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Real Estate Fight Club

Mar 2020

Episode 23: Should Agents Buy Leads?

March 4, 2020

In Episode 23 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over whether agents should buy leads. Hear why Jenn thinks buying certain kinds of leads can help you build a thriving business. Then hear why Monica thinks that you shouldn’t have to buy leads if you’re building a business based on relationships. 

Episode Highlights: 

  • Should agents buy leads?
  • Jenn says yes. There are certain types of leads you should buy. If you are doing expireds and FSBOs, or neighborhood calling, buy those numbers.
  • Monica suggests that if someone doesn't know how to put a system around those leads, it may not be a good use of their money.
  • Jenn agrees that spending money without putting a system around that investment isn’t a good idea.
  • Jenn says that Zillow leads are not worth your money.
  • Jenn doesn't know of many people who are having success with Zillow leads now.
  • Monica is not a fan of buying leads.
  • There are exceptions. If you are really trying to reach a high level of production, you may need to take additional steps. But most agents are happy doing 12-36 deals per year.
  • You can do 12-36 deals per year through relationships and referrals.
  • You can be doing things systematically to generate leads from your sphere, database, and network.
  • Instead of buying leads, spend that money on developing relationships.
  • Jenn reiterates that cold-calling and calling FISBOs/expireds can be a great way to build a referral base if you're in a new market.
  • Know how many people you need to have in your sphere to net 12-36 deals.
  • Monica has friends who have built thriving businesses using open houses.
  • Jenn's strategy is built on what is going on in the market.
  • Jenn emphasizes the value of calling expireds or FSBOS because you already know they want to sell their home.
  • Monica points out that a relationship-based style is market-proof.
  • Jenn's preference is to work with people she doesn't really know.
  • Know what you're expecting from your strategy and track and measure those results.
  • Monica is not a proponent of buying leads.
  • Monica thinks you should spend money on relationships and helping people get what they want.
  • Jenn advises that you need to know yourself. If you don't have a big sphere and want to add to it, call FSBOs, expireds, and do circle prospecting. Buy that contact information.
  • If you're the type of person that wants to deal with people that you do know, then you can participate in networking groups, but make sure that you're participating at a high level.
  • Message Jenn and Monica about their seventh level open house strategy.
  • Whatever you decide to do, do it the best. Do it with intention and with a system. 

3 Key Points:

  1. Buying leads can save you time if you’re working expireds and FSBOs. 
  2. If you’re building a sphere-based business, you should invest in relationships instead of investing in leads.
  3. When you choose a lead generation strategy, choose to implement that strategy at a high level. 

Resources Mentioned: