Home > Blogs > Roger Johnson > Roger Johnson's (rogerajohnson) Blog

Bought Sales Leads Are Just A Game of Fetch, and You're the Dog!

By Roger Johnson

Real Estate Agent

October 12, 2010 02:41 AM

Bought Sales Leads Are Just A Game of Fetch, and You're the Dog!

If you're a real estate agent, then I'm sure that you've gotten the call or email about the next "great" online lead generating website, where you can get 10, 20, 100 leads a month for only X dollars. All leads are pre-qualified and 'ready to buy!' Bought Sales Leads Are Just A Game of Fetch, and You're the Dog!

I've never bought into the for pay online leads, but after reading a recent LinkedIn question about it and seeing the responses, it further occurred to me that those bought sales leads are just a 'stick' and the service selling those leads is the game of fetch and you're the dog. What's worse, you're usually not the only dog chasing the stick, either, as those leads are frequently sold to 2,5, or 50 other agents as well.

Can you imagine playing fetch with your dog where you get the dog to give you a treat (the money) in order to play, then throw the stick (the lead) in amongst a pile of other dogs and yell "go get it, boy!" Seems insane doesn't it?

Most online lead services 'guarantee' a 10 to 20% return on leads. That is for every 10, you'll get 1 to 2 closings. Yet, most agents that do their on online lead generating have the same closing percentage, so what exactly are you getting for your money?

Finally, this thought occurred to me as well; in the Hickory Real Estate market, my area, we have over 150 real estate offices and over 700 Realtors. That's a SMALL number compared to other real estate markets.

So I wonder, how is it that an online lead generating website, based somewhere other than here. was able to get a supposed ready, willing and able buyer wanting a home in the Hickory NC area? If only half the agents and companies in this area have a website, then that's over 400 websites with specifics to Hickory NC Real Estate. That's not including any of the national franchises and their websites.

Somehow, a person looking for property in Hickory NC managed to miss every single local website and instead went to a website where they are put into a database to be sold to the agent that bids the most? Sorry, I don't buy it (literally!).

What's your thoughts on it? If you've bought online leads, was it worth it? Why?

Photo courtesy of OakleyOriginals via Flickr

Re-Blog

Comments(9)

Comment

Show All Comments Sort:

John Cunningham

eXp Realty - Phoenix, AZ

Helping Phoenix Sellers and Buyers find each other

I have bought leads and worked them hard. Most people who respond to these lead websites are not even qualified. I had over 60 leads a few months ago and followed up religiously. I called days, afternoons, evenings, sent property links, sent text messages, called, called, called. What a waste of my time. Save your money.

Oct 12, 2010 02:48 AM

Roger Johnson

Hickory, NC

Keeping my $$$ in my pocket, John. Thanks for honest, and helpful, comment.

Oct 12, 2010 02:57 AM

Doug Rogers

RE/MAX Coastal Properties - Destin, FL

Your Real Estate Resource!

Next time a company calls offer them 35% of any deal you close from their lead. This would be FAR more money than the 20-50 bucks a month they make. But oddly enough such a suggestion gets them off the phone in a hurry.

Kind of lets me know what they think about the quality of the leads...

Oct 12, 2010 03:05 AM

Yep, done that, Doug. It is interesting that they don't usually like that kind of arrangement, isn't it?

Oct 12, 2010 03:45 AM

Sam DeBord

SeattleHome.com -Coldwell Banker Danforth - Seattle, WA

Seattle Real Estate Broker

Roger, I feel the same way. We don't buy leads, we create our own. Leads purchased from outside sources have a much worse reliability rate than those made directly.

Oct 12, 2010 05:13 AM

Anna "Banana" Kruchten

Retired Broker/Owner - Phoenix, AZ

602-380-4886

Roger you had me with the title - cause it's so true! I have had a few agents buy leads (without my knowing up front) and they not once - not once - closed a deal with those silly boughten leads. Waste of time, money and energy. Stop chasing with the other dogs agents and get to work folks!

Featured in BananaTude!

Visualize Roger in a Banana Suit Day!

(Pic thing not working)

Oct 12, 2010 05:23 AM

I agree that those that came directly to you are usually of much higher quality, Sam. So I have to question why these companies think that their's are worth $20-50 just for a name and email address?

Maybe that's the purpose of these companies, Anna, to get those agents trying to find the 'easy way' or those that are 'desperate' for leads. And thanks for the feature! :)

Oct 12, 2010 05:32 AM

Cindy Marchant

Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN

"Cindy in Indy" , Realtor, Fishers Real Estate

I am not a big fan either, I will say that Homegain has been the only vendor where it has paid to be part of their program. I've been with them for maybe five years now. I think the key is to buy them for a niche; I would never buy them for Indianapolis, I would be chasing them all day every day for less than $100,000 purchase, but Fishers...I will chase just about anything. It is my backyard and I know every nook and cranny and it is well worth my time.

Cindy in Indy

Oct 13, 2010 07:44 AM

Cindy, I guess when your average purchase price is just over $100k, like my area, than Homegain wouldn't be a wise investment, either. Thanks.

That's good, Kathy. Glad it works for you. That company is definitely in the minority for lead generation companies, it seems.

Oct 13, 2010 09:50 AM

Bought Sales Leads Are Just A Game of Fetch, and You're the Dog!

Comments(9)

Roger Johnson

Recent Posts

Additional Information