As a real estate agent, you probably have a few lead generation methods that you trust and that work well for you. But what about buying real estate leads?
For the majority of new agents in the industry, this is the million dollar question. In today’s real estate business, there’s a lot of talk on this subject. Some believe online lead generation programs are too expensive and a waste of time. Others say that such programs are great tools for qualified leads, which makes them a great investment. So, what’s the deal here?
In this blog post, we discuss the benefits of this lead generation strategy and what to keep in mind before buying online real estate leads. After reading this, you should be able to determine if paid leads are worth it for your real estate agent career.
Related: 5 Things You Need to Boost Your Real Estate Agent Career
What’s the Deal with Buying Real Estate Leads?
According to a recent research report conducted by the National Association of Realtors®, 41% of sellers found their agent through referrals and 23% worked with the same agent they had previously worked with to buy or sell a home. That tells us 64% of transactions were repeat and referral deals, while the remaining 36% of deals came from other sources like direct mail, door knocking, cold calling, and online leads. Having said that, some of the top real estate agents are still buying real estate leads as a way to score prospects. Here are three main reasons why:
1) Get More Exposure
Sure, referrals and repeat clients will contact you when they’re ready to go on a particular listing or are ready to buy a house right away. However, homebuyers and sellers these days will go online to start their home buying journey or to get details on selling their home. So, without paid lead generation programs, a real estate agent is basically invisible to this huge pool of potential clients.
As a result, many real estate agents spend money on paid lead generation programs as a marketing strategy to get more exposure. Buying real estate leads also gives you the opportunity to contact your leads before they reach out to other agents or brokers. When you make the first contact, people are more likely to stick with you for all of their real estate needs.
Related: Real Estate Marketing Tips for Agents: Old-Fashioned to Online
2) Get a Steady Stream of Clients
The biggest benefit of buying real estate leads is that it’s the best way to find interested clients on a regular basis. When generating leads online alongside referrals and other methods of finding leads in real estate, an agent will have an abundance of leads to convert to clients. Not only that, but you will also have better chances of scoring QUALIFIED leads who are ready to buy.
Whether paid leads convert to sales and how quickly that happens is in your hands. The best tip in this regard is to give them what they need — whether its listings, information about the housing market or general tips. The key here is to become a reliable resource that they can go to rather than just always closing. Another piece of advice is to build trust immediately after buying real estate leads in order for them to rely on your judgment when it’s time to buy or sell.
3) Potential to Generate Revenue Immediately
Another reason for buying real estate leads is that it creates immediate action in your sales funnel. This is a big benefit for a new or a returning real estate agent who has been out of the game. When you don’t have a local sphere of influence, an established marketing strategy, or an existing database of clients, paid leads will get you back on your feet for sure. Thus, even though an online lead generation program will cost you, treat it as an investment and you’ll see that it’ll generate revenue for your real estate businesses.
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What to Keep in Mind
Before you spend your money buying real estate leads, there are a couple of things worth mentioning that you should keep in mind:
1) Keep Your Lead Generation Strategy Balanced
It’s important not to let online lead generation distract you from staying in touch with your past clients. Top real estate agents use both traditional and online lead generation techniques, and the key is to have a balanced strategy. Make sure to focus on nurturing leads you already have (referrals and repeat clients) first, buying real estate leads second. After all, a good real estate agent is one who communicates with and understands his/her clients
Furthermore, adjust how much time and budget you’re devoting to online leads. The best way to go about this is to put the majority of your time, effort, and budget on your existing leads while having a lead generation program running in the background.
2) Find a Quality Lead Source
There are many companies and websites that offer real estate agents paid leads, but not all of them are worth the price as they provide unqualified leads. Lee Davenport, a real estate coach and consultant based in Atlanta, believes that the quality of the lead source is a major issue to keep in mind. When followupboss.com asked her whether paid leads are worth it, Davenport’s response was “Not always, depending on the quality of the lead source, which can make this a con if the lead source is not reputable.”
So, before you decide to spend your money on paid leads, remember that some leads are more qualified than others and, at the end of the day, you get what you paid for. Some leads will end up in your sales funnel and others won’t depending on where you’re buying them from. Thus, don’t forget to do your research before buying real estate leads from lead generation companies and websites.
Did you know that Mashvisor provides real estate agents with qualified leads? That’s right; we don’t only assist investors in finding the best investment properties to capitalize on, but agents also have a place on our platform! Mashvisor’s agent program finds investors that are actively looking for agents. If they opt to be contacted, we qualify the leads and pass their information onto you.
To learn more, read “Lead Generation Program: The Unique Approach of Mashvisor.”
The Bottom Line
To sum up, buying real estate leads is an investment that pays off for some agents, but not for others. With the right system and strategy in place, you can definitely generate revenue for your business from paid leads. Therefore, becoming a successful real estate agent requires you to stay in touch with your referrals and repeat clients and check the quality of your source before spending your money on lead generation websites.
Are you interested in working with real estate investors looking to buy properties? We can connect you with investors whom you can turn into clients! To learn more about our lead-generation program, schedule a demo.