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Best Online Lead Generation & Cost

Best Online Lead Generation & Cost (Newbie)

By: Jason Anderson
Monday, March 26, 2007 11:43 AM

Well I'm new to Real Estate but not sales and customer service. I have developed several websites in the past and have helped them naturally progress in the search engines. My point to website is www.dfwelitehomes.comand I created a separate lead generation website www.mynorthdallashome.com . Now I just need people to go them ASAP. I currently cannot pound the pavement during the day like I would like to because I have to work during the day to support my real estate habit. I'm currently using the following methods and paying the following cost.

  1. Realestate.com - $250 a month includes my P2 professional membership fees, and 10-15 so called qualified leads.
  2. Homegain - Agent Evaluator - $29.99 a month, I submit proposals to possible clients in an auction like bid for their business.

I know many people have not had success with these but is there any hope of closing a couple deals at least to get me up and running until I can afford to do this full time. Also I signed a six month guarantee to get one closed deal from RE.com or the next 6 months is free. Is there a better method or tools available for a comparable price. I have pretty thick skin and like to hear things how they really are so please do not hold back on your comments, just tell me like it really is.

Thanks, Newbie

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Comments

James Kimmons
Member Since '06

James Kimmons said:

It appears that you're spending about $240/month on specious leads.  There isn't a quick fix, but you'd be far better off doing pay-per-click (PROPERLY), bringing them to your site and having them register to search the IDX.

Using an example of $1.00 per click working the longer tail or very targeted neighborhood kewords, you'll then get around 200+ visitors for the same money.  If you're requiring registration, even the low-end of 1 in 10 would give you 20+ leads to work.  Everything depends on the quality of your site's content and working the leads with the P2A drip system and custom drip emails.

March 26, 2007 11:32 AM
Klaus Nicholson
Member Since '07

Klaus Nicholson said:

  I tried out a couple of lead generating companies, by visiting their websites and giving virtually no information.  They sent me leads of

people that were not interested.

  As I said in a previous post, any company that has no sign up fees

and is willing to get paid when I do, will get my business.

  Google adwords is something I'm going to try, but in a very specific area.

March 26, 2007 12:12 PM
Ronda Kaufman
Member Since '06

Ronda Kaufman said:

I used  Realestate.com for awhile. They are not as good as they claim to be. They did a price increase in the middle of my contract. I complained about it and got out of the contract with out paying any more money. The leads were terrible. I got 1 lead out of about 1200 that was any good. I agree try the pay per click and don't use RE.com. What good is a free 6 months if you've wasted your time and money already??  Professional is only $39.95 for P2A. Basiscally your giving RE.com $220 a month for not much. It took me alotof $$ to realize this, so I hope you learn sooner than later.

March 26, 2007 1:06 PM
Ron Tarvin
Member Since '04

Ron Tarvin said:

Years ago, I was told that I would never learn to swim while wearing a life jacket.  This was while I was working a full time job and having a real estate "hobby" on the side.  I finally threw the jacket away and learned to swim...sink or swim style.  Nothing wrong with having saved some money before you jump in full time, but it's very difficult to succeed as a part time agent.  Why?  Because there are so many FULL TIME AGENTS out there really doing the job every day.  

I don't say this to be mean, but all it took was for me to lose a $1.1 million listing because I couldn't make an earlier appointment in the day and I figured it out pretty quick.

Paying lead generators may work and it may not.  Getting people to your site may work and may not.  You've got a lot of things on your site that change frequently that will lead people away from your site (your google adwords stuff) so I wouldn't bet on your site as it is set up now.

Also, it appears that you are headed into trouble with TREC because your site has ZERO brokerage disclosure which is a big deal in TEXAS (mynorthdallashome, that is). (I know, you didn't ask for that kind of advice, but it's easier to hear it hear than to hear it from TREC!)

If you get after it, we're heading into the busy season in Texas and if you have completed Camp 4:4:3 (Keller Williams exclusive) and started implementing some strategies, then you should be able to close a couple of deals pretty easily in the next 60-90 days.  

March 26, 2007 1:06 PM
Mary Welch
Member Since '04

Mary Welch said:

RE is like any business, you can pay people to go out and try to make a big splash for you or you can work your business yourself and gradually get it built up.

I, myself, like the tortoise and the hare comparable. The hare is all over the place but slow and steady wins the race. I have tried to work a day job (working for my husband) and real estate and I have worked up to my own brokerage and right now I have a full plate. I have had to cut him down to 2 days a week to keep up his books and the rest of the time I am doing RE.

Determine now what you want and set your goals. Try not to be to quick to pay other companies to work for you, they are working for themselves too. Work your P2 website and it will generate leads for you. Read through some of these postings, this is a great community (since we are not competing with each other) and you can get some great help and support here.

You can do it, (and wish you had that money back).

March 26, 2007 1:47 PM
Jason Anderson
Member Since '07

Jason Anderson said:

Wow all of the comments are great help, is there anyway to get out of the RE.com contract other than paying there fees. Out of 8 leads I have got one potential buyer which in the large scope of things is not terrible. I have been in over my head in google adwords especially in a heavily saturated area like the DFW metroplex where the big boys are paying for keywords.

As for www.mynorthdallashome.com this website is strictly an information only website and if you click on the actually associate link at the bottom it takes you to my original KW Microsite. My name is not on the site any where either but I can add the KW logos to be on the safe side.

As for Camp 4:4:3 I have only completed one class when I say im new I mean brand new. I have only been active for 8 days now, but I have been a small business owner in the past. I'm not trying to waste anytime and even the bad leads I get from RE.com are better then no leads at least for practice. I agree that I could probably get better use out of the money but I think its only fair to give them all I got for at least 2 months before quiting or breaking the contract.

March 26, 2007 2:15 PM
Marcia Gelfand
Member Since '06

Marcia Gelfand said:

From what I was told, P2A IS FREE FOR STANDARD MEMBERS.

March 26, 2007 2:29 PM
Mary Matero
Member Since '06

Mary Matero said:

Jason, your profile points to http://www.mynorthdallashome.com/ You might want to direct it to your Point 2 site since that is what we will want to see.  On your North Dallas Home website you have google ad links to other Dallas RE sites.  I'm not sure how those ads work, are you allowed to restrict certain kinds of ads?

I am new, too.  Just over a year now.  I used RE.com for a few months.  My first month I ended up getting a great buyer lead.  I sold her a home in FL that she didn't see until the final walkthrough.  She did have local family that I brought around to see the homes she was most interested in.  Bu,t most of the house hunting was done through email and phone calls.  We ended up "clicking" and have become friends.  None of the other leads panned out and most were junk.  It became more work than finding my own leads.  I also was able to get out of my contract when they raised the price last summer.  With that one sale I was still ahead of the game.

Marcia, he gets a professional site with his RE.com contract.

March 26, 2007 5:35 PM
Jason Anderson
Member Since '07

Jason Anderson said:

I have went to my login and edited my profile to show the correct website address www.dfwelitehomes.com but I cannot get to reflect on this website. maybe I'm just being impatient as usual so I will wait until tomorrow to see if it has been changed. Thanks again for all of the constructive criticism every pointer from you guys & gals really helps me understand the way things should and the way things actually work.

March 26, 2007 9:25 PM
Carlos Rodriguez
Member Since '04

Carlos Rodriguez said:

Jason,

In my opinion, it looks like you are rushing into things before you start making some sales.  You should look for advice before letting the money out. You are doing the right thing by asking questions here.  If you do things cautiously and work hard, things will fall into place.  I agree with Ron, this is not a hobby.  It is more like a lifestyle and it takes hard work and determination to make it nowadays due to the intense competition.  I suggest you save your money, do it full time, and work hard.  Otherwise, it will be extremely difficult to survive.  These companies will dry up your bank account before you know it.

March 27, 2007 12:47 PM
Matthew  Threlfall
Member Since '06

Matthew Threlfall said:

Jason,

Lead Generation companies such as HouseValues and RealEstate.com charge too much and their set-up fees are a scam!  I did HouseValues and actually got a buyer right off the bat (only after paying $600 - for two months) and this deal turned into a double deal because I also sold their home.  However, I didn't like paying $300 a month after that  ... I was only getting 6 leads a month and on-line leads usually take 6 months to a year to convert, that is if you can convert them to being a client.   It's a number's game ... so many leads will eventually convert to a client.  However, that can be very expensive and can bleed you dry.  I use HomeGain too (only as a means of getting 3-5 extra deals a year) and I have had great success with it.  I have the same set-up as you do competing with other agent's to convert the lead into a client. I have paid $29 a month for 6 months and have closed 3 deals and have two listings right now from it.  So my ROI is outstanding so I will stick to this program.  It's not rocket science of course and I am not special.  All I do is create an honest proposal and sell them my value.  Once I get a response ... an e-mail from the prospect, then you have to close the deal.  KW has great scripts to use to convert prospects into clients and Camp 4-4-3 is outstanding!  Dump RealEstate.com and spend your money on tools KW has to offer,such as Camp 4-4-3.  AND stick to it!  It's very challenging and takes serious commitment but you will get results.  Good luck and NEVER GIVE UP.  This biz is tough, but rewarding and worth it!  Take care.  

March 28, 2007 11:04 PM
Jason Anderson
Member Since '07

Jason Anderson said:

Thanks for all the help I actually got a buyers agreement from homegain.com in 3 days after signing up. Realestate.com is pricey but I have got exactly what you stated several good leads that will take several months to close. But at the end of the day the ROI seems as if it would be worth it. With a minimum of 10 leads a month and P2 included that is $215/10 = $21.50 per lead or $215 x 12 = $2580 a year. They offer a 6 months guaranteed close or the next 6 months is free. I figure I only need to close one bigger deal or 2 smaller deals to recoup my investment. I'm a newbie to real estate but not business. With 120 leads minimum good or bad I think I can close at least 2.

Camp 4:4:3 is awesome along with everything Gary Keller has put out. I'm a huge self improvement nut and that is 75% of the reason I joined Keller Williams

March 29, 2007 9:34 AM
Nick Coleman
Member Since '06

Nick Coleman said:

Jason,

My advice (humbly) is to dump the lead generators and do it yourself -- it will be cheaper and you'll be able help control the lead quality.

I use multiple sites:

 -- General Real Estate Site (i.e. my site): www.parkcitysold.

 -- Buyer focused site (gives direct MLS Access): www.parkcitybuyer.com

 -- Seller Focused Site (Offers CMAs): www.parkcityhomeprices.com

 -- Sub-Division specific sites: powderwood.parkcitysold.com

Then I buy yahoo or google keyword ads to drive users to the sites.  This costs about $500/month and results in one listing or closing a month.

I also look at keyword traffic and tried to optimize the webpages so the search engines will place my site on page 1 or 2.  (e.g. keyword Park City UT Real Estate).    You need to be careful to pick keywords that might be less popular but have less competition.  For example, the above keyword works, but "Park City Real Estate" has to many sites optimized for it ... so, I'd never get to the front of the pack.

All the sites are serviced by the same P2A site ... some just have the header/footer info removed.  (Note: you need to get the pro subscription to do this.) They also go to pages where the users are required to login before they get the information/service.  They're then put into a specific drip email campaign for the service they're requesting.  I've had people get the drip email for 4 months and then contact me to help them.

Whewww ... this is a bit long ... but is sumarizes my approach to lead generation.  Hope it helps.

April 3, 2007 8:44 PM

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