Posted by: realestatewebtrainer | June 25, 2011

Lead Management Websites are bankrupting Small Real Estate Offices

The Internet is now the hyper-focus of everything Real Estate – the concepts Social Media, SEO, and Technology have never been so bandied about as now – every vendor throws these words around so they can be viewed as relevant. This is a recognition that the Real Estate Industry is no longer in the driver seat when it comes to their clients’ habits; The Consumers are – simply because they have access to the internet everywhere!

I claim that Lead Management Websites are bankrupting small Real Estate Offices (both financially and professionally!)

Lead Mangemnt Websites Can Bankrupt your Real Estate Office!

So what are Lead Management Websites? They are websites that are constructed with a built-in IDX Feeds (MLS Search for the public); are driven by buyers searching for homes; lead capture with delayed registration; and a management of Pay-per-Clicks campaigns.

There is nothing wrong with these types of websites but they come with a high price; and it’s not the just the price in Dollars. These types of websites can be made to work in the hands of large brokerages 75 to 200 agents; and many do a good job with them. But these types of brokerages or conglomerates are less than 1/10 of percent of all the Real Estate Offices in the county.

1. Brokers who desire these types of websites need to spend between $30,000 and $50,000 a year to generate leads; in fact I know of a few brokerages who spend over $150,000 a year on them. of course this is not how these type of websites are sold; they are sold with this premise: The Broker gets a Mortgage company to pay $12K to $18K a year, and the agents each pay $2,000 to $3,000 a year to be on the system, and the Broker manages it all.

Like I said there is nothing inherently wrong with this model; but if one digs a little deeper Small Offices, (under 15 ‘Working’ Agents) signing up for these contracts are finding themselves in a quandary…

Their agents are getting lots of leads but rarely closing any; and if brokers discontinues these type of services their agents threaten to leave them to go seeking more leads from another broker; the one left holding the bag of the contract are the brokers.

Let me share with you the Professional Bankruptcy these Brokers are experiencing:

2. Lead Management Websites make your agents focus on Buyers and they stop working their local influence and generating Listings. In essence your Real Estate Agents become hooked of the illusion of work by managing so many leads a month that they stop having time to prospect for Listings.

You are in essence training your agents to become lazy by having the illusion of work.

Brokerages that grow are built on Listings – NOT Buyers.

So let me ask you this: “Why have you opened your Real Estate Office?

Real Estate is a Listing Business – Buyers buy existing inventory from Agents and brokers who List for a living; Have you hooked your agents on working with Buyers’ Leads, so much so, that they have forgotten to prospect for their own business locally?

The bankruptcy I am talking about is not only financial it is professional – Look at your business and perform a Cost / Benefit Analysis and ask yourself: Am I on the right track?

Happy Blogging 🙂 – Key Yessaad, Real Estate SEO Trainer

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Responses

  1. Seems like so many agents have been forced into looking to attract buyers since such a large percentage of listings are controlled by a small handful of REO listing agents who have some buddy on the inside track at BofA, Wells, CHASE, or some other bank. How can so many REO agents have 20-40 REO listings at a time? I’ve talked to these REO agents an many have no interest in working with a buyer …….or even referring them to another agent.

    Short sales are making up a larger percentage of listings, so you are right, they need to list to last. If they put that much effort into securing a short sale listing, that listing will generate buyers.


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