As I've written about before, a long time ago I went through a "blue-funk".  I had just broken up with a woman that I had been dating, but I was the dumper, not the dumpee....So, I didn't think that was really the problem.

At the time, I was just getting my mortgage banking career going and while it was a difficult market, I was actually doing pretty good in it, all things considered....so, again, I don't think that was the problem.

It other words, there really wasn't anything to whine about, yet here I was whining.  I was able to keep myself pulled together during my workday, but at the end of the day, I would find myself in a hurry to get home and to put Stevie Ray Vaughn's "The Sky Is Crying" on.  I would sit in front of my stereo and cry my heart out!

The pisser was that I really didn't know what I was crying about!  Well, long story short, I did a bunch of reading and started going to "Adult Children of Alcoholics" meetings and through these activities and a lot of soul searching I figured out that what I was bummed out about was all of the hurts that I had experienced growing up in a dysfunctional home. 

Over the years I hadn't allowed myself to grieve these losses and while there wasn't anything going on right at that moment to bum me out, that all of the anger and grief that I had not allowed myself to feel had chosen that moment to come welling to the surface.  Finally figuring out what was bothering me, was one of the keys to getting over it.

Two of the other keys were figuring out that in order to be truly a happy person, that I had to start accepting reality as it was, not as I wanted it to be and that I needed to learn the art of forgiving.  Not that I've always done as well as I could in these two areas, but over-all since this blue funk hit me back in the late 80's, I've been a pretty happy person ever since.

Anyway, the reason that I'm writing about this topic again is that the other day I read a post here on AR where quite a few members were whining and crying about lead generation companies and how they are nothing more than parasites on the real estate industry.  It was obvious that there was a great deal of anger built up that was directed at these companies and while I can understand why a real estate agent would be angry at these companies for "stealing" their real estate clients and then selling them back to them as leads, I feel that this anger is misplaced and unhealthy!

The reason that I think that their anger is misplaced and unhealthy is that they are failing to "accept reality as it is, not as they want it to be!"

It's true that these lead generation companies put a lot of time, effort and resources into putting themselves between the agents and the public and they do an excellent job at it.  It's also true that after snagging a minimum amount of information from the potential client that they charge a lot of money to the agents that utilize their services for this information and little else!  Furthermore, it's also true that a lot of these lead generation companies mislead the customers into thinking that they are doing more than simply collecting their information and selling it to whomever will pay for it.  All that said, that's the reality of the situation!

There isn't a whole bunch that you or I can do about it!  But as I learned a long time ago as the result of my blue funk, being pissed off and carrying that anger around with you won't do you any good!

It's far better to accept reality as it is and to put your energies into working around or through this reality.  If they are beating you at the SEO game, you have a choice.  You can continue building and marketing your website in order to compete with them.  Or if this doesn't work, you can put your energies into other ways of getting to these potential clients BEFORE they click on one of these company's websites.

Is It Even Possible To Compete With Such a Well Financed Competitor?

I'm here to tell you that it is!  One of the first things that I learned here on AR was a bit of wisdom that Karen George mentioned in one of her posts.  She said something to the effect that if you could get to be the number one ranked website if you simply built the biggest website dedicate to that particular market.  I believe that she used the term "Chicago Real Estate" as her example.  She said that if you built a site with enough content to be the biggest site for that term, that you would rank as number one....ie that content was king!

I wonder how many of the agents that were whining on that post that I referred to above (I didn't link to it because this is a fairly harsh critique and I didn't want anyone to think that I was personally attacking the lady who wrote it), only have basic 5 page electronic brochure types of web pages.

When I read Ms. George's post, I took it to heart.  My goal is to add a page a day to my website.  I haven't been living up to my goal, yet by doing what I've done, I've raised my web site's google ranking for "st. louis real estate" to a point where I'm on page two of a google search.  Other than content and some other poor attempts as SEO, there is no other reason for my site to have made the gains that it has.  It's not a state of the art site, I don't buy back links and I don't really pay to market it.  Ms. George is right, Content is King!

So, yes.  It is possible to compete with these guys, but it takes a concerted effort consistantly applied over time!  So, stop your whining and start your writing!

***Note:  The agent who wrote the article that I am referring to has given me permission to link to it.  Click here if you would like to read it too.

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc.

 

Bob Mitchell is president of ValueList Real Estate Services,  St. Louis' largest discount/full-service real estate and mortgage company.  If you would like to find out more about Bob, ValueList or our flat-fee listing program, please feel free to visit our web site at valuelistre.com

 
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13 Comments on Please Stop Whining About Lead Generation Companies "Stealing" Your Clients!

MAY
22
2008
520,488 Points 52 Featured Posts Localism Sponsor Outside Blog

Hi Bob!  I want to stop by and say this is a great post but that would be cheesy even though it is true!  Hope all is well in your part of the world!

1:56pm • #1
147,548 Points 6 Featured Posts Outside Blog

Thanks Renee....I hate to be harsh, but all the bitching and moaning in the world won't change what's real!  Things here are getting better...the shoulder is healing and the weather is turning warm....I'll be on the bikes (motor and bicycle) before too much longer!  Hope things are well for you and yours and thanks for the comment!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

4:55pm • #2
127,707 Points 24 Featured Posts Outside Blog

Bob -- Fantastic post!  I was impressed with your level of professionalism in your comments previously and think that you are right on.  Personally, Im againts all lead generators.  Although my company competes in the same market space as many of the giants of that industry, we are not created equal.  That aside, I just wanted to tell you that, from my perspective, you were right on...are right on.  And I, for one, support you.  Excellent job.  Keep it up!

5:04pm • #3
147,548 Points 6 Featured Posts Outside Blog

Clint:  Thank you for your kind words...I purposefully didn't link to that post because I didn't want anybody to think that I was being mean to anyone in particular...including some of the folks who commented on that post.

Honestly, I didn't understand why she couldn't see my points, but who knows, maybe it's me that's tripping???  Thanks for the comment!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

 

6:08pm • #4

My husband commented on the post and was deleted and he didn't even say anything bad.  I guess her staying up til four reading the comments got to her.  I agree with you that things are achanging and it is getting harder to drum up business on your own.

7:18pm • #5
351,167 Points 11 Featured Posts Localism Sponsor Outside Blog

The whiners are usually too busy visiting over the coffee machine to be learning about things that will make their own web sites pull up early in the search engines.  That's work and it is easier to complain.  Good blog.

7:49pm • #6
MAY
23
2008
147,548 Points 6 Featured Posts Outside Blog

Denise:  Thanks for the comment, I saw where she mentioned a comment being deleted, but didn't know what that was all about....I will say that she does come off sounding kind of harsh in her post and in her comments.

Barabara:  I was curious...almost to the point of checking some of the more negative one's websites....but unforturnately, I've got work to do!  Thanks for the comment!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

1:32pm • #7
162,364 Points 10 Featured Posts Localism Sponsor Outside Blog

Bob,

# 1 you should link to my post because I'm going to link to yours...links should be shared.

#2 Your arguments simpy weren't strong enough. Comparing shopping for windshieldwipers to shopping for an agent for the purchase and sale of your largest financial asset was just not adequate.  Some of your arguments actually proved my point.

#3 It is virtually IMPOSSIBLE for an individuals web site to be as powerful as Yahoo.  Don't be ridiculous.  I didn't go into this business to become a the world's greatest web master. I came to SELL REAL ESTATE and most of my energy SHOULD be devoted to working with clients not searching for a "live one."

#4 We can fight what IS by posting about it and trying to turn consumers away from lead geneartors  before they point and click. I'm working on public blog to that effect.

#5 Did you really think I wouldn't find this post?

And where we differ - I believe that we can SLAM the competition if they don't offer VALUE. Fight them, argue against them, make consumers aware of just what a stupid "non-service" most generators are.  You fight back by showing prospects just how dumb this is.

11:08pm • #8
MAY
24
2008
147,548 Points 6 Featured Posts Outside Blog

Ruthmarie:  I'd be happy to link to your post.  As I mentioned in this one, I didn't do so because this post is fairly harsh in it's criticism of your position and frankly, of some of the agents who commented on your post.  I didn't want anyone to think that I was attacking you personally.  I wasn't worried about you "finding" this post. 

Regarding the strength of my argument, it doesn't matter the size of the article being shopped for, it's the principle that matters.  In any market, be it windshields or real estate, there is going to be competition.  That competition is going to have competitive advantages and disadvantages to you, sometimes to the point where it's economically impractical to even attempt to compete against them.  For example, it would be very difficult for a start up car company to compete with Toyota.

In this case, we're talking about an individual agent competing with a larger internet company head to head on the web.  While some of these companies, such as Yahoo, do have some major competitive advantages when it comes to catching the eye of consumers, it's not impossible for an agent to compete and even it were, it really wouldn't matter because that's the way the cookie crumbles!  They have a right to be in business and it's up to you to decide if you want to attempt to compete with them.  If you can, the market will reward you....If you can't, then you go home.

It makes no sense to whine about life being unfair when competing against a yahoo.com or a homegain, etc. than it would to want to start a new car company and then complain that GM had too big a head start on you.  It's up to you to determine if YOU think that you have what it takes to compete and then to make it happen. 

Personally, I think that individual agents can have enough competitive advantages over the lead generation companies to capture enough of any particular market to make it worth their while to compete....if, they do it right. 

I don't mean to be harsh, but basically you seem to be ignoring certain economic realities and resorting to name calling in your article and comments.  If becoming the worlds greatest webmaster is what it takes to beat them at this game, then that's what you're going to have to do if you want to compete.  I don't think that you do, but it does take more of an effort than most agents want to put out.

The perfect analogy here would be when you hear an agent who doesn't have a web presence complain that he/she is losing business because of this whole "web" thing. 

The world and the markets have moved on and if the fact that I've been working on my web site for over a year and a half and have invested hundreds of hours into it gives me a competitive advantage over that agent who hasn't put in the time, effort or money, then so be it. 

That is no different than Yahoo or homegain or any of the other companies that utilize the web to capture and take economic advantage of having captured the consumer because they have invested more time, effort or money into being able to do so.  If their website does a better job of getting the consumer's attention and they can convince (rightfully or wrongfully) the consumer to sign up with their program, then that is simply the way that it is and as long as they've done it legally, there isn't a damn thing that I can do about it.

At that point, I, as an agent, have to make an economic decision of my own;  Do I want to pay them for this lead that I wasn't able to capture myself.  I in essence, become the consumer when this happens.  If they can convince me that their lead (yeah, it belongs to them at this point because they captured it and I didn't) provides me with enough utility to make it worth my while to buy it from them, then more power to them. 

In the long run it all works out.  The companies that are the most efficient will win and the other ones who aren't the most efficient will go home.  This is the way that markets function and if you believe in capitalism, it functioning this way benefits us all.

Regarding your point about fighting back against these companies by writing your blog, I'm 100% in agreement with you. Attempting to get back in front of the consumer via blogging is one of the things that we can do as agents to compete with the big boys and I support your right to do it 100%!

Thank you for your comment!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

4:03am • #9
MAY
26
2008
Localism Sponsor Outside Blog

good point Bob.....content is King. Blogging has helped my site be seen online and I am greateful for that

7:37am • #10
270,988 Points 41 Featured Posts Outside Blog

BOB - I've gotten to the point where if I want a search term to come up, I do what I can to make it happen.  I've had a lot of success getting on to page 1 of Google, so much so that I now shoot for the number one spot, and get disappointed if I don't hit it.  It takes targeted work or a lot of money to be at the top of Google.  I'll do the work!

8:44am • #11

It sounds like Ruthmarie should worry more about real estate then about the lead generating business.

11:49am • #12
147,548 Points 6 Featured Posts Outside Blog

Anne and Eddie:  thanks for the comment and I'm glad that you're having success on the web.

Adam:  The competitive person that I am, I'm shooting for the #1 shot too.  That said, it takes a lot of work, but the challenge is part of the thrill.  Figuring it out has been kind of fun too, not that I have totally, but I'm getting there!  Thanks for the comment.

Denise:  I honestly don't blame Ruthmarie for being frustrated.  I've only had luck with one or two of these lead generation companies.  I don't understand why she can't see the points that I'm making.  To me, they seem self evident, but maybe she's saying the same thing about me??? Thanks for the comment!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

12:46pm • #13

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Bob Mitchell - Realtor St. Louis

Saint Louis, MO

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ValueList Real Estate Services, Inc.

Address: 4251 Martyridge, St. Louis, MO, 63129

Office Phone: (314) 231-5478

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A blog about St. Louis real estate and about real estate in general from a guy who has been selling real estate and doing mortgages since 1984. I'm also the owner of ValueList Real Estate Services, Inc. a discount real estate company serving St. Louis since 1995!


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