Special offer

Pay for leads? NEVER AGAIN!

By
Real Estate Agent with Florida Property Experts

wasted money
Here on Active Rain, and pretty much everywhere REALTORS® congregate, the majority of them don't believe in paying for leads. I realize there are REALTORS® who actually do well with the online lead selling sites. I don't begrudge them for that. We all have different things that work for us.

But after what I just saw, I have to tell this story. At one time, I joined an online lead site that charged me for each lead I chose to accept. After paying for several garbage leads, I discovered that I was not the only agent being charged! When I accepted a lead and payed for it, other agents had also paid for the same lead. Then it was first come, first served. What a racket!

computer keyAnyway, I'm bringing this up now because as I was just reading another blogger's most recent post, I noticed it was surrounded by three ads that were deceptively misleading. I clicked on one of them that led me to a generic form where they wanted me to input my personal information. Since I'm not a fan of spam, I had no intention of doing that anyway. But of greater concern was the DIFFERENT company name on the bottom of the page. It was the shyster site I had joined many years ago.

Out of curiosity I clicked on one of the other ads. It was another site attempting to get REALTORS® to pay for online leads.

I'm not going to tell you how to run your business. I wouldn't be so dense as to presume that we will all think alike. But please be careful where you waste, errr I mean "spend" your hard-earned money. Times are tough enough as it is. And with all the advice there is here on Active Rain, from experts on Search Engine Optimization (SEO), paying for online leads is most likely going to be a waste of money.

I apologize if I offend anyone who finds these programs to be worth it. As I said, I don't begrudge you for that. Just make sure you have all the facts.

For more information on SEO, so you can do it yourself without feeling it necessary to pay someone else, try joining the "Blogging and SEO" group. As for particular users who offer a lot of help, Mary McKnight has a LOT of useful information, as does Laurie Manny, and many others.

Lisa Hill real estate agent

real estate

Comments(38)

Stacy Magid
Century 21 New Millennium - Woodbridge, VA
I have tried quite a few of these services and in the long run I wasted alot of time and money with them.  In the year or so that I did have them I did close 2 deals but it still didn't justify the high cost each month.  Now I am getting most of my leads from my personal website and my company.
Nov 01, 2007 02:00 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Dwight- It takes time. And we all learn through trial and error; especially with internet marketing. The search engines are constantly changing their criteria. Right now we're all having to adapt to the recent changes Google made in their algorithm. My best suggestion, if you're trying to get quality clients from the internet is to join the group I suggested, and read posts by those who offer FREE advice on how to optimize your blogs and web site for high SEO.
Nov 01, 2007 04:39 AM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
I will not pay for leads - to me it is almost like giving a referral to an unlicensed person - which is not cool here in Oregon - great job Lisa -
Nov 01, 2007 04:42 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Vicky- It's not e-mail It's paid advertising right here on Active Rain. I'm concerned that newbies will fall for it. That's why I posted this. These ads are everywhere!
Nov 01, 2007 04:42 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Julie- It's not e-mail It's paid advertising right here on Active Rain. I'm concerned that newbies will fall for it. That's why I posted this. These ads are everywhere!
Nov 01, 2007 04:43 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
EVERYONE- Wow! I can't believe the overwhelming responses that are all in agreement. I almost expected a debate but apparently we've all learned this lesson the hard way.
Nov 01, 2007 04:43 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Laurie- Amen sister! It really irks me that I have to see those ads here. I'm trying to keep some noobs from making a big mistake ;)
Nov 01, 2007 04:45 AM
Ryan Martin
Pacific Continental Realty, LLC - Bellingham, WA
Bellingham Commercial RE Broker

Lisa - I don't pay for online leads either. I have tried it and it didn't work out for me. Well, I broke even, but fundamentally I don't like the concept.

What I really dislike though is the aggressive sales calls that most of the companies use. You know who you are and you are probably reading this post. I can't stand it when they start out the call with "Would you like more leads for your business?". The answer is clearly "Yes". You don't need to ask us stupid questions. Real estate agents don't like their time wasted.

I am usually pretty direct with these callers and just ask "How much $$$?" Then when you say "No", they beat you down with statements like "So you don't want to make more money?" or "I am trying to help you with your business." When they should be saying "I am desperate for a commission & I will never call you again if you just talk to my sales closer". The bottom line is that these companies drive me nuts and I am sure that I am not alone. Sorry to go off on your post Lisa, but I feel strongly about the subject.

Nov 01, 2007 06:17 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Ryan- When they give me those ridiculous answers, I respond by telling them "that's a manipulative statement and I don't appreciate it". Or at least, that's how I WAS responding. Now I just tell them there's no money in my budget for anything right now, but thank you. Then I immediately hang up. I can hear them talking as I'm hanging up the phone.
Nov 01, 2007 11:16 AM
Marcia Kirtonx
EXIT All Seasons Realty - Brooklyn, NY
Brooklyn, NY - EXIT Realty
Lisa ... Fully agree!!! I was one of those who got caught in my first year of real estate paying for the "promise" of quality leads. I used two companies. None of them ever resulted in a listing. Housevalues was slightly better than most. They used to provide the option to reject leads if you found them not to be of good quality, but they eventually got rid of that option. RealEstate.com simply sucked!!! They didn't do any quality control on their leads at all. Avoid them at all cost. Especially if they try to lock you into a multi-month contract, run like hell! No one can ever convince me again to pay for a lead generating service. You live and learn. I wish I had AR back then.
Nov 01, 2007 05:49 PM
Laurie Manny
Long Beach CA Real Estate - Long Beach, CA

Hey Marcia,  They lock you into a long term contract because they know they cant produce viable leads and want to guarantee their income.  They don't give a crap that it entails ripping you off.  If they knew their product was stellar they would not need a long term contract, their customers would not want to leave.  They all suck!

Anybody ever wonder where their leads come from?  

Anybody else ever suspect that the website providers were swiping leads and selling them out the back door?   

Nov 01, 2007 06:54 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
Laurie- Are you serious? That NEVER occurred to me. The site providers are selling OUR leads? My site is through Alamode aka Agent XSites. Do you have dirt on them?
Nov 02, 2007 06:36 AM
Laurie Manny
Long Beach CA Real Estate - Long Beach, CA
No dirt, just suspicions. 
Nov 02, 2007 06:44 AM
Faina Sechzer
Henderson-Sotheby's International Realty - Princeton, NJ
Real Estate Expert - Princeton, Montgomery ,Hopewell, NJ

Lisa - I am glad I found you. i like the straight talk. In my my pre-AR days I subscribed to FSBO leads. It was very cheap. I made a few calls. I got two closed transactions this year from these calls. I am not doing it again. These were transactions from hell - I don't want leads like that. I need my mental health.

BTW - thanks for your wonderful comment on my post. 

Nov 02, 2007 12:34 PM
Jim Olenbush
Cantera Real Estate - Austin, TX
I wish Realtors would stop paying these lead sellers so they would just go away.  I must get a call every other day from some telemarketer telling me he has a hot lead for me.  Ughh
Nov 02, 2007 01:27 PM
Dan Forbes
Bradenton, FL

I learned a long time ago that paying for "leads" was a waste of money.  I will gladly pay a referral when a transaction closes, but I'm not paying for "leads."  Thanks for your post.

Also, thanks so much for reading and commenting on Bradenton Real Estate Investing: The Fixer-Upper

Nov 03, 2007 02:00 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

As a loan originator I have had my fair share of these types of scams as well.  Thanks for the reminder of the SEO group.  Gonna have to join!

Edit - Just joined.

Nov 03, 2007 03:11 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Faina- I know what you mean about the mental health. Unfortunately, the wacko's can come from any source O_o  And thanks!

Jim- That's what I was thinking. Are that many agents still falling for this? They must be or these "leads" companies wouldn't still be in business. 

Dan- I'm subscribed to your blog =) 

Matthew- I wish people would learn that ANY type of spam or solicitation is going to bring a negative response. 

Nov 03, 2007 05:47 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
I've heard the joke in real estate that the biggest customers for vendors are REALTORs. There's a lot of money to be made while people are still naive. Hopefully Active Rain shares the light!
Nov 05, 2007 11:05 AM
Dale Campbell
Virginia Real Estate - Mechanicsville, VA
Lisa - Thanks for the warning.  I had thought about it, but after reading your post, I will not do it.  I just didn't think about them selling the same lead to more than one person.  I guess I am just too honest to think that way.
Nov 06, 2007 12:27 AM