Realtors often pay for leads in one way or another. Many Realtors® buy leads directly from a source that promises a certain number per month. The problem is that you can spend a lot of money without getting good-quality leads. In general, it pays to generate leads organically.
Why Not Pay for Leads?
Paying for leads seems lucrative. You fork over some cash, and someone else sends you qualified, interested leads. One or two per month works out as a sale, and you more than recoup your investment. What’s wrong with that?
What’s wrong is that that’s not really what happens. Here’s what really happens: you support someone else’s business model. You’re wholly dependent on them for your success. The leads may or may not be quality, or even from the promised area. Even more important, you’re probably not the only Realtor® getting that lead. You better be quick or you’ll lose out.
If something happens – the source dries up, the source owners are unethical, or the price rises beyond your budget – you’re stuck. You have no sustainable model of your own. And if you want to be a successful Realtor®, having your own sustainable lead generation is essential.
What to Do Instead
So if you’re not paying for leads, what do you do? The bottom line: Invest in your own business. Many Realtors® are willing to pay thousands per month for leads, but then hesitate to spend even $500 setting up a quality website. Why? You’re willing to spend and support someone else’s business but not your own?
Think of it this way: the minute you stop paying for leads, you get 0. But if you spend the money building up your own lead system, you’ll get return on that forever into the future. Your great website will still be great six months after you pay for it. Your neighborhood farming will still pay dividends years after you start. Your automated email program will contact leads day in and day out, with no additional investment.
As a Realtor®, think about the long-term picture. You want to develop a system that will be paying dividends for years, not one where you have to constantly pay thousands to keep it going. When you develop your own website, email, and farming campaigns, you’ll get those rewards.
I’ve seen too many Realtors® asking each other for advice on various paid lead sources. I want to say, loud and clear: IT’S NOT WORTH IT. They almost never deliver what they claim. Even if the lead source works out, you’ll be dependent on them and if they raise their price or fold, you’ll be left without any leads to sustain your business. Spend the money on yourself and YOUR business! You’re worth it!
Do you pay for leads? Why or why not? Share in the comments!