|
|
I've been using this rule for years and it has saved me a fortune with
lead companies.
I tell them I gladly pay referral fees for closed business, but no
upfront fees.
They say goodbye.
If their leads were so great, why wouldn't they get a real estate
license and get $25% rather than $25.00 or more?
Has anyone out there ever had success with a lead generation company
that you pay per lead?
Jim Clauser
Jim@JimClauser.com
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Jim,
I disagree with your approach. I have had success with two of
HomeGain's products.
I like HoneGain's Agent Evaluator product, which is the one you pay a
flat monthly rate for and get non-exclusive leads. When you close a
deal, they get 30% of the side they refereed. I have closed many
sellers from that service, although never one of their buyer leads. =20
I also like HomeGain's Source4Sellers product, which is only a flat
monthly fee (with no part of the commission going to them). In almost
one year subscribing to that service, I have no fewer than five bonafide
sellers that will list with me when they are ready to sell, and another
seller that is listing with me next week. =20
To make a long story short: Lead generation systems that somehow screen
or scrub their leads can be very worthwhile. This is especially true
since most consumers (buyers and sellers) will deal with the first real
estate professional they speak with. That said, phone numbers are a
crucial part of any lead we purchase from one of these companies. Just
as important is the agents follow-up and follow-through, without which
one is very unlikely to succeed with any lead they are given.
I just wanted to know if anyone had received a good stream of any
quality leads from eRelocationProfessionals.
Lee Presser
lee.presser@cbhk.com
|
|
re: eRelocation Professionals lead generation site - Jan. 17, 2007 |
| Posted by Billy Ethridge |
In response to Jim Clauser's understandable question about eRelocation Professionals (ERP), " If their leads were so great, why wouldn't they get a real estate license and get $25% rather than $25.00 or more?", I suggest there's a logical, simple answer: because they are expert in generating leads, not in selling real estate.
I know, because I work with "The Relocation Professionals, Inc." -- as well as previously having been a commercial and residential mortgage broker. I have also served as Sr. VP of a couple of dotcoms, and have done marketing & sales consulting with a number of financial service and real estate organizations. I've worked, and developed, several lead and referral / networking programs. -- So much for my bona fides!
I"ve talked directly with dozens of agents who have used our program for 3 or 4 years or so (since our inception in June, 2002), and I can tell you, indisputably, that we have Real Estate agents -- our clients (individual agents or teams) -- who have made many sales with this program. One I spoke to recently told me she sold 53 homes with our program last year. She admittedly is atypical, and she is a superb sales professional, blending technical expertise with strong communication skills and considerable charm. She nonetheless shows what a committed professional can do within the context of our program.
We charge a "flat fee" up front, for a six-month "licensing agreement" where we guarantee a specified number of leads. If we exceed that number of leads, as we often do, we don't charge a penny more. Perhaps the stongest testament to the fact that our program works is the simple fact that many, many agents renew their contracts with us. Typically one sale readily pays for our entire program, sometimes for years.
Perhaps 20% of our leads are junk. Perhaps 20% are "golden". And perhaps 60% are of varying quality. Our leads stem from people who have searched the web for terms such as "moving to Phoenix" or "relocation Reno". Our site gets clicked on, and they are taken to one of our 600 or so community/city sites, or our national site, where they can choose to receive a relocation package. Then they fill our complete contact information, which passes through our software and is distributed to the inbox of the sponsoring or anchoring Realtor (our client). S/he replies to the prospect. The most successful ALWAYS call the prospect within a few days of getting the lead.
One of the reasons ERP charges a six-month licensing fee up front is that the very nature of relocation leads from this method of acquiring them is that the person/family is relocating, often, 2 or 3 or 5 or more months away. So it takes patience to put the leads in your drip system and followup. Yet, once, let's say, 5 months into the program, you're getting not only the new leads to contact, but you're now following up on leads that came in 2 to 5 months ago. The pipeline gets full. But if the agent "tried" the program for 2 or 3 months, the low or nonexistent conversion rate at that time likely would cause many agents to drop out. Those who actually work the leads and do so for the 6 months invariably want to renew, at a very high renewal rate.
If we took a percentage of the total sales made (and how to assuredly know what sales have been made without going into a logistical nightmare?) we would indeed make more money. But that's not our business. We provide, not sell, the leads. It's up to the agent to convert the lead into a prospect and then into a sale. We make a fair, not exhorbitant profit with our program. And, when the agent does his/her followup, everybody wins.
I don't doubt at all that other programs -- our competitors -- are working. From what I've heard, some of them are superb. And, of course, all this depends upon to whom you speak!
This post is NOT a sales pitch: it is an attempt to partially explain a program some real estate pros misunderstand. And, no doubt, there are a few people out there unhappy with us. And who, regardless of his/her level of skill and integrity, has not somewhere encountered some client or prospect not happy with what s/he's doing?
Since our inception, we have maintained the highest rating with the Better Business Bureau, and currently have approximately 800 Real Estate Broker/Agent licensees reflecting all 50 states.
Billy Ethridge
billy@erelopro.com
|
| Permanent Link |
|
RSS Blog Feed