Beware! The Referral Companies!

Never spent a dime on lead companies. Never say never, but most likely I never will. I'd rather spend the money generating my own leads! :)

Instead of spending a few hundred or thousand on referral companies.  Spend the same money running some ads or doing direct mail or joining a networking group. 

I'm fairly new to real estate but I have already received calls from these "pay for leads" companies.  I did a little research and most look like scams.  Seems the best way to get solid leads is to get out there, hustle, and earn them yourself.

I tried a couple of different ones over the years, and was not happy with either one.

Once I first got my license I got these calls and decided to try one of these lead referral companies because I thought it would give my career a boost, you only had to pay and initial 15 dollars per area you choose and 30.00 per lead, that they supposedly checked to see if they where good or not, so first lead I got from them gave me a number that didn't work, so I told them didn't charge me. Than the next one I got already had their house listed with another agent and was just was just checking to see what their home value was, so I told them once again and they didn't charge me, and the next one was just rude and very clear that she didn't want me to call her back so I told the company about her and they said that is not a legitmate reason to cancel that lead and that I would have to pay for it and convert it! I told them I am not paying them to convert these so called warm leads that that kick to me that are obviously icecubes into sales, I gave them three chances to send me a good lead that I would have been more than happy to pay for but all three times they sent me ICECUBES!!!  and so I told them refund my money but either way you will not get another dime from me because I already changed my account info and stop sending me "leads" that as far as I know your pulling those names out of a phonebook! But you know if you as an agent are doing everything you should be doing in this industry there should never be a reason to pay for your own leads.

I tried several lead companies between 2005 and 2007 and never got a qualified lead.  When I researched how they obtained the leads they sold, I discovered 3 important things:  1) they were selling the same lead to everyone who signed up for leads in a zip code, 2) their leads came from online banners that I could have placed myself for half the cost of what I was paying for leads, 3) the verbiage in the banners they placed were misleading, which is why almost all the leads I contacted said "I never asked for anyone to contact me...".

Candice is right, never pay for leads.  Place, control, benefit from your own advertising.

I relocated twice in a period of 3 years, going in to new market areas. So I bit the bullet and paid for leads. Never closed a deal from a paid lead.

I never have paid for leads either --- just improve my web site, and they come to me, without paying fees.   Still love agent referrals also!

I agree, the only way to get hot leads is to generate them yourself.

I am looking at a company right nowthat sets up a Professionally managed website that generates leads for you - the leads are yours and they are coming to you with specific questions.  I have done some research and can't really find anything negative about this company and spoke to couple of people who use them and they are very pleased with the results - It is Compass Internet systems - ProLeads.  Have you tried them before?  I might give them a try.