P2PB Agent Tip | Don't Buy Real Estate Leads
Are you buying online leads? Don't waste your time and money
P2PB AGENT TIP NUMBER: 01
Buying leads form companies like Zillow/Truila is a horrible way to grow your business. Here's why:
- 7 out of 10 real estate agents are buying some sort of leads. Known lead providers charge $1,000 a month, and a lot more for their services. We're talking $12,000 to $24,000 a year from 7 out of every 10 agents. Last I checked, the average real estate agent makes less than $45,000 a year.
- Only 2.5% of purchased leads result in an actual sale. Of this 2.5%, 1.25% are referral leads from companies like HomeGain.
- Do you treat all leads equally? Isn't a lead a lead? Nope! Real estate leads you purchase are junk. They're not really leads, they're simple inquires.
- Do purchased leads work? Yes. 2.5% of purchased leads result in a sale. So, yes, they work, if you consider a 97.5% failure rate to be acceptable.
- Everyone else is paying for leads, I'm missing out if I don't do it to, right? No way. You're not dealing with online inquires that will distract you from working with your family, friends and those you choose to spend your time with. How about taking the money you would have lost with online leads and take great care of your past clients, friends, family and their referrals. We agents are always jumping on the newest app, the newest tool, and the hottest platforms. There is no silver bullet in our business. You just need to work hard and smart.
If you get a phone call from someone telling you how their service is your key to success, and how a HUGE agent in Venice is using their service at just $25,000 a month, so you should to, hang up and count your blessings that you didn't get sucked into a month money pit commitment. Lastly, never loose sight that a lot of companies see real estate agents as been easy targets to fleece.
If these services are so good, why don't they ever guarantee your success—will never happen.
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