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Are REALTORS Suckers? - Apr. 19, 2006

A cottage industry of companies lining up to take your money. The seemingly hundereds of emails a day I get from HomeValue, House.com, k12 schools and new ones created every day lining up to give you the same pitch, to sell you the same zip coded territory, all tell me, anyway, that their business (selling you leads) must be flourishing.

 

Now, picture in your mind what would happed if realtor.com didn't exist. That IDX wasn't "out there." That MLS data stayed in the originating MLS. That John Q. Public didn't have access to all these data. What would happen?


Well, my guess is that your phone at the office would be ringing off the hook; that your email in box would contain legitimate leads from consumer's that people would actually stop in to your office; and make floor time meaningful and productive.

 

In other words, there wouldn't be a cottage industry of internet companies lining up to take your money and charge you for leads. The leads would call you on the phone, email you, and walk through your office's front door.

 

Do any of you feel compelled to buy into these lead generating companies? For those that have, was it worth it? For those that have, and found out it wasn't worth it, why wasn't it?

 

Regards,

Casey Wilkening

Comments (2)

Leads Are Leads - Apr. 19, 2006

Posted by Lead Generation
It used to bug me to pay for on-line leads but I realized that the people shopping were going on-line rather than using the Newspaper or magazines as their dominant source for seeing property. When I fork out money to the local Newspaper to advertise, I don't say, "You know I could start my own Newspaper and then I could advertise in it for free". It may be just as silly to think that I could dominate the local internet market by my own website.

We all pay for leads. We used to just pay for print ads, now we pay for internet leads.

John Alspaw
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Fishing For Leads - Apr. 19, 2006

Posted by Anonymous
I would say that your statement is mostly true, but not entirely accurate. There's a difference between paying for a lead and paying to advertise. It's sort of like the difference between buying a fish & learning how to fish. When you advertise, you are fishing.

When you buy a lead, you are buying a fish. (And, because most of the lead selling companies charge for the lead when you take it, not when it generates business for you, what you are actually buying is a rolled up parchment paper in which you are told there is a beautiful Rainbow Trout. Sometimes, when you open the paper, you find an old shoe that got caught on the fisherman's hook.)

If you're really hungry today, you might decide to buy a fish. But at some point, you really ought to learn to fish, don't you think? Because Rainbow Trout is $4.59 per pound today, and that's a decent price. But what happens when the price goes up to $9.99 pr pound?

Bill Keegan
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