HouseValues.com Is any body working with them???

FYI while searching HV on Google I clipped this from the companies 4th qtr. report. During the fourth quarter, HouseValues also made an equity investment in the ActiveRain Real Estate Network. ActiveRain is the leading professional community and social networking platform serving the real estate community. ActiveRain has rapidly grown its membership over the past two years to more than 70,000 real estate professionals.

Derek- The leads come from the millions of dollars HouseValues spends on television and Internet advertising. No other lead generation company uses TV to generate leads. As for scrubbing the leads, there is a sophisticated system to test the validity of the email address but the "Mickey Mouse's" will still come through. The lead return policy allows for the return of these types of leads if the agent desires. (Many don't return them realizing Internet consumers prefer anonymity until they understand the process. Many deals have been reported from the Mickey Mouse and Donald Duck leads of the world.)

The HouseValues.com landing page has been tested and refined over the 8 years and millions of leads generated to maximize its effectiveness. Asking for too much information, like income, significantly reduces the number of requests, often discouraging people who would otherwise be interested in obtaining information about buying or selling. The more info required the fewer the submittals the more expensive the lead. It's a careful balancing act between the quality of a lead and the company's profitability. If you are interested I can share more of the research we've done on Internet consumers.

The example of a next door neighbor would not be the type of leads HV offers. Now if that neighbor was watching TV, saw one of the HV commercials, got off the couch, logged on to their computer and submitted a request with a working email address, then it would be considered a valid lead.

Also keep in mind that HouseValues is much more than just the leads. The company is famous for its Market Leader customer management system and extensive training offerings ranging from one-on-one coaching, webinars, my MasterMind Call series, tutorials and terrific customer service center.

I hope this helps clear up any questions you had.

John- you are absolutely right and I am on a quest with our management team to try to change the cancellation policy. Unfortunately, any significant changes could have consequences that have to be carefully evaluated. The challenge that perhaps some of this group could help with is the fact that Internet leads are usually long term prospects. Lots of research says Internet consumers start their search online line up to 16 months before buying property and up to 9 months before selling. In other words the consumer is in the ‘thinking about it' stage when they go online. Agents have a significant advantage by being the first agent to contact the prospect but it usually takes time for the lead to mature to a transaction.

So the dilemma is reconciling the short term, want results now that agents feel when they are spending money for leads vs. the long term aspect of Internet leads. If an agent ‘tries' the program for a few months and doesn't get a deal, they would probably cancel if they could without consequence. How could this be turned into a win-win for the agent and the company? I would love to see some input on this that I could use to help champion a change in the cancel policy.

Peter- Here's another resource for you to check out with a bunch of customer success stories.

Wow- I Thank everyone for their input.  I just became a REALTOR January 2007 and I was immediately contacted by House Values.  As a brand new agent willing to try anything for leads I was very tempted, but hesitant.  It applies to that rule "if it is too good to be true, then it isn't."  I am glad I didn't waste any of my hard earned and future hard earned money with this scheme.  This holds true with the Talking House Blog too.  Thank you for helping a newbie!

Rebekah Littlefield 

 

I was a HouseValues customer for just over 5 years back to right after they started. They have a good product and produced some quality leads - but like anything you have to work the heck out of it to make it worthwhile - the leads don't just automatically produce revenue. I had a whole city to myself and as I grew the business, they kept jacking my price - which I had a problem with but I was still making more than I was spending ($2,300/mo). Last year when our market headed south all the leads were either short sales or people trying to reduce their taxes yet HouseValues refused to negotiate my cost so I dropped them. They do have a good follow-up and trickle email program which I continue to use but I would advise you to weigh your advertising budget carefully. You could hit some great target markets or do some very focused pieces for 4k/year. Especially in this market, I wouldn't go there.

I've never used them, but it is obvious with the comments here it not what you want to get into.

Shirely, I don't know why my name didn't publish on my post. I make it very clear here on AR that I am a HouseValues employee- for 6 of the company's 8 years in business.

Please forward the emails to me to investigate further. I have no intention of discrediting another real estate professional. I would just like to co-discover the company to which you are referring. It isn't HouseValues but I'm happy to eat my words if your documentation shows otherwise.

"03/24/2008 11:14 PM by..."

Raymond, Since you have laid claim to this post and speak for HouseValues, and since the existing business model appears to be so controversial amongst Realtors, can you explain the reasons why?  Thanks.

Was thinking about getting info from them but think I will run run run ---Bart

Raymond - I just got to the office and checked my email - It was HOMEGAIN.  I was mistaken.  I truly apologize.  It was such a terrible experience - how could I forgotten that name! 

Shirley - No hard feelings. As I pointed out in my first response to you, getting the HouseValues name confused with other companies is something that happens more often than we wish it would. I deeply appreciate your willingness to correct your statements.

Confession- I was a little nervous after I looked to see if you have ever been a HouseValues customer and saw that you had been back on '04. (Unless there are 2 SW's in Boise :-) 

If I may ask, how are you generating leads now for your business?

Hi John,

I'm happy to answer any questions about the HouseValues business model that I can or can go find answers for you. 

I don't know what you know about the HV business model or what parts you think are controversial. With a few specifics I can get an idea of how to answer.

Best of Success to You!

Hi Raymond,

HouseValues failure to perform for me clearly breached the contract, effectively terminating it, and this fact was acknowledged in a subsequent email from HouseValues along with the offer of a credit. 

As you will know about agency and agency relationships, disclosing information of a past client (or any client) is a serious breach of privacy and confidentiality in most North American jurisdictions.

My question about your business model is, who is the HouseValues broker licensed to solicit (for a fee) real estate business in BC (as is required by legislation and regulation in BC)?

Thanks.

Hi John, I edited my post.

I will check on your question about doing business in BC.

I tried them and wish I had all my money back. 

I used them.  Heres what I got.  I got a database full of people that wanted to know what their home was worth and werent interested in selling.  I did a ton of work and paid a ton of money for no return.

 I thought......what if I spent that money name branding myself.  That was genius.   So thats what I did.  My name is now the only name people really know when thinking of an agent in our area. 

 

Spend your money on yourself!  Feel free to email me for tips whenever.

Lead services can be a predictable way to get prospects.  HouseValues does not deliver what it promises all the time.  I was with HV from august 2004 to December 2007, and they did provide enough leads to get me about a dozen transactions.  The cost of the leads was about 20% of what I made on them, and I consider that reasonable. 

There are several areas where HV does OK, and several where they do poorly.  First, they have fair support with a coaching staff and conference calls that help promote good internet marketing habbits.  They almost always underdelivered on my number of guaranteed leads, but they consistently credited me for the shortages.  Their MarketLeader database system is easy to learn and OK.

The other side of the picture is that, as a technology company, they have been unreliable.  Their consistent upgrading without adequate testing has frustrated many of their current and past clients.  Their landing page for collecting leads is impossible for a victim to escape once they type in their email address, and that lead will be sold to a real estate professional.  Their "exclusive lead" definition is not as clear as I feel it should be.  For instance, if you buy a buyer lead and do not have a subscription for "seller" leads, that same buyer can be sold to another agent if they decide to go online again and ask for a market analysis.  Likewise, if the "buyer lead" enters another request for home listing information, and the request is for an area that HV feels is too far (I think ten miles but RG will correct me if I'm wrong) from you, the lead will be sold again to another agent.

Bottom line is that about one in 40 internet leads will probably turn into $$ for an agent who works the leads properly.  That number is probably the same no matter what the source is that you use to obtain them.  At $40-60 or more per lead, HV is not the most economical place to get leads, but, like other lead factories, it will help you produce business.

One caveat, some lead service company employees have been known to use statistics to paint a distorted picture of their current and previous clients.  I have some good records and am willing to discuss my personal experience with lead companies to anyone who is interested.

biggest waste of money ever....it honestly was

RUN AWAY from Housevalues.com

Why did you even consider using a lead generation company?  You can do your own pay-per-click search engine marketing for a fraction of the cost.  One of my websites is getting a 10% search-to-click conversion on one group of keywords and I'm paying about $0.20/click.  The added bonus is that you can turn the advertising on and off whenever you want.  Furthermore, organic search engine optimization can yield you even more cost effective solutions to lead generation. 

Just saw this post and I am probably going to say exactly what someone else already said.......DON'T DO IT!! We just got back our money. We didn't get all of it back but we got most of it back...

Stacey~