Stop Buying Real Estate Leads
By Erin Gilbert on the Onboard Informatics blog
Posted by: RET Staff
We live in a society of convenience. Technology will accelerate this trend in 2017. Why turn on your lights when Google can do it for you? Why go to the grocery store when Fresh Direct can do it for you? And why invest in lead generation when you can simply buy leads outright?
Buying leads is certainly an easier approach to lead generation than creating a system that attracts, converts, engages and nurtures over time. That's why so many real estate professionals continue to buy leads. It's easy and, for many, it's effective.
But if you are investing in both digital marketing and buying leads from a third party, you could be spending money on the same customer several times over. In real estate and beyond, it's known that generating your own leads has slightly more upfront costs, but costs your company less over time. Purchasing real estate leads – through companies like Zillow or even things like PPC advertising – will likely increase over time. Here's an example chart from the internet marketing company FourandHalf: