27 PM by John Walters (Specialized Real Estate)


Randy - You are so right, they refuse to leave me alone and I get interrupted at times when I really don't want to be  It is a sign of the times, business must be bad,  less of those agents around who would have willingly purchased these leads.

05/09/2008 10:17 PM by Jennifer Fivelsdal, Rhinebeck NY (Keller Williams Realty)


Don't you feel better since it was on behalf of their managing director?

Leslie - I agree

Ron - If you fail it's because you gave them you marketing dollars instead of spending it wisely.

05/09/2008 10:35 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Gary W. - No one you would want to meet I am sure.

Gary Waters - They seem to be coming out of the woodwork.  I guess they are taking advantage of desperate agents.

Neal - I also get the SEO folks calling.

05/09/2008 10:37 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


James L. - I got that one from TV.

George S - Good Point.  The answer is obvious.

Richard B. - They depend on the quick sale.  If you think about or ask for information they know they are done.

05/09/2008 10:40 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


John W. - It is usually a huge amount of money, but it is only an investment. LOL

Jennifer - These companies are helping to thin the herd.  They have helped put many struggling agents out of business.

05/09/2008 10:42 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Randy - I've gotten to where I don't answer my phone if it's an 800 number. It's usually lead generation or a "vote for me" call! An agent I used to work with got in very deep with a lead generation company and when I saw that I swore to not use them. If you're doing a good job you won't need them.

05/09/2008 10:45 PM by Linda Scanlan ~Selling All of North Texas (Hall Team Homes)


Linda - I agree.  This post just gerated a couple of e-mails from another lead generator.  I will add them to the original post.

05/09/2008 11:35 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


I have gotten some sneaky phone calls...these guys just won't give up. They act like they are buyers and then suddenly they hit you with "the pitch." They are an example of how never to behave with our own prospects.

05/09/2008 11:53 PM by Ruthmarie Hicks (Keller Williams Realty)


I get very upset because they have the nerve to use my cell minutes and also, I am on the do not call list! I should start turning them in!

05/10/2008 12:27 AM by Jean Powers CRS,PMN,ASP Broker, Northern California (Windermere Welcome Home)


In this type of business in this buyers' market we can only count on ourselves. But, I am sure there are plenty who fall for that line of ----! Thankfully, Randy, we know better.

05/10/2008 01:48 PM by Patrick Lambert (Century 21 All Islands)


Ruthmarie - Sneaky and flat dishonest, will never sell me anything.  You make a good point.  It won't work on real estate clients either.

Jean - How do you turn in a blocked number?

Patrick - It took years of life experince to learn the different scams and how to identify them.

05/10/2008 03:22 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


too funny that they ask you not to talk about them on AR - well duh

05/10/2008 10:47 PM by Central Oregon Real Estate | Thesa Chambers, Broker (RE/MAX Sunset Realty La Pine)


I simply tell them "I never pay for leads". I get plenty of my own leads off my websites and blogs, that are actually looking for "me". Why would I want to pay for a "possibility". As to the no call list that someone mentioned, we should start turning them in. There is nothing worse than being on a busy schedule and getting that long distance phone call on your cell and they want to sell you something!

05/11/2008 08:36 AM by Karen Hurst ~ Real Estate Broker ~ Warwick ~ Rhode Island (Storm Realty LLC)


I think I have finally learned my lesson. I posted about my falling into the trap with one of these 'provoders' when I had let my guard down. Amazingly, I knew better, but did it anyway. BTW, they have the ActiveRain link on their website. www.recr.com

05/11/2008 01:46 PM by Michael Mackey (R) ABR, CRS, GRI (CENTURY 21 All Islands)


Thesa - ooops, I forgot.  I wonder of they will cut me off for mentioning it here?  LOL

Karen - I get them daily.

Michael - More and more will have Active Rain on their sites to try and get credibility.

05/11/2008 08:18 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


You do have to give them an A for effort though.  We had one that called every time I turned around.  After about a dozen no, thank you's I finally bought a little air horn and waited.  They no longer call.  :)

05/12/2008 04:44 AM by Fairbanks Real Estate Broker Jesse Clifton (Jesse & Kathy Clifton, REALTORS - 907.699.6024 - )


Jesse - I have been thinking about buying an air horn.

05/12/2008 07:32 AM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Randy - They are coming out of the woodwork.  I just ignore them.  When they call...I give them a quick NO THANKS then hang up.

05/12/2008 08:32 AM by The Mortgage & Property Connection


I always get your line #2 - "A territory just opened up, but it will be gone today.  People have waited for this territory for years and you get the first chance."   I ask, "Why not call those people that have been waiting patiently for this territory to open up then?"

I tell them I will gladly give them a 25% referral on a closed deal but they never want that.

"Many times I start with "what are you selling?"  If they say nothing (many do), I respond, "I only speak to salespeople" and hang up"

haha, I laughed :)

05/12/2008 08:41 AM by Mike Fotiou, Calgary & Area Real Estate (First Place Realty)


Doreen - They are coming out of the woodwork.

Mike - That is a fun one.

05/12/2008 04:35 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Randy- I hear you on this one! I've wasted A LOT of $ on these over the years...

05/12/2008 04:43 PM by David Buck (RE/MAX 808 Realty)


I don't trust them at ALL. They promise you the world and give you zip.

05/12/2008 06:33 PM by Robert L. Brown~Grand Rapids Real Estate Flexit Realty, West Michigan (www.mrbrownsellsgr.com)


I while ago I had my nephew at my office and overheard a phone conversation where he was talking to one of his friends, he  said something that is so true "Realtors will buy anything if you tell them is going to help their business even if is not true"  I never realized that I have been a victim of promotional sales packages , computer programs, and other BS. SEO TOP RANK positioning for your website on google. I don buy any of that crap anymore I educate myself and try to see what makes sense.

 

Sidney Manzo

Pasadena Remax

Los Angeles Eeal Estate

05/12/2008 08:05 PM by Sidney Manzo (RE/MAX Tri-City)


Dave - If you use that same money you can generate a lot more leads and better quality.

Robert - That pretty much sums it up.

Sidney - That is the best approach.

05/14/2008 12:02 AM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


I love the ones that start with, "I got your information from Active Rain....."

Tina in Virginia

05/14/2008 06:52 AM by Tina Merritt - Virginia Beach Real Estate (Long & Foster Oceanfront - Virginia Tech Hokie)


Randy - we not ony get lots of lead generation calls, which we also decline, but an increasing number of "since the real estate business is so bad, here's a way for you to make more money..."  Click.

05/14/2008 02:07 PM by Sharon Simms St Pete Florida CRS CIPS CLHMS (RE/MAX Metro)


Tina - I get that a lot.

Sharon - The local drug dealers use that line too.

05/14/2008 04:27 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Randy, the last one who called me for the third time pissed me off enough that I promised if anyone from his company called again, they would become blog fodder.  They haven't called back.

05/15/2008 12:20 AM by Patricia Kennedy (Evers & Company)


This week I've received calls from two different companies trying to sell me leads.

I tried a service a few months ago and the leads were unbelievably bad.

I agree with you totally not to pay a company to get your leads ahead of you, and then selling them back to you.

05/15/2008 01:29 AM by Stewart Penn - West Hollywood Condo Specialist (Penn Properties)


Patricia - You mena we won't get to read about them.

Stewart - I have heard the same story from so many agents.

05/15/2008 05:47 AM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Randy,
Agree, I'll spend my hard earned money in other places.  I absolutley hate these calls!

05/17/2008 07:40 AM by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc)


If I have time I like to at least ask where they got my name. It its Active Rain, I only do business with Active Rain advertisers that I am interested in. If I need you, I'll find you.

What gets me is that they will call our cell phones and market us on our 800 #'s. Yep, use my resources. That REally motivates me to buy from you.

05/17/2008 07:42 PM by Suzi Gravenstuk|Independent Broker| License # 17787 (MGC Realty, LLC)


Cynthia - I am with you on that.

Suzi - They are already costing you money and you didn't buy anything.

05/18/2008 04:15 AM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


I'm with YOU! Referral business is good business, when it comes from a licensed professional. "Referrals" from lead generation companies are most likely "suspects" rather than prospects or potential clients.

05/21/2008 12:30 AM by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)


Vickie - I like that, suspects rather than prospects.

05/21/2008 08:47 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


Hi Randy,

Congratulations on of all of your success! I am fairly new to the business, and even I get these calls and emails all the time. I do happen to share your philosophy, and that is, I will figure out a way to generate my own leads. Except in my case, if I don't I may starve. Hey, what better motivation!

05/23/2008 07:15 PM by Richard Schardt - Triad NC Real Estate (Keller Williams Realty)


Richard - Nothing replaces hard work and good planning.

05/23/2008 09:31 PM by Randy L. Prothero - Hawaii REALTOR® (Century 21 Liberty Homes)


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Real Estate Agent: Randy L. Prothero  - Hawaii REALTOR® (Century 21 Liberty Homes)
Randy L. Prothero - Hawaii REALTOR®
Mililani, HI
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