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How Lead Generation Almost Ruined My Real Estate Career

By
Services for Real Estate Pros with Real Estate Pipeline, Inc.

True story...

It was a lead generation company that almost made me quit the real estate business altogether. This company (who shall remain nameless though it's been all over the news lately) used to charge monstrous monthly fees. I believe I ended up getting 140 leads and only closing one.  Just one! It made my blood boil. I almost swore off internet prospecting altogether.

...Almost.

Because in the process, I learned some very valuable lessons from my mistakes. I carefully watched how this company did business and how they treated their real estate agents. I noticed and I swore that if I ever started a company, I would NEVER do things like that.  Things like:

  • Sending me junk names or disconnected numbers - and hanging up on me when I called to bring it to their attention.
  • Getting hold of a prospect, only to find out that they had no idea who I was or why I was calling. They weren't looking to buy or sell their home at all.
  • Being put on hold or transferred endlessly through their so-called "customer service" whenever I had a question.
  • Being forced to compete with other agents in the area over each lead that came in.

With things like these, what real estate agent in their right mind would even bother signing up? But the truth is... we need that extra income. Traditional walk-ins and phone calls aren't going to make ends meet.  I had desk fees, association fees, franchise fees... and I still had to work long, unforgiving hours to barely scratch out a living.

Then it hit me.  What if I started my own referral company? A company built from the ground up by agents - for agents.  A company where:

  • You would never get junk names or disconnected numbers. If you did get a disconnected number, you could dispute it and get a new referral for free.
  • We would personally verify each and every referral that came into the system to find out when they were looking to buy or sell, if they were currently working with a real estate agent, and how much they were looking to spend. If they didnt meet any of those qualifications, they never made it to the agent's email inbox.
  • You would reach prospects that were actively looking for a real estate agent and were genuinely expecting to hear from you.
  • You'd get the best customer service available. Friendly, prompt, reliable people who honestly want you to succeed and put their best effort into making sure that happens.
  • You'd get exclusive rights to as many territories as you'd like (at no extra charge). Be sure that you could reasonably handle the referrals that come in from each area, though!

In March of 2003, I started that company - Real Estate Client Referrals and today, our company has helped real estate professionals make millions of dollars in sales.  Even Amanda King, a fellow Realtor(r) here on ActiveRain, and the Century 21 International Realtor of the Year, uses our program to account for over $5 million in sales - and nearly 40% of her gross income. 

If you'd be interested in learning more about how we can help you, and if you'd like to avoid the terrible experience I had with other real estate lead generation companies, I invite you to leave the "lead generation" concept behind - and move up to the next level of "referral procurement" and start getting verified, ready to act prospects in your e-mail.  Just call 1-800-977-7058 and ask for Clint or Mike.

"JT" Prevatte
Former Agent - Fayetteville, NC
The only immediate drawback I see for you is that the companies that you described have built a "reputation" and you are going to have to overcome that.
Dec 20, 2007 01:28 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
If I had to spend $1000 for every $7000 I earned, that would be a very, very, very high fee and a very, very, very low rate of return.
Dec 20, 2007 01:30 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT
Jeffrey -- That is a fantastic point!!!  In fact, that is the very first thing that we have to overcome when approaching a new prospect.  If they have every tried any other referral service and had a bad experience, we have to immediately address that issue and attempt to prove that we do operate differently.  Most people are willing to listen and give us a shot.  Some simply hang up.  But, for the most part, people have been receptive enough to at least listen to why we are different than the "lead gen" companies out there and want to know the difference between what they had and what we can do for them.  As long as they are receptive enough to listen, that is all we ask.  Thanks!

Lenn -- I dont think it would matter to me what the cost was if I was able to generate a 700% ROI.  $100...$1000...$1million.  If I could make 7 times my money on it, Id do it all day long...But, thats just me.  Thanks for the comments!
Dec 20, 2007 01:48 AM
Jimmie Graham
Keller Williams Realty - Ypsilanti, MI
I'll give you a call to learn more about it.  if it can definitely help me then i know my office will fall in line. So i look forward to talking to you.
Dec 20, 2007 01:59 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
I'm glad you learned how not to treat agents.  However anyone looking to take a piece of the money I earn is going to be suspect.  90% of my leads are referral business and from relationships I continue to build outside of the normal real estate channels.  I've never understood the "screen scrapping" of leads and them selling them to an agent for a profit.  Just my opinion.
Dec 20, 2007 02:26 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

You're right...I don't trust the entire industry.  I've tried 4 different lead companies over the years and it ALWAYS turned out the same way.   By the time the lead got to my email box, the client had already talked with several different agents/loan officers.  I think that part of this is the way people shop on the internet....you're not the only lead generating company that they are filling out the form for, but I also think that it's way too impersonal the way that these leads are formed.

From now on, I'll grow my own.

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Dec 20, 2007 02:42 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Jimmy -- Thank you for taking the time to speak with me about my company.  I look forward to working with you in the future.

Cindy -- I work with alot of agents that feel the same way.  In no way do I want to replace any effective marketing that you do already.  But, having someone else take the time to screen out clients before sending them on to you is worth something, correct?  If you have an assistant, and you pay them to do the initial contact...same thing.  I am not interested in wasting anyone's time...nor am I interested in wasting anyone's money.  I only am interested in referring real live actual humans that want to buy or sell a house so that I can help agents make money.  Thanks for your comments and your honesty!

Dec 20, 2007 02:53 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT
Bob -- Thanks for your honesty in your comments.  I understand your plight.  In fact, Ive been there myself.  You are correct...we are not the only one playing this game.  But, we are the only ones that have a verified 1 in 5 closing ratio.  And, to the best of my knowledge, we are the only ones that guarantee closings off of our referrals or you use the service for free until you do make money off of it. 
Dec 20, 2007 02:57 AM