The days of real-estate agents of having to rely solely on cold calling to get clients is history.
There are internet companies who specialize in giving agents leads targeting their locale and requirements. For a fee, this added pipeline of potential buyers and sellers, who they otherwise wouldn’t have known about, is an additional source of income and potentially an ongoing revenue stream. After all, the best lead is still a referral and the more leads you have the more referrals you potentially can get.
Choosing the right internet lead generation company is crucial. After all any fly by night website can promise real customers, but the quality of lead is usually not there. I experienced this myself as a REALTOR when they kept giving me clients who only wanted to rent. There is little money in this endeavor and yet it is very time consuming to find a renter a suitable property. Even with a lease option, the renter seldom exercises this purchase option.
You want buyers and/or sellers who are ready willing and able. This means they have all their ducks in a row. They have at least been pre-approved for financing(buyer) meaning they can afford a home in a certain price range. That is the ‘able’ part. The ‘ready’ part means they are able to make an offer on a home, without any encumbering contingencies, such as having to sell their existing home prior. It could also mean if they are currently renting, that their lease is up in the next few months. The ‘willing’ part is that they are serious about doing a purchase contract if they see a home that meets their criteria. This is especially true if they are relocating from somewhere else and are emotionally ready to move to that selected city versus, just thinking about it down the road. If the lead is a seller, the same things apply, that their list price is reasonable, they are emotionally ready to move from their current home and that their home is in proper staging condition to market effectively. Taking a listing that is overpriced and/or not in proper viewing condition is a waste of time for everyone.
So many real-estate agents overspend on traditional marketing to obtain leads, that it is often a zero sum game. Advertising in the newspaper, sending out flyers, door knocking are passe.
For a reasonable fee, a good web lead generator will do the marketing for you and give you good leads by their proprietary technology. You still have to close the deal, that is convert these potential buyers and sellers, but if the leads they give you are lousy, they know they won’t expect you to utilize them again. Therefore it is in their best interests, to obtain quality leads for you.