Buying Leads Leads to Broke Fast

In Real Estate money flows out sometimes more quickly than it flows in. Why? Lead generation. Ironic. Need leads to make money, need money to make leads...chicken or the egg?

I caution all new agents to beware of the never-ending solicitations from companies wanting your commissions BEFORE you have even made them. Your license shows up and immediately the swarm of vultures arrive weighing on your fears, convincing you that spending $1000's on lead generation is the only way to succeed or that you must use technology if you are ever to compete. 

Simply put...It's NOT TRUE. First, you must consider the source...they are trying to sell you their product. Secondly, not all real estate is built the same. Third, relax...you still get to use technology. In fact, technology can be useful in many ways. I teach endless hours on this subject so to fit it into one blog is impossible.

Summarizing, you need to know why, what, who, when, where, then how...in that order. 

• Why are you in real estate;

• What do you specialize in;

• Who is your target market;

• When & Where are you available;

• How will you bring value to your clients?

This is the start of understanding your message and what you will say when you get a lead, otherwise you will be ineffective when you have to meet face to face (yes, that is part of the job). Now that you have established some foundation, find a product that will facilitate that directive specifically. 

Now, my motto is make $$ before spending $$. Start with those you know. Meet your Facebook contacts for coffee. Tell them what you are up to. Working your immediate Spere Of Influence (SOI) is the key to a long standing pipeline of clients and referrals. Another option is to start a team until you gain experience and confidence to go it alone.  Once you have made money, spend a little on a lead generation system if you want. But by then, I suspect you will have realized there are several far more effective uses of your capital when it comes to new business.