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Rainer
200,126
Richard Robibero, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

I say 5,000. Use your intuition and only call the 50 that will buy or list.

And then sell the remaining 4,950 to John McCormack and Larry Johnston and let them fight over it.

 

May 25, 2015 09:14 PM
Rainmaker
982,469
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

The total number means nothing it's the rate that counts John. I would much rather see 1 at 100%.

May 23, 2015 11:19 PM
Ambassador
1,490,716
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

No brainer 500.

May 23, 2015 11:07 PM
Rainmaker
1,477,296
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I'm a girl of 'quality over quantity', so I'd take 5 leads who are ready to go over 5000 who will waste my time.

May 23, 2015 05:09 PM
Ambassador
4,298,221
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

John Novak - most of us would be  tempted to answer both are same - mathematically both arrives at one number - 50.

However, at 1% conversion rate, I suspect the quality of the leads will be low and amount of time you need to spend with 5,000 contacts is 10 times more than that for 500!

May 23, 2015 02:48 PM
Rainmaker
1,520,996
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

The latter.

May 24, 2015 12:00 AM
Rainmaker
1,366,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

John Novak Naturally a 10% conversion rate is better for 500 leads. It sounds rather high to me though.

May 23, 2015 11:35 PM
Rainmaker
2,940,625
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I would rather weed through 500 than 5000 if teh end result is the same. I would not pay anything up front for leads though, they are usualy bogus or gone to way too may people

May 23, 2015 10:38 PM
Rainmaker
698,797
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

They're all either fake, stale or unable to purchase.  We stay away from ALL.

May 23, 2015 10:30 PM
Rainmaker
743,047
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The right answer is entirely dependent on whether your business is structured to process 5,000 internet leads in the recommended 8 nano-seconds that results in a 85% contact rate.

The band width of the phone factory or your dialing for dollars department will determine whether 5,000 or 500 fits the scale of your business.

May 23, 2015 09:48 PM
Rainmaker
4,431,972
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I like the 10 percent conversion rate.. 

May 23, 2015 09:34 PM
Ambassador
2,758,460
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

I would say obviously the 500 as they are fewer in number and less time to work them.

May 23, 2015 09:04 PM
Rainmaker
2,230,891
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning John. Have never bought any leads, but would say 10% of 500 leads.

May 23, 2015 08:07 PM
Rainmaker
983,928
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

what is the cost and time spent?

May 23, 2015 03:44 PM
Rainmaker
633,936
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Fewer leads to cull through, so 500 is MUCH better.

May 23, 2015 01:58 PM
Rainmaker
1,675,306
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

It sounds like the 500 leads are less wasted time.

May 23, 2015 01:55 PM
Rainmaker
2,394,715
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

That is a no brainer...

May 23, 2015 01:38 PM
Ambassador
3,981,932
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

The fewer the leads the more time you will have to focus on the real leads that lead to sales.

May 23, 2015 01:06 PM
Rainer
367,602
Raoul Loustaunau
REALTY ONE GROUP - Phoenix, AZ
urhomefinder.com myvaluetoday.com

depends of the quality of clients you are getting for the conversion;have a great memorial day

May 23, 2015 12:40 PM
Rainmaker
4,796,451
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The 500.  Easier to work with.

Dec 29, 2018 07:44 AM
Rainmaker
3,049,771
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Richard nailed this one!

Jan 14, 2018 07:13 AM
Rainmaker
11,990
Matt Holder
Director of Product | Trulia - San Francisco, CA

If you look at this purely based on those numbers, the outcome is equal. Either way, you convert 50 leads from your efforts.

 

Adding in other factors, such as effort put forth to get to those 50 clients, and you start to get a better picture of which option is better. Let's assume your time is worth $20/hour and you could resonably place 50 calls per day.

  • Option 1 will take you 100 days of calls in order to produce 50 leads at a cost of $16,000
  • Option 2 will take you 10 days at a cost of $1,600

From that perspective, getting to 50 clients in just 10 days is a far better outcome, especially considering the cost to you to produce those 50 leads is 1/10th. Nevertheless, the other contributing factor is the cost of leads to begin with as anyone who can produce leads that convert at 10% will likely charge more than those who only get a 1% conversion...so expect the costs to equal out over time.

May 26, 2015 07:04 AM
Rainmaker
337,612
Brenda J. Andrew
ULTIMA REAL ESTATE - Corpus Christi, TX
Professional Realtor in Corpus Christi, TX

I would take the 500 at 10%.  It's a no brainer but I do love the idea Richard Robibero but I would choose differently who to sell them to!

May 25, 2015 11:13 PM
Rainmaker
2,971,607
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Well, they both give you 50 clients... so I suppose it depends on how quickly you can generate that number of leads and convert them.

May 25, 2015 10:38 PM
Rainmaker
650,336
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Simple math-and the major savings in time-say take the 10% on 500.

May 25, 2015 02:39 PM
Rainmaker
797,159
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

John - I would much rather deal with 500 leads with a 10% conversion rate myself. Less garbage to weed through, and the conversion rate is much better.

Like Inna said, quality over quantity.

May 25, 2015 02:17 PM
Ambassador
881,381
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

500 with 10% of course, depending on costs to obtain those leads and the lead source.

May 25, 2015 05:06 AM
Rainmaker
302,377
Tammy Adams ~ Realtor / Podcaster
Maricopa Real Estate Co - Maricopa, AZ
A Maricopa Agent who Works, Lives & Loves Maricopa

Technically they are the same 50 conversion but the 500 leads are way more easy to manage... lol

May 24, 2015 07:16 AM