Pros & Cons of Buying Leads

As a real estate agent, lead generation is likely always on your mind. The most established, successful real estate agents can rely on clients approaching them via word-of-mouth referrals. Of course, reaching that point in your career only happens when lead generation strategies have been implemented and refined along the way.

Alternatively, if you are a newer agent, you may still be exploring methods and discovering what will work for you.

In either scenario, you may be trying to decide if lead generation services are a good investment, particularly during your slower seasons. Social media posts across multiple platforms, SEO strategies, and advertising may not be working rapidly or effectively enough for you to meet your targets, and paid leads will ideally help you land work nearly instantaneously.

While this may sound like a perfect solution, every agent would jump straight to paying for leads if no downsides were involved. Today, let’s cover the pros and cons of buying leads.

The Pros

Gain Entrance to the Business

As we’ve mentioned previously, without an extensive history working with clients in Middle Tennessee, you won’t have the name and brand recognition required to garner a steady stream of clients. However, buying leads will help you enter the business. Once you have your foot in the door, you will find it much easier to establish your brand’s presence within your desired market niche.

Consistent Leads

Buying leads will plug you into a continual, consistent flow of potential clients and hot leads, the finding of which is normally the most challenging aspect of being a real estate agent. Lead generation services are paid to connect you with a diverse array of people who have already declared an interest in buying or selling within your market, substantially increasing your chances for conversion.

If cold calling has been wholly unsuccessful and unpleasant for you, skip it with paid lead generation services. Instead, you will be able to focus your energy on client management, marketing, branding, and attending community events, all of which will help you eventually move away from buying leads if you so desire. 

Maximized Online Exposure

Buyers begin their search for real estate online, and will likely have decided on the price range, rough location, size, and type of home they want before they connect with an agent. Likewise, both sellers and buyers will look for a real estate agent online.

By paying for leads, you’re casting a wider net online directly where the fish are jumping high.

Accelerated Career Development

Chasing one lead at a time consumes a great deal of time and effort, which cuts into your time that you could otherwise spend on marketing, networking, and working with clients.

You will therefore experience accelerated business growth via lead generation services when compared with chasing leads independently. Ideally, you will seize the opportunity to develop your own lead generation processes and streamline your pipeline.

The Cons

Increased Cost

Lead generation services are costly, so your marketing budget must be able to comfortably encompass both an initial startup cost and a recurring monthly fee. To new agents, these costs pose a risk of financial harm, especially because you cannot be certain you will find a client or close a deal. Carefully consider the cost vs. benefit and decide whether you can afford to risk investing for what is at this point only potential income.

Variable Lead Qualification

If you decide to pursue lead generation services, you must choose a service carefully. Read reviews, speak with your fellow agents who have used lead gen services before, and only pay once you are sure you are using a top-rated company. 

Even so, you will not be sent only qualified leads. Leads may be non-starters, or they may be snapped up by your competition. Because the top lead generation services are understandably popular, you will be contending with a great number of Middle Tennessee realtors daily.

Leads will be sent out to many agents - the one who moves quickly and with confidence will walk away with the client. You’ll be paying for leads, but you’ll need to develop a targeted, systematic approach that will help you convert those leads the instant they hit your phone.

Turn on every available alert, wake up early, and keep your phone notifications on from dawn until dinnertime if possible.  

The Takeaway

Lead generation is challenging, and it is usually the single most daunting thing about being a new real estate agent. You aren’t alone. Along with focused marketing, social media posting, and lead generation services, we always recommend that emerging agents align themselves with an established agent who will act as their mentor.

Offer to take your potential mentor out to lunch to discuss what you can bring to their business. You may be able to assist with open houses, clerical work, setting up for-sale signs, and refreshing fliers at available homes.

In exchange, ask if this realtor would take some time to mentor you. Become a sponge and soak up every bit of knowledge you can. Observe processes and ask questions regarding their recommendations for you as a new agent.

Above all else, don’t give up on yourself. If real estate is where you want to be, work tirelessly to meet your goals! Getting there will take time, and of course, persistence, but you can certainly earn your place as a successful Parks Real Estate agent.