As a real estate agent, having a continuous pipeline of leads is crucial to your business growth. Purchasing leads from a lead generation company can be a quick and convenient option. However, it is important to ensure that leads are verified and are of high quality, so that your effort put into converting is worthwhile. In this article, we will discuss five criteria that real estate lead generation companies should meet to minimize the risks. We will also go over the steps you can take to vet the quality of the leads before the purchase.
Table of Contents
- What are paid lead generation providers?
- How does paid lead generation work
- The top 5 criteria
- Evaluation process
What are paid lead generation providers?
Lead generation providers gather information about potential clients for other businesses. They do this by using a variety of inbound and outbound marketing tactics. These strategies include surveys, online forms, and other methods that collects data about individuals who may be interested in the products or services.
They could be online property marketplaces such as Zillow and Redfin. They are also software companies like BoldLeads and Zurple.
Once the lead generation company has gathered this information, they sell it to businesses looking to expand their customer base. The businesses that buy the leads can then reach out to these potential clients and attempt to convert them into paying customers.
The leads generated by these companies are usually pre-qualified. This means the individuals have already expressed an interest in the type of products or services that the business is offering. In short, lead generation companies make it easier for businesses to find new customers and expand their customer base.
How does paid lead generation work
The process of how paid lead generation works can be summarized as follows:
- Lead generation companies collect information about potential clients using various marketing tactics. One such example is Boldleads. They utilize targeted paid advertising to drive leads to a landing page. To receive the incentive offered in the ad, leads are required to submit their information. This data is then recorded in the company’s customer relationship management (CRM) system.
- The collected information is processed and stored in a database, organized using the company’s CRM system. This system enables the lead generation company to categorize leads based on your lead criteria. It makes it simpler for them to sell leads to real estate businesses seeking specific demographics such as age and location.
- The lead generation company sells the database of leads to real estate businesses that need to increase their client base. The real estate business that purchases the leads then reaches out to the individuals in the database. The intent of the outreach will likely be to convert them into buyer or seller clients.
The top five criteria
In the following, we will delve deeper into each of the criteria to help you evaluate whether or not you should buy leads from a lead generation provider.
- Quality. One of the most important criteria to consider when evaluating a lead generation company is the quality of the leads they provide. These individuals have already expressed their interest in the real estate market. They are also more likely to engage with agents and ultimately use your services. Research the lead generation company’s reputation from unbiased online reviews. Alternatively, you can ask for references or testimonials from other real estate agents who have used their services.
- Source. It is also important to consider where the lead generation company sources their leads. Some companies generate leads through online marketing while others purchase leads from third-party sources. Ensure that the lead source is reputable and that the leads are not sourced from unreliable sources such as telemarketing or spam emails. There is also the concern that they do not follow GDPR regulations when collecting personal information.
- Cost. The cost of purchasing leads can vary greatly. It is important to consider your budget when evaluating lead generation companies. Consider the cost per lead, the likely conversion rate and compare it to the expected return on investment to determine if the cost is worth it.
- Customization. Consider the level of customization offered by the lead generation company. Can you select the type of leads you want to receive based on your target market, location, and other criteria? The more customization options available, the better the chances of receiving high-quality leads that are relevant to your business.
- Follow-up. Examine the lead follow-up process provided by the lead generation company. Do they offer assistance with follow up to help you turn leads into clients? This can include pre-written email templates or recommended phone scripts. These additional services can improve your chances of success in converting leads and achieving a positive return on investment.
A structured vetting process is critical when it comes to evaluating the quality of leads provided by a lead generation company. Real estate agents need to be confident in the leads they receive in order to maximize their time and resources. By following a specific set of steps, agents can ensure that they are getting high-quality leads that are worth pursuing.
- Research the lead generation company’s reputation by referring to online reviews and other sources. Ask for references or testimonials from other real estate agents that have used their services before.
- Request a sample of the leads from the companies that you’ve narrowed down from step 1. Check the accuracy of the lead information and that it closely matches the demographic specifics you defined. Make sure that the contact information, property ownership details, and any other relevant data are up-to-date and correct.
- Contact the leads to evaluate quality and the follow up process if applicable. From the conversation, consider the lead’s level of interest, financial capability, and timing. High-quality leads should demonstrate a strong desire to make a purchase, have the means to do so, and be actively searching for a property.
- Monitor the results of your lead generation efforts and score your assessment across the five criteria. If you are weighing different options, you may use the rubric similar to the one below..
To help you make an informed decision, we’ve included a sample rubric that you can use to assess the company against the 5 critical criteria. You can assign each criterion a weight based on their level of importance. This allows you to accurately score the company and make an objective comparison.
In conclusion, it is crucial to evaluate real estate lead generation companies before purchase. By doing your homework and looking into factors such as their reputation, lead quality, source, cost, and follow-up process, you can ensure that you’re making a wise investment. Plus, outsourcing this task to a well-vetted provider can free up your time and energy to focus on other important aspects of your business. With the right support in place, you’ll be able to reach new heights and achieve greater success in the real estate industry.