Maybe this post is about spam, I sure get a lot of it. I don't send the stuff myself. I don't even drip . . I won't explain that one. There are companies out there that are called lead generation companies. They have web sites where home buyers and sellers can sign up.
The company then turns around and sells your name to someone like me so you can be my lead. That means I call you or send you emails advertising my most excellent services.
I say people 'like me' because I don't buy leads. There is one web site that has 'top agents' on it. The way an agent gets to be a top agent on that site is by paying for it. I looked up the top agent for St. Paul, Minnesota and found that the agent has never sold a home in St. Paul.
Finding a top agent off of one of those web sites might not be the way to go. I am not sure what a top agent really is but I think it is very important to work with an agent who at least knows the area, and that might not be the agent who paid to be the top agent.
The way the referral services work is some of the charge a monthly fee to agents so they can be advertised on the site. Other sites 'capture leads' and then sell them to agents. I pretended to be a seller and used one of those web sites that promise a free home valuation. I was contacted by an agent a couple of months later and when I checked I found that the agent had not previously worked in my neighborhood at all.
There are some ways to find the right agent. One way is to ask friends, neighbors, co-workers and family members who have used the services of a real estate agent and ask for a recommendation.
My email in box has plenty of email in it advising me that there are companies who have a lot of buyers and are looking for an agent in my area to work with them. The emails are starting to sound desperate. All I can say is if you are a buyer and are looking for an agent it seems like those lead generation companies already have more leads than they can handle, at least that is what they put in the emails they send me. Consider contacting an agent directly to help the lead generation companies out. Home buyers who do that won't become leads.
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A couple weeks ago I received a call from a gentleman trying to “sell” me leads. He worked for an investment website, where people signed up to get information from them.
Hummm.
I was very suspicious of where they would come up with the 1000 leads he wanted to sell me for $89. Somehow I think those leads weren’t looking for real estate in Denver, but perhaps investment info?
I can’t imagine what I would do with 1000 leads that really aren’t leads.
Kristal – I can imagine what you would do with them you would spend time and a lot of money sifting through all of those leads until maybe you found someone who was looking for you. They should just contact you in the first place. Why become a lead when they can work with the best Realtor in Denver?
We get most of our seller and buyer from word-of-mouth recommendations. We think is around 70% who comes that way, the rest comes from internet. We don’t buy any leads or similarly thing.
Nice piece – I am astonished by how many of these ‘lead generation’ companies exist. If anyone had the time, resources, and energy to really do a thorough analysis of all of them, I wonder if there are even 5% of them that are able to truly provide viable leads…
In any case, I don’t choose to purchase these leads, either.
But I was especially interested to note, Teresa, that you don’t do drip emails. I don’t either. I find that I, personally do NOT appreciate getting these sorts of constant drip reminders from the wide variety of businesses that send them. If I don’t like getting them, I can’t imagine why I would send them out.
Anyway, I continue to appreciate the fact that the more I read your blog and your thoughts and opinions, the more I feel validated in my approach to my real estate business – it’s just nice to see someone who is so well-respected working within the same kinds of thoughts and parameters that I choose to work. Thank you!
I don’t consider the “leads” that these companies anything more than a prospect. Ii doubt that many, if any, have really been qualified before being sold. These people probably stay in business by preying on new people without much of a network.
Teresa – I would guess less than 1% are viable leads – that is – actually looking for real estate. Many don’t even expect to be contacted by an agent. I receive calls and emails like this all the time. When I was a new agent, I bought into one of these services; my time and money is better spent developing my web presence to generate my own leads. At least then, they know they signed up at an agents sight.
As far as being the “top agent” in town, anyone can buy that spot.
And you have developed an amazing web presence. Now they van find you without becoming a lead.