It always surprises me how many real estate agents buy leads from 3rd party vendors. I often follow up with a few questions when I hear this from an agent:
- How many leads are you getting per month?
- How much are you paying per month?
- How many of those leads are you actually converting?
I take a pretty firm stance on buying leads. DO NOT DO IT! There are numerous reasons as to why you shouldn’t pay for leads, but I’ve listed a few below.
- Any lead you receive is also getting sent to other agents regardless of what you’ve been told. These vendors are in business to make money and they know they can get away with sending the same leads to multiple agents because not all agents will contact every lead.
- Why should you pay for leads for your own (and other agents) listings when you’re providing the listing to generate those leads? All these companies do, and do it very well, is market their brand, website, etc. to consumers. Consumers can find better listing information on an agent’s site so why feed the beast that’s taking you and your livelihood for granted?
- How much time do you spend lead generating? If you solely rely on these big businesses sending you leads and you have to drop everything you’re doing to try and be the first to contact said lead, is it really worth your time?
- With social media as prevalent as it is today, there’s no reason agents shouldn’t be using it to build their businesses. Take money spent on leads and use it someplace you can fully target who your ad gets in front of to further drive traffic back to your website.
So how do you get leads if you don’t pay for them? Well, it takes some effort and a little bit of money, but why not put it all towards your Sphere of Influence. These are the people that know, like and trust you so why not nurture those relationships to gain their business as well as their referrals? Seems simple, right? Well unfortunately not many agents are doing it, which is an even bigger reason why YOU should!
I’ll have more about building your Sphere of Influence and nurturing them in the next post.